discountbrokerdirectory.com

discountbrokerdirectory.com

If you are a seasoned player on the stock market, you’re probably not big on hand-holding when it comes to making decisions regarding your stock portfolio. Discount brokers are there to complete your transactions, but not to do your research for you. Most discount brokers will be happy to explain a stop limit or the definition of a bear market, but don’t expect them to give you an analysis on where they think the market is going over the next 6 months or their opinion on the next big tech stock. If you don’t need such information, discount brokers will save you some serious cash - they are much less expensive than a full-service broker – but not all discount brokers are the same. Be sure to ... (more)

If you are a seasoned player on the stock market, you’re probably not big on hand-holding when it comes to making decisions regarding your stock portfolio. Discount brokers are there to complete your transactions, but not to do your research for you. Most discount brokers will be happy to explain a stop limit or the definition of a bear market, but don’t expect them to give you an analysis on where they think the market is going over the next 6 months or their opinion on the next big tech stock. If you don’t need such information, discount brokers will save you some serious cash - they are much less expensive than a full-service broker – but not all discount brokers are the same. Be sure to ask these 10 questions before you sign up to get the goods on your broker.

What is your required opening balance? If the broker requires a $10,000.00 minimum and you can only afford $1500.00, move on.

Do you offer 24/7 customer service by phone? If you’re a night owl and find yourself trading at 2am, you’ll want 24 hr service.

What is the charge for market orders and limit-order online trades? Make sure the fees are competitive and affordable.

Is there a separate order-handling fee? How much is the fee? Some brokers charge up to $3 for order-handling, you want to know the hidden costs upfront.

Is there an account maintenance fee? Is there a minimum account balance or trading frequency required to waive the fee? Another hidden cost for those who carry low balances. If you plan on carrying a low balance, you’ll want to know the deal up-front.

How much do you charge for trades? You’ll want to know if there is a price difference for trades placed by phone and trades placed with a live broker if you can’t access the online trading.

Are your accounts insured by the Securities Investor Protection Corp? They should be automatically, but it’s always wise to cover your bases.

Do you offer any broker analyst research reports? Many discount brokers offer at least one report for free, but always verify what they offer and for how much.

Can I reinvest my dividends? Many brokers add your dividends to your cash balance, if you want to reinvest them, your broker must offer a dividend reinvestment plan.

Can I download my account details from my account on your website to my Money or Quicken software on my home computer? Many discount brokers offer this service, but some don’t. If you want to streamline your accounting, this will be a handy feature to have.

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