A standout advantage using an online stock broker is the ability to control your investments with around-the-clock access to your trading portfolio. When trying to achieve their financial goals, though, some investors do not initially feel comfortable trading online, tending to prefer the personal professional advising of a traditional brokerage firm.

Here are a few more advantages of using an online stock broker for the investor still hesitant about e-trading.

First, online trading fees tend to be lower than dealing with old-school brick-and-mortar brokerage firms, who often charge customers greater fees for their services based on the profit and growth of the individual trading portfolio. Also, additional fees are usually charged each term, whereas e-brokerages offer cheaper trading fees while often only charging for one term. On average, online brokerage firms charge less than $10 for access to immediate trading.

Another advantage is being able to create a more diverse investment portfolio. Traditional brokerages are limited to the scope in which they’re licensed to trade, potentially limiting an investor’s desire for wider stock versatility. Online trading offers more options, and allows the beginner investor to diversify their portfolio in a wide-range of assets, ranging from stocks, bonds, IPOs, CDs, gold/silver certificates, “penny stocks,” mutual funds, and so forth. Online brokers also offer more customer services. Whereas brick-and-mortar brokerages typically charge consultation fees, e-brokerages offer customer service telephone lines, as well as online customer support, with advising provided free of charge.

Researching the market, and in what types of assets you plan to invest your money, are as crucial as researching online brokerages with which to do business.

E*Trade, TD Ameritrade, and Scottrade, are some the more established online brokerages. Reports on other online brokers may be found by reading the analyses of publications like Forbes, Kiplinger’s Personal Finance, and Barron’s Financial Investment News.

Researching a wide-variety of companies will help you decide which one best suits your financial needs and goals. See which companies have established themselves over time with a proven track record. Glowing customer and employee testimonials are a good indicator that the brokerage is a safe bet for your investment. Looking at a company’s Internal Buying reports will also show to what degree their own employees believe and trust in the company.

How much freedom do they offer in terms of asset investing? How reliable are their customer support services? How do customers rate the company based on reviews posted online? All of these questions should be answered before you start using an online broker.

Featured Image: Depositphotos/© anyaberkut