Choosing an Online Stock Trading Site

Online brokers and stock trading sites make it possible to buy and sell stocks, ETFs, mutual funds and other investments from a computer or mobile device. The choices can be overwhelming: full-service firms, discount brokers, zero-commission apps and platforms focused on active trading all compete for attention.

This guide outlines key factors to consider when choosing a trading site, so you can match the platform to your needs instead of chasing advertisements or the latest trend.

Step 1: Clarify what you want to do

Different platforms serve different types of investors. Before comparing detailed features, ask a few basic questions:

• Are you mainly a long-term investor, or an active trader?
• Do you plan to trade individual stocks, or mostly use funds and ETFs?
• Will you need access to options, futures or forex?
• Do you want retirement accounts, margin accounts or both?

A long-term investor who buys a few diversified funds has different needs than a day trader who uses advanced order types and real-time data all day.

Step 2: Compare account types and fees

Most major brokers offer a range of account types, such as:

• Taxable (non-registered) investing accounts.
• Retirement accounts or tax-advantaged plans, depending on your country.
• Margin accounts that allow borrowing against your portfolio.

Fee structures can include:

• Trading commissions on stocks, ETFs and options.
• Spreads and financing costs on margin or leveraged products.
• Account maintenance or inactivity fees.
• Currency conversion charges for foreign trades.

Over time, lower fees can make a big difference to your net returns, especially if you trade frequently or hold a large portfolio.

Step 3: Evaluate platforms and tools

Trading sites differ in their technology and research offerings. Consider:

• Ease of use of the website and mobile app.
• Charting tools and order entry features for active traders.
• Screeners, watchlists and alerts.
• Access to research reports, educational content and news.

A simple, reliable interface may be more valuable to most investors than a highly complex platform that is difficult to learn and easy to misuse.

Step 4: Check safety and regulation

Make sure any broker you consider is properly regulated in your country and that client assets are held with appropriate protections. Look for:

• Registration with recognized securities regulators.
• Membership in investor protection schemes, where applicable.
• Clear policies on how cash and securities are held.
• Strong security features such as two-factor authentication.

Be cautious with lightly regulated offshore platforms, especially those offering very high leverage or complex derivative products with limited disclosure.

Step 5: Consider service and support

While many investors rarely contact their broker, it is helpful to know support is available when needed. Useful features include:

• Responsive customer service by phone, chat or email.
• Clear help documentation and FAQs.
• Educational webinars or tutorials for newer investors.

For large accounts or more complex needs, some investors prefer firms that provide access to human advisers in addition to self-directed platforms.

Avoiding common pitfalls

When comparing trading sites, it can be tempting to focus only on promotions or the lowest headline commission rate. Other pitfalls include:

• Underestimating currency conversion costs on foreign trades.
• Overvaluing flashy interfaces over reliability and support.
• Choosing a platform that pushes frequent trading when your plan does not require it.
• Ignoring product risk and leverage in favour of “easy” access.

A good trading site should support your existing investing or trading plan, not push you into strategies you did not intend to pursue.

To learn more about the types of products you might trade on these platforms, see our pages on day trading, mutual funds, bonds, options, futures and forex.