- 1). Determine your research needs. Some brokerages offer research services in which they rate different companies and give opinions on the financial analysis their analysts have conducted. If you gather research from your own sources, you do not need a brokerage that offers these services. Therefore, the best option is to go with the discount brokerage format. This format offers minimal research; however, there are no research fees and commissions are very low.
- 2). Determine your client-service needs. If it is your preference to place your orders via your own personal stock broker, this will increase the fees you incur. If you are content with entering trades on your own via the brokerage's online platform, you will not incur any client service fees and commissions will be lower.
- 3). Identify the minimal commission structure. Some brokerages offer a flat rate for all trades, while others use a per-share commission rate. If you are a frequent trader, it is advantageous to use the flat rate method, as you will incur the minimal amount of commission. However, if you trade only on occasion, the per-share structure is a better fit as it keeps commissions as low as possible for your trade.