Thanks to online stock trading companies it is now easy for anyone, anywhere to trade stocks online. There are a number of factors to consider before deciding on a trading company. For example:
- researching any and all fees charged (including commissions)
- the company's customer service history (a simple online search for customer reviews will suffice)
- what tools (if any) are provided to customers
- security
- and the company's portfolio
Let's investigate why each of these aspects are an integral part of choosing the right company for you from the sea of online stock trading companies.
Portfolio
The stock trading company you choose should have a wide range of investments available to you in their portfolio. This includes a wide array of stock options, mutual funds, access to the international markets and international stocks, exchange traded funds, availability of savings packages for both education and retirement and a variety of investment services available to customers.
Resources Available
What types of resources are available to you by the companies you are considering? Companies with little-to-no resources may not be the right fit for you. Examples of resources to look for in the company's offerings include:
- stock trading simulators (which help beginners learn about stock trading before they put any money on the line)
- investment plans for education and retirement
- tax advice
- stock research reports
- online forums (to chat with other users and expert investors)
- stock news that is updated consistently
- and automated banking facilities
If a company has few or none of the resources listed above, you may want to keep shopping. There are many online stock trading companies to choose from.
Fees and Commissions
This is a crucial part of online stock trading. Everyone is in it to make money, but you want to make sure that you make money as well. Companies that have large fees and take a great deal of commission may not be the ones you want to go for. Be sure to do in depth research on the fees, commissions and even the required account balance for sign up (to ensure it is within your budget).
Mobility
In this technological day-and-age, it is helpful if a company offers mobile services. With these services you are able to access your portfolio from your mobile phone or other mobile device. Most online stock trading companies support I-phones, Blackberry phones and android powered phones.
Tools
What types of tools does the stock trading company you are considering offer? There are a number of tools that help make trading easier. These include trading charts and graphs, calculators, stock alerts, both level 1 and 2 quotes, search reports, virtual trading facilities and criteria analysis. Each of these tools will serve a purpose in helping with your trades.
Customer Service
As with any company that you are a customer of, choosing online trading companies with excellent customer service and customer support is a must. Great service would include representatives that are knowledgeable, understanding and easy to reach. Many companies offer support via a wide variety of outlets including instant messaging online, email, online forums and traditional telephone contact. The ideal company for you would be one that does not charge for their customer service.
Security
Last, but definitely not least is security. What measures have the online trading companies you are considering set up to keep your information and your money safe? Both your identity and money are at-risk if you choose a company that does not have the appropriate security methods in place. The company should provide a complex, and seemingly annoying, method of accessing the site including complex passwords, secret questions and capture codes (to be sure you are a human and not a computer with hacking software).
It is not advisable to go into online stock trading lightly. Instead, it is in your best interest to do in-depth research on the online trading companies in order to find the company to be suit your needs.
Terry Tran of MasterTraderSpot.com [http://www.mastertraderspot.com], is the chief trader and portfolio manager of a very successful global hedge fund.
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By: Terry Tran
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