Deciding stock broker

Some investors are willing to pay higher trade commissions for a state-of-the-art platform; others count costs above all else. Settling on the best option for you means weighing the following factors, which vary from broker to broker. How much you have to invest may slim down your choices.

This is by design, for a few reasons. Also, the less money you have to invest, the harder it is to achieve proper diversification. Or, to modify the old saying, if you have only one egg, you can put it only in one basket. Still, you can find highly ranked brokers with no account minimum, including TD Ameritrade and OptionsHouse.

Some brokerage firms will also offer access to futures trading and forex currency trading. The investments offered by the broker will dictate two things: You may not be able to avoid account fees completely, but you can certainly minimize them.

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Most brokers will charge a fee for transferring out funds or closing your account. Common fees to watch out for are:. Look for brokers that offer the investments you want at the most reasonable price. Learn more about investing in stocks. But you may want an education and a little hand-holding. Many brokers offer these services free to account holders. Active traders, on the other hand, will want to look for a brokerage that supports that kind of frequency. Plenty of high-quality online brokers offer access to trading platforms, tools and research for free, so beware of brokers that nickel and dime each feature; those costs can add up quickly.

Online brokers, like many companies, frequently entice new customers with deals, offering a number of commission-free trades or a cash bonus on certain deposit amounts. NerdWallet strives to keep its information accurate and up to date.

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