Choosing the right stock broker for you depends on your particular trading style and goals. So we’ve compiled these factors to help you choose:
- Cost Per Trade — Be sure to investigate all costs. Don’t get tempted to the lowest commission per trade. Look at fund fees if you’re investing in ETFs or mutual funds, as well as any hidden fees like for assisted trades.
- Minimum Initial Investment Required — Choose an online stock broker with no required minimum or one that requires only a few hundred dollars to start investing.
- Types of Retirement Accounts Available — Confirm what kind of accounts they offer before you sign up. Do they offer an IRA, a rollover IRA or just traditional taxable accounts?
- Proper Asset Allocation Guidance — Find a broker that offers asset allocation with a minimum additional charge. For example, if you choose a robo advisor, check to see how their portfolios are invested to see if they are diverse enough for your needs.
- Easy-to-use Website — Make sure the platform is easy to use and that all fees are clearly defined. You can read our article on the best investment apps for beginners for some of our favorite picks.
- Direct Investment Advice — Be sure to choose a service that provides a full investment advisory service.
- Access to Investment Research — Find a discount broker that offers research papers for free.