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7 things to look for when picking a brokerage

Having the best stock broker to serve individual needs is quite essential for any investor. For instance, inexpensive trades most…

By editor , in The Public Markets , at May 11, 2018

Having the best stock broker to serve individual needs is quite essential for any investor. For instance, inexpensive trades most frequently come at the cost of less research tools along with a much more simplified trade stage. Consider these 7 important factors to assist your comparison between brokers so you can eventually identify the best one to suite your unique requirements.

1. Trade Commissions
What does it cost to purchase shares of stock? Does the fee change based on the type of order or dimensions of sequence? To keep it simple, look for brokers that offer flat-fee trades, ie charging a flat rate no matter the type, price of the stock, or dimensions of the purchase.

2. Client Service
When picking up the telephone or emailing an agent, is a well trained client support representative ready to assist? How any investor is treated as a client is significantly more important to some than others. But, even for those that don’t rely on client service that frequently, to know that they’ve award winning service there when they need it’s comforting.

3. Trading Tools
Trading successfully is a lot simpler when investors have great tools at their disposal. A top stock broker must offer access to a broad selection of trade tools to assist make the most of every and each trade. From real-time streaming quotes to last sale tickers, quality stock scanners, cellular trading applications, and level II quotes to mention a couple. Strong tools are critical for active investors.

4. Account Minimums
Some brokers enable you to start an account with no minimum deposit while others might require several thousand dollars. In addition know that some brokers need higher minimums to get access to premium platforms, functionality, and personalized service.

5. Market Research
A fantastic on-line broker will provide a wide assortment of market research tools. The overall rule here’s simple: the longer you pay per trade, the better the industry research (both technical and fundamental) that’s provided.

6. Investment Options
A on-line stock broker should offer access to not only trading stocks, but additionally a strong selection of no load mutual funds, commission free ETFs, and complex options. Other distinctive investment offerings to look for can include direct market routing, conditional orders, futures trading, and forex trading.

7. Speed & Order Execution
For the active trader, execution speed and fill price are extremely important. I won’t get too in depth here but I have tested some of those brokers and there can be noticeable differences in trade execution times and quality. For the majority of investors, saving a penny per share on a 100 shares order isn’t the end of the planet, but for active traders it’s something to look into.