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Finding Online Discount Stock Brokers Has Never Been More Important
You have to pay the online broker for every transaction that you make through him, whether it is buying or selling stocks and whether it is for a profit or for a loss. As such, you must ensure that the brokerage rates are well within your budget for them. Generally speaking, however, brokerage rates are on a sliding scale basis. This means that as you purchase more shares of stocks, your cost per unit goes down. Of course, the specific amounts in the sliding scale will vary and can even be negotiable depending on your agreements.
Aside from the brokerage rates, other account fees will also be charged to your investment account. Usually, these are for transactions like transferring money from your bank account to your investment account and closing the account. You have to check the fine print to determine if you are amenable to the account fees. You might just discover that a hefty amount of your seed capital has been diverted to account fees to which you unwittingly consented.
There are two types of access that you must require of an online broker: phone access and money access. The absence of either one should almost automatically disqualify the online broker under consideration.
Phone access is very important since you want to be connected to your stockbroker on a virtually 24/7 basis. Keep in mind that power outages, broadband disconnections and laptop difficulties can cut off your line to your stockbroker. And with life being what it is, you might just have zero access to your stockbroker when you need to take action on a profitable selling opportunity.
The online stockbroker must offer many options when it comes to access to your bank and trading accounts. You may prefer having a separate account or a linked account. It's your choice and the online stockbroker must be able to offer that choice.
If you can find an online stockbroker that offers extra benefits, then put him on the top of your list. These extra benefits can range from free limited brokerage period, free reports and free bonus offers when opening an account. Of course, you must not be blinded by so many extra benefits. If it is too good to be true, well, you know the end to that story.