The Best Online Discount Broker Guide: What To Look For And What To Avoid For Affordable Online Trading
The Internet has paved the way for investors to turn to an online broker or firm instead of working with one in person or over the phone. There are so many options available online, including discount brokers who will charge a fee of just pennies per share, depending on the type of stock, EFT, or options you buy. The best online discount brokers stand out above the rest due to factors like good educational resources, guaranteed account protection, and no downtime or maintenance fees to worry about.
However, you don’t want to buy on price alone. You may be giving up some very useful features and support if you only go for the lower priced brokers. For example, some offer completely free trades, but don’t expect things like in-depth research, personalized support, or high-end tools. You may not even get help at all.
This might not be a big deal for you if you already consider yourself to be an experienced, competent and knowledgeable trader. But you will still need to have market data research and charts to help you with the decision-making process, as well as the option to trade on many exchanges in multiple countries 24/7. Also, the interface of the trading platform may not be very well designed. These “free” brokerage firms have to be getting their money somehow. You will probably end up having to pay extra money in the long run for one reason or another, so always beware of any online company that promises a “free trading platform”.
Customer support from the best online discount brokers
How is customer support with a particular online broker? Even if it’s a discount brokerage firm that doesn’t charge a lot of money, it should still provide support via live chat or phone during trading hours. Is there a free tutorial on how to use the trading platform(s)?
Also, whether you want to trade through the website or a mobile app, it should be designed for smooth performance and fast load times. You don’t want to wait for the software to load when you’re watching a stock. What kind of details are posted in the application table when you review stocks, bonds, EFT, etc.? The more variety of platforms, the better. You can select one based on your own personal preferences and combined with free broker assisted trading it will make it much easier to make informed decisions.
Which firm stands out among the best online discount brokers? Zacks Trade is a good organization to look into as it offers all the benefits and services mentioned above. There are positive Zacks Trade reviews from many users as well as from leading websites like Consumers Advocate and Brokerage-Review.