Online stock trading has become increasingly popular in recent years. If you are an aspiring investor, you need to know how to identify a stock broker that you can fully trust. After all, this is real money we are dealing with here, and online stock trading is an extremely lucrative niche. In this article, we will explain what are the key features you must look for when choosing a stock broker.
1. Trade Commissions
One of the most important things to consider is the cost of buying stock. Brokers that offer flat fees are generally considered the best, but there are some good brokers whose fees change with the size of the order. Find an option that works for you and your personal preferences.
2. Trading Tools
As a general rule, the best stock brokers offer a variety of tools to help you make the most out of every deal. Good tools are essential for every serious investor – real-time quotes, mobile applications, precise stock scanners, etc. Make sure the stock broker you choose does good in this aspect.
3. Customer Support
Another very, very important factor when it comes to stock brokers. Representatives should be available 24/7, and the communication needs to be held in a way convenient for you. Even though you may not have to deal with customer service all the time, it is better to know that you will have good support in case something comes up.
4. Security
All online brokers should invest heavily into security measures for their customers’ accounts. Encrypted connections and security certificates are a must, as well as the option to add security questions in order to further protect your account. Make sure the stock broker you use is a member of SIPC and FINRA.
5. Market Research Tools
Good stock brokers are known for providing free market research tools for their clients. For investors, it is essential to know the market trends, predictions, and other important data, so those tools are an absolute must. Based on our observations, the higher the commission you pay, the better the research tools you get.
6. Investments
Stocks are far from being the only thing worth trading online. Many brokers also offer forex and futures trading, exchange-traded funds, mutual funds, and other similar possibilities. Even if stock trading is your main interest, we suggest finding a broker with a more diversified portfolio of available services.
Those were the main things you should look for when choosing an online stock broker. If you need additional guidance and tips, do not hesitate to get in touch with us via the provided contact form. Make sure you also browse Day-Traderz.com for more interesting articles from the world of online trading.