Three Traits of a Good Discount Stock Broker
If you find yourself wondering what internet stock broker to sign up with, you need to know what separates the good from the bad.
You will see ads for free trades or ads for cheap online stock trading firms, but do not be fooled by their marketing ploys.
The best discount stock broker will be the one that has rises above the rest in three distinct traits: fees, access, and support.
The first discount stock broker trait are the fees they charge.
When you think of fees, most of the time you think cost per trade.
Although, this is the main fee to consider there are many other fees that are associated with accounts.
There are IRA fees, account closing fees, fees for larger trades, and fees for not enough trades in a month.
You may also encounter hidden account fees that we will go over in the next trait.
Bottom line: Read the fine print and be knowledgeable of the fees that your online stock broker is charging.
The next trait to consider is access.
There are two meanings to access: phone access and money access.
Phone access is simple.
Will they answer the phone when you call them? I don't know, find out first hand before signing up.
The other type of access is access to your money.
How easy is it for you to transfer funds in and out of your online stock account? Are there hidden fees associated with getting your money out quicker? You should be able to readily move money in and out without any problem.
Finally, the last and arguably the most important, is support or customer service.
A reputable internet stock broker will have great customer support.
They will respond to email inquiries in a timely fashion and also have customer service representatives available during business hours to field question.
Also, some discount stock brokers have branch offices where you can sit down with a real human being and go over your account.
At branch offices, you can make deposits to your online account and also ask for advice or research.
When an online broker has a branch office, it offers the best of everything.
You have cheap online stock trades and a registered real life financial advisor to ask questions.
You will see ads for free trades or ads for cheap online stock trading firms, but do not be fooled by their marketing ploys.
The best discount stock broker will be the one that has rises above the rest in three distinct traits: fees, access, and support.
The first discount stock broker trait are the fees they charge.
When you think of fees, most of the time you think cost per trade.
Although, this is the main fee to consider there are many other fees that are associated with accounts.
There are IRA fees, account closing fees, fees for larger trades, and fees for not enough trades in a month.
You may also encounter hidden account fees that we will go over in the next trait.
Bottom line: Read the fine print and be knowledgeable of the fees that your online stock broker is charging.
The next trait to consider is access.
There are two meanings to access: phone access and money access.
Phone access is simple.
Will they answer the phone when you call them? I don't know, find out first hand before signing up.
The other type of access is access to your money.
How easy is it for you to transfer funds in and out of your online stock account? Are there hidden fees associated with getting your money out quicker? You should be able to readily move money in and out without any problem.
Finally, the last and arguably the most important, is support or customer service.
A reputable internet stock broker will have great customer support.
They will respond to email inquiries in a timely fashion and also have customer service representatives available during business hours to field question.
Also, some discount stock brokers have branch offices where you can sit down with a real human being and go over your account.
At branch offices, you can make deposits to your online account and also ask for advice or research.
When an online broker has a branch office, it offers the best of everything.
You have cheap online stock trades and a registered real life financial advisor to ask questions.
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