Choosing stock brokers can irritate the problem. Although they all seem, there are differences in commission rates, you have to know. Depending on the type of investor you are, perhaps, eventually paying too much taxes, depending on the broker to choose. Here are some tips on choosing the best stock brokers, depending on the type of investor you are.
1. Random investor. If you’re a casual investor with a moderate amount of capital ($ 200K or less), then chances are most of your money in index funds or ETFs. In this case, the discount broker’s fine. You seldom make a lot of professions, and you do not need much advice, because you just invested in a standard, safe investment. Brokerage TD Ameritrade, as well for you, because they have $ 9.99 trades.
2. Frequent trader. If you chartist, then find a mediator with the lowest fees is very high priority. Most discount brokers will give discounts for those who trade frequently. One example is e-commerce. Another site like Interactive Brokers may be good for you. Be careful with this type of investment style, but charges May devour all your profits!
3. High Net Worth investors. If you have $ 1 million + on the stock market, then chances are you can get a discount on how much you pay per trade. This is particularly true for the creation of large firms such as Fidelity. Fidelity offers $ 8 trades for those with $ 1 million + in its fidelity to the accounts.
4. Short seller. If you plan to sell many stocks short, you need that the broker has access to these shares, so that you can short them. Most of these brokers will be able to short-medium and large caps for you, but many do not have access to a large percentage of Small Cap stocks. Interactive Brokers may be the best broker for short sellers.