Choosing the right stock market broker can seem daunting at first. There are so many brokers that offer multiple advantages as well as disadvantages. To get the right stock market broker for you, there are three major things you should look at.
Things You Will NeedTime to do your research.
Step 1The commission cost is an important factor in deciding what stock market broker to use. Brokers charge commission for executing our buy and sell orders. The price varies from broker to broker. Usually the cheaper the commission, the less advantages you get elsewhere. There are a couple good brokers that have medium priced commissions but also offer some good advantages. One notable broker that has a good price and good charting software is scottrade.
Step 2If the commission is not that big of a deal to you then the next thing you should look at is their charting software. An important aspect of trading is predicting trends. Having the right charting software will help you a lot in noticing trends. The better the charting software, usually the higher the commission. The companies have to cover the development costs and server requirements somehow.
Step 3Another important factor in choosing the right stock market broker is that companies customer service. If your internet connection goes down and you want to place an order by phone, the better the service department the faster your call will be answered. The customer service department will also help you deal with irregularities or other problems in your accounts. If you run into an error, you probably want to get it resolved as soon as possible. This is where the customer service department comes in handy.
Step 4Having a broker with the best of all three is almost impossible. You will have to prioritize which aspects are important to you. If you are trading with a lot of capital, commission charges may not hinder you as much and you would rather have a faster connection and better tools. If you have limited funds, then you would probably want a broker with low commissions and fast customer service and use a third party charting service. The right broker is something that must be researched so that you don't make a mistake. Don't feel like you have to stay with your stock market broker if you are unhappy. It is a business decision and you should be happy where you put your money.
In the end it is your money and you need to take care of it and decide where it goes. Choosing the right broker should not be handled lightly. Do your research and choose the right broker for you.