Best Online Broker Ranking – Start Your Trading

Posted By Darren Winters on Dec 13, 2017

Best Online Broker Ranking – Start Your Trading

Let’ s assume that you are now schooled in trading and ready to find the best online broker. Either you are self-taught or you have attended a trader’s academy or perhaps you have decided to follow an investment home study course which best accommodates your busy work scheduled.

So you want to apply your knowledge, test your investment trading skills and give it a go. But the other part of the equation that you’ll need to get right is choosing the best online broker.

Best Online BrokerWhen selection a broker, and there are many out there, the most important thing you should consider in one word is trust. Can you trust the broker with your hard earned money? You are going to need to fund the account, in other words, wire the broker money before you can trade.

Can you trust that your broker is offering you the best real-time price, at the lowest commission rate? Can you trust, rely on your broker when the market is fast moving and you need to exit, enter a trading position?

Think of this scenario. The market is moving rapidly against your position and reaching your predetermined stop loss level. Moreover, let’s assume you have decided to keep a memory of this stop-loss point rather than input it into the trading platform.

So you decide to abort the position but the screen freezes and eventually when you can deal the trading loss is greater than your stop loss point. This can happen. So you’ll need to know what your broker’s policy is regarding guaranteed stop losses and when the trading system goes down.

In short, you will need to do your due diligence when selecting a broker.

First, make sure your broker is authorized and regulated by an authority. In the UK it is the financial Conduct authority. For you UK listed brokers you can search the financial service register by the company, person, product, reference number, and postcode.

Also, search engines can be helpful in gathering information to determine the most appropriate broker.

Barron’s 2017 Best Online Broker Ranking notes that the bull market is on sale for online brokerage customers. Barrons reviewed 16 brokers in 2017 and concluded that the average monthly cost of trading for an occasional investor had fallen 25% since early 2016, to $47.51 from $63.45.

Amid a price war, Interactive Brokers and Tradier were identified as the least expensive brokers in 2017.

Fidelity Investments (4½ stars) wins. Excellent mobile tools and assistance available whenever you want it was cited by Barrons as the reason for Fidelity Investment ranking top. The firm is one of the rare brokerages that maintained access to international markets.

Moreover, the company has lowered its base commission to $4.95 and its per contract options fee to 65 cents. Fidelity’s full suite of tools and services is also a great value, according to Barrons.

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