If you’re just getting started, features like essential educational resources, thorough glossaries, easy access to support personnel, and the option to place practice trades may be necessary to you before you start playing with real money.
Suppose you already have some financial expertise but want to become severe. In that case, you might desire additional high-level education and opinion-based resources written by experienced investors and analysts, as well as a good range of fundamental and technical data.
A genuinely seasoned investor, perhaps someone who has already executed hundreds of trades but is looking for a new brokerage, will prioritize advanced charting capabilities, conditional order options, and the ability to trade derivatives, mutual funds, commodities, and fixed-income securities in addition to stocks.
Be honest with yourself about where you are and where you want to go in your investment path. For example, do you want to start a retirement fund and concentrate on passive assets that create tax-free income in an IRA or 401(k)? Do you want to try your hand at day trading but are unsure where to begin? Do you wish to adjust and tailor your portfolio, or are you willing to hire a professional to ensure it’s done correctly?
Depending on the path you choose, you may have many more questions to answer along the way as you acquire experience and refine your goals. For the time being, however, focus on these four critical aspects to help you decide which of the brokerage characteristics discussed below will be most relevant to you. In addition, we’ve included numerous sample questions under each more critical topic to assist get your analytical juices flowing:
Are You an Active or Passive Investor?
Do you want to be a hands-on trader who executes day and swing trades? Do you ever see yourself leaving the 9-to-5 grind to become a full-time investor? Do you prefer to locate a few quality investments to hold for the long term with little or no day-to-day interaction?
