Choosing the Best Broker for Online Trading,
from Stocks and Options to Futures and Forex
from Stocks and Options to Futures and Forex
The best broker for online stock trading – and handling other types of assets ranging from bonds and options to futures and forex – depends on the matchup between the offerings of the vendors and the needs of the investor. As an example, a novice in the stock market who deals only with equities ought to favor a simple system with a user-friendly interface. By contrast, a veteran who uses a rolling sequence of futures contracts to cut down the volatility of the common stocks within the same portfolio would require a system of greater versatility and efficiency.
Even in the case of a particular trader, the proper choice of platform will vary over time. The factors at work include the shifting mix of financial resources and the latest views on retirement planning.
As a backdrop, the brokerage industry relies heavily on the tools of information technology. Due to rapid advances in hardware as well as software, the trading platforms have a way of morphing over time. The same is true of the schedule of transaction fees.
In this roily setting, there is no single package that befits all investors. In fact, the best choice of platform may well vary from one year to the next even in the case of a particular person. As a result, picking a broker for online trading is not a one-off decision that remains forever fixed, but an ongoing task that evolves over time.