As an investor it is very important you work with only the best stock brokers. You need a stock broker that will adequately serve your individual needs. Working with the wrong broker could result in you spending, and losing, more money than you anticipated. Here are 5 key factors you should look at before choosing which broker to work with.
How Much Are Trade Commissions?
How much is it going to cost you to buy shares of stock? What is the fee based on? Is it determined by the size of the order or the type of order? As an investor you should always look for brokers with flat fee trades. That means, no matter what type of trade it is, the fee is always the same.
How Is Customer Service?
Whenever you have an issue you want to know you will be dealing with a highly trained representative. As an investor you want to be treated the right way. You want to know your questions will be answered quickly. You also want to know any issues you have will be dealt with expeditiously. Even if you aren’t the type of investor who contacts customer service on a regular basis, just knowing they are there is very comforting.
What Trading Tools Are Offered?
To be a successful investor you need access to the right trading tools. Top brokers always offer a wide variety of trading tools. These tools can be used to help you get the most out of every trade you make. Some of the tools you should look for include live news feeds, level II quotes, last sale tickers and mobile trading just to name a few.
What Is The Account Minimum?
Each broker is different and will therefore offer different account minimums. Some brokers will offer no minimum deposit while others may require you deposit several thousand dollars to start trading. The more you have access to, functionality, premium platforms etc., the higher your minimum may be. Again, each broker is different so you will need to do your own research to see what all is offered for the account minimum.
What Other Fees Will You Be Required To Pay?
Some brokers charge fees that go beyond the trade commission. Some other fees you may be required to pay include transfer fees, yearly IRA fees for those with retirement accounts, and inactivity fees. Its very important you understand all fees you will be required to pay. This way there will be no surprises in the future.