Top Broker Accounts: Key Features to Consider

Before you can start investing and trading your money, you will need to open a brokerage account. Once you place a trade order, the broker will execute that trade for you. There are many platforms competing for your business, so it’s essential to do your research. Consider the following factors:

• Are there any promotional deals being offered?
• What is the minimum investment required ($500? $2,500?)?
• Does the platform provide real educational resources? Look for actionable information rather than an abundance of content.
• What other features do the brokers provide? Brokers are constantly updating features to the latest technology. For example, some provide alerts via SMS, while others only offer email alerts.
• What are the commission fees for options? These typically range from $5-$10 per trade. Commission fees can add up, so focus on what you are getting with each broker. Some less reputable brokers have higher slippage. For instance, when placing a market order to buy at the current price, one broker might secure a price of $47.20, whereas another might do so at $47.24. This $0.04 difference (slippage) multiplied by the number of shares you purchase can make a significant impact.
• Certain brokerage accounts cater to advanced traders, providing minimal support and hand-holding at a reasonable cost, while others offer the opposite.
  • App functionality (download their app and test it out).

Below are a few brokers worth considering. These have earned high marks, but new ones are constantly emerging, so do your own research as well:

• Ally
• Merrill Lynch
• TD Ameritrade
• E-Trade
• Charles Schwab
• Robinhood

REMEMBER NEW BROKERS ARE CONSTANTLY COMING UP…HOWEVER, CHECK OUT THIS BIG NAME BROKERS