Before you start looking for the best stock broker, you should first make sure you understand the two main types of orders when buying stocks: market and limit. When a market order is placed, it will be executed immediately at the prevailing market price. For example, if you sign in to buy 5 Apple shares, the transaction will be completed by matching you with someone who wants to sell Apple shares, but not at a known price. With a limit order, the trade will only be filled at a certain price. For example, if you want to buy 20 shares of Target at $50 per share, the order will only be filled if the broker can fill it at a price of $50 per share.
Stick to market orders if you need to fill an order as soon as possible. Limit orders are best if you are on a budget and only want to spend so much per share. If you’re lucky and get a good broker, you might still get your limit order at a fair price.
How to choose the best stock broker?
Speaking of brokers, how can you choose a good one? To find the best stock broker for beginners, consider the following:
• Achievable Minimums – A great advantage of online trading is that there is an opportunity to start small. If you’re not ready to go all-in yet, find a broker who is willing to work with those who are new to investing and don’t have a lot of money to start with.
• Reasonable pricing – Don’t just look for low fees, look for a service that allows you to create and maintain an account without charging too many fees. You should never be charged any hidden and unnecessary fees.
• Educational Tools – The best stock broker will really give their clients the tools and resources they need to help them learn about trading on their own, in order to help them make better decisions in the future. Having access to tons of resources can be a very valuable asset.
• Range of Options – Don’t choose a “stock” broker that is just that and nothing more. Look for one that offers you the option to invest in more than individual stocks. What about the bonuses? EFT? What happens if you decide to start a CD account?
• Associations and Reputation: It pays to do a background check on online brokerage firms before making a decision. Do the obvious things like read reviews and check for fraud alerts. Be sure to choose the services of someone who is a member of organizations like SPIC and FINRA.
concluding remarks
There is at least one organization that meets all of these requirements for the best stockbroker: Zacks Trade. It offers a wealth of learning materials for new and mid-level traders, and an intuitive workstation for more advanced ones. There are many positive Zacks Trade reviews from leading industry sites.
