A discount online broker is the way to go for investors who prefer to do many things themselves and don’t need a financial advisor to make decisions for them. While some online, low cost brokerage firms do offer some educational tools and research information, the investor is still allowed to choose which investments to make and execute trades themselves.
Keep in mind that since this kind of broker firm does not offer all of the advantages of a full service broker, they’re able to charge much less, and don’t charge for unnecessary fees.
If you already have a brokerage account and want to switch to a better, low-cost one, look for one that will pay the transfer fee for you. However, check with the minimum amount requirement – you might be expected to have a certain amount of money in your account in order to qualify for the free transfer to the new firm.
Even if you’re a DIYer when it comes to making trades, you’ll still want access to a tools-rich workstation that includes real-time analysis, tutorial videos, reports, and so forth.
Low Cost Brokerage With Great Security
Security and protection are paramount as well regarding low cost brokerage services. Your account details should be kept protected with cutting-edge encryption technology, regardless of whether you sign into your account via web, Android app, Apple app, tablet, or any other device. 128-bit SSL encryption is a good thing to look for when selecting a brokerage solution.
There are also the types of investments you can make. Just because a brokerage is low-cost doesn’t mean it has to focus on penny stocks. It’s good to have more choices, such as bonds, options, mutual funds, options, and even forex for those interested in currency exchange. It’s an added bonus if the firm offers insured accounts protected by organizations such as the Securities Investor Protection Corporation (or SPIC).
Since these types of discount brokers operate mostly through the internet, they don’t need to hire large sales forces to knock on doors. They simply rely on their low prices to attract customers and don’t have the need to charge you commissions for every purchase or sell you make. You can do it all over the user-friendly interface.
There shouldn’t be an account minimum to worry about when it comes to a low cost brokerage firm. Even if there is, it shouldn’t be too much. It’s still a good idea to put in at least $500 if you can afford to do so in order to get the best out of online trading.
Overall, there are several low cost brokerage services to choose from on the internet, but the one you might want to check into first is Zack’s Trade. Accounts are protected by the SPIC for up to $500,000. The resources and tools are easy to use.