Finding the perfect broker for your full time day trading job is really hard. Over the past few years, hundreds of online brokers have been established to offer financial trading services. Some of them are doing really great and offering premium quality trading services, but some of them are horrible, and their clients are losing more money with them. It is important to choose a broker that is regulated by trustworthy jurisdictions in order to avoid fraud and other nasty surprises. You might have a sufficient amount of capital and the best trading method, but if you chose the wrong broker chances are very high, you would end up by losing your investment.
So how do we find the best online broker? To be honest, there is no specific guideline, but there is nothing to worry. We will tell you how to compare the online stock broker and determine the best brokers for your need. There are essential things that every trader need to look before they select their primary broker. For instance, regulations are the first thing that you need to look at before you assess other parameters of the brokers. Let’s learn more about comparing online stock brokers.
Reputation and regulations of online brokers
This is the first thing you need to consider before choosing any broker. The brokers must have proper regulations with regulatory bodies such as FCA in the jurisdictions they are operating. If the brokers are not regulated, you might even get scammed. So never trade with such a broker who doesn’t have the proper licensing to operate their service in a specific region. If you reside in the USA, make sure the brokers are offering their full support to their U.S based clients. Some brokers don’t have the proper paperwork to offer their service to U.S clients. Along with the regulations you also need to look at their reputations. All you need is to do some online research, and you will have plenty of public opinions to assess their services.
Commissions and fees
Some of the retail traders don’t bother about commissions and fees. But the pro traders always consider this as an important variable to choose a well-reputed broker. Those brokers who charge higher fees without having any additional services are obviously not a perfect pick for you. If you start your trading career by paying higher fees and commission, you will have a hard time making a decent profit from this market. Make sure the brokers have a very transparent pricing policy, and it must be competitive. If the fees seem too high, ignore it as there are many brokers to offer the same service at less price.
This is the most important thing you need to consider while choosing a broker. The premium brokers will always give you free access to robust trading platforms. There is no reason to pay a premium for the professional trading platform. But don’t assess the desktop based trading platform only, a good broker should give you hassle-free access to their mobile platform also. Open a demo trading account with the broker you like and assess the trading environment. Never jump into the real trading industry without having a robust trading platform. The platform should have the ability to handle trades at extreme market conditions. Most importantly you should have premium trading tools to do the perfect technical analysis. For further information have a look at our Best trading Platform article.
Free education offered by on-line brokers
Those who are completely new to the online trading industry should consider a broker who offers free education. There are plenty of high-end brokers who will give you free access to the learning center. If you read all the online trading materials offered by such a reputed broker, you won’t have any difficulty in mastering the art of trading. Always remember, without the right education and knowledge, you will never become a successful trader. Some people don’t trust free education given to them by their brokers. But the brokers with a proven track record in the financial industry will definitely give you the best online educational resource. They don’t make money by placing trades against you. They simply operate based on the commission and fees they earn when you place deals. Often the selection of the best broker for beginners is based around access to education.
Deposit and withdrawal
Deposit and withdrawal section is very important when choosing any broker. The elite class brokers will always give you access to multiple payment processing systems. You can deposit your money without any hassle, and in an emergency, they will extend their helping hands to solve the issue with the highest level of priority. When it comes to the withdrawal of the profit, the brokers must process your withdrawal request within the shortest possible times. The best broker will have a very easy transfer method. But this doesn’t mean they will compromise the security. They will always make sure the funds are safely transferred from your accounts.
All the great brokers have very good reputations when it comes to customer service sections. The professional brokers will always hire top class customer service representatives so that they can understand your queries in a very easy manner. Before you invest your money, talk with their customer support and see how they behave. If they seem unprofessional, there is no point of trading the market with them. You never know the kind of challenges you will have to face while trading the live asset. So it’s always better to have to choose a premium broker who has an excellent track record in solving the problems of their clients.
So far you have learnt about the major aspects that you need to assess before you select any online stock broker to trade the market. But if you are completely new to this profession, it is better not trade with your real money even though you have a perfect broker in mind. Demo trade the market and see how things go in real life. But make sure always have an alternative broker in mind so that you can easily compare the service offered by your primary broker. You have to be very smart and think logically to find the best broker for your full time trading profession.
ChoosaBroker has spent considerable time building a detailed search engine to allow retail traders to compare brokers and find one that suits their needs. For further information on choosing the top online broker have a look at our recent article.