How to Invest - Selecting an Discount Online Broker Thats Right for You

By Sara Ferguson

As a general rule, online investors who use discount brokerages arent seeking the advice of a traditional broker theyve known for the last ten years. Most online investors want brokerages that are stable, provide excellent customer service, and offer different types of choices. The following list shows some of the criteria that investors use to judge discount online brokerages:

1. Ease of use: All online investors want their Web-based brokerages to be easy to use. Web sites need to be uncluttered and free of slow-to-download graphics and useless tools.

2. Prompt customer service: When online investors telephone customer service, being on hold for several minutes is unacceptable. Online investors with large portfolios want more sophisticated financial services and advice. Many are willing to meet with financial advisors for that human touch.

3. Reliable responsiveness: System-wide brokerage crashes arent acceptable. Quick and accurate trade executions are important for all investors.

4. Investing options, products, and tools: Online access to IPO information, options, and other financial products is a must. Many online investors expect research, real-time quotes, and other market information.

5. Low fees: Hidden costs are often associated with online brokerages. These hidden costs can quickly wipe out your profits. Consequently, you need to read the fine print before signing up for a new account. - 23222

About the Author:

Sara has been teaching investors how to invest for years with a multiple streams of income goal in mind. She sets everyone on a path to not only teaching them how to invest but showing them how to teach themselves!