Know Your Broker Before Trading Online PDF Print E-mail
Written by George Priestley   
Friday, 20 August 2010 19:34
Appropriate investment techniques should usually consist of researching your broker, but in today's globe of new technologies and on the internet expense, what questions must you be asking?
by GeorgePriestley


Appropriate purchase strategies ought to often consist of researching your broker, but in today's world of new technologies and on the web investment, what questions must you be asking?

The following are some key questions to ask your broker, which can save you both time and cash:

* What equipment are obtainable from your broker? Stock quotes, news, charting, level II data and advanced purchase sorts are among several crucial equipment for traders. Be sure your broker has the resources you specifically need.

* How quick are orders being executed? Maintain in mind that on the internet trading can substantially speed up the purchase process in comparison to placing orders over the phone.

For instance, RushTrade provides Direct Access Investing, which allows you to direct your buy for the execution venue of your selection. This can result in quicker executions, improved cost and greater control of your orders.

* Does your broker get paid for order flow? Some brokers might receive payments for sending orders to preferred marketplace makers. This can lead to a conflict of interest. Ensure you know your broker's policy.

* Do they offer you a investing demo? Discover out regardless of whether there's a expense involved for a trading demo. RushTrade, for instance, features a demo of its Direct Entry application free of charge on its Website.

* May be the Web site or investing application simple to use? Dealing with a slow or unwieldy website can actually hamper your trade executions when speed could be the name from the game.

* Can I trade after hours? Ask yourself regardless of whether this is crucial for your investing requirements. RushTrade's Direct Entry software will permit after-hours trading.

* Are there any hidden fees? Brokers may tout lower commissions but then hit you with unexpected charges. Look for brokers that do not charge lower balance, inactivity or maintenance fees.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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