No-commission trades.

It sounds too good to be true, doesn’t it? You’re waiting for the catch. Good news: There isn’t one—as long as you know what you’re getting into when you choose an online stockbroker.

The fact is commissions on equity trades are just one way stockbrokers make money.

Online stockbrokers can also make money by charging extra for limit orders, options orders, mutual fund trades and bond trades.

What’s more, stockbrokers make money every time you borrow money on margin and, of course, on fees.

What kind of fees?

Like full-service brokers, discount brokers can charge fees for just about anything under the sun.

From the more typical annual IRA account maintenance fees to inactivity fees, paper statement fees, fees for accounts that fall below a certain balance, fees for transferring part or all of your account to another firm and more.

Finally, many online brokers have different commission schedules based on the price of the stock, the balance in your brokerage account, the frequency with which you trade and the number of shares you’re buying or selling.

How to Decide if a Zero Commission Online Stockbroker Is Right for You

So how do you determine if that zero-commission online broker is right for you?

It comes down to four things…

Open an Account	Open an Account	Open an Account
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