Question
What online broker to use?
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6th Nov 2009 by JonB
There is no single answer to th is question. The best broker will vary depending on your financial goals.
Are you a long term investor? If you you will want to seek a broker who can give you advice on applicable financial investments. You may want to learn about different mutual funds, bonds, and which stocks are paying lucrative dividends.
If you are day trading stocks then perhaps commission charges will be important to you. The commission chargers can vary greatly from one brokerage to the next. If you plan on making large number of trades with relatively small dollar amounts, commission can eat up a large portion of your PnL. You also may want a broker with a reliable and easy to use trading platform. Some brokerages supply you with data from different financial institution that may or may not help you make your trading decisions.
If you are going to trade derivatives exclusively, or even the majority of the time, it is probably worth it to have a broker that specializes in those trades. Sure your average broker may support futures trading, but they also may charge 3 times the price in commission than a broker who specializes in futures trading only. The same is true with options.
Finally, so dome research on the brokerage. There are many places on the web dedicated to gathering up the collective experiences of customers and brokers so that you can see which ones other traders recommend and why.
There is no single answer to th is question. The best broker will vary depending on your financial goals.
Are you a long term investor? If you you will want to seek a broker who can give you advice on applicable financial investments. You may want to learn about different mutual funds, bonds, and which stocks are paying lucrative dividends.
If you are day trading stocks then perhaps commission charges will be important to you. The commission chargers can vary greatly from one brokerage to the next. If you plan on making large number of trades with relatively small dollar amounts, commission can eat up a large portion of your PnL. You also may want a broker with a reliable and easy to use trading platform. Some brokerages supply you with data from different financial institution that may or may not help you make your trading decisions.
If you are going to trade derivatives exclusively, or even the majority of the time, it is probably worth it to have a broker that specializes in those trades. Sure your average broker may support futures trading, but they also may charge 3 times the price in commission than a broker who specializes in futures trading only. The same is true with options.
Finally, so dome research on the brokerage. There are many places on the web dedicated to gathering up the collective experiences of customers and brokers so that you can see which ones other traders recommend and why.
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This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
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26th Oct 2009 In Brokerage
1 Answers | 139 Views
Subjects: broker,
online broker,