Choosing an internet broker

So you have decided to start investing? There are a number of internet based brokers to choose from. Depending on the size of your investment and the style of trading you may end up using more than one brokerage service. For someone new to investing in the stock market and only looking to buy stocks for the long-term will have different needs than someone who will place a high volume of trades. For the sake of this post lets stick to a new trader.

Looking at the various companies such as; Etrade, TDameritrade, or Scottrade. First determine which site offers an initial investment matching your capital to start with, most sites ask for at least $2,000.00 to open a margin account something a new trader should not bother with until they are well versed in trading and the platforms used. For example, lets say the new trader has $1,000.00 to invest and decides to use Etrade. The initial opening of the account is fairly straight forward and with all reputable brokers well guided through the process. Once the basic account is setup Etrade allows for a bank transfer or a mailed check. Once the money is available signing in and making your first investment is the next step.

Picking a broker with the lowest commission is not always the best choice depending on the trading style. Some brokers have a fixed fee commission where others may charge additional fees ranging from $.000001 per share all the way up to $1.00 it is important to know what price the shares you plan on trading will be prior to selecting a broker.

Buying and selling stocks are typically only done during market hours 9:30-4:00 EST afterhours trading is available but prepare to pay a higher commission. If the stocks are fairly volatile it will be better to keep an eye on the stock daily to watch for good or bad news. The higher commission could help save the initial investment if an investment goes sour.

Low volatility high yield dividend paying stocks can help supply piece of mind and moderate growth for the investment. A discussion about dividend stocks and things to look for and lookout for is going to be published soon. Stop by again to read reviews on various programs and guides for getting moving with investment plans.