Posted by forex at 9:19 AM
Read our previous post
1. Read financial publications like the Wall Street Journal, Barrons and Investors Business Daily to find online brokers to contact. Online brokers like E*Trade, TD Ameritrade and Scottrade routinely place ads in these publications.
2. Log on to the websites of each of the online brokers you are considering and review the terms and conditions associated with their accounts. Check the minimum balance required to open an account, as well as any fees and charges to which you might be subject. Some online brokers charge a quarterly or annual maintenance fee, although that fee is often waived for clients with high account balances.
3. Review the cost of trades with each broker, and choose the one whose fee structure best matches your needs. Some brokers charge a flat fee for everyone, regardless of the size of the trade, while others use a tiered fee structure that changes with the number of shares purchased or sold.
4. Check to see if the online broker has a real world presence if that is important to you. E*Trade, TD Amertirade and Scottrade all have offices around the country where you can sit down with a representative to discuss your financial goals.
5. Compare the return on your cash accounts across the different brokers you are considering. Look for a broker whose cash account pays a competitive rate of interest.