Gone are the days of the brick-and-mortar brokerage. Today, e-brokerages are the best option. But how do you choose the best online brokerage? That question can sometimes be more crucial than deciding in which mutuals funds, bonds, and stocks to invest.

Checking out customer reviews is a good start when first shopping around; reading what other investors have to say via online reviews is an excellent way to get a sense of who you might be dealing with. In terms of the success of your investment, thoroughly researching stocks is on par with thoroughly researching brokerages.

Many e-brokerages entice potential customers with discounts — however, these may not always be advantageous. Newcomers to the world of investing may be wise to go with a slightly more expensive full-service broker. As novices become more acquainted with the mechanics of trading, they may then graduate to discounted online brokerages that offer less hands-on support.

Price is obviously a major consideration, but shouldn’t be the only one. Quality of service often translates into a quality return on your investment. Further, some brokerages claim to have the lowest commission cost versus their competitors. Though this sounds tempting, sometimes these companies counteract their low commission fees with hidden costs, such as pricey phone trades and limit orders. Be wary. Trading rates typically range from $0-$40 — knowing your trading style (for instance, whether you tend toward active trading or buy-and-hold investing) will help you best choose an online brokerage.

Be cognizant of your needs and goals. Many e-brokerages have minimum deposits to start an account. Some brokerages require a minimum as high as $10,000. Assess what bests fits your financial profile.

How consistent and reliable is the brokerage’s online interface? A useful barometer is to observe their running rate during peak trading hours. If their site tends to lag, it may be indicative of problems down the road. Ensuring that all site links and technical support are functional is a good indicator of their functionality overall. Check to see what alternative methods they provide for trading. For example, how well do their apps perform?

What’s their quality of customer service? Check to see if they offer online support. We recommend calling their customer service line to gauge what kind of response you get. Too long of a wait? Representatives unhelpful? Major red flags.

Look at all the services they offer. In addition to stocks, do they offer trading in municipal bonds, futures, gold/silver certificates, and options? Many e-brokerages offer checking accounts and credit cards. Some brokerages let you earn somewhere around 3-5% interest on your brokerage account. Others don’t.

It’s best to weigh your options based on your trading style, as well as promotional sign-up offers. It may not be wise to make your decision entirely based on, for example, $300 worth of free trading when you start an account. But if the company looks solid overall, it may be the deciding factor.

A panoramic understanding gained from thoroughly researching the competition will help you in not regretting which online brokerage you choose.

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