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Question #3: What do you plan to trade?

The default stock order is a market order, meaning the stockbroker will buy your shares at the prevailing market price.

A limit order, on the other hand, means the broker will buy shares for you only at a price you select, or lower. Many brokers charge more for limit orders.

Most discount brokers also charge more for options contracts, mutual funds and touch-tone telephone trades.

In addition, a number of brokers, including giants Fidelity and Schwab, charge more for trades over 1,000 shares (some charge more for trades over 500 shares or 2,000 shares).

So if you plan to make any of these types of trades, be sure you do some sample calculations before selecting your discount broker. (See also: Choosing an Online Broker.)

Next: Question #4