Seven Tips to Find the Right Online Broker

Once you decide to buy shares you will need to find the right broker. Having a broker is vital to buying shares as you cannot do so without one. Increasingly, the online broker is very popular as they usually charge less and can be contacted via the computer often more quickly than by telephone. Here are some tips to choosing the right online broker. 

* The online broker should hold an Australian Financial Services License issued to them by ASIC.

* An online broker should have a variety of trading tools on his website such as charting facilities, the latest stock news, and up to date stock quotes.

* You need to ask the online broker how fast their orders are being executed. Online trading is much faster than other means – but they still have to be there to do it. Fast orders not only save time, they result in more control over your trading.

* Does your online broker get paid by order flow? If he gets a commission for sending orders to certain market makers it can lead to a conflict of interest. You need to know he has your interests at heart.

* Has your broker made an online trading demonstration platform available? If so how much does it cost to access it?

* If they do have trading platform software available is it easy to use and modern? If it is slow or unmanageable it will cost you in terms of lost opportunities and thus, profit.

* Do they have stop loss orders available to mitigate your risk further?