Why Should I Use An Online Broker?
There are thousands of brokers in the USA that can help you achieve your trading goals, but you might still be on the fence about whether to sign up for an account. Cost and convenience are two of the biggest advantages with these online companies. Many Internet brokers do not charge fees for stock and ETF trading, and other costs are still lower than you would find in an “offline” broker.
Additionally, online brokers are convenient because you can trade right from your phone or computer. Trading on-the-go is made even easier in today’s day and age, as almost every brokerage has an iOS and Android app for its clients. The best investment brokers in the USA are those that have, among other amenities, speedy, glitch-free apps for mobile traders.
How To Start Looking For An Online Broker
First, you will want to determine what your trading goals are and your profile as a trader. Are you active or passive? A newbie? A professional? Know what type of trader you are and what you want. Then, after developing that foundation, you can begin looking for the best online brokers in the USA. U.S. trading platforms and companies should have, at minimum, the features discussed below.
Finding Low Fees
If you’re signing on with an online broker, you’re likely doing so because you want to make a profit. After all, no one becomes a trader because they want to lose money. Though trading is risky and profit is never guaranteed, you should always compare brokerage fees in order to maximize your potential. The less money a broker takes out of your wallet in commissions, costs, and other payments is more you can devote to your trading career. The top brokers in the USA tend to slash fees to the bone in order to stay competitive.
Brokers Must Have High-Tech Platforms
U.S. trading platforms come in all shapes and sizes, no matter whether you are downloading them, trading through your web browser, or signing in on an app. A broker’s platforms must be high-tech, high-speed, and feature-heavy. The MetaTrader suite, for example, is industry-standard, but there are some brokers in the USA who have their own proprietary, competitive software.
We All Need Research & Educational Tools
No matter whether you are a professional or novice, you must keep up with your trading education. Newbies need “How-To” guides and fundamental information, while pros may want more information on carrying out advanced trading strategies. Market news and analyses, research, education, and similar resources are all must-haves for traders. The best online brokers in the USA always offer these comprehensive, multi-media, informative tools to their clientele.
Don’t Forget Customer Support
Customer support: you won’t know how important it is until you need it. One major quality that the best online brokers in the USA all have is excellent customer care. Support resources should be knowledgeable, polite, and easy-to-reach. One rule of thumb is that a trader shouldn’t wait more than forty-eight hours to hear back from a broker about a serious question. Top-notch customer service will ensure your trading career runs as smoothly as possible.
It’s All About the Regulation
Investing.com always lists the regulatory bodies of brokers, as oversight is an extremely important must-have for any financial company. A broker needs to be governed by a regulatory organization; if it’s not, you should never sign up for an account, lest you put your money and information at risk. Brokers in the USA, for example, are usually overseen by organizations like FINRA (Financial Industry Regulatory Authority) or the SEC (Securities and Exchange Commission). Top brokers in the USA will always hold themselves accountable to governing bodies, and they will follow the rules to the letter.
What To Avoid In An Online Brokerage
While we’ve spent much of this page discussing US trading platforms and the best investment brokers in the USA, we’ll now talk about what to avoid when it comes to selecting a broker. There may be a lot of brokers from which to choose, and you will want to watch for some key “red flags.”
In addition to being unregulated, a broker that has high fees, high margin interest rates, and a limited investment pool is one you will want to avoid. Additionally, if the broker’s website offers little-to-no detail about account types, payment methods, minimum deposit requirements, and other basic characteristics, that is a bad sign. You want a broker who is transparent, won’t eat into your profits, and gives you a lot of options.
Bottom line: trust your gut and do your research before depositing money with a broker. At Investing.com, we usually provide star-ratings from consumer aggregate sites. That way, you can see what others have to say about a broker.
Investing.com covers all of the topics above (and more!) in its reviews. You can explore the ins and outs of the top brokers in the USA with our charts, comparisons, and analyses. Finding the best investment broker for you is made easy when you have access to the top-notch research we provide.