Online Stock Brokerage Companies

If you want to handle your investments online, you might want to consider one of the many stock brokerages that have established internet-based operations.

Some of the names are quite familiar. T.D. Waterhouse, for instance, is a recognizable name in the brick and mortar world, as well as in Internet circles. Other brokerages, such as E-Trade and Ameritrade, grew up online and focus exclusively on the needs and desires of Internet investors.

Choosing an online stock brokerage requires careful research. There are at least three factors you must consider when selecting a brokerage to handle your trades.

First, you must remain cost-conscious. Not all brokerages are created equal in terms of fee structures and associated costs. A seemingly inexpensive online stock brokerage may actually cost more than a “premiere” house, depending upon one’s trading habits, investment levels and other circumstances. Fees can be based on a number of considerations and it is essential to select a brokerage that meets your exact needs. If you plan on investing a great deal and don’t plan on making frequent trades, your “perfect” brokerage may be quite different than one that is better-suited for a smaller player who plans to buy and sell with near abandon.

Second, you must thoroughly investigate the legitimacy and soundness of the brokerage under consideration. Although many of the larger and well-respected names in the field deserve as much trust and confidence as traditional, recognized “real world” brokers, some new players may look better than they are. There is enough risk in the investment environment itself; there’s no need to compound that risk by selecting an unsound or untested brokerage.

Finally, you will want to deal with an online brokerage that offers sufficient flexibility to meet your planned needs. Those with limited trades or whose user interface is plagued by significant lag times, for instance, may be a horrible decision for a would-be day trader. A more action oriented arrangement offering incredible flexibility may be unnecessary and confusing for a more staid and conservative investor.

By considering these three factors carefully, you will be able to find an online stock brokerage that will work for you.