600 W. Main Street
-
Online trading is not for everyone. Understand
the differences between online trading and using a full service
brokerage firm to make trades. Which service best suits your
needs?
-
Know the costs. What commissions and fees does the
online firm charge? What conditions apply to these rates? Compare
these fees to the costs of using a full service broker.
-
Know what to do if there are outages, delays and
other interruptions that prevent trading or account access.
Many online firms provide other methods to trade during periods
when a capacity problem arises.
-
Trades are not instantaneous. Most online firms do
not allow customers to directly link to the market. Check out
the firm’s advertised claims concerning the speed of online
trading.
-
Know how to enter orders. Ask the firm to explain
the differences between market, limit and stop loss orders.
How will you know that a trade has been executed?
-
Know how to cancel an order. Ask the firm to explain
when and how you can cancel an order. How will you know when
a trade has been cancelled?
-
Know about trading on margin. Investors should be
aware that if a margin account declines in value the brokerage
firm could sell securities in the margin account before advising
you.
-
Ask to see the firm’s privacy and Web site security
policy. Will your name and address be provided to or used by
any other party?
-
Know who to call for help. Know how to, and if necessary,
contact a customer service representative with your concerns
and request prompt attention and fair consideration.
Check out the brokerage firm with the Missouri Secretary
of State’s Office, Securities Division.
The Division can (1) check the registration status of the firm;
(2) provide background information about the firm, including any
disciplinary history; and (3) check the registration of any security
being offered in the state. In addition, if you have a grievance
about a stockbroker or brokerage firm you can file a complaint with
the Division.