How to compare online stock brokers yourself is a question many online traders ask themselves. But first they should decide what kind of traders they are or want to be before comparing online stock brokers.
Before looking at which online stock broker to choose a trader should make a list of their financial objectives, the types of trading they are going to do and what services they will need. An infrequent, independent trader will probably best be served by a discount broker. Someone requiring advice on their trading strategies will be better suited with a full service broker.
Whatever type of stock trader you are though you are bound to look for independent advice when it comes picking your broker. I definitely recommend you do so and the best place to start is with other traders. Check out some trading forums, most have threads and comment already on this topic.
If you prefer your advice a bit more 'official' you can also check out the following:-
Smartmoney.com conduct an annual survey of online stock brokers performance. Th survey lists rankings for basic and discount brokers as well as full services brokers.
Barrons.com provides another annual survey although there is a subscription fee to pay.
Activetradermag.com periodically reviews brokers but again a subscription fee is required.
You can also check out the disciplinary histories of the brokers via their regulatory bodies, FINRA in the US and the FSA in the UK. Make sure you understand whether they have any potential bias or conflicts of interest, particularly if you intend to use their research services. Above all, make sure they are fully licensed. Dealing with an unlicensed broker will result in you having little or no recourse should things go wrong.
Comparing online stock brokers is an important early step for the online trader and should be given the same level of importance as when comparing stocks to invest in.
Online Stock Brokers
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