| Finding a good online broker you can trust - where | | | | Most online trading websites that do online options |
| you get good service at a reasonable price - that is | | | | trading will charge extra for each options contract. Be |
| the first objective you should have when you decide | | | | sure you understand that additional charge. These |
| to get involved in online trading. This is one of your | | | | prices can vary dramatically and will make a big |
| most important decisions and it can make the | | | | difference to your bottom line, so study the numbers |
| difference between a rewarding investing experience | | | | carefully. |
| and a frustrating one. | | | | A quick comparison of a few published rates |
| You will probably narrow your search down to three | | | | illustrates the importance of looking carefully. For |
| or four possible online trading websites. Your initial | | | | example, rates for options trades vary from $4.95 |
| choices will probably be based on recommendations | | | | per trade from a well known low priced online broker |
| from friends, internet searches, advice from people | | | | all the way up to $12.99 per trade from E*Trade. |
| you trust or articles you've read. But once you have | | | | The disparity for broker assisted trades is even |
| that short list, here are some things you should | | | | greater. |
| compare. | | | | Even in the short term that can make a substantial |
| First, look for a fair and simple pricing structure. | | | | difference to your investing success, and you can |
| "Simple" is important because many online trading | | | | imagine how much you might save over the long haul |
| sites - like those notorious cell phone companies, | | | | if you become an active trader. It definitely pays to |
| credit card companies and banks - will add on | | | | compare online trading prices. |
| unexpected fees when you are least expecting them. | | | | Of course once you have reviewed the prices of |
| As with most products, the lowest price is not | | | | different sites you should move on to a comparison |
| necessarily the best choice, because a low price will | | | | of their investing and trading services. Look for things |
| sometimes come with missing options and | | | | like availability of customer service channels such as |
| downgraded service. But in online trading that is not | | | | instant chat, direct lines to actual brokers, online tools, |
| necessarily the case. And, in fact, if you look carefully | | | | and access to forums where other member traders |
| you will find that some of the best online trading | | | | can offer free (and often very helpful) investing and |
| sites for buying stock and selling stock are also the | | | | options trading advice. |
| lowest priced. | | | | You may be surprised that the level of service |
| That's why a simple and transparent pricing structure | | | | offered by different online stock trading sites is not |
| is important. Make sure the price per trade is clearly | | | | at all related to their pricing. In some cases, the best |
| displayed, and read the fine print before signing on | | | | service is actually available from the lowest cost |
| the dotted line. | | | | online trading sites. |