ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Advice on selecting an online broker.

Updated on August 14, 2015

Questions to ask yourself

You probably worked pretty hard for what you have earned and you want to make the most of it. If you have decided to invest your money into an account with an online broker, this article will help you in evaluating the best online broker for you needs.

Decide how you are going to use this account. Determine how much you are going to invest. Do you want to trade options or stocks? How many trades do you intend to make? This one is a little tricky as you get more experienced you may trade more often or less often. Is service important to you? If you wish only to buy mutual funds perhaps you will be better served by going to a mutual fund company.

Do you feel more secure if the company also has an office near your home? Will an internet only company be satisfactory for you?

Where you have accounts now? Perhaps your 401K is with a large company such as Fidelity. Often they will offer you a better deal since you are an existing customer.

Finding the right broker can save you cash!

You work hard for your money!
You work hard for your money!

Do some investigation

Google “online stock brokers” and a lot of information will come up. You will need to sift through a lot of data.

Fees are a big issue in the selection of an to online broker. Evaluate fees for all of the brokers. Some brokers offer $1 trades but have inactivity fees and market data fees. I have seen IRA fees, statement fees, odd lot fees, exchange fees, withdrawal fees. I am sure that there are some fees I missed here. If you see a fee I missed please feel free to leave a comment below. Fees can make investing an uphill battle. Fees often vary based on how often you trade.

Some brokers have absolutely awful customer service. A little investigation on the internet will tell you just how bad their service is. Perhaps you do not really care about service.

There are a number of websites which compare online brokers. Words of caution here, many of these websites are geared to make one broker stand out as the best. Look to see who is missing. More than likely the broker not mentioned in the comparison is a better choice. The broker will compare themselves against the poorest completion. Most NFL teams could make the playoffs if they played the Detroit Lions and teams of equal quality every week.

Ask yourself do I really want to use an online broker? What will this do to my asset allocation? Many of us were taught by well meaning but misguided teachers in school to buy stocks. We were not taught about no load mutual funds. It is very hard for the average individual to select the right stocks for our portfolio. You may be happier in the long run investing with a great no load mutual fund company.

Are you interested in the best no load mutual funds? Help in selecting the best mutual funds for you are just a click away.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      james moylan 

      7 years ago

      I have a web site where I research stocks under five dollars. I have many years of experience with these type of stocks. I would like to recommend a stock broker that has no minimum amount to open an account you can open an account for just 10 dollars if you like the broker is sharebuilder.com

    • Daddy Paul profile imageAUTHOR

      Daddy Paul 

      8 years ago from Michigan

      Thank you John.

      I am going to guess you work with Interactive Brokers.

    • profile image

      John 

      8 years ago

      Hi Daddy P - Liked your blog. I certainly agree you should do your research before you select a broker. I am using an online broker at the moment that charges only $1 commission per trade. But I know plenty others that charge from $10-$20 per commission. What a rip off eh? thanks. J

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)