How to choose an online broker?

When dealing with financial investments the most important thing is not stocks, bonds or mutual funds. The most important thing is to choose a right broker. Many companies at the market offer brokerage services approximately of the same quality. But how to choose the very broker you need? Here are 10 factors that should be taken into account when choosing broker.
1. Not always discounts mean good conditions for a purchase. Try to start with a broker of a full cycle. Very often they are the most appropriate for investors-beginners, who need to gain experience. As you get your hand in this, you can easily start controlling finance on your own.
2. Availability and operability are the keys to success. Try to visit company’s web site in different part of a day, especially at the hottest trading hours. Check how long it takes for a web site to load and check few links to make sure there are no technical problems.
3. Alternatives always give more opportunities. Yes, we love Internet, but sitting at the computer all day long is absolutely inappropriate. Find out if a company offers any other options besides online trading. Bargains can be stricken via phone or fax. Remember prices of every such alternative – often they differ from online trading prices.
4. Pay attention to broker’s experience. Before buying stocks one should learn a much as possible about them. The same is with broker. No one will argue that dealing with professionals (OptionsXpress, ETRADE, TradeKing etc) is much more reliable and profitable than with beginners.
5. Don’t be tied to the chariot of a price, especially if it’s low. Often price says for the quality. Don’t open an account with a broker only because his prices are the lowest. Various services have different price. For example, limited orders, options and phone trading cost more. So, in the end, the service you choose can cost not as much as you expected.
6. Minimal deposits can be far not minimal. Find out the sum of initial deposit that the company requires to open an account. Be careful – sometimes companies demand quite high minimum. For some this sum can be bearable. And what about you?
7. Pay special attention to a product you choose. When choosing brokerage company many people think about buying stocks. But always remember about existing of other investment alternatives. Probably, the firm you have chosen doesn’t offer them (gold and silver certificates, municipal bonds, futures, option etc).Many brokerage companies offer additional financial services like credit card servicing or current check accounts.
8. Education. Not everyone is an ace in the sphere of finance, so when taking a decision to get involved into online trading, many people have complaints about absence of any educational courses offered by the company they choose. So, pay attention to this point. For example, ETRADE and OptionsXpress are trading platforms that offer a full course of education fro beginners.
9. Take into account the quality of customer service. There is nothing more outrageous than waiting on the line for 20 minutes. Before opening an account call the customer support service and ask few questions – that’s how you will find out how the company treats every potential client.