Are All Online Trading Companies the Same?

By this point almost everyone has seen commercials touting one online trading company or another.

Some advertisements feature notable actors listing off the benefits of a particular trading company while other ads have talking babies talking about money and honeys and highlighting the simplicity of the particular brokerage firm. Although each online trading company spend billions of dollars promoting themselves while trying to distinguish themselves from the competition, the reality is they are all similar in their business of choice.

What is online trading?

Online trading is the act of buying and selling investments over the internet using the broker’s proprietary software. Generally, the Web sites for online trading companies provide a variety of tools, including graphs, charts and industry information to make the trading experience easier for their clients.

They provide customer service and technical support, but it is commonly up to the investor to make all their financial decisions and conduct the actually trading, without the support of a professional or mentor to assist in the process.

Most online trading companies operate the same way

Although the fees including commission, maintenance and even opening promotional incentives vary from online trading company to another, they are all basically operate the same. Like every business, they all have unique mission statements, brand identity, ethics and morals that they try to impart and share with their customer base.

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Despite the colors they choose for their Web site, the overall design, the advertisements they run and their broker’s proprietary software, online trading companies are quite similar to each other.

It is up to the educated consumer, like yourself, to conduct the necessary research to find the online trading company that best suits your needs, personality and financial goals. By comparative shopping for rates, visiting the website to see if the interface is consumer friendly and by investigating the general level of customer service they have, you can find the best online trading company suited for you.

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GOBankingRates Staff

These articles are written by the in-house GOBankingRates team.

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Are All Online Trading Companies the Same?
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