Choosing an online broker doesn’t have to be overwhelming and confusing. Click here for a quick guide to help you find one that will suit your needs.
Did you know Americans spent $70 billion on the lottery in 2014? Imagine instead if they put that money into good portfolios and invested it instead. That’s where an online broker comes in.
Instead of letting your money sit in a bank, or get wasted on other frivolities, why not make your money work for you!
Consistently investing in profitable companies or stocks, can help you get a little extra cash to play with. When done well, it can even provide for your retirement.
The most important thing to get started is to find a quality online broker. Here are some things you should look out for when choosing your broker.
1. Good Reviews
Like every business, you’ll want to make sure that the customers that have used them in the past were happy. This can be checked by the quality of reviews that were left.
In fact, a quick search on the web will bring up a variety of long and short-form reviews by a number of reputable companies. For example, here are TD Ameritrade reviews by Investor Mint.
2. Do Your Own Research
While listening to someone else’s opinion is great, it’s even more important to form your own opinion on companies.
Be sure to do a healthy amount of research before you invest with anyone. Don’t just look at their most flashy numbers. Instead, decide what you want out of a broker beforehand and look for the ones that do that well.
Some brokers allow you to invest for free but charge you to get more information about the companies. Others charge you to invest but give you more analysis and data than you might know what to do with.
3. Understand ALL the Fees
Most brokers will charge you $6.95 for a stock trade. However, with hidden fees and commissions, it can feel like a lot more.
Before investing, make sure you understand exactly what rights you have and how to avoid hidden fees. Every penny counts.
4. Get the Most for Your Money
If you are paying to use a broker, you might as well get as many advantages and perks as you can. Look for online brokers that provide help in other areas as well.
Did you know some brokers will help you set up a retirement fund? If that’s something you think might interest you in the next 10 to 15 years, you should get it now.
While it’s possible to switch online brokers, it can put a dent in your earnings or result in fees. Most of the time people like to choose one broker and stick with them.
Find an Online Broker Today
The trick about investing in the stock market is to invest as soon as possible. The longer your money is earning interest on high dividend yields the better it will be for you.
Don’t delay finding a broker just because you might not know where to start. Instead, start doing research and educating yourself.
Check out our guide on how to give yourself a great personal financial education.