Online trading has brought the financial markets closer to everyone. Today it is possible to set up an account at an online brokerage, and be trading the very same day. Is it all this simple? Do you really want to be trading today, or should you learn a bit more about the company whose customer you are becoming, and should you study the stock markets a bit more before making any purchases? In my opinion yes you should.
There are a lot of companies that are offering brokering services and people easily go with the cheapest online trading companies that they can find. There is nothing wrong in trying to save money where you can, but you should really find out why they are cheaper, and whether you will actually save money with them even if they offer you the lowest price on trading events.
Some of the most affordable traders offer you below $2 per trading event, even though an indusrty standard is right below $10. If you are trading a lot, you might save some money, but the average online investor doesn't do that made trades that it really matters. You might even end up spending more, since companies that are lowering their prices on a regular basis and luring in customers only with their low trading prices, tend to charge you on everything else that you are doing.
Have a look at their service prices, and how much they take from personal consultation and broker assisted trades. If these are services that you might be using regularly, the prices could end up being higher than with some of the larger companies which offer these services for free.
What you also need to know is whether the company you are dealing with is reliable. New companies are not guaranteed to stay in the market for a long time, especially when a times are tough like today. When the stocks lose their value these smaller companies take big hits financially, and more of them are facing bankruptcy. Don't be hasty with your decisions and do your research.