Compare online brokers
It is getting harder to compare online brokers these days. If you are
like me, you are getting confused by all the broker ads that we get
bombarded with every day. It seems like every webpage I visit these days
has an ad for at least one online broker. And if you go to a
finance-oriented web page, then you will probably see 3, 4 or 5 ads.
This can just confuse the situation because each one focuses on one
thing they do well and it makes them sound like the absolute right
choice as your broker.
But for you to compare online brokers in order to make the right choice
for you that will best fit your needs, it takes some time to line them
up side-by-side and list out the features of the areas that are most
important to you. That way, you can do a thorough comparison of one
against the other and you will be able to see clearly how they really
stack up.
Based on the latest trending in web search terms as well as online
polling that I conduct, the majority of traders are looking for a cheap
online broker, or one that has a low trading price. This should come as
no surprise to you that people shop on price and want to pay the lowest
possible price that they can. Especially with the stock market today,
where the economy is still lackluster and the market is without
direction. People are concerned about maintaining the profit margins on
their trading. Keeping their brokers fees down is an important way to do
this.
I have always advocated a combined method to compare online brokers. It
consists of comparing two important metrics and comparing them
side-by-side for the top brokers. One metric is the cost per trade. It
is important to look at not just the published rate but also to take
note of any extra trading fees they charge and the conditions that
trigger them. The other metric is to look at their overall service
quality ratings. This consists of a rating for features like the quality
of the trading platform, their customer service quality and
availability of research information.
By using a combined approach when you compare online brokers, you will
be able to get the low cost you are looking for, but also ensure that
you will receive a satisfactory user experience with all the other
aspects of your relationship with that broker.