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Gone are the days when choosing a discount broker meant simply shopping for the lowest commissions.

With the recent consolidation in the industry, and the intensifying downward pressure on commissions, discount brokers are scrambling to differentiate themselves from one another in ways beyond price.

That’s generally good news for investors because you can get better research tools, better service and better prices from your discount broker than ever before. But you have to be careful.

For one thing, it isn’t easy to shop around for the lowest commissions, as many brokers charge different commissions for everything from equity trades to mutual fund trades, broker-assisted trades, trades above a certain number of shares, trades of stocks below a certain price and more. (For more, check out: What’s Wrong with Comparing Online Brokers on Commissions? and Is a No-Commission Discount Broker for You?)

What’s more, many discounters offer price cuts to investors with large accounts, frequent traders or investors who have relationships with the company beyond just brokerage services.

And then there are the bells and whistles. Want in-depth research tools? An active community with which to trade investing ideas? Trading via handheld wireless devices? All of these services and more can be yours — if you choose the right discount broker.

The trick is comparing the online brokers on the criteria that matter to you.

Start by asking these questions…

Next: Question #1