An online discount broker is the way to go for investors who prefer to do a lot of things themselves and don’t need a financial advisor to make decisions for them. Although some low-cost online brokerage firms offer educational tools and research information, the investor is still allowed to choose which investments to make and execute their trades on their own.
Keep in mind that since this type of brokerage company does not offer all of the benefits of a full service broker, they can charge much less and do not charge unnecessary fees.
If you already have a brokerage account and want to upgrade to a better account at a lower cost, look for one that will pay the transfer fee for you. However, check with the minimum amount requirement – you can be expected to have a certain amount of money in your account in order to qualify for the free transfer to the new business.
Even if you’re a handyman when it comes to trades, you’ll still want access to a tool-packed workstation that includes real-time analytics, tutorial videos, reports, and more.
Low cost brokerage with great security
Security and protection are also paramount for low cost brokerage services. Your account details should be protected with state-of-the-art encryption technology, whether you log into your account through the web, an Android app, an Apple app, a tablet, or any other device. 128-bit SSL encryption is a good thing to look for when selecting a brokerage solution.
There are also the types of investments you can make. Just because a brokerage is low cost doesn’t mean it should focus on penny stocks. It is good to have more choices, such as bonds, options, mutual funds, options and even Forex for those who are interested in currency exchange. It’s an added bonus if the company offers insured accounts protected by organizations such as the Securities Investor Protection Corporation (or SPIC).
Since these types of discount brokers operate primarily on the Internet, they do not need to hire large sales forces to knock on doors. They just rely on their low prices to attract customers and don’t need to charge you any commissions for every buy or sell you make. You can do this anywhere in the user-friendly interface.
There shouldn’t be a minimum account to worry about when it comes to a low cost brokerage firm. Even if there is, it shouldn’t be too much. It is always a good idea to put in at least $ 500 if you can afford to do so in order to get the most out of online trading.
Overall, there are several low cost brokerage services to choose from on the internet, but the one you might want to check out first is Zack’s Trade. Accounts are protected by SPIC for a maximum of $ 500,000. The resources and tools are easy to use.
Source by George Botwin