| One of the most important decisions you will have to | | | | sending orders to favorite market makers. Obviously |
| make before you even start to trade on the stock | | | | this can lead to a conflict of interest. Make sure you |
| market is which stock broker are you going to use. | | | | know your broker's policy and that they have your |
| For choosing the wrong one could cost you dearly, | | | | interests at heart.. |
| not only in brokerage but in other vital areas as well | | | | 6. Do they have a trading demonstration platform |
| such as time and profits. | | | | available ? And if so, whether there is a cost involved |
| So what is the criteria to look for in choosing a stock | | | | for accessing this service. |
| broker? So what questions should you be asking | | | | 7. What sort of trading platforms do they have in |
| them? | | | | place? Is this trading software easy to manage and is |
| Here are some key questions you should be asking | | | | it up to date.? For if you are using a slow or an |
| your broker. | | | | unmanageable trading platform, this will slow your |
| 1. Do they hold an Australian Financial Services License | | | | trade transactions down drastically. This will cost you |
| (AFSL 309743), which has being issued to them by | | | | time and money in lost opportunities, which of course |
| the Australian Securities & Investments | | | | is detrimental to your trading capital and profits.. |
| Commission (ASIC). If the answer is NO then you | | | | 8. Do they have conditional orders, commonly called |
| would be well advised to steer clear of them. | | | | stop losses available? These are vital in managing |
| 2. What trading tools are readily available from your | | | | your risk factors. |
| prospective broker? Do they have up to date Stock | | | | 9.Do they trade after hours? You need to know this |
| quotes, tthe very latest news, charting facilities, level | | | | particularly if you are trading the overseas stock |
| II data and advanced order types are one of the | | | | markets |
| many vital tools that traders will require for | | | | 10 Are there any hidden fees that you need to |
| informed,decisive trading. So make sure that the | | | | know about? Brokers might advertise low |
| broker offers a suitable range of trading tools. | | | | commissions but then could charge you with |
| 4. How fast are their stock orders being executed? | | | | unexpected fees.For instance there are some |
| Remember that online trading is significantly faster | | | | brokers who will charge for low balances in your |
| with stock order processing than placing your stock | | | | trading account, inactivity in trading or account |
| orders over the phone. Therefore this willmean faster | | | | maintenance fees. |
| order executions, which results in saved time and also | | | | So these are a few ideas to help you onto your |
| greater control of your stock orders. | | | | trading success. Finding the right stock broker to |
| 5. Does your broker get paid for order flow? Some | | | | begin with is a important to your eventual trading |
| brokers may receive payments or commissions for | | | | profits. |