Question:

I traded stocks for a bit back in 2004 and lost most of my money. Trading is a passion of mine and I’m considering getting back into trading. I’ve been thinking I would open an account and paper trade for a few months while I get more knowledge and confidence. Where can I open an account with real time quotes and a trading platform? What is the best firm to open a trading account?

 Borimex from Lou Ridge Mtn.

 Answer:

Before I answer your two questions, I have two of my own. How much money did you lose, and what did you do wrong to lose most of it? I want you think hard about your answers to those questions. Think really hard because you need to honestly reflect on your choice to get back into trading. I will assume your answers suit you and you will move forward…

I don’t know about the best, but I can tell you a number of quality online trading brokers are out there waiting for you. To pick one, establish your criteria and go with the one that best fits that criteria. Depending on which markets you trade, your criteria should include, at a minimum, the lowest cost per trade, Level II quotes, free broker advice, back-testing capabilities, access to research, access to analysis, charts, commodities information, immediate news alerts, and tax-software compatibility. If you think about it, you will probably come up with more. Keep in mind, not one criteria should rule your choice, but one (such as lowest cost) could carry much weight. What you really want is the best overall package. Take a close look at those that offer signup bonuses. One of those just might be worth your while.

Finally, make sure the one you want is reputable, which means well known. The last thing you want to do is send your money out there into the ether without a sense of ease and comfort.

Trade in the day; invest in your life …

Trader Ed