How to compare online trading companies on cost basis?
Stock trading is one of the best modern day methods to gain some very good returns in short span of time. Besides, internet has acted as a catalyst which has helped in driving the stock business in every individual’s house of the nation. With this modern day technique stock trading has become simple, hassle free and most importantly efficient in terms of real time trading to gain huge profits from stock world. There are a lot of options available to someone looking for online trading companies in the market. Most of these companies are cost competitive, however, there are few things you have to
keep in mind while choosing the suitable online trading firm for yourself.
The article will guide you through some key things that you need to know while evaluating the best online trading company.
After all every penny counts! This is the most important factor that you need to compare for the cost of transactions across certain categories such as:
Call trading charge:
Some online trading companies charge you extra if you call up and place an order. If you intend to call up and trade, then make sure you find out what charges are applicable for phone trading.
Today, many firms give lucrative offers such as cash back, lesser brokerage charge, waive offs etc. so you switch to them from some other broker. If you already have an account and are looking to move to another broker, then be sure to check out the rewards offered by the firms.
Some companies charge you inactivity fee if you don’t trade for a quarter or sometimes even a month. If you’re not a regular trader watch out for such fees.
Minimum Account Balance
Some brokers require you to keep a minimum balance and there are some who would charge you a minimum price if you maintain a certain balance or trade above a certain number
If you’re not a regular investor and happy to invest a certain amount in fixed securities, then you need to find out whether the firm offers you the convenience of automatic investment. You can select a schedule and the broker will automatically execute your trade according to that schedule.
Share builder offer certain special rebates for members. If you have a certain membership and a broker gives you some special offers on that be sure to compare the offers of various online trading companies.
Customer Service is the first point contact with any trading firm. Call up and have a word with the customer service team to feel the experience of their services. Read reviews about the brokers you are getting associated with and talk to people about their experiences in dealing with them. Reading reviews on forums sometimes gives valuable insight about how a broker really acts, when you need them.
Different users will have different needs and based on what is important to you evaluate the various brokerages that offer their services. But at the end it the cost effective service, valuable offers, and efficient customer service that will count to create a good reputation for an online trading company.