Finding the best online brokers isn't an easy matter.
When you wade into the waters of stock trading, whether as a day trader or just to supplement your income with long term investments, the first and most important decision you make is to choose the best online broker for your particular situation.
Just because one broker charges less for one particular service doesn't mean they're the least expensive in other areas.
Brokers are competing for your business, and each broker has some kind of eye-catching deal.
So it is most important that you define what you need before you even look at the prices and features of the different online brokers.
At the bottom of this article I will link to my review of the best online brokers, but before you select one of them, you need to define for yourself what you intend to do with online stock trading and what you really need.
You also need to be realistic about what you can afford.
What kind of investing will you be doing? Do you hope to be a day trader or are you looking to get into long-term, steady investments? Are you interested in the dynamic world of penny stocks or do you only want to engage in managing mutual funds? Different brokers have different expertise; define for yourself which way you're headed before committing to your best online broker.
Are you ready to dive head first into this investment game or do you just want to dabble? There is kind of a strange cycle to using different kinds of brokers for different phases of your experience.
If you're really just dabbling with a little money, you might use a discount broker because they provide inexpensive transactions.
However, they don't provide a ton of professional support or research assistance.
So if you're new and you're serious, you really should go for a full service broker.
Then, when you've built your knowledge and experience, you can go to a discount broker to keep your trades cheap because you know how to do your own research.
I encourage you not to be cheap early on; it will only cost you more in the long run.
If you're new to online investing, you need the wisdom and experience of a full service, established broker.
You may have reached this article because you've been hyped to think online trading is a possible way to get rich fast.
Please try to avoid being fooled by sly online sales pitches.
Be very skeptical of hyped newsletters or applications which claim to provide you all the money-making picks you need.
You need to be patient and professional to make money with online investing.
The best online brokers will help you do your due diligence, not shortcut your way to false riches.