When you’re searching for an online brokerage, there are a number of important factors to consider. Some of them include the type of platform that’s offered, the costs involved, and the ability to access the US market.
Fees
Investing in securities can be a great way to build wealth. Whether you’re just starting out or have been investing for a while, it’s important to understand what you’re getting into before you invest. The best way to do this is to be knowledgeable about the types of fees you may face.
Brokerages charge different fees, depending on the firm. Fees can be based on a flat rate, a percentage of a transaction, or a hybrid of both. These fees can add up over time, affecting your portfolio’s return. However, you can avoid these fees by choosing a Online brokerage comparison firm that offers no-load mutual funds, fee-free investments, and no trade commissions.
Brokerages may also charge you a per-trade fee, or spread, for each financial instrument you purchase. You can reduce this cost by shopping around and comparing brokers.
Platforms offered
A quality online brokerage has the requisite features and benefits to keep your portfolio afloat. This may include access to a wide range of investment products and services, as well as a myriad of tools and calculators to help you find the best investment opportunities. Some even offer robo-advisors, an automated and low-cost way to do your investing for you. Whether you’re a seasoned pro or just getting started, a quality online brokerage can make your life easy.
Many of the leading online brokers offer a demo account for newbies to try out the platform’s features. The most robust platforms also offer the services of a human customer service representative if all else fails. In fact, most will even provide a list of recommendations for other like-minded traders.
Live customer support
The best brokers have a good customer support system. Having someone to hold your hand is always a plus. There are a few that impose limits on their opening hours. Luckily, most of them have a slew of “contact us” buttons on their sites. If you can’t find one, you can always email them. That said, some of the aforementioned firms may not be as responsive as their customer service representatives may claim. This is especially true if you are dealing with an investor who is a bit of a dunderhead.
Not all brokers are created equal, and that goes double for your trading account. For instance, TD Ameritrade pairs an excellent customer support experience with a comprehensive education program and an impressive collection of trading tools and e-books. The company also boasts the largest trader-centric database in the industry.