Before you start looking for the best 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 enter to buy 5 Apple shares, the operation will be completed by comparing you with someone who wants to sell Apple shares, although not at a known price. With a limit order, the trade will only be completed at a particular price. For example, if you want to buy 20 Target shares at $ 50 per share, the order will only be placed if the broker can execute it at a price of $ 50 per share.
Stick to market orders if you need to complete an order as soon as possible. Limited orders are best if you are on a budget and just want to spend so much per share. If you are lucky and find a good broker, you could still fill your limit order at a fair price.
How to choose the best stockbroker?
Speaking of brokers, how do you pick a good one? To find the best beginner stockbroker, 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 do your best yet, find a broker who is willing to work with those who are new to investing and who don’t have a lot of money to start with.
• Reasonable prices – 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 unnecessary and hidden fees.
• Educational tools: The best stockbroker will provide their clients with the tools and resources they need to learn to trade 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 just choose a broker who is just that and nothing else. Look for one that offers you the option of investing in more stocks than individual stocks. What about bonds? EFTs? What if you decide to open a CD account?
• Associations and reputation: It is worth taking the time to check the background of online brokerage firms before making a decision. Do the obvious things like reading reviews and looking for fraud alerts. Make sure you choose the services of someone who is a member of organizations like SPIC and FINRA.
Final 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 operators, and an intuitive workstation for the more advanced. There are many positive Zacks Trade reviews from industry leading sites.