Online Broker Ratings

As a general rule of thumb, online broker ratings indicate the level of satisfaction and customer service with that particular online brokerage firm.  There are several sources that provide online broker ratings and each source may have its own set of criteria, therefore you could find different ratings for the same online broker.  You need to also remember that online broker ratings are not regulated.  If you are planning on investing with an online broker, remember that just because they have a high rating for customer service does not mean they have a better chance of making you money.

One of the basic categories for online broker ratings is special deals.  Does the broker offer free trades for a short period of time after you sign up or do they provide a break in the price per trade if you are an active trader?

Commission schedules are another important factor for online broker ratings.  There could be a difference in the cost for placing a trade as a market order versus a limit order.  If the broker provides different types of trading methods such as online, phone or broker assisted trades, find out if there are additional cost to use each of these services.

If you are a beginning trader, you will want to know the online broker ratings for account minimums.  This is the minimum dollar amount that you will need in order to open your account with the broker.  Account minimums can range from a few hundred dollars to over tens of thousands of dollars.

Online broker ratings should include the types of research, testing and executing tools that are provided.  These tools can range from being very user friendly to trading strategies that should only be used by someone who has an in depth knowledge and experience with trading.

Best Online Brokerage

There are several factors that you will need to evaluate when you are trying to select the best online brokerage that will best fit your needs and goals.  The broker that you select should be able to provide you with valuable investment information as well as make profitable investment suggestions.

The best online brokerage for you can be your single most valuable source of information and help in making good investment strategy decisions.  On the other hand, an unresponsive broker can make your life miserable and also cost you money.  Determine your investment goals prior to deciding what the best online brokerage firm is for you.  Are you a beginning investor?  Then the best brokerage for you might be a traditional broker, who can provide you with advice and guidance when placing your trades.  Are you an experienced investor?  Then the best brokerage for you might be one where you can do your own stock research and just use the brokerage firm to execute your trades.

During your due diligence, you will find there are full service brokers and discount firms; regional, local and national firms; and firms that operate only over the phone or only over the Internet.  Usually all these different types of firms sell more than just stocks.  They will also sale annuities, bonds and tax shelters.

The biggest difference between the best online brokerage firms is whether they are full service or discount firms.  A full service broker will give you stock recommendations, for a fee of course.  A discount firm is more for the self-serve type who has experience and knowledge in researching and choosing investments.  Your choice of broker is going to be based on how much advice you need and how much you are willing to pay for that advice.