stock

How to choose a stock broker

How to choose a stock broker

As an investor, choosing a broker is one of the most important decisions you’ll have to make. Here are three things you want to look for before you open an account.

1. Decide where you want to invest
If you only plan to invest in shares listed in your local stock market, then in most countries you’ll have plenty of brokers to choose from. If you want to invest in some foreign markets, you may have very limited options. Check the international stock broker guide to see which firms will trade which markets.

How to choose a stock broker

How to choose a stock broker

2.Commissions

Some brokers allow you to place trades via phone, in-person, or through the Internet. Whatever the case is, the key is that you need to be able to place a trade online. Placing a trade online will generally cost you between $7-$15, whereas placing a trade over the phone or in-person can cost you anywhere between $25-$100. The difference in savings between making an $8 trade and a $10 trade is nowhere near the difference in making a $10 trade and a $50 trade. So whatever you do, make trades online.

3.Any advice is generally useless

Any advice or research they give is generally useless. Don’t pay much for it: Some firms justify higher prices based on ‘personalized research’ or ‘excellent investment advice.’ Almost always, these perks are worth little. Again, if it’s the difference between making $8 trades with no help and $10 trades with some help, go with the $10 trades if you want the advice or research. But don’t be paying $50 a trade and up for research and advice. Chances are you are best served just investing in index funds or ETFs anyway.

 

stock

More in stock

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem?

Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet.

Copyright © 2014 Top News Theme. Theme by MVP Themes, powered by Wordpress.