Compare Stock Brokers
The Investor must understand their specific need while choosing a specific stockbroker and be aware of certain pros and cons for each stockbroker.
Cost per Trade: Most brokerages have two suitable plans for the intraday traders and other suitable for long-term investors. You need to be aware of which category you fall into and choose the stockbroker based on that.
Minimum Trades: Some of the stockbrokers have some clause or sub-clause regarding the minimum trade you need to have to avail a specific benefit or specific pricing offered. Some of the prepaid plans have criteria to use the prepaid brokerage for a specific duration. Unless you meet the minimum trading volume, you might not break even the cost you have incurred.
Research Reports: Most successful and big brokerage firms have their research reports, and those are exclusively for the users of their service. You need to talk to people or find in the forums if the research reports are exclusive and the past reports' performance.
Margin Trading: Almost all the brokers provide the margin trading option where you can trade in stocks with higher exposure than your funding available in the account. This benefit is crucial for the day traders, and hence you need to assess your need first before considering this as a deal-breaker. Also, for the day traders, this sometimes can be a trap and may fall victim to greedy buying. Hence you need to consider your risk appetite for this specific benefit and take a conscious decision.
It is essential to compare each of the stockbrokers based on the parameters mentioned above and assess which one is better based on your specific need. If you are a long-term investor, the brokerage fee might not be a huge concern, but the stockbroker's credibility and the security you will get are crucial. On the other hand, if you are a short-term investor and the brokerage on each trade should be the most critical consideration. Hence each Investor needs to assess and compare the stockbrokers based on the quintessential parameters for their need. Each Investor's behavioral inclination and investment strategy matter the most, making sure to take the professionals' opinion whenever you need it.
Please visit the following pages to see the corresponding comparision of the two stock brokers.