Online Stock Investing ? Main Considerations Via The Expert ...

05Feb

Online stock investing has become the staple of the investment arena. There are some key considerations to keep in mind when selecting the right online broker for you. Since I pretty much exclusively invest in resource stocks, most of which are on Canadian exchanges, these considerations have that objective in mind. So whether you want to purchase a silver ETF or a rare earth metals play, these tips will help. Online Stock Investing And The Fee Factor While the convenience of trading online is huge, a lot of people opt for online stock investing for the discounted trading opportunities. As you might expect, the fees vary widely from one to another. This is true even among the most widely known online brokers. While most of the more popular brokers do not have any annual maintenance fees, one of the fees that can snag you is if you want to talk to a live broker by phone. At last check, TD Ameritrade wanted $45 to place a trade with a broker. Fidelity and Charles Schwab weren???t too far behind, coming in at around $33 or $34. Even the famous $7 Scottrade commission goes to $27! Another big fee factor is the one that crops up when it???s time to buy on a foreign exchange. TD Ameritrade doesn???t even let you buy stocks listed on the Canadian exchanges. But when you can, the various fees are worth paying attention to. In some instances, the discount broker will actually purchase shares from bulk traders. When that happens, there is a premium to be paid as Canadian dollars are converted to U.S. Dollars first. This is referred to as the spread. You???ll still have the discount broker???s fees too. Online Stock Investing ??? Full Service? If you???re just starting out with online stock investing, a big question to answer is whether you want to go with a full service broker. Although it will cost you more to do so, the additional assistance could prove well worth it at times. The important thing to consider is often not what the cost is, since all full service brokers will charge between about 2 and 5%, but rather what you get for your money. For instance, Charles Schwab has a pretty good infrastructure for those who want to do international investing. This is key for tapping the Canadian Exchanges if you want to invest in the best resource stocks in the world directly. On top of that, you want to think about how well someone understands your particular objectives. International investment expertise and ease of use are nice, but you may be concentrating on a sub-niche, and perhaps there???s an even better fit. If you are focused in the resource sector, keep in mind that there really aren???t that many people who thoroughly understand this investment class well. So, when you come across a full service brokerage such as Global Resource Investments, this can be a breath of fresh air. These folks specialize in resource investments, so they better understand your objectives. If you think you???d be better off with the help of a full-service broker, the point is that the price may not be as important as the skill set of the people you are working with.

Sunday, February 5th, 2012 at 11:58 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Source: http://www.proaz.org/pro-az/online-stock-investing-main-considerations-via-the-expert-synopsis

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