Experts believe that the best way to rank stock brokers online by an individual trader is to list brokers according to a set of criteria. Considerations to rank online stock brokers are the cost, reputation, the services, portfolio, type, services, website tools and investment plans offered by the broker.
The cost and fees charged by the broker is a primary consideration when ranking the broker. Online stock brokers who charge low fees and low commissions are the best options for a novice stock trader. Hidden fees should also be explored. Some brokers charge a fee for services rendered. Most online brokers offer help and support services for free. Some brokers charge a fee for an inactive account. A novice trader should choose a broker who does not charge an inactive account fee because as the fees pile up they may exceed the trader's budget. Some charge for closing accounts and for sending statements and certificates. All fees and charges should not exceed the budget of the trader and the trader should have enough money for the actual trading process.
Customer service is the second major consideration when ranking stockbrokers. Test the telephone response of broker's help desk before ranking them. Check out how quickly e mails are answered by the broker. Asking a few test questions to brokers will help to rank the speed and efficiency in problem solving by the brokers. Check whether the broker has branches locally and are easy to contact. The broker may help with the banking or offer financial plans for retirement or education. The trader should rank a broker who offers the entire services specific to the trader's needs.
The website of the broker and their tools are the main trading facilities offered to the trader. The trader should evaluate the security system in place on the website. Signing in has to be a complicated process for maximum trade security. Several passwords should be offered and codes and secret questions. There should be sufficient tools on the website to get instant quotes and instant execution of orders. Calculators, charts and stock movement indicators should be available to the trader in an instant.
The broker should have a range of stocks on their portfolio to give the trader greater choices for selling and buying stock. Stocks from major companies and growing companies should form part of the portfolio. If brokers research the stocks before putting them on the portfolio, this will help traders to instantly get an insight about the stock that they are trading with.
The reputation of the broker is another major ranking consideration. Check with rating agencies like Standard and Poors or the Better Business Bureau about the reputation of the broker. FINRA the Financial Industry regulatory authority has a Broker check option to check the reputation of the broker.
Expert ranking of online stock brokers based on well reasoned statistics are available from reputed agencies. For the individual trader, stock brokers should be ranked according to individual needs.
Online Stock Brokers
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