Online Brokers

Investing online which also means self-directed investment is currently high among present day investors and traders. Exploring the option of online trading and ECN (electronic communication networks) orders are entered online. But these online orders are still routed through brokers allowing agents to approve and monitor the trades. This helps in sustaining the interest of both the client and brokerage firm by protecting from illegal trades that might infiltrate the client’s portfolio or the broker’s license.
Information technology also helps the brokers to solve problems of existing system with Online Stock Trading. This is totally an internet based stock trading facility where investors are saved of eth interference of any practical Stock broker.

Online brokers generally charge a lower fee compared to full service brokers. This is a reason why online brokers are often termed discount brokers. They generally do not offer trading advice to the clients. Their action is limited to conducting the trade only. Otherwise, their function is quite similar to regular broker. They act as intermediaries between sellers and buyers of stocks in any online investment transaction.
And online brokerage is suitable for who are into making their own investment decisions. But finding the best online broker pose a problem for today’s busy, do-it-yourself investors. Investors are seen spending months over poking and investigating the right brokerage. Now remember, when it comes to choosing online brokerages a single criterion might not fulfill all conditions of every investors. So it is better to judge by the rankings of the best online brokers. These rankings speak volumes about how efficiently a brokerage can handle clients of different values. Options Trading, Futures Trading and Forex trading have their own seperate brokers - so don't compare them to simple stock brokers.

Today, a comprehensive list of the best performing online stock brokers are readily available eon the internet on any investment site. Hence, the investor can conduct their research and do their homework before getting related to any one of them. Investors with relatively small accounts more readily needs to deal with online brokers as they can offer free research into the respective investment decision. 
The online brokers are generally ranked on the basis of ten criteria among which the most important are those which caters to commission and fees, responsiveness and knowledge, and mutual fund programs. Brokerages with distinguished performance in these areas receive double weighting in the calculations. Margin interest rates and interest earned on idle cash receive half weightings. Online brokers are also judged on how widely they spread orders among competing firms as well as whether they have business relationship with those firms. 

The bearish trends in the market have ceased since a year but there are still a lot of online brokers who are backing off on equity transactions. Equity transactions, on the other hand, means more bonds, mutuals, foreign exchanges and a leading social networking and the education to wean away from full-service brokerages and more smart applications to stay connected with their portfolios 24x7. But more than anything online brokers have started to get a break on prices. Most of the big firms offering free trades to lure customers.