Online trading brokers have become the standard for many people who want to get into the market, but do not want to go the traditional route of hiring a financial planner or their own broker. Instead, many people like the freedom to trade stocks online with little or no advice from a financial professional, although advisory services are available online as well.

Making the most of online stock trading means take a look at all the tools the broker offers. Here are some things to consider when choosing the right stock trading system:

1. Find out how much online stock trading information the broker provides to customers.

2. Explore which types of tools are available to those who trade online.

3. Know which kind of perks or extras are available when you sign up or use specific programs.

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Explore the online stock trading tool each company provides

Every online stock trading company will provide its clients with some type of interface for managing their accounts and executing online trades. These online tools vary from company to company, but you should be comfortable with the of tools the broker offers.

I recommend: TD Ameritrade offers a host of advanced tools for customers to use when buying, selling and tracking the movement of their money. If you are interesting in learning more about new tools from other companies, you can find many reviews of the latest trading tools at StockTradingToGo.com.

Find companies that provide comprehensive online stock market trading information

Before participating in online stock trading, it's important to read the information a broker can provide on the market in general, as well as information about individual companies. The more information available to you, the better chance you have at making smart financial decisions.

I recommend: Charles Schwab is an online trading company where all investors, no matter how much money they put into the market, get access to professional market research. E*Trade offers all the market information you'll need to make a smart trade from a single page.

Choose an online stock trading system that offer special deals

While incentives and special deals may only last for a short period of time, you can always use this as an inexpensive way to test drive online trading systems. Many pricing specials will last at least 30 days and you usually have the option to cancel your account at any time. But before you sign up, read the fine print to discover all applicable fees.

I recommend: ShareBuilder, a division of ING, offers the option to trade online without signing up for a membership, which can save the occasional trader a lot of money in the longer run. If you are not sure what to look for in terms of pricing, check out the guide to Online Stock Trading & Investment Resources, published by Bann Ronn Associates.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Many online trading services offer a demo version to show off their online trading tools. This is the best way to get a feel of the technology and see if it's the right fit for your online trading style.

For web-savvy 'self-directed' investors, online stock trading is de rigueur. Online stock trading has redefined cheap; not to mention quick and easy. So cheap, in fact, that some major banks now offer free online stock trades.  Fees elsewhere range from $2 to $25 per trade.

Discount online brokers that gained popularity with cheap no-frills service are now adding gizmos galore. You can test trading strategies without actually buying (TD Ameritrade); view investment videos (Schwab) or tap research (multiple brokers). All the online stock trading ingredients you need are readily available — just add money.

Low fees, however, aren’t the best way to pick an online broker. Trading tools, execution speed and research are crucial. To get what you need from online stock trading, consider these issues:

     1) Will you place just a few buy/sell 'trades' per month or year; a few dozen; or hundreds? At lower volumes, you might benefit from paying a bit more to get service and research recommendations.
     2) It’s ill advised to starting trading stocks online without first educating yourself on stock investing basics. You can buy or sell quickly with just a few mouse clicks — and your money can evaporate just as fast. 
     3) Know your time horizon. Buy-and-hold investors are in it for the long term; 2-5 years or more. Mid-horizon investors may only hold stocks for 6-12 months; and 'day traders' move in and out of market positions in a single day. The latter is strictly a game for pros who know what they’re doing (and they lose money too).
    4) Recognize the down-side of online trading. If your web connection tanks, you’re stuck. You could have problems accessing your account or making trades, especially during high-volume periods. Plus, you’re on your own and may have no lifeline to professional advice for when or how to exit the market. And while full-bore brokers can sometimes offer access to IPOs or other opportunities, online discounters can’t.

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Compare online stock trading and brokerage providers

Online stock trading is so competitive there's a perpetual price war to attract your business. But these days, with prices at rock bottom, the real battle is over additional services the discounters can offer.

I recommend: Investing Online Resources Center (IORC), an independent, non-commercial investor education organization, has links to independent rankings, service comparisons and features of online brokerage firms from places such as Smart Money magazine and JD Power. Take IORC's quiz to find out if online investing is right for you. Or see their tutorial on signing up for an online account.

Pick an online brokerage account partner

Check prices, features and available research at several different online stock trading firms.

I recommend: If keeping your finances in one place is important to you, try online stock trading via your bank. Not all banks offer online brokerage account services. A few that do include majors like Citibank, Wells Fargo, Bank of America, Chase, Wachovia and others. Discount or 'premium discount' brokers, including Charles Schwab, Ameritrade, Scottrade, TradeKing, FirstTrade and eTrade can all provide the online trading accounts and tools you need to buy and sell stocks with low commissions. Full service firms for online stock trading include big names like Merrill Lynch, Edward Jones, Morgan Stanley and A.G. Edwards.

Arm yourself with information

The more knowledge you acquire about online stock trading, the better your chances of success.

I recommend: Market information sites such as CNBC, MarketWatch and Yahoo! Finance have a broad range of helpful information and tools helpful for online stock trading. Morningstar is an 'A-List' provider of independent research for individual investors (as well as financial advisors and institutions), including a variety of stock and mutual fund publications, websites and software. Brokerage firm customers get access to stock research and tools that vary greatly by firm. Leading discount broker Charles Schwab, for example, functions more like a full-service firm by providing stock research and trading recommendations. Their 'Active Trader' service offers a series of advanced stock trading tools, including software, data, proprietary research and specialized support. TechniTrader and Investools are among the independent firms offering stock trading education, tools and strategies. Value Line is also an excellent source of stock trading information, as is Better Investing.

See our other stock investing How-To Guides

How-To Guides on Work.com and Business.com can help you locate all the tools and resources you need to be successful at investing in stocks.

I recommend: Other top-rated How-To Guides on successful stock market investing include: Stock Trading: Success in both bull and bear markets; Stock Quotes: Free online stock quote services abound. And add-ons can dazzle; and Stocks (Equities) and Stock Investing.

Stock trading is a common component of individual and business investment, but stock trading online has made it even more convenient to buy and sell stocks, whether for yourself or for your business. There are many online trading services that can help you get going with stock and options investments. Many of these also provide you with the opportunity to confer with an online broker.

The prices and costs of online stock trading all depend upon the type of services you require. If you are looking for something simple, the cost will be relatively low. But if you are looking for advisory service from your online broker, trading will cost more. Other things that affect cost are:

1. The initial price of an online trading account.

2. Fees per trade, or commission fees.

3. Any penalties that companies outline in their service, such as inactivity fees.

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Sign up with online stock market trading companies that offer basic plans

If you are looking for a company that can offer you the bare minimum when it comes to trading stocks and equity online, choose a company that offers a basic plan with either a low or no monthly subscription. Most basic plans will offer $1 to $3 trades with a $500 account minimum.

I recommend: SogoTrade offers two types of online stock trading plans, but the standard plan is affordable for anyone looking to get into online trading. Zecco Trading offers accounts with zero fees without broker assistance, and outlines all its other commission and account fees in detail. TopTenREVIEWS provides pricing comparisons for the top online trading companies so you can see which will best fit your budget and trading style.

Find an online stock trading company that offers broker assistance

While online stock trading is nothing like the conventional way to trade stocks with a broker, you can still find affordable online stock trading services that can provide you with broker assistance to help you plan your next move. To trade unlimited shares per year with broker assistance, you can expect to pay $30 to $55.

I recommend: TD Ameritrade offers many services to help you trade stocks online, including broker assistance. Scottrade is another online trading system that offers the option of broker assisted trades. If you want to learn more about what an online broker does, check out Investopedia.

Choose online trading brokers for complete service

The best online stock trading system will give you a good deal on fees, and also provide you with the best tools and access to professional brokers whenever you need assistance. These online services can cost up to $100 or more per year, plus a deposit requirement of $2,500 or more. These services are well worth the cost if you want to invest with the least amount of effort.

I recommend: Fidelity is one of the top ranked online trading broker firms because of its low commission fees, but also because its highly experienced representatives. Schwab offers access to expert advice plus advanced trading tools to help you make trades. SmartMoney looks at the top companies in its Annual Broker's Survey.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you are drawn in by a special deal, such as no fees or free trading for a specific amount of time, make sure to refer to the company's online stock trading information to see when these deals apply and for how long.

Online stock trading has become a lucrative and rewarding business for traders and investors. No longer do they have to visit or call stockbrokers to execute trades. Traders and investors also don’t need to rely on analysts to obtain research reports on companies. Instead, they can get this information by having an online brokerage account. To make online stock trading a successful experience, here are some key terms with which to be familiar.

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Stock trading

Stock trading consists of buying and selling stocks. Each time you execute a trade with your online broker, you will see two different prices, bid and ask. The ask price is what you agree to pay when purchasing shares. The bid price, on the other hand, is the price your broker agrees to when you want to sell your shares.

I recommend: Get in-depth information of how stock trading works by visiting TradeStars.

Online brokerage account

Opening an online brokerage account involves filling out an application. Information you will have to supply includes your name, address and phone number. The online brokerage firm will then process your application. Once you are approved, then you fund your account with cash. Most, if not all, online brokerage firms will allow you to link your bank account with your brokerage account. That way, you can transfer money back and forth.

I recommend: TD Ameritrade outlines the steps you need to complete in order to open an online brokerage account.

Stock chart

A stock chart is made up of an axis, X and Y. The chart contains the stock's price and time. Chart analysts can analyze the movement of prices over a period of time.

I recommend: RightLine gives a good description of what stock charts are and how they can be created.

Technical analysis

Technical analysis involves trying to forecast the stock price's direction. Using mostly price and volume, technical analysts base their forecasts on the stock's historical price data.

I recommend: NewsMonster provides comprehensive information about technical analysis.

Fundamental analysis

Fundamental analysis is an investment technique that focuses on the company's value. This involves investigating the company's earnings, profits, revenues or market share. Fundamental analysis also involves looking at the company's debts or liabilities. If the company's fundamental analyses are good, then the stock may be a good candidate to buy.

I recommend: Stock Investment Made Easy not only defines what fundamental analysis is, but discusses the advantages and disadvantages of using it.

Stock ticker

The stock ticker shows the stock's most recent bid (or offer) and volume. It scrolls across the screen.

I recommend: Investor Words gives a definition of a stock ticker.