Online Stock Brokers

Online Stock Brokers

Who Is A Stock Broker And Its Offering

A online stock broker is a qualified professional who is registered with one or more stock market and provides stock market investment related services to his or her clients. The services include various activities including buying and selling stocks, providing consultancy on stock market investments and managing one's stock market investments. There are different types of stock brokers primarily categorised based on the variety and extent of services that they provide.

The basic service that a online stock broker provides is to provide platform for investor to buy and sell stocks. This type of brokers merely executes the instructions of the clients and completes the formalities to formally buy or sell stocks at the stock exchanges and charge a nominal fee for the brokerage services. This type of service is particularly beneficial for those who are well conversant with the functioning of the stock markets and keep regular tab on the market. As the final decision of buying or selling a stock will remain with the investor so he needs to be well aware of the market and other factors that affect the stock prices.

Now there is another type of stock brokers who provide stock market quotes and guide the investors on stock market investment with regular feedback and tips. In this case, it also provides the decision of selling and buying the stock lies with the investor; they are effectively guided by the stock broker. As you can easily understand that this service is much more than just executing instruction and involves a team effort; however, the charges of these services are also relatively higher. But if you are not in a position to regularly keep track of the stock market movements but have the knowledge and experience to take the final decision, this is the service that is perfect or you.

Then there is another type of stock brokers who are much more than just a broker. In fact the range of their services goes beyond just stock trading. These brokers basically double up as stock brokers and investment planner. This kind of broker takes account of the investors finds and gauge their investment objectives and then take care of the stock market investment all by themselves. They plan the investments, decide which stocks to buy and which stocks to sell and do the formalities as well. As you can fairly understand that charge for this service will be much more and it is suitable for those high net worth individuals who have adequate funds but do not have the time to take care of the investments by themselves.

Then there is another type of stock broker, the online stock brokers, who provide online stock trading services. In this case, the investors have to do the trading and make decision themselves. But for that they need not go to the stock markets. They can execute the buying and selling actions with just a few clicks of and sit at their home or office. The best thing about the online stock trading is that it offers real time trading. Moreover, as there is no paper work and no middleman involved the brokerage so the commission is significantly lower than any other type of stock brokerage. These are the reasons that more and more investors prefer online trading these days.

These are the different options that you have got for trading at the stock market. Now you have to decide which one is the best stock market trading option for you before you select your online stock broker and start investing in the stock market.

Online Stock Brokers

Choosing the Best Online Stock Brokers

Online Stock Brokers

Choosing the best online stock broker must start with deciding what kind of trader or investor you want to be.

This will determine what services you want and help you pick the best online stock broker.

If you intend to be a position trader or one who trades infrequently then you should choose between a full service or discount broker. Your choice will then be one of how independent a trader you want to be. If you want advice on what stocks to invest in then go for a full service broker. Their fees are expensive though, so if you intend to do your own research and management of your portfolio stick with a discount broker.

Don't just choose based on price however. Although price is an important consideration, the most important thing is how efficient and effective your broker is at carrying out the services you signed up for. Look for brokers that provide smart order routing capabilities and brokers that allow you to test drive their systems.

Having an all singing, all dancing service is of no use if the brokers trading systems breakdown at a critical moment.

If you expect to become an active online stock trader you may want full access to trade electronically on the stock exchanges. In this case you may need to open an account with a direct-access broker. But if you think your trading volume will be less than 50 it might be better to stick with a discount broker.

Some of the services you will want to consider are, the types of orders supported, what kind of data you'll have access to and do they provide pricing charts.

When choosing the best online stock brokers you must first decide what types of services and accounts you need. Then research the brokers and find out which one offers the best mix of services for what you want to do and are prepared to pay for.

Online Stock Brokers

The Cheapest Online Stock Brokers - What Every Investor Should Know

Online Stock Brokers

Cheap online stock brokers provide a valuable service to beginner and advanced investors. But what are the risks when you choose the cheapest broker online? The biggest concerns for most people are the things they need to give up by using a less expensive broker. With the advent of the internet and extremely low costs of operation, cheap brokers don't have to sacrifice much. Here are the main features you'll be missing out on by trading frugally.

1. No Physical Branches or Local Offices. More established brokers, or brokers that have come from a traditional background, still have offices scattered throughout the country. These branches provide a means for investors to talk with someone in person, pick up a check, or bring money into a local branch. For most online investors these buildings seem like antiquated relics of a more ancient system. If you are reading this, chances are you have direct deposit, have an online checking account, are part of an online social network, e-file your taxes, and correspond with blogs, Twitter, chat, and email. The idea of driving to an office, finding a parking space, waiting in a lobby, and talking with someone face-to-face sounds like a colossal waste of time. This isn't to say customer service isn't important. Customer service is still very good among discount stock brokers, they just do it differently.

2. No Massive Advertising Campaigns. If you are looking for the cheapest broker don't use Super Bowl Ads to find them. The ROI isn't there for that type of advertising. Savvy internet brokers advertise online. This article probably has advertising from said companies within viewing distance. They target the right audience with their advertising instead of using a bloated shotgun approach to advertising. The question is this, would you like to have your commission fees going toward Super Bowl Ads or would you prefer to pay less commissions and use a discount broker?

3. Limited Mutual Funds to Choose From. This is a big one. Mutual Funds are extremely expensive operate and maintain. They are also heavily marketed (much like lead was marketed heavily in earlier years even though it was killing people). Running these funds require expensive managers that drive nice cars and probably have hair plugs. Historically, mutual funds are among the worst investments in the long run. Low cost stock brokers have access to index funds which are much cheaper to operate and don't' require the aforementioned managers. Trust me, having a limited selection of mutual funds is a good thing.

4. Online Customer Service. The cheapest brokers will use technology to its advantage by only using email and chat. The service is still very good but you don't have the luxury of talking to a person on the phone. You will still be able to talk to someone quickly and have your questions resolved, you just won't be able to hear their wonderful accent on the phone. This is one of the biggest downsides to using low cost brokers.

What about safety? Are the cheapest discount brokers secure? Can you trust their website with your sensitive financial information? Yes, yes, and yes. Discount brokers use the same security and encryption as the big companies. Everyone in the financial secture uses encryption when personal infroamation is being transmitted. If you are still concerned look for the Https:// in the browser 's address bar if you need verification. The 's' in https:// means the page is secure and the data is being encrypted.

So there you have it. Using the cheapest stock brokers requires giving up some things but if you're okay with that then go for it. Your wallet will thank you.

Online Stock Brokers

Online Stock Brokers - What to Look For

Online Stock Brokers

It is already known that we live in a very fast-paced society. There couldn't be any truer saying than "time is gold" especially for those who keep the ball rolling in the industry. In the trading business, double the meaning of the old saying and add money in the equation such as time plus money equals life then we turn to the solution of having an online stock brokers.

Next problem is how to choose from dozens or even hundreds of online stock brokers?

Your Money

In the trading business, the most important is your money and other assets. It is crucial that every cent lost is worth the gain. Therefore, choose an online broker that will charge you with the best value for their services. Brokers get commissions according to how many trades they do for you. However, each trade costs less if the broker handles a lot of trades. It's like getting a discount for bulk trades. Some brokers also ask for account handling charges but rates depend on the cash management account. Compare broker rates and choose what best suits your need.

It is important that traders know what happens to the money shelled out. Have your online stock broker report financial statements to be able to keep track of your money. This helps avoid inconsistencies in tax reports or even fraud.

Be sure to check and read carefully the terms and conditions of your working relationship with a broker. Take note of interest rates, minimum account balances, terms of charges to your account and if there could be additional charges at specific circumstances. Also check for the broker's trading platform and whether you are going to be charged for the download, installation and upgrades of their software on your computer.

Your Time

What's good about an online stock brokers is that information and orders could be relayed in one click, real-time, wherever you are. It is important that your broker is available whenever you need something to be done on your account. Check for an online broker's availability. Online brokers should have zero technical problems especially on their trading platforms. Aside from internet access, an online broker should also be reachable on phone. Make sure you do not get any problems with your broker being out of the country or you being put on hold for a long time. In a fast-paced world of trading, a second could mean several hundred dollars.

Your Life

It is not also bad to ask around with some friends or colleagues for an online broker that they've had experience with. Remember that a broker handles important assets to you that if possible, you'd rather handle on your own. Ask around for a reliable and honest broker. You'd hear if there are issues that a broker is having troubles with or if there is a potential issue in account handling. There could also be a lot of fraudulent brokers online so do not forget to look into the legitimacy of an online stock broker.

A successful businessman always has a dependable partner to work with. Compare and choose carefully.

Online Stock Brokers

Rank Online Stock Brokers

Online Stock Brokers

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

Ways to Compare Online Stock Brokers

Online Stock Brokers

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

Which Online Stock Broker Best Suits You?

Online Stock Brokers

Online stock brokers have helped in raising the whole standard of trading service. Now traders can trade almost all financial instruments from the comfort of their home and with more market information and better tools. There are now a number of online stock brokerage firms available who fit to every trader needs. Some offer generalized services while some others offer specialized services.

Trading through online stock brokers offer many advantages over through traditional or full-service ones. First and foremost advantage is the reduction in trading costs - because of their automated trading procedure online brokers charge much less fee than traditional. Second is the speed of trade execution - online brokerage firms can execute market orders almost instantaneously. Other advantages include better accessibility from anywhere in world, better control over decisions, access to real-time or near real-time market information and news, and lest human interfere with trading procedure. But trading through online stock brokers not suit all types of traders, especially who lack much knowledge. As the whole procedure is managed by computers, inaccessibility problems and system delays can cause problems for traders.

As said earlier there are different types of online stock brokerage firms available to fulfill different trader needs. Below is one reasonable classification.

1. Full-Service online stock brokers - These are firms which offer advice and assistance, and a whole range of products to trade on. But in return of their high personalized service they charge high. They are best suited for traders who need assistance in making decisions and risk management, and are also good for infrequent traders having no time for things like technical analysis.

2. Discount online stock brokers - Greatest advantage with these firms is discounted commissions. They charge much less than full-service firms but they do not offer much trading advice and assistance. Discount brokers are suitable for traders who have good trading knowledge and are able to make their own decisions. There are also some deep-discount brokerage firms who charge amazingly low fees. But never expect personalized services from them because usually they only get your orders executed.

3. Day trading online stock brokers - These firms take trading to the topmost active and automated level. They tend to offer cheapest commission schedules, fastest market access and order execution, systems loaded with a variety of tools, and much more. But they demand traders to fulfill certain account requirements which are usually unattainable for a normal (less active) trader. Day trading services best suited for day traders and scalpers.

Above classification is not a crystal clear one as you can find many full-service brokers charging discount commissions and day trading services, you can also find discount firms offering good assistance and personalized service and can also find day trading firms offering flexible and relaxed account features, broker assisted trades and discount commission schedules.

Online Stock Brokers