For a profitable investment, you need to use brokerage services that suit your investment goals, educational needs, and learning style. Choosing the best online stock broker that suits your needs, especially for new investors, can mean the difference between an exciting new stream of income and a disappointing disappointment.
While there is no reliable way to guarantee a return on investment, there is a way to set yourself up for success by choosing an online broker that best suits your needs. In this guide, we'll break down everything you should look for in your ideal broker, from the obvious (like whether the platform allows you to trade the securities you're interested in) to the less obvious (like how easy it is to get support from a real person when you need it) ...
How to choose a broker to trade
Since the types of instruments you need will depend on your goals, you should also quickly check the following elements to weed out brokerage companies that simply don't fit your needs.
What types of accounts does the broker offer besides the standard (tax-deductible) investment accounts?
For example, if you have dependents, find out if you can open an Education Savings Account (ESA) or guardianship account for your child or other dependents.
Can you open a retirement account?
See if the broker offers Roth or traditional retirement accounts and if you can roll over your existing 401k or IRA.
Are there different products for different investment purposes?
For example, find out if the broker offers managed accounts. Also find out if there is a minimum investment for different account types.
Can you manage employee retirement accounts through intermediaries?
This can apply if you are a small business owner. These account types include SIMPLE or SEP IRA.
Does the brokerage offer stand-alone IEDs or custom 401k options?
