subject: Online Stock Trading - Internet Investment Tools At Your Beck And Call [print this page] Online stock trading can be overwhelming to the beginner online investor, especially one who is starting out investing in the stock market. However, with some knowledge, the neophyte trader can educate himself on what to expect and begin to trade.
First, you will need to find a website that can offer comparisons and rating reviews on the various online investment firms and how they perform in meeting the needs of their customers. How much are the commissions and the charges for the various trades? How do the broker assisted trade fees compare to those on trades you do yourself? Some brokerages have fees of $2.95 but other firms have fees that are $45.00 per trade! What are the fees on other types of trades? The standard seems to be between $7.00 and $12.00. Are commissions levied in a tiered system as well?
The next thing that has to be considered is minimum balance requirements, and if so, are there maintenance fees and additional fines for going below the minimum balance in your account? For each of these companies, the minimum balance range from nothing at all to $2000.00.
A potential online investor must look at the types of investment tools available at each firm. Are there just stocks and options or is there a greater range of tools that offer the ability to diversify your portfolio? Are there mutual funds, exchange traded funds, retirement accounts and saving plans for college? Do these online companies offer access to international stock exchanges and Forex (the foreign currency exchange)?
The third factor to consider is how does your broker communicate with you. By cell phone, Blackberry, iPhone, Palm, Windows Mobile, Android, Symbian or a combination of some or all of the above. Is there free telephone support or do you have to pay each time you call your broker? Are there email, live chat, 24/7 supports and a forum for investors to exchange tips and strategies?
Finally does the online brokerage offer any or all of the following educational resources for beginning investors: tax information, web seminars, videos, blogs and forums?
Online stock trading has one main advantage over the traditional investment services: it offers the same access to the most current market news, graphs and charts, analyst and forecast devices that professional stock brokers have. In addition, you now have the ease and the convenience of trading stocks from anywhere, from the comfort of your home or from anywhere else, as long as you have access to a cell phone.
