Jan 14 • 💬 General
Choosing the Right Broker
Selecting the right broker is a super important part of trading that isn't talked about a lot. The broker you choose can significantly influence your trading experience, costs, and even potential returns. So, here's a breakdown of what to look for in a good broker and some of my top recommendations for the Legacy Profits Club crew.
👀 What to Look for in a Good Broker
- Trading Costs: Look for transparency in fees. Brokers usually charge commissions and fees. Sometimes, they charge spreads too. The best brokers offer low to no cost trading and zero commissions on certain assets, which can save you a lot of money over time. In reality, there's almost no reason to be paying high fees with all of the competitiveness of brokerages these days.
- Trading Platform: User-friendly and powerful is what you want. Here are the biggest features to consider:
- Ease of Use: Make sure the interface is intuitive on both desktop and mobile.
- Advanced Tools: To save you on paying for charting software, find one with good charting capabilities, technical analysis tools, and the ability to have real time data.
- Customization: You want access to lots of indicators and the ability to code your own indicators if need be.
- Asset variety: You want access to stocks, ETF's, forex, options, futures, and maybe even cryptocurrency. Make sure your broker offers a wide range of tradeable assets to diversify your portfolio.
- Research and Educational Resources: Good brokers are going to give you the tools you need for market analysis, trading alerts, and articles to help you figure out how to get the most out of what they offer.
- Customer support: You want effective, responsive customer service. Make sure your broker offers 24/7 support with multiple contact options.
- Account Management: Consider how quickly funds settle when deposited or moved. You also want brokers that offer important things like margin accounts.
✅ My Suggestions for the Legacy Profits Club ✅
- Fidelity Investments
This is what I use personally. I have found great customer service with them and get consistently good fills on my orders. Fees are very competitive from free to just a few cents per trade.
Pros:
- Zero Commission Trades
- Excellent Customer Service
- Good fill prices on orders
Cons:
- Charting software and app can be overly complex
2. IBKR (Interactive Brokers)
Pros:
- Low Margin Rates
- Access to the Global Market
- Very advanced trading platform
Cons:
- Steep learning curve due to its complex interface.
3. Schwab
I have a small account in Schwab that I keep open just for access to their ThinkorSwim platform which is one of the best free charting softwares out there (free if you have an account with them).
Pros:
- Very user friendly and robust trading platform
- Intuitive app and desktop platform
- No account minimums
Cons:
- Higher options fees
- High fees on OTC stocks (if that's your jam)
4. Webull
Pros:
- Commission Free trading
- Medium level charting tools
- Incredible extended hours trading access
- One of the best low cost options - stayed open during GME craze when other brokers shut down.
Cons:
- Less comprehensive charting than others
- No access to mutual funds
5. Robinhood
Pros:
- Simplicity: One of the most visually appealing and user friendly platforms
- Zero Commissions
- IRA matching: Offer a match on contributions to retirement accounts
Cons:
- Features are not advanced. You will definitely need to use another software for charting.
- Controversy: They have faced a lot of scrutiny for how they have handled retail investors in the past. This was especially true in 2020 during the GME craze.
When it comes to choosing a broker, this goes beyond just looking at fees. It's about matching your broker's offering to your strategy, experience level, and goals. Here at Legacy Profits Club, I truly believe knowledge is power and I want to give you both the knowledge and tools you need to succeed. Whether you're day trading, swing trading, or only interested in the long term game, consider these factors in your broker choice to make sure your broker aligns with your trading dreams.
✌️- Derek
P.S. Comment below with what broker you use and what you like or dislike about them!
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Choosing the Right Broker
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