Compare Online Brokers..How??

The technology wave has brought easy access to many services, including stockbrokers. When comparing online brokers, many of the same considerations for comparing traditional brokers apply.Before you begin an account with any broker, you should understand the basics of investing so you know the type of account you want and the type of broker services you need. There are many resources in print and online that can provide you with this information for free.

Instructions

1. Step1

   Write down the type of transactions you want to make through an online broker and how often you think you will be making each type. What kind of money do you have available to start with and to continue to put into the account? How much do you see that increasing or decreasing over time? What kind of account will you be setting up?

2. Step2

   Decide which kind of brokerage service you are seeking. You can choose from discount brokerages, premium brokerages and full-service brokerages. Some use their own software, and some do not. There are pros and cons to both.

3. Step3

   Look up the fees and commissions charged for every type of transaction you can foresee yourself making. Read all the fine print. While looking up the charges, note any minimum or maximum limits the brokerage may have on transactions.

4. Step4

   Look up multiple online reviews about the primary brokerages in which you are interested (see Resources below). Some reviews from print may be published online or be available at your local library. Overall, how did the top runners on your list fare? What problems have been consistently reported? You are looking for overall high marks over the course of multiple years, up to the present time.

5. Step5

   Check into scandals, consumer complaints and other problems with the brokers you are considering. There are multiple sources online that track such things (see Resources).

6. Step6

   Read up on any complaints about time lags in their software and on their website. If you want to make a transaction quickly, the last thing you need is a website that continually lags and will cost you in lost investment earnings.

7. Step7

   Read up on their policies for terminating service. If you are unhappy with the service you receive from your chosen broker, you should able to moveyour money to another broker in timely and inexpensive manner.

8. Step8

   Find out where the broker is headquartered or the location from which they conduct their online business. Check with the Better Business Bureau in that region for complaints. Complaints are not necessarily a reason to be concerned, but how the complaints are handled and what they are in regard to will give you some further insight into whether you want to trust your money with the broker in question.

9. Step9

   Visit the website of each broker you are interested in. Check out as much of their site as you can without joining or signing up for anything. If they offer a "tour," take it. Look for the kind of customer service they offer and what on-site research tools they offer.