Online Stock Trading - Choosing an Online Broker
Online Brokers - Are TDWaterhouse Any Good?
Online stock trading is not as straightforward as it may seem. If you intend to buy stocks it is important that you find an online stockbroker that provides reliable real-time quotes and uses trading software you can trust.
I used to use TDWaterhouse for my online trading but not any more.
How to Buy Stocks Online
Before you decide to buy stocks online an online broker should enable you to make financial decisions based on as much reliable information as possible. Such as real–time charts, real-time quotes, streaming news, and their software must be reliable and fast even when the market is going crazy. My advice is to test your online stockbrokers before signing up with them by sending in annoying questions to see how they react.
The site online-stock-trading-review .toptenreviews com - despite its ridiculously long name provides a lot of information and reviews on online stockbrokers so I recommend you check them out. The only thing I would say from my own online stock trading experience is I cannot recommend TDWaterhouse, check out the other online stockbrokers.
Bear in mind too that back in 2001 TDWaterhouse was fined $225,000 by the NYSE for poor service
"The New York Stock Exchange has levied a $225,000 US fine against the discount brokerage firm TD Waterhouse for being unable to process thousands of orders and failing to deal properly with customer complaints over an 18-month period because it wasn't equipped to handle the volume.
The ruling from the NYSE reads like an indictment of how not to run an online brokerage. The exchange found that the firm was unable to process online trades on 33 separate dates between November 1998 and April 2000."
My problems with TDWaterhouse are more recent.
When choosing an online stockbroker you should apply the following criteria :-
- Type of Investments Offered – stocks, mutual funds, options, exchange traded funds (ETFs) and fixed income investments mean that you can diversify your investment portfolio.
- Security – paramount of course
- Trading Features – practical tools, resources, charts, real–time news, and quotes
- Ease of Use – online stock trading is complicated enough without the software making it more complicated - the software must be absolutely reliable at all times and not have little quirks and glitches that will cause you to lose money because it is giving false information
- Fees/Commissions – the lower the better obviously.
- Customer Service – must actually be service not an atempt to cover up your online broker's problems and errors, if they make a mistake they should acknowledge it put it right and compensate you for any losses you may have suffered as a result
So bear this in mind when deciding which stockbroker to use for your online stock trading I have no special information except to say that if you intend to buy stocks and shares online, sell stocks or just sit around and look at real-time quotes for stocks, I do not recommend TDWaterhouse, personally I use a spreadbetting firm who are actually more reliable.
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