When you’re hunting for a new home to purchase, you don’t just look at the house itself. You look at the people who’ll help you purchase that house – the brokers. Brokers are the intermediaries between sellers and buyers. They arrange transactions between the two for a commission when the deal is executed. And when it comes to investment matters, picking the right broker is as important as picking what financial instruments to trade.

The web is full of brokerage companies, all competing in the search engines for your attention and promising to deliver the most affordable, accessible, and advanced platform. Some online brokerage services have better deals than their competitors and some are even better than traditional brick-and-mortar businesses. Some crooked companies, on the other hand, care more about high commission than your financial goals.

To begin with, here are nine points to keep in mind before you open a brokerage account.

1. Do a background check

Before buying a stock, it’s a no-brainer to learn as much as possible about the firm you’re transacting with. How long has the firm been operating? What did past clients and other people say about the company? What are the issues and controversies the broker faced in the past? Were they able to resolve them? Read reviews and recommendations to evaluate your options.

2. Learn about their product selection

Commonly, online brokers offer individual stocks, options, mutual funds, exchange-traded funds, and bonds. Other brokerage firms also offer access to Forex (currency) trading and CFD trading. It’s important to ask yourself what type of investments you want to own as well as the amount you’ll have to pay for commissions.

3. Check their alternative trading options

Online brokerages are a good place for new investors to begin. However, not everyone can have access to their computers 24/7. With this, it’s great if the firm offers other options for placing trades including fax ordering, touch-tone telephone trades, or the old school way – talking over the phone. In addition, consider the prices for these alternatives for they often differ from online trades.

4. Pay attention to account minimums

Brokerage firms hardly make money off small amounts so they ask for an initial deposit for opening a brokerage account. However, beware of high-minimum balance requirements. While some companies (in the U.S.) requires $1,000 to start, other firms welcome clients with $10,000 as an opening requirement and that may be too big for you.

5. Be wary of hefty account fees

Paying fees is inevitable but you can avoid paying for the ones that are irrelevant. Many brokers charge a fee for transferring out funds or closing your account. Other fees can be avoided by choosing a broker that doesn’t charge such, or by avoiding services that cost extra. Some of the common fees to watch out for are annual fees, inactivity fees, trading platform fees, paper statement fees, and extra charges for broker-assisted trades, research, and data.

6. Take advantage of perks and promos

Like other businesses, a lot of brokerage companies use attractive promos to entice clients. For example, some companies offer a number of commission-free trades or a cash bonus on certain deposits. Some companies offer 3 to 5% interest on some cash in your brokerage account. Contact the brokerage firm to know what they offer.

7. Test their customer service and availability

Since you’re going to work with the brokerage firm for some time, you deserve the best customer service. Before you open an account, try to test the company’s help desk by asking a random question to see how long would it take for you to get a response.

Another crucial aspect is availability. Hit the company’s website at throughout the day, especially during the peak trading hours. See how their site loads. Is it fast? Is it accessible? Check some of the links to ensure you won’t experience some technical difficulties.

8. Remember that price isn’t everything

When the offer is too low, there must be a catch to this. Price may indicate quality – so don’t get lured by brokers who offer the lowest commission cost. Read the fine print to determine the things you’re entitled to (and the things you’re not). In many cases, there are higher fees for limit orders, options, and trades over the phone, and the commission stated in the ad may not apply to the type of trade you want to execute.

9. Discount brokers aren’t meant for everyone

Discount brokers are stock brokers who carry out buy and sell order at a reduced commission and are cheaper than full-service brokers. But unlike the latter, discount brokers don’t provide investment advice, personal consultations, research, and tax planning services for their patrons.

Pick the broker whose style and expertise are in line with yours. If you’re a novice trader still testing the waters, a discount isn’t the best deal. Full-service brokers are a better option if you need professional advice and you want to build confidence in the markets.

Author Bio: Carmina Natividad is one of the resident writers for FP Markets CFD Trading, a CFD and Forex Trading provider in Australia with over 12 years industry experience serving global clients. Writing informative content about business and finance is her cup of tea.