Choosing an online broker can be a tricky decision to make. First, you need to determine what kind of broker you would need. Read our article about Choosing an Online Trading Broker. Always remember to do your research before choosing your broker. Here are some tips on how to choose an online broker.
Do a background check
After determining what kind of online trading broker you will need, you may be eyeing some brokers that match your needs. But before you invest your hard earned money on any of them, make sure to do your research and background check about them. There are many online trading reviews that you can look up about your prospect broker. Make sure you only choose one that has little to no bad reviews from their previous clients.
Check the site’s response time
Since you will be doing all your transactions online, the response time of your broker’s website will affect you a lot. Even just a few seconds of delay can cost you a lot in trading. Make sure to test the speed of the site at different times of the day, especially during peak times. Take note of down times and use this to determine if your broker is really reliable.
Look for free materials
Especially if you are a newbie in the trading field, a broker site with free educational resources would be a great advantage. There are a lot of broker sites that provide instructional materials, video tutorials, and e-books to help their clients understand trading better.
Different types of accounts
Being a new trader, you may want to start with the minimum investment account just to try your broker. Or maybe you already have the resources and want to start investing full time with a huge amount. You should look for a broker that offers a type of account that you can afford and use. Usually these initial investments are around $500-$1000 and above, but there are also brokers that offer cheaper minimum investments that even students could afford.
Clear and transparent fees
You may probably see brokers with cheap advertised fees. However, there is a saying that cheaper doesn’t always mean good. Sometimes these fees are only able to cover certain services and there are hidden fees you will need to pay along the way. Make sure to look for a transparent broker or ask them directly for any additional fees you would have to pay aside from what they initially advertised.
Convenience of access
Most online brokers suggest compatible platforms that you could use to access your trades anywhere over the internet. However, you cannot avoid unstable or fluctuations on your internet connection. Having alternative trading options could be helpful in these situations. Ask your broker if they still offer traditional ways of trading like over the phone, through fax, or directly speaking with the broker.
Convenient withdrawal methods
Of course, once you make some money, you would probably want to withdraw them so you can be able to actually use them. There are several different options on withdrawal methods. Just make sure that your broker offers the method you would prefer or you can conveniently access.
Reliable customer service
Time to time you would need some help on some advice or even problems that may arise. You wouldn’t want to end up having to talk to several pre-recorded voices before your concern is actually addressed. In trading, the faster the customer service, the better. Make sure to make a test call on your broker to check how fast they would actually help you.
Bottom line, no matter which online broker you would choose, just make sure to do some research and read a lot of online trading reviews before actually start investing. One of the most trustworthy online trading brokers, Trade12 is an online brokerage company that is headed by a group of professionals that are known to provide reliable trading services in the field. They are known for their transparent services and client-friendly platform. You can check the Trade12 website to look at the services they offer and the different account types you could avail. Start investing now with a trusted online trading broker!