How to Find the Best Online Brokerage Firms for Beginners?
Do not get lured to any of the scammers out there. You may encounter some email phishing, internet offers related to stock market investing. If you found some offers about stock trading online. You have to review it and make sure it has the following criteria below;
Below is the guideline when choosing a stock brokerage company that will let its investors or traders to buy and sell stocks on the internet.
Best Online Stock Trading Site Criteria
- Listed in Securities and Exchange Commission
- Has complete contact information such as exact office addresses, mailing addresses, phone numbers or fax numbers. Check if the company has 24/7 online support.
- Has user friendly stock trading platform. You can easily customize the platform.
- Educate its investors first by means of articles in the websites, stock investing and trading seminars and other medium to be use when learning stocks investing.
- Has a low fee transaction charge. See example: OptionHouse Trading Fees
- And most of all, providing quality service, from opening an account, funding an account, ordering and good service when redeeming all your funds.
- You can trade via mobile trading app.
In USA, almost all online stock trading sites are a member of specific organization/association such as FINRA, SIPC, and NFA.
FINRA: Financial Industry Regulatory Authority
For your information, according to FINRA. “FINRA is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry. FINRA is not part of the government. We’re an independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly. “To know more about FINRA, just visit http://www.finra.org/AboutFINRA/
SIPC: Securities Investor Protection Corporation
“The Securities Investor Protection Corporation (SIPC) protects customers if their brokerage firm fails. Brokerage firm failures are rare. If it happens, SIPC protects the securities and cash in your brokerage account up to $500,000. The $500,000 protection includes up to $250,000 protection for cash in your account to buy securities.” To know more about SIPC, visit http://www.sipc.org/about-sipc/introduction
NFA: National Futures Association
“National Futures Association (NFA) is the self-regulatory organization for the U.S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency (forex) and OTC derivatives (swaps).” To know more about NFA, please visit http://www.nfa.futures.org/NFA-about-nfa/index.HTML
I hope you agree in my point of views regarding choosing the best online stock trading with address and phone number. If you have any ideas and other criteria, please use the comment box and add your own criteria. To be a successful investor, you need to keep on learning and growing. I suggest be careful and do your own due diligence if you want to trade stocks.
As a Summary
Here are the key points to remember when choosing the best online brokerage firms for beginners. Make sure it is registered in a government agency that regulates online stock trading. Just check the website and the company if it is listed in securities and exchange commission of your own country.