Finding an online discount brokerage is not hard. There are thousands to choose from. The question is this. What do they have to offer?
Internet competition has become fierce among brokers. That’s a good thing for investors. At one time, the trades you could complete online were limited. You were required to download the company’s software, sometimes after paying an additional fee.
Today, you can make just about any kind of investment from your personal computer or laptop. But if you choose the wrong broker, you won’t be able to do everything in one place.
Even though there really isn’t any reason for it, some companies still require you to download their software package, before you can begin trading. That might not sound inconvenient, but it is for the trader with a limited amount of bandwidth or memory.
Not too long ago, only experienced traders could negotiate the ins and outs of internet investing. The full-service brokers didn’t want to teach people how to do it themselves. That would cut into their commissions.
Today, you can find an online discount brokerage that provides page after page of educational material. The beginner can learn all about stocks and options, before risking a penny. You can even get some practice, before you actually fund the account.
Another reason beginners have tended to stay out of the market was the lack of tools. If they didn’t know how to do the research on their own, they were trading in the dark.
Today’s better brokerages provide the tools and the research. They stream real-time quotes directly to your computer. They offer charts and option chains.
All experienced investors recognize the need for an exit strategy. Most brokerages make it clear to their customers that an exit strategy is needed. Most do not provide a free trade manager to help you figure out how to create your exit strategy.
If you want the best online discount brokerage, you want to look at what they have to offer. The better brokers are providing all of these extras today, primarily because of competition.
As you might imagine, there are still plenty of brokerages with little to offer. They hope to keep the clients they have. Sometimes they try to attract new clients with expensive advertising programs. But they still don’t get it.
You are a smart consumer. You are ready to get the most you can from every single trade. You are ready for the best online discount brokerage and everything the company has to offer.