Everyone who has a computer and access to the Internet connection can easily find a stockbroker on the web. You can open a trading account with any of the listed stock brokers on the net. You must, however, understand that you are going to invest your hard earned money to build wealth. A slight wrong move can jeopardize your investment, more so, if you are a beginner.
The first important step in finding a good stockbroker is to study his or hers website. Do not be taken in by a flashy website with colorful and complicated graphics. The website should be simple and professional. It should be easy to navigate so that you can peruse its content without much difficulty.
It is equally important to identify what you should actually look for in terms of content. Do you understand its language? Investment in stocks is a technical subject. The language used to explain various investment issues is bound to contain certain new and unfamiliar terms, which may be beyond your comprehension if you are a beginner. Therefore, the website should provide sufficient articles to educate the visitors about various aspects of investing in stocks and shares.
Again, nobody can raise any questions if he or she does not know the subject. The website content should be primarily designed as to list the relevant questions and provide their answers in FAQ or other suitable format starting with the ABC of the subject. For example, the first few questions that a beginner may wish to know may be: What is stock? Why can't we buy the stock directly from the company? What are IPOs? Why is it necessary to trade in stocks and shares only through a stockbroker? What is the stock trading market? What is a stock exchange? What are stock exchanges like the NYSE, NASDAQ, AMEX and what are their different features? What are physical and virtual or electronic stock exchanges? What are the reasons for trading in stocks only through stock exchanges? Why can you not advertise in the classified ads in the local newspapers when you have to buy or sell a stock? All these questions should be answered in simple language in sufficient details
The website's pages should educate the visitors about how the prices of shares are determined. What is supply and demand? How does the supply and demand affect the sale and purchase of shares?
Stock market like any other area of human knowledge has its specific jargon. For example, stock market has bulls, bears and chickens that affect the stock market. A beginner needs to thoroughly understand these and other similar terms. The website should have appended a glossary of typical terms and explain these terms with the help of simple, understandable day-to-day examples.
There are numerous other questions and doubts that need to be clarified. For example, if you are a beginner, what minimum amount should you invest to gain some experience and confidence in trading in stocks? What are the inherent risks in stock investing? The visitor should be left with no doubt on any unexpected risks. A good website does not create unrealistic dreams, but emphasizes upon study and analysis before investing in any stock. The website should also educate the investor about how to study the stock market, analyze the balance sheets, charts, quarterly reports and other essential financial aspects of investing.
Having studied the website of one stockbroker, you must also study other websites to find more information about issues which may not have been covered in your first search. You feel inclined to invest, say, in exchange traded funds, but the information on certain issues, for example 'what is index tracking?' may not be clear in the site you are presently studying. It would be much better to consult the sites of other stockbrokers to decide who can provide you the most satisfactory information and benefits in terms of brokerage and services.
You should settle for a stock broker who provides satisfactory answers to all those questions through his website.
It would be important to note that you have to provide your vital personal and financial information to the stockbroker whom you open your trading account with. You must be sure that he can protect your privacy and does not sell or part with your information except when it is legally binding upon him.
