10 Reasons to Use an Online Stock Broker
Just What do Brokers Do?
At the simplest level brokers have the legal permission and ability to buy and sell stocks and other financial products, usually at the request of a particular client. Some also provide advice to clients regarding what stocks or other financial assets to buy or sell. Getrichslowly provides general insight on other services that brokers may provide such as guidance on tax implications, estate planning, and financial planning. These brokers are traditionally individuals who talk personally with clients to perform these services including execution of stock transactions.
Personal contact may be what some traders prefer, while others will lean toward online brokerages that are available 24×7 and can execute their desired transactions on the trader’s schedule, not based on a personal broker’s office schedule or availability. Regardless of your choice of broker, if you want to buy or sell stocks you will need to enlist the services of a broker who is licensed to make stock trade transactions.
Why Use an Online Stock Broker?
Online stock brokers have gained a competitive edge through the use of technology and availability of real-time information to customers of varying experience and investment strategies. There are significant differences in the goals and directions of investors from long-term financial planning to quick-hit day trading for immediate returns. Wikinvest and other internet sites provide insight to several advantages clients can benefit from by using online brokers. Both experienced investors and those new to the markets can achieve a positive edge through use of an online broker.
- Availability – Here’s where the online concept and use of technology bring real advantages to clients. No need to make a phone call to a broker who may not be immediately available to execute trades when you’re ready. Timing is critical in the stock market especially for day traders who are monitoring stocks closely for turning trades into returns in a short timeframe. Online brokers can even execute trades in pre/post hours when traditional markets are closed.
- Execution of buy and sell orders – Delays in execution that stretch into hours or even days can result in lower profits or even losses. Online trading removes the communication barriers between broker and client executing trades quickly and responsively. None of the delays that may cause lost opportunities or reduced gains are present with online trading.
- Tools and trading platform – Calling your broker with questions or seeking advice means lost time making the call and waiting for the broker to research the answer to your specific question. Online brokers can provide software that allows you to track stocks of particular interest to you or the market in general.
- Features – online brokers provide software that also gives clients the ability to chart performance of their portfolios, make request orders to buy and sell stocks, detect trends that enable them to make decisions for moves when the time is right, and much more.
- Fees – clients of online brokers typically experience significantly lower fees for trades and also lower commission rates for their trading activities. Fees vary among brokers so be sure you understand the fee and commission structuring that applies to the services you expect to utilize.
- Service – online stock brokers can provide customer service by phone, email, and even online chat available to clients. This ensures quick answers to questions and resolution of any problems. This is another advantage to the use of technology and the internet.
- Flexibility – online brokers may offer the distinct advantage of using mobile devices to access their services. Whether using Android phones or iOS devices you’re in fast direct contact with the online broker to monitor your account and market activity.
- Market coverage – you may want to participate in a variety of financial markets including Forex and commodities. Online brokers offer a wide range of markets to investors that give you optimum methods to broaden your portfolio.
- Ease of use – online brokers are experienced in all aspects of market investing whether you’re considering domestic company stocks, global markets, or Forex investments. This can help you navigate the investing waters with more confidence especially for traders who are new to stock trading. Through your use of a knowledgeable broker you hone your own skills and expertise in factors to be considered when buying and selling.
- Selection options – there are a large number of online brokers available and they vary in the services they provide including monitoring and analysis tools, fees, consulting offered, and financial products they’re licensed to offer. This provides a buyer’s market that allows the investor to select the online broker that most suits your individual financial needs.
All online brokers are not the same. Do your homework before selecting the online broker that’s right for you. Evaluate prospective brokers on at least these basic criteria:
- Availability – can you exercise trades at your chosen time, rather than only during certain hours?
- Tools – does the online broker include analytical tools that help you monitor certain stocks on your watch list? Are charting tools available to track performance of the market and detect trends that impact your investment decisions?
- Flexibility – can you monitor and exercise trades wherever you are: desktop and mobile devices?
- Support – is customer service available 24×7 when you need it? How is it provided (actual personal service, FAQs online, only at certain hours)?
- Fees – make sure the fee schedule and commissions are clearly spelled out, with no surprises.
StockTrader.com is an additional resource for factors to consider when selecting an online broker. Your choice will certainly influence your investing experience and financial results.
You need to be able to trust the service and pricing of your online broker who will execute your trades promptly and consistently. Brokers can vary greatly in their fee schedules and services provided.
SureTrader is a leading online broker for your stock trading utilizing advanced analytical tools and mobile applications for real-time access to your account and trading transactions. Contact us today to sign up and get started with efficient reliable trading access. Our friendly professional support team is available to assist you whenever you have questions or need assistance.
Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.