Don`t get me wrong. It`s not that these discount online stock trading brokers are all bad. Quite the contrary. In fact, there are as many discount online stock trading brokers in America today as there are dollar stores! Furthermore, most of them provide an excellent service. TD Ameritrade and eTrade are two fine examples of this.
However, it`s not the service provided by these discount online stock trading brokers that is being called into question; it`s the raft of hidden fees and charges that are causing the real problems.
For example, while ethical market players like TD Ameritrade charge you just US$9.99 per trade on a minimum US$2,000 account, with no monthly fees to pay, many other online brokers will charge you up to 100% or more for the same service! Some of them will even sting you for a penalty fee if your monthly account balance falls below a prescribed minimum levelor if you don`t make a certain number of trades each month!
So, what`s the message here, fellow online traders?
READ THE FINE PRINT BEFORE YOU START!
How else can you check the credentials of a discount online stock trading broker?
At Investing Online, you`ll find a comprehensive online resource centre created by the North American Securities Administrators Association.
Initially launched in 1999, this superb resource centre was established for the sole purpose of aiding the individual online investor through a combination of education and training. They`ll teach you everything from: how to set up an online account; how to lodge a complaint with the Online Complaint Centre; how to check out your online broker or advisor; how to determine the real cost of day trading; how to obtain the best online stock trading resources on the web; how to avoid getting burned by fraudulent online brokers; how to spot the hype; how to obtain independent ratings and rankings of online brokerage firmsthrough to helping you understand how a margin account works!
It doesn`t stop there, either. For those of you who are really new to discount online stock trading, you`ll even be able to take an online tour through Investing Online`s investing simulator and trust me, it`s well worth the experience, and no, it`s not a downloadable demo it`s quite different from anything you`ve seen before.
These guys REALLY know their stuff, and you owe it to yourself to go check out their site. Honestly, it could end up saving you a lot of heartache and a lot of hard earned cash, later on.
How do you avoid discount online stock trading scams?
Good question! Since 2002, the SEC has announced action taken in almost 50 internet related stock trading scams and they openly admit that that figure is just the tip of the ice berg!
Be warned!
Be especially wary of unsolicited email and message boards talking up the price of a stock. Don`t pay any attention to hype of this nature as you can bet your bottom dollar that it`s most likely the latest scam artist looking to 'relieve` you of your money!
Is discount online stock trading really worth the risk?
Absolutely! It`s a wonderfully enjoyable, cost efficient means of generating big stock trading profits as long as you keep your eyes open, do your homework and get to know who you`re dealing with BEFORE funding your account.Source: articlestree
