As someone who’s been trading online for many, many years, I know that picking the wrong stock broker can be a nightmare. By the way, if you trade penny stocks, it’s especially important to get the right broker. The wrong one will create financial chaos.
In the spirit of finding that perfect place, I’m presenting you with what I consider to be the “2 must ask” questions before signing up with any online broker.
This is how I’d do it. The process is basically a couple of phases. In phase one, you’re looking for some very easy and basic information. Ideally, you’ll find 3-4 places for your list. After that’s done, you’ll scrub the list against the next bit of information to see who still stands.
The first question is about length of service. Has the online broker been around for a bit (even offline) or has it just come online in the past year? Generally, brand new brokers are to be avoided. Look for a bit of history here.
Secondly, check out the broker’s fees. Are they decent? Are there hidden fees? For penny stock traders, are there extra high fees for sub-$1 stocks? Fees eat up your profit, so it’s important to know them. However, don’t make the mistake of picking a broker based solely on fees.
By scrubbing newer brokers and brokers with high fees, you should be down to a manageable list. From here, start looking for reviews. If possible, seek credible sites/publications first—Forbes, etc.
Remember, take your time when choosing an online stock broker. There’s no rush. It’s your money at stake.
In the spirit of finding that perfect place, I’m presenting you with what I consider to be the “2 must ask” questions before signing up with any online broker.
This is how I’d do it. The process is basically a couple of phases. In phase one, you’re looking for some very easy and basic information. Ideally, you’ll find 3-4 places for your list. After that’s done, you’ll scrub the list against the next bit of information to see who still stands.
The first question is about length of service. Has the online broker been around for a bit (even offline) or has it just come online in the past year? Generally, brand new brokers are to be avoided. Look for a bit of history here.
Secondly, check out the broker’s fees. Are they decent? Are there hidden fees? For penny stock traders, are there extra high fees for sub-$1 stocks? Fees eat up your profit, so it’s important to know them. However, don’t make the mistake of picking a broker based solely on fees.
By scrubbing newer brokers and brokers with high fees, you should be down to a manageable list. From here, start looking for reviews. If possible, seek credible sites/publications first—Forbes, etc.
Remember, take your time when choosing an online stock broker. There’s no rush. It’s your money at stake.
