If you want to start trading stocks, one of the most important decisions to make is which broker to choose. Of course, you can just buy and sell on your own, but this can be difficult and confusing, especially for a first-time investor. Choosing a brokerage service will make things go more smoothly.
However, finding the best stock trading site can be tricky. There are dozens of different services out there that promise you amazing returns on your investment. You need to cut through the chatter so that you can choose a broker who is well-suited to your needs.
You might be tempted to choose a discount broker to try to save money. However, if you are just dipping your toe into the market for the first time, a discount trading site could actually end up costing you a lot. A full-service broker is often a better choice for novice investors. As you learn more about the market and your confidence improves, you can start doing more on your own.
A good trading site needs to be available 24 hours a day, 7 days per week. However, even if a site is up all the time, there may be periods of the day when response time is slow. Try logging into the site at random intervals throughout the day and on the weekends to make sure that there are no problems making trades due to slow response times.
A good trading site should offer you other ways to make trades. While you may do most of your trading when you are sitting in front of your computer, there may be times when you want to trade and your PC is unavailable. A good broker should also let you make trades over the phone or via fax.
Before you pick a brokerage, do some research on its background. Spend some time reading reviews and testimonials to see what other people think about the service. Picking a broker is a big decision, and it is not one that should be made in haste.
Most trading sites require a minimum investment to open an account, so be sure to find out what this amount is before you get started. While some brokers have low minimums of only a few hundred dollars, others may require a deposit of as much as $10,000 or more. If your funds are limited, look for a broker with a lower minimum.
The quality of a site’s customer service can be very important. The last thing you want to do is to have to sit on hold for half an hour waiting to talk to someone. A good trading site should have assistance available at all hours of the day or night so that you can get an answer right away.
As you can see, choosing the best stock trading site can take some time. Do not rush into anything or make a hasty decision. You do not want to put your hard-earned savings at risk.