Some new brokers don’t offer retirement account like traditional or Roth IRAs, and you need to taxes on the capital gain. Other fees that a broker may charge are annual fees, inactivity fees, trading platform subscriptions, and extra charges for research or data. Again, you have to go through the website and FAQ section. Complete your research about all fees associated with transferring out investments or cash or for closing your account.
How much is Account Minimum?
The account minimum is the amount required to open an online broker account. Some brokers need an account minimum which starts from $500 or more. But if you choose to go with a Robo-advisor, you possibly will pay account minimums of $5,000 or higher for premium services. But most brokers do not require account minimum to encourage investors to open an account with their company.
Is there a reliable platform that Broker Company is offering?
In the days of extreme volatility and economic activity, some brokers’ system goes down that is very frustrating and puts the company in a non-reliable zone.
Also, consider the terms and conditions of brokerages. Many established brokers put restrictions on trading and require a guarantee. If it bothers you, you can choose relatively new firms that don’t interfere in your trading.
What tools and feature a brokerage company is offering?
Live webinars, trading how-to guides, video tutorials, news updates, and glossaries are helpful for new investors. Moreover, if you want to ask for an immediate answer to some quires, is there a live chat or on-call option available where you can discuss the risk and potential of some trading strategies.
Active traders need advanced tools to analyze and download data to finalize their trade decision. If a brokerage lacks all these critical resources, you should not waste your time and money by opening an account with them.
Moreover, mobile apps are also a handy option for active traders. No need to carry a laptop whenever you want to analyze the situation of the stock market.
Is there any promotion when you achieve a particular milestone?
Many online brokers offer a promotion on a particular cash deposit. If you’re stuck between two options, a promotion may give you control to choose between one. So you can take advantage of the promotion option if you need it. But it is also important to note that promotion is not so attractive that you chose the broker on a promotion basis. Also, consider the commission and another fee because it may subtract all the promotional deposits you get.
Conclusion of the Discussion:
- The fee or commission of the broker should be practical.
- The broker should provide useful and valuable resources to make trade easy.
- You should have the freedom to open various type of investment account without restrictions.
- You should have access to a financial advisor whenever you get stuck.
- The broker platform should be reliable and have a good reputation.