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5 ways to pick the right online investment

You have many options when picking your company to make your online investments.In the past, you had to have a stock broker who made all of the trades for you.You paid them a commission for this service and with it came advice on your account and the broker usually monitored your account.Hence, you had somebody helping you every step of the way to make sure you did not make mistakes.However, with the internet has come the opportunity to make all of these trades by yourself and nobody is monitoring or advising you on your investing.

You will want to decide what type of services you require when deciding which online company to use for your investments.Originally, you only had a few choices.However, in the past decade more companies have come along and most of the traditional brokers have added the option to make your trades online.These online brokers are often referred to as discount brokers.The competition has brought the price down, but with the decreasing prices has also come less information and advice if you want or need the help with your investments.

Here are five ways or items to consider when choosing your online investment company:

1.Services offered
Not all companies offer the same services.You will find that most offer a basic package of making trades, both buying and selling online, but then they begin to differ.Some allow you to have margin accounts.Others allow you to have limit buys and sells.You will have to decide what services you require.Often the company with the most services also charges you the most.You will want to decide which company offers the services you need and then you won't have to pay for extra services you don't require.

2.Investment access
Not all companies deal in the same securities.You will want to decide what type of stocks, bonds, mutual funds, and other securities you will be dealing with and then find the company that matches your requirements.If you are a beginner investor, most discount brokers will have all of the options you require.However, if you hope to trade in international securities you may want to find a company that gives you access to these.

3.Investing information
With the advent of online investing most companies have scaled back in the amount of advice they give to their customers.If you do all of your own research and don't want somebody telling you what you should invest in, you will not need or want to pay for this information.However, if you feel like you need somebody to talk to from time to time, then you will need to find a company that has this specific service.Most charge extra to talk to a broker and place your trade by phone.Some find this comforting and are willing to pay the extra charges, while you may not feel that you need this service.

4.Fees charged
As the competition has risen, prices have continued to drop.You can make many of your trades under $10 now.However, the brokers have found many ways to add fees to your trading so you will want to get very specific on what each company charges.They may advertise a low trading fee, but have high account maintenance fees.Fees take away from your investing power and they add up very quickly.

5.Security
You are always hearing about frauds and scams online in the news.You should ask what security measures your company has taken to keep your investments safe.Some companies do a better job than others.Research the news and find which companies have been victims.

In summary, you have many companies to choose from to manage your online investments.You will find that they are similar, but they each have unique advantages and disadvantages.Decide your investing strategy and which company will match your needs best.

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