Start with safety (regulation & protection)
🇺🇸 United States
🇨🇦 Canada
Fee structure (all-in cost)
Look beyond headline commission rates—calculate your total annual cost including:
Fee Type | What to Look For | Red Flags |
---|---|---|
Commissions | $0 for stocks/ETFs | $4.95+ per trade |
Options | $0.50-0.65 per contract | $1+ per contract |
Market Data | Free Level 1, optional Level 2/TotalView | Mandatory expensive data packages |
FX Conversion | 1-2% spread | 2.5%+ conversion fees |
Withdrawals | Free electronic transfers | $25+ wire fees, withdrawal limits |
Inactivity | No fees | $25+ monthly maintenance fees |
Platform & data
Essential Features
- • Real-time quotes and charts
- • Order types: market, limit, stop-loss
- • Mobile app with full functionality
- • Portfolio tracking and performance
- • Research and screening tools
- • Tax reporting and statements
Advanced Options
- • Level 2 order book data
- • Options analytics and chains
- • API access for automation
- • Advanced charting with indicators
- • After-hours trading
- • International markets
Market Data Note
Level 2 vs TotalView/Depth-of-Book: Level 2 shows best bids/offers by market maker. TotalView and similar "depth" feeds show the complete order book but cost extra ($10-30/month). Understand what you're paying for before subscribing.
nasdaq.com/totalviewProduct access
Asset Class | Most Brokers | Check For |
---|---|---|
Stocks & ETFs | ✓ Standard | Fractional shares, DRIP |
Options | ✓ Usually | Approval levels, spreads |
Futures | Limited | Separate platform/fees |
Fixed Income | Basic | Corporate bonds, CDs, Treasury |
Service & support
Support Quality Checklist
- ✓ Hours: 24/5 during market hours, weekend access
- ✓ Phone wait times: Under 5 minutes during normal hours
- ✓ Competency: Can handle account, trading, and tax questions
- ✓ Dispute resolution: Clear escalation process
- ✓ Local presence: Branch offices if you prefer in-person
- ✓ Educational resources: Tutorials, webinars, market commentary
Try before you buy
Platform Usability
- • Order entry speed
- • Mobile app reliability
- • Research tool quality
Execution Quality
- • Fill prices vs market
- • Order routing speed
- • Partial fill handling
Data & Reports
- • Quote accuracy/latency
- • Statement clarity
- • Tax form exports
Key Takeaway
Choose safety first (regulator + protection fund), then total cost of ownership, then platform/data that match your strategy. Don't get distracted by flashy features you won't use—focus on reliability and value.
Frequently Asked Questions
How do I verify a US broker?
Search the firm/individual on FINRA BrokerCheck and confirm SIPC membership for brokerage asset protection. For investment advisers, use the SEC IAPD database.