Low Cost Online Trading

Written by Michael Federico
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The majority of online trading sites are relatively inexpensive to use when compared with costs that large brokerage firms charge. However, there are some services that have extremely low trade fees and commissions. Some sites charge under $10 per trade and allow a person to sell 100 shares for a commission of around $1.

Some online trading services that offer low-cost trades actually charge their members hidden fees. There are costs for accessing research, and extra charges are piled on for trades that involve a large number of shares. Money spent on these services, many of which are necessities in online trading, can quickly eliminate the savings derived from low trade costs.

Choosing a Low-Cost Trading Service

A potential trader should not pick an online service solely based on cost. Some of the least expensive sites do not offer everything that an investor needs to be successful. A person should look for a site that employs the latest technology in order to bring its members real-time quotes, extensive research, and portfolio management options. Advances in technology have also allowed traders to monitor stocks that are traded on all of the major exchanges.

There are low-cost services that have a full range of trade options. They have low minimums and no maximums, meaning that both low-risk and high-risk traders can benefit from using the sites. A member can also use the site to research a variety of companies in all industries. This will help them to make informed decisions and it can have a large influence on future purchases.


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