SEPT 3: Online Stock Trading Brokerage

by David Jenyns on September 3, 2006

Hiring an online stock trading brokerage firm is an important decision Ė you have to judge first whether you truly need the value of their services or whether you can get by on your own. In any case, knowledge about the services they offer and the costs associated with online stock trading brokerage is useful in itself.

Broker Assistance

One of the leading online stock trading brokerage firms are Cannon Trading Co. Inc. Ė they specialize in trading US stock indices, treasury bonds, foreign currencies and other product, and commodities exchanges.

Before taking action like any other investor you must ask yourself what are your goals, how much do you know about the behavior of the market, what are you looking for in a broker and if they have competitive commission rates. Whether you are just beginning to familiarize with the markets or you are experienced traders using a professional broker (and their knowledge) can be an asset.

Professional service programs can provide you with time-tested professional trading techniques, access to extensive market information and the foresight to execute well-planned trades that will make the difference between losses and profits.

Choosing an Online Stock Trading Brokerage Service

The first step is to decide if you need a full-service online stock trading brokerage or a discount service. Full-service brokers have their time and place but note that in the current competitive environment discount brokerage services tend to offer almost the same facilities as full-service firms. Make sure that you weigh all options before deciding which one is right for you.

Next, check the background of the broker or/ and the firm for any past disciplinary problems. You can do this quite easy by accessing the Central Registration Depository (CRD) which is an employment database available from NASD Regulation.


Every online stock trading brokerage has different conditions and terms for opening an account. The wide range of minimum deposits varies from $500 to $2,500. If you are worrying about money, donít, because some of them donít require a minimum deposit.

Pay attention to the commission because usually is indicative of the service so if itís cheap donít expect to be good. Dirt-cheap brokers charge $5 to $15 per trade but even if they get the job done don’t expect perks or great support.

The mid-priced discount brokers charge from $15 to $30 per trade and generally offer additional services and better customer support. For expensive brokers be ready to pay big money, in some cases they charge $100 to $200 per trade, but they offer full-service so you would be getting value for your money as well.

You should also be aware of hidden fees because besides commissions you may be asked to pay for items such as fees for transferring assets, account maintenance fees, interest on margin loans, sales charges on certain securities and inactivity fees.

If you are a beginner it might be easier and safer for you to hire an online stock trading brokerage firm until you have enough knowledge to survive on the market.

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