Choosing an online brokerage firm

Choosing an online brokerage firm that suits your needs is critical. The website TopTenReviews lists the best online brokerage firms. Read the review section for each company to choose the firm that best suits your needs. Contact a state securities regulator for a background check from the Central Registration Depository before investing any money.

Fees and Commissions

Fees may be associated with an online brokerage account: transaction or advisory fees, fees for falling below a minimum balance, account maintenance fees, transfer fees, account inactivity fees, and wire transfer fees. Some online brokers have a tiered commission schedule based on account balance or trade volume.

Trading and Investment Tools

Look for a service that provides good tools, including alerts, third-party analyst reports, investment calculators and virtual trading. Good research and educational resources help build the knowledge needed to make stock trading less confusing.

Support and Customer Service

Because online trading is confusing and complicated, online stock trading services should provide fast and good customer service by telephone, email, instant messenger, and chat.

Monitoring the Account

Review account activity regularly. Check investments for suitability. Are they meeting expectations? Take notes of any conversations.

Source:

FINRA

investingonlineresourcecenter

More Information:

North American Securities Administrators Association

TopTenReviews