Investors can keep some extra money in their pockets these days by going through discount stock brokers instead of hiring a traditional broker. There are online broking services that don’t cost very much at all. This kind of service can be attractive to more knowledgeable and experienced traders who don’t need a great deal of advice or analysis.
This doesn’t mean that you won’t get ANY help. The ideal online budget brokerage platform does include some helpful resources and educational tools to help you make informed decisions. Some put a focus primarily on one type of trading while other systems are more versatile and offer institutional and retail investors to buy and sell a broad range of products, including equities, penny shares, foreign stocks, options, EFTs, and more.
How can you tell if this is the right type of trading platform for you?
Who benefits from discount stock brokers? If you answer “yes” to the following questions, then an online discount brokerage is the right solution for your needs:
• Do you tend to make frequent trades, or are at least considering it?
• Do you want to avoid commission fees and save as much money as possible on each trade?
• Do you want to have more control over your investments?
• Is a DIY approach more of your thing?
• Does the thought of being pressured into taking specific investments or selling annoy you?
• Do you still want to have some access to assistance and recommendations should you need them?
However, if you have a large number of investments and don’t have the time or knowledge to manage your portfolio regularly then you might want to consider a full-service broker. The downside to this is that the trade cost will be A LOT higher.
Discount Stock Brokers for Busy Investors
If you’re busy a lot and don’t have time to sit down in front of a computer, look for an online discount broking service that offers a mobile app with an intelligent design and mobile-friendly interface.
Another essential factor is customer service. Even if you want to do everything by yourself, it’s still good to know that you’ll be able to obtain assistance if and when you need it.
Keep in mind that online brokers have different requirements for the minimum amount of money they require for opening an account. You should also be wary of fees such as inactivity fees or maintenance fees.
Which of the discount stock brokers is right for you? Zacks Trade is one you should look into, as long as you have at least $2,500 to put into an account. There is a mobile app, web portal, and plenty of helpful resources.