Where to get a stock trading account?

There are a number of reputable online brokers that provide access to the stock market.  There are a few key factors to consider when setting up an account.  All of the brokers offer different pricing schedules and other services.  Here are a few of the questions you need to answer (about the broker and your own trading habits/goals) before setting up an account.

1.  Cost per trade – this is obviously a very high priority when selecting a discount broker.  The online brokers charge anywhere from $3.00 to $20 or more per trade.  If you are an active trader this difference can make a huge difference in your bottom line.  If you only make a couple of trades per month this may not be the most important consideration.
2.  What can you trade? - does the broker offer trading services for options?  How about mutual funds, futures, currency trading?  If you have an interest in trading more than just stocks you would be wise to find out what each broker offers.  There are different costs associated with these other financial instruments.  For example the cost per option contract can range from under fifty cents to over $2.00.  Some brokers charge a per leg trading fee with options and some don’t.  If you plan on using options as a trading vehicle then you need to read the fine print about how much it is going to cost.
3.  Other Fees – Are there any other broker fees associated with the account?  Do you have to keep an account minimum or pay a penalty?  Are trades only offered at the cheap advertised price if you make a certain amount of trades per month?  Does your cash balance in your stock trading account earn interest?
4.  What kind of software/charting package does the broker provide – there is a huge descrepancy between the best stock trading software and your average software provided by the broker.  If you are not interested in doing your own technical analysis this may not be a deciding factor for you.  I think my favorite free software is from ThinkorSwim.  They have a great platform available that you can test drive for no cost.  Of course you should take a look at as many brokers as you can to find the interface that suits your needs.
5.  Local Branch Offices? – there are online discount brokers that also operate local branch offices throughout the United States.  Scottrade and Charles Schwab both have offices that you can visit.  Both of these brokers offer a full range of financial services that you won’t find with most discount brokers.  Sometimes it is nice to be able to visit in person with the person who manages your account.  If personal communication is a high priority for you then you should consider that when choosing your broker.

Writing a stock trading tutorial on which broker to choose is not an easy task simply because every broker has strengths and weaknesses that will suit different people’s needs.  If you spend some time educating yourself about what the brokers offer as well as what your goals are with your stock trading account you will be far ahead in the game.