Dave Johansen

Finding a top online stock broker

Choosing the best online stock broker must start with deciding what kind of trader or investor you want to be.

This will determine what services you want and help you pick the best online stock broker.

If you intend to be a position trader or one who trades infrequently then you should choose between a full service or discount broker. Your choice will then be one of how independent a trader you want to be. If you want advice on what stocks to invest in then go for a full service broker. Their fees are expensive though, so if you intend to do your own research and management of your portfolio stick with a discount broker.

Don't just choose based on price however. Although price is an important consideration, the most important thing is how efficient and effective your broker is at carrying out the services you signed up for. Look for brokers that provide smart order routing capabilities and brokers that allow you to test drive their systems.

Having an all singing, all dancing service is of no use if the brokers trading systems breakdown at a critical moment.

If you expect to become an active online stock trader you may want full access to trade electronically on the stock exchanges. In this case you may need to open an account with a direct-access broker. But if you think your trading volume will be less than 50 it might be better to stick with a discount broker.

Some of the services you will want to consider are, the types of orders supported, what kind of data you'll have access to and do they provide pricing charts.

When choosing the best online stock broker you must first decide what types of services and accounts you need. Then research the brokers and find out which one offers the best mix of services for what you want to do and are prepared to pay for.

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