One of the most important investment decisions you will make is selecting an online broker that is best for you.  Here are some points to consider when selecting an online broker:

Are there account minimums?  Be sure to check if the firm requires a minimum deposit to open an account.  Some firms have no minimum requirement to open an account while others can require a deposit of $1,000 or more before they will let you open an account.  Most firms offer a smaller minimum for IRA accounts or custodial accounts.

What is the commission schedule?  If you regularly make trades of 100 or 500 shares, check each broker’s commission schedule for trades of those sizes. Occasionally, the lowest rate may apply only to trades of minimum level of assets in your account. Also stocks priced under $1 a share will usually carry a higher commission. Look for less than $15 per trade for any number of shares.

What is the product selection?  When choosing a brokerage, most people are probably thinking primarily about buying stocks. Remember there are also many investment alternatives that aren't necessarily offered by every company. This includes mutual funds, bonds, CDs, and options.  Many brokerages also offer other financial services, such as checking accounts, debit cards and credit cards.

Is it important to be able to talk to an actual person on the phone? Some brokerages charge a higher commission if you place an order by telephone rather than using their Web site. If you think you might need some help, or don't always have access to your computer when you might like to make a trade, make sure you won't be penalized for it.

Will you be able to make use of the research that the company provides? Many online brokerages advertise the "research" that's available for their customers, but the truth is that much of this information is already available elsewhere for free. It may be more convenient to access research, quotes, and your account balance all in one place, but you shouldn't have to pay for the convenience.

Would you like to buy stocks on margin? Margin accounts allow you to buy stocks on credit, borrowing against the value of the securities already in your account. Of course, you'll have to pay interest on the money you borrow, and you'll find big differences in the interest rates that different firms charge. Also, some firms require a higher minimum to establish a margin account than a cash account.

Remember, you’re on your own.  You need to be comfortable investing on your own: finding stock ideas, researching, making decisions, entering orders, and using a computer. Nobody holds your hands at the discount online firms; in fact, finding a human being to talk to at some online firms can be like hunting for some invisible broker. If you’re not comfortable with your own research and order entry on the computer, consider using a more full service broker like Merrill Lynch, Morgan Stanley or Smith Barney. You’ll pay more, but such firms can provide research reports, stock ideas and market advice.