| Finding the best online broker isn't easy. Information | | | | candidates as well. Another tip is to make sure the |
| is incomplete. To complicate things even more online | | | | reviewers are comparing apple to apples. It happens |
| brokers aren't forthcoming on basic information like | | | | regularly so be careful. |
| cost per trade, fees, cash interest rates, and other | | | | Try to find out the criteria for the review of each |
| critical information. | | | | broker. One review might give your perfect broker a |
| Authoritative sites give conflicting reviews and | | | | low score because they don't offer check writing. If |
| ratings. For example, the top rated online broker for | | | | you didn't care about check writing and that broker |
| JD Power in 2007 is the 12th place loser for Smart | | | | has everything else you want you might have missed |
| Money. To make things worse there are so many | | | | them because of a poorly written review. |
| online brokers to choose from that even the reviews | | | | Another tip for finding a great broker is to know |
| couldn't decide whom to review. It's common for | | | | what's important to you. Are you interested in Mutual |
| some reviewers to completely leave off companies | | | | Funds, are you an active trader, do you want to get |
| that received high ratings from another reviewer. | | | | into options, will you have a lot of cash sitting in your |
| Another problem is that some reviews are 2 to 3 | | | | account, will you use margins? There are many things |
| years old. | | | | to consider. Some brokers will be very good in some |
| In the information age you'd think someone | | | | areas and not so good in others. Knowing what areas |
| (cough...cough... Consumer Reports) would have the | | | | are important to you will help you narrow down your |
| solution, but they don't. There are too many factors | | | | search quicker. |
| to make a final judgment on the best broker. The | | | | The final thing to remember is spending more doesn't |
| type of trader, account size, activity, research | | | | always mean you get more. Most of these discount |
| provided, customer service, and the amenities | | | | brokers went through tough times after the internet |
| offered make each company fundamentally different. | | | | bubble burst. They had to become competitive while |
| In a way, rating online brokers is a lot like looking at | | | | lowering prices. As they did this the tools, research, |
| vehicles. A dump truck is fundamentally different than | | | | and service provided started to even out. You don't |
| a motorcycle. The dump truck reviewer will rank the | | | | need a premium broker to make money anymore. In |
| motorcycle as a flimsy cheap vehicle that can't haul | | | | fact, the big banks and investment firms have a lot |
| more than a couple people. The motorcycle reviewer | | | | more overhead than many smaller companies. Don't |
| will discredit the dump truck as heavy, clunky, and a | | | | believe the marketing that you'll be getting more by |
| complete waste of gas. So which is better, the dump | | | | spending more. It's not always true. |
| truck or motorcycle? Just like many things, it | | | | Hopefully finding your broker will be fun and easy. |
| depends. | | | | Most likely it will take some work and good |
| To find the best reviews try to find similarities in | | | | old-fashioned homework. Good luck and happy |
| each review. Is there a company consistently in the | | | | hunting. |
| top five? These brokers will likely be one of your top | | | | |