Are you currently in the market for a new brokerage firm? Is your old firm robbing you of money with large commissions and inactivity fees. If so, then it may be time for you to start shopping your business elsewhere. Look for a broker that meshes perfectly with your investment strategy and goals. One of the best ways to find the right broker is by comparing their services and making sure that they are in line with your financial goals.
Let’s take a look at a few factors that should come into play when you are looking for a new financial home for your cash.

Cost

Cost is one of the main considerations when picking an online broker. Trading fees and commissions are important considerations because they can eat away at your investment returns. There is no use paying a ton of fees just so you can have the privilege of investing.


The good news is that there a ton of discount brokers that are willing to compete for your business. Don’t just pick the lowest cost broker! Some of them have limited investment choices and only offer bare bone options. So, try and find the lowest cost broker out there that offers all of the services that fit your needs the best.

Investment Products

Discount brokers vary greatly on the number of products that they are offer. TD Ameritrade, E*TRADE, and Scottrade offer a comprehensive array of financial products that fit the needs of almost any broker. You can purchase all of the typical brokerage such as stocks, bonds, mutual funds.

The better brokerage firms even offer banking products so that you can get a greater return on your money. Products like certificates of deposits and savings accounts will let you earn interest on money that is not available at traditional brokerages. Some brokerages are great at options trading if that’s your investment method of choice. Others may offer solid automatic investment plans that allow you to build your portfolio over time.

Research Options & Investing Tools

An online broker is only as good as the trading tools and research reports that the company offers. These tools are great for financial education and helping the brokerage client make informed buy and sell decisions. The better the information that your brokerage offers, the better investor that you can become.

Brokerages should also be assesses based on their research tools. Analyst reports and research reports can be very useful tools in making your investment decisions. All of these tools help to equip investors to make them more knowledgeable investors.

Account Opening Minimum

The minimum account opening can vary greatly depending upon the brokerage firm. Some firms only require as little as $50 to invest whereas others may require thousands of dollars. Be sure to apply to the brokerage firm that fits your funding capability. There is no use researching a brokerage with a large minimum deposit amount if you only have a few bucks to invest.

You can always start with a small brokerage account and transfer your account as soon as you build the account up.

Remember that a good brokerage company should offer low fees, outstanding customer service, and have a solid reputation in the financial community.


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