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Table of contents

  • What Does A Broker Do For You?
  • What Should You Look For In A Broker?
  • How Do You Choose A Broker?
  • What Are Things To Be Aware Of When Choosing A Broker?

Brokers

Written By
Demi Sher
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Brokers Analysis, Marketing Automation

Content & Marketing Operations Associate | Investing.com

BA & Honors in Public Diplomacy & Affairs, The Raphael Recanati International School Reichman University | DPIJI, Daniel Pearl International Journalism Institute | HarvardX

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| Updated May, 2023

One of the first steps to starting an investing career is choosing an online broker that suits your trading ambitions and needs. Investing.com, through careful research and analysis, can help you find a broker with all the features and tools to help you navigate global markets.

Risk Warning info_outline
Trusted Partner
Interactive Brokers
  • Wide Range Of Assets From Which To Choose
  • Strong Tools And Research
  • Access to 150 markets in 33 countries, with trading available in 26 currencies
  • Comprehensive research and news offerings from over 200 free and premium providers
  • Highly Regulated, Financial strength
Visit site Interactive Brokers Review
  • equalizerTraded Assets: 11
  • account_balance_walletMin Deposit: $50
  • phone_iphoneMobile App: Yes
TRADIER
  • Wide Range Of Platform Options
  • Customizable Based On Trading Needs
  • Good For Active Options Traders
  • Low Fees
Visit site TRADIER Review
  • account_balance_walletMin Deposit: $0
  • phone_iphoneMobile App: Yes
TradeStation
  • High-Quality Education/Research Tools
  • Low Trading Fees
  • Excellent Web Platform
Visit site TradeStation Review
  • account_balance_walletMin Deposit: $0
  • phone_iphoneMobile App: Yes
Public.com
  • No Minimum Account Requirement
  • Commission-Free Trading On ETFs and Stock
  • Crypto Trading Available
Visit site Public.com Review
  • equalizerTraded Assets: 9000+
  • account_balance_walletMin Deposit: $0
  • phone_iphoneMobile App: Yes

Our recommended brokers:

  • Interactive Brokers
    Interactive Brokers
  • Goldco
    Goldco
  • TradeStation
    TradeStation
  • Finq.com
    Finq.com

What Does A Broker Do For You?

Brokers intermediate transactions between a buyer and a seller. They receive a commission after the deal is executed (though, sometimes, they choose to reduce or even eliminate commission fees for certain trading products). 

  • Research & Marketing: While the broker is an intermediary by definition, it can do much more than that. A good broker will provide you with research, data, and trading tools that will help you determine which trades to make or avoid. Some brokers assemble their data using multiple sources, while others generate their own research, commentary, and advice. The best brokers are those who source from as many locations as possible yet still have the ability to generate their own research.

  • Discount vs. Full-Service: A discount broker charges a reduced commission, usually within the range of $5 to $15 per trade. The broker has a lowered fee structure, and its employees work on salary, not commission. Discount brokers don’t offer personalized advice or account management; they are true, no-frills intermediaries. By contrast, a full-service broker doesn’t just execute trades on traders’ behalf; it also offers market research, retirement planning, and investment advice, all of which are added to its full range of trading products. Investors will willingly pay higher commissions for a full-service broker due to the advantages it brings to the table. 

  • Technology Suites: Lastly, a broker should provide you with the latest in trading technology. Many brokers have downloadable platforms, in addition to apps and websites. High-tech trading platforms help traders access their information conveniently and execute trades quickly and effortlessly. A broker should make trading far more convenient for you.

What Should You Look For In A Broker?

When looking for a broker, you want to make sure that you take into account fees and commissions, user experience, customer support, and product variety. Though this list is far from exhaustive, it will put you on the right path to selecting the best broker for you.

  • Fees and Commissions: Your earnings will take a cut if the broker you select has high fees or commissions. Check to see if the broker you’re thinking of choosing has commission-free trades. If they do, check that those products line up with the ones you intend to trade. Fees and commissions hit your wallet hard, so you want a broker with as few of those as possible. In our broker reviews, we break down the pricing for trades and services.

  • User Experience: When we say “user experience,” we mean a glitch-free, smooth-running system. You don’t want to be spending hours hunched over your laptop in frustration because the downloadable platform isn’t working. User experience should run smoothly, and your broker should make your day more convenient, not less.

  • Customer Support: Along the lines of positive user experience is excellent customer support. While customer support might not be on the forefront of everyone’s mind when they are selecting a broker, it is still a must-have. You never know how much you need customer support until something goes wrong. You want responsive, fast customer service that won’t put you on hold for hours and cause you to miss crucial trading time.

  • Product Variety: A wide range of products is essential. If you’re a trader who wants a diverse portfolio, you can’t afford to be hemmed in by a short bench of trading products. Check what the broker offers. Also, check to see how long withdrawals and deposits take. You want your trading career to move quickly, not be held up by long wait times.

How Do You Choose A Broker?

Research, research, and more research. Choose a broker the way you would a car. Look into the reviews, customer complaints, and the ins and outs of each broker. Weigh the pros and cons. Don’t be afraid to try the brokers’ demos, many of which they offer free of charge, before you commit to a plan.

What Are Things To Be Aware Of When Choosing A Broker?

As aforementioned and further discussed in the individual reviews, brokers are multifaceted. Each broker has its pros and cons. However, there are some things that are nonnegotiable, such as transparency and regulation.

  • Transparency: A broker must be upfront about their fees, commissions, and whatever else they charge. A broker that tries to hide this information is to be avoided at all costs. Reputable brokers won’t try to hide pricing plans from you, nor will they play “gotcha” games with customers.

  • Regulation: There are several main regulatory bodies in charge of overseeing brokers, such as FINRA, the SIPC, and the SEC. Brokers should have their regulators listed at the bottom of their home page, and some brokers even go above and beyond and include information about their intra-company ethics policies.

Transparency and regulatory oversight are just two of the many factors to consider when selecting a broker. The overall key to choosing your broker is researching all your options before making a decision.  

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