subject: How To Choose A Stock Broker? [print this page] If you are a stock market beginners looking to trade stocks the first time, then you want to choose a stock broker that offers a virtual account that you can trade with.
Different brokers offer different commissions and tools for their customers. Scottrade charges $7 for each transaction and OptionsHouse charges $3.95. However, commission is not the only factor that you should consider in choose stock brokers.
Here are some factors that you should consider.
1.Trading Platform -You want a trading platform that is easy to use so that you can execute your orders easily and quickly.
2.Trading Tools - If you are a technical trader, you will want a broker that has a powerful charting platform so that you analyze a stock base on technical indicators quickly. The charts should have all the indicators that you need so you don't have to look elsewhere.
3.Research Platform - If you are long term investor, you will want to have a stock broker that offers comprehensive research platform. If you want to buy a stock, it should have useful resources about the company such as links to earnings statements, competitor information and so on.
4.Options Platform - If you trade options, you will want to see if the stock broker offers a nice platform that you can trade options.
5.Virtual Trading - If you want a platform that you can paper trade, then you want to check if the stock broker has a virtual trading platform. This is especially important if you are a stock market beginner.
6.Commissions - If you don't have that much money to invest, trading commission is a consideration. For example, if you only have $1,000 to invest and is actively buying and selling stocks, then commissions will kill your trading portfolio.
7.Customer Services - You will want to check if the stock broker offers good customer service by calling their toll-free number on their website. In case you have questions in the future, you can reach them quickly.
8.Miscellaneous Fees - Some brokers charge miscellaneous fees so make sure you read the agreements carefully and make sure the stock broker you choose won't charge you these fees.
I have accounts with Scottrade and OptionsHouse, and they are pretty good. OptionsHouse offers a virtual trading platform, but I like to trade with Scottrade as I'm so use to it. You can do more research on your own.
