Low Cost Brokerage Firms Online Guide: How To Make Sure You Get The Best Of Online Trading
An online discount broker is the way to go for investors who prefer to do a lot for themselves and don’t need a financial advisor to make decisions for them. While some low-cost online brokerage firms offer some educational tools and research information, the investor can still choose which investments to make and execute trades for himself.
Keep in mind that since this type of broker firm does not offer all the advantages of a full service broker, they may charge much less and do not charge unnecessary fees.
If you already have a brokerage account and want to switch to a better, low-cost one, look for one that will pay the transfer fee for you. Check the minimum amount requirement though – you may be expected to have a certain amount of money in your account to qualify for the free transfer to the new company.
Even if you’re a do-it-yourselfer when it comes to trading, you’ll still want access to a tool-rich workstation that includes real-time analytics, video tutorials, reports, etc.
Low cost brokerage with great security
Safety and security are also paramount with respect to low cost brokerage services. Your account details must be kept protected with state-of-the-art encryption technology, whether you sign in to your account via the web, Android app, Apple app, tablet, or any other device. 128-bit SSL encryption is a good option to consider when selecting a brokerage solution.
There are also the types of investments you can make. Just because a brokerage is low cost doesn’t mean you should focus on penny stocks. It’s nice to have more options such as bonds, options, mutual funds, options, and even Forex for those interested in currency trading. It’s an added bonus if the company offers insured accounts protected by organizations like the Securities Investor Protection Corporation (or SPIC).
Since these types of discount brokers operate primarily over the Internet, they don’t need to hire large sales forces to knock on doors. They simply rely on your low prices to attract customers and don’t need to charge you commission on every purchase or sale you make. You can do it all over the easy to use interface.
There should be no account minimum to worry about when dealing with a low-cost brokerage firm. Even if there is, it shouldn’t be too much. It’s still a good idea to put in at least $500 if you can afford it to get the best out of online trading.
In general, there are several low-cost brokerage services to choose from on the Internet, but the first one you might want to check out is Zack’s Trade. Accounts are protected by SPIC for up to $500,000. The resources and tools are easy to use.