How to choose a stockbroker

The world has changed incredibly in the last two decades, and there is no greater indication of that than in the world of investing and stock trading.

In times past, most investors chose their stocks through a traditional stockbroker at a brokerage firm. The transaction would involve the issuance of paper share certificates to the share buyer. The types of investments available to the “average investor” were also very limited.

Today, the same “average investor” can trade anything from individual stocks to currencies, commodities and indices, all with a simple click of the mouse, and without leaving home.

But with choice comes confusion – deciding which broker fits your needs like a glove can be an overwhelming process. This guide has been designed to give you an understanding of the different types of stockbroker services out there and to help you decide which one is right for you.

These are just a few of the many issues you’ll need to consider when deciding on your preferred broker:

– Are you comfortable running your operations online, with the ease of a click, or do you prefer to do your business with a real person, over the phone or even in person? The availability of technology has meant that companies can process large volumes of trades at low cost, so if you don’t need a person to talk to to trade, there are plenty of “no-frills” online brokerage services out there. They will allow you to do business for a few dollars per trade.

– The number of transactions you make will go a long way in deciding which brokerage service is right for you. Some companies will offer price discounts for frequent traders, so if you are a day trader, you may find a service that is much better equipped for your needs than if you were an infrequent investor.

– Do you need a basic “run only” service or do you need some advice when running your trades? Clearly, a run-only service will be cheaper.