Many online trading accounts exist from stock brokerages like Merrill Lynch, Scottrade, ShareBuilder and Fidelity. These online trading accounts allow investors to trade stocks real time. Discount stock brokerages such as ShareBuilder are great tools to use for the average investor who may not have the money required to deposit with a full-service broker.

Brokers

Online trading accounts provide two types of stockbrokers: full-service and discount. A discount stockbroker charges minimum fees to trade stocks but also gives the least amount of help. A full-service broker gives individuals professional stock market and investing advice, while also giving investors the ability to use online platforms to trade stocks.

Features

An online trading account typically contains tools for the investor to aid him in his decisions about which stocks to buy. Real-time stock quotes, charts and graphs and stock forecasting tools are examples of some tools given to investors in an online trading account. An example of a specialized stock help tool is ShareBuilder's PorfolioBuilder, which helps align stock choices with an investor's financial goals.

Account Requirements

The majority of discount and full-service brokers that have online trading accounts for investors require an initial minimum account deposit. With the exception of ShareBuilder that requires no account minimum in order to start trading online, online stock brokers such as Scottrade and E*Trade require a minimum of $500 to $1,000 on average to be deposited into your account before you can trade.

Benefits

Many people use online trading accounts because the majority of brokers offer 24-hour, seven-day a week online access, so that investors can make stock trades and pay fees. Another benefit to online trading accounts is that there is usually flexible-trading options, such as trading by touch-tone phone.

Considerations

The specific broker you are considering investing with should be researched before you invest money to ensure you're getting the best deal. A variety of investing options should be offered such as certificates of deposit, money market and mutual funds as well as options trading. The broker should also have a clear background and a Series 7 and Series 63 license if he is soliciting business from you and advising you on stock market purchases; free tools such as FINRA BrokerCheck at brokercheck.finra.org can help.

Source:

Scottrade: Full Comparison of All Brokers

FINRA: FINRA BrokerCheck - Terms and Conditions

More Information:

The Motley Fool: Picking a Broker

ShareBuilder: Pricing and Rates

Merrill Lynch: The Direct Advantage