| In recent years investing in the stock market has | | | | pay part or all of your transfer fees if you switch to |
| become easy and accessible. In the past, investing | | | | them. The more expensive non-discount brokers will |
| was complicated and expensive. To buy stock, an | | | | charge you if you sneeze. Gone are the days of |
| investor needed access to a broker. Brokers would | | | | paying too much for the exact same service. If you |
| charge substantial fees and would place buying orders | | | | are a mutual fund trader look for brokers that |
| directly to the stock exchange. With the advent of | | | | provide a fair rate on those trades. If you day-trade |
| the digital age and the internet this archaic model has | | | | or dable in options check your contract fees and |
| been replaced. Investors have more tools, more | | | | trading fees. If you require a margin account find |
| efficiency, and more control over how and when | | | | what the interest rate will be on each of the |
| they invest. Automatic limit purchases, streaming | | | | accounts and the dollar amount you'll need for the |
| stock data, and other on-the-fly reporting has made | | | | best rates. The best advice here is to look around. |
| day trading and short window option purchases | | | | You can do a lot of research in a small amount of |
| possible. Gone are the days of checking your stock in | | | | time online. |
| the newspaper or hearing your stock price reported | | | | Research – Timely thorough research helps build |
| on the radio. | | | | winning portfolios. Some research is extremely |
| Now that we've arrived in a new age of investing | | | | expensive. Some of the higher priced brokers provide |
| the question becomes “How do you choose a | | | | premium research and reports for free. These same |
| discount broker?”. Other questions you might | | | | brokers also require a minimum balance and charge |
| have are “Do I need all the features more | | | | you every time you blink. With a down economy and |
| expensive brokers provide?” “What are the | | | | the stock market at fourteen year low paying extra |
| major differences between expensive and low cost | | | | fees can add even more pain. |
| brokers?” With that in mind lets explore the | | | | Trading Tools – Each broker provides a different |
| major areas of difference between online brokers. | | | | and more customized set of tools for their customer |
| Trading Costs - You can expect to pay anywhere | | | | base. Look closely at the tools and some of the |
| between $25 and $3 for each trade you make. Some | | | | limitations of each. One broker might provide a better |
| brokers reward buy and hold strategy by making the | | | | tool but might have features that seriously handicap |
| purchase of stock very cheap and the sell of stock | | | | your trading style. While every broker might have the |
| more expensive. This allows | | | | same tool the tools functionality might be completely |
| Fees – This is one area that really differs from | | | | different. Try to setup a test account in a few of |
| one broker to the next. If you have an established | | | | the most interesting brokers and find one that works |
| trading pattern it is well worth your time to find a | | | | for you. |
| broker that works with your habits. If you are | | | | You might be interested in reading these articles: |
| opening an IRA look for a broker that has no | | | | Review of Tradeking.com, Review Online Discount |
| maintenance fee or inactivity fee. Some brokers will | | | | Stock Broker, & High Return Online Saving Accounts. |