| Finding the best online broker isn't easy. | | | | brokers will likely be one of your top |
| Information is incomplete. To complicate | | | | candidates as well. Another tip is to make |
| things even more online brokers aren't | | | | sure the reviewers are comparing apple to |
| forthcoming on basic information like cost | | | | apples. It happens regularly so be careful. |
| per trade, fees, cash interest rates, and | | | | |
| other critical information. | | | | Try to find out the criteria for the review |
| | | | of each broker. One review might give your |
| Authoritative sites give conflicting reviews | | | | perfect broker a low score because they don't |
| and ratings. For example, the top rated | | | | offer check writing. If you didn't care |
| online broker for JD Power in 2007 is the | | | | about check writing and that broker has |
| 12th place loser for Smart Money. To make | | | | everything else you want you might have |
| things worse there are so many online brokers | | | | missed them because of a poorly written |
| to choose from that even the reviews couldn't | | | | review. |
| decide whom to review. It's common for some | | | | |
| reviewers to completely leave off companies | | | | Another tip for finding a great broker is to |
| that received high ratings from another | | | | know what's important to you. Are you |
| reviewer. Another problem is that some | | | | interested in Mutual Funds, are you an active |
| reviews are 2 to 3 years old. | | | | trader, do you want to get into options, will |
| | | | you have a lot of cash sitting in your |
| In the information age you'd think someone | | | | account, will you use margins? There are |
| (cough…cough… Consumer Reports) | | | | many things to consider. Some brokers will |
| would have the solution, but they don't. | | | | be very good in some areas and not so good in |
| There are too many factors to make a final | | | | others. Knowing what areas are important to |
| judgment on the best broker. The type of | | | | you will help you narrow down your search |
| trader, account size, activity, research | | | | quicker. |
| provided, customer service, and the amenities | | | | |
| offered make each company fundamentally | | | | The final thing to remember is spending more |
| different. | | | | doesn't always mean you get more. Most of |
| | | | these discount brokers went through tough |
| In a way, rating online brokers is a lot like | | | | times after the internet bubble burst. They |
| looking at vehicles. A dump truck is | | | | had to become competitive while lowering |
| fundamentally different than a motorcycle. | | | | prices. As they did this the tools, |
| The dump truck reviewer will rank the | | | | research, and service provided started to |
| motorcycle as a flimsy cheap vehicle that | | | | even out. You don't need a premium broker to |
| can't haul more than a couple people. The | | | | make money anymore. In fact, the big banks |
| motorcycle reviewer will discredit the dump | | | | and investment firms have a lot more overhead |
| truck as heavy, clunky, and a complete waste | | | | than many smaller companies. Don't believe |
| of gas. So which is better, the dump truck | | | | the marketing that you'll be getting more by |
| or motorcycle? Just like many things, it | | | | spending more. It's not always true. |
| depends. | | | | |
| | | | Hopefully finding your broker will be fun and |
| To find the best reviews try to find | | | | easy. Most likely it will take some work and |
| similarities in each review. Is there a | | | | good old-fashioned research. Good luck and |
| company consistently in the top five? These | | | | happy hunting. |