How to Find a Stock Broker

How to Find a Stock Broker. Deciding to take the plunge and start investing is a pretty big choice in itself. But the next step is often almost as important – choosing a broker to handle all your investing.

There are a lot of misconceptions about brokers, both digital and brick-and-mortar. It’s generally not an exaggeration to say that online brokers generally provide a simpler, more user-friendly experience for new investors – as long as you find the right one.

The real key is figuring out exactly which brokerage service is best-suited to your level of skill, your approach to trading and the resources you have available.

Finding different options is never the challenge. There are dozens of online brokers available and a simple web search will turn up countless lists of services or sites designed to compare online brokers. Instead, new investors need to decide what they intend to base their choice upon.

How to Find a Stock Broker

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Know what you’re paying for, and how much

The simplest comparison is to look at the listed costs for trading through a particular broker. This is always an appealing idea for neophytes in large part because they assume they can easily compare brokers number to number. That can be a dangerous assumption, because a side-by-side comparison will often ignore the nuances of listed prices. Sometimes the lowest-cost option listed by an online broker will apply only to a particular set of services, with other trades incurring higher costs. In particular, more complicated trades involving derivative products like options will often run you more than a normal equity trade. In other cases, online brokers will charge significantly higher fees to book trades through any means other than their online platform, such as by phone or fax.

The other most important cost that new investors have to consider is the minimum balance. Some brokers will ask for as much as $10,000 to start an account, though the norm is closer to between $1,000 and $5,000 and some will not require any minimum at all. But it’s not only that $10,000 can be a lot to put on the line for a new investor, but many online brokers will offer different terms based upon meeting a certain minimum balance. So it could be worth going for a more expensive option if you can afford the minimums needed to get lower fees.

Setting the focus

It’s worth noting that comparing online brokers is rarely about finding the best service, since investors can have perfectly legitimate reasons for preferring different brokers based on the way they trade, not just cost.

Most new investors, reasonably, shy away from active trading trying to drive up returns. But for those intent on trying their hand at playing the markets, simply looking for the lowest prices is a good way to find yourself throwing good money after bad. Though most investors do not need to worry about speed and availability, active investors need to be assured that the money they spend on a trade will actually mean that their deal goes through in a timely fashion. The simplest test for these factors is simply to poke the broker’s site at different times throughout the day and week. If you start to notice lag when you aren’t even trading, you might want to reconsider the service for active trading.

That said, a bit of lag is not a damning accusation for all online brokers. Many companies offer services that are better suited to traders who are more focused on the long term, so any losses from a few moments of lag today will largely be washed away over the course of the investment.

Getting what you want, not just what you need

Particularly for newer investors, however, broker comparisons are going to depend on much more than barebones speed and cost. Different brokers will offer a wide variety of research tools, consulting services, purchase options, product options and other secondary factors that are still worth consideration.

Sometimes traders aren’t interested in the added bells and whistles, but even then its worth looking for a broker that offers an interface with which you are comfortable. Whether you want all these tools now or not, being able to find what you’re looking for and navigate through the different options means you can always grow into the platform if you choose.

Above and beyond any other consideration, however, investors should be highly skeptical of a broker with a reputation for poor customer service. Even if you’re confident in your skills and don’t expect to do anything particularly exciting, there’s never a guarantee that you won’t have some kind of problem with your service. Without a quality brokerage that will work to resolve your issue, you can find yourself in a position to lose more than you wagered.

BuyAndShort.com – Stock Market, CFDs, Bitcoin. Your Gateway to the World's Markets. Smart technology for confident trading. We are an informational website that is focused on stock brokers and forex brokers.There are hundreds of stock brokers and forex brokers at the moment. Every day, thousands of traders are trying to get relevant and objective information about online brokers, before they decide to deposit their money with them. BuyAndShort.com was created to help customers with this task. Deciding to take the plunge and start investing is a pretty big choice in itself. But the next step is often almost as important – choosing a broker to handle all your investing. What is the Stock Market? How Does the Stock Market Work? Who Regulates the Stock Market? Who Works on the Stock Market? How to Find a Stock Broker. The Best Online Stock Broker. Direct market access to stocks, options, futures, forex, bonds, ETFs and CFDs. Direct Access Trading Platforms. Swing Trading or Day Trading? Which style is better for you? Online Broker with 6:1 Leverage and No Pattern Day Trading Rules for your account. Trade Ideas Today. Why use Trade Ideas? Stock Charts for Day Traders. What are the best books about Stock Trading? What is Forex? Forex, Equity Indices, Commodities. How Forex Works. What is Currency Trading? What is CFD? What is CFD Trading? Contracts for Difference. The Most Trusted Online Forex Broker. Trading Tools. Technical and Fundamental Analysis. What is an IPO? How IPOs Work. Digital currencies: Bitcoin, Ethereum, Ripple. How it All Started? Bitcoin, Ethereum, Litecoin and other digital currencies have become really popular lately. Bitcoin Trading. Automate Crypto Trading. What is an ICO? ICO - Initial Coin Offering. What are Tokens? ICO Calendar. Trade Bitcoin on Forex. How Bitcoin Became So Popular? Trade Ethereum on Forex. Buy or Sell Bitcoin, Ethereum and other Digital Cryptocurrencies within seconds! How To Protect Your Bitcoins and Altcoins? Risk Warning: Trading in leveraged products carries a high level of risk. Your losses may exceed your initial investment requiring you to make further payments. These products are not suitable for everyone and you should seek independent advice if you are in any doubt. Go Long or Go Short: You decide whether you think the value of the product you are opening a position on will go up (when you buy or 'go long'), or go down (when you sell or 'go short'). This means that you have considerable flexibility in the way you use your capital, and have the opportunity to profit from both rising and falling markets. Leverage and Margin: Trading leveraged financial products means that you only need to make a small outlay to gain large market exposure - the amount required to enter into a position is commonly known as 'margin'. Using margin means that gains or losses can be high as a result of the movements of the market you trade. Risk Management: We strongly recommend that you set stop loss orders for your positions to close at the price of your choosing in the case of unfavourable price movements.