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MARKET COMMENT
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Internet brokers are one of seven wonders of online investing. No more hanging on the phone waiting for a dealer, no more worrying whether he's going to snigger after you announce your purchase and, best of all, no more exorbitant dealing commissions. Hurrah! If you're on the hunt for your first broker, those cut-price dealing commissions will probably be top of the checklist. But does the lowest rate always signal the best broker? Not exactly. Brokers can make their money in other ways, such as levying annual fees and inactivity charges, and paying measly interest rates on cash balances. With smaller portfolios, be careful to check the additional costs. Furthermore, the brokers with the lowest charges may not offer some of the more useful investing services. For instance, some may not provide self-select ISAs (to avoid paying tax), dividend reinvestment facilities, market news and data, or Crest-sponsored member accounts. Trouble is of course, you won't really know which broker services are important to you until you start investing for real. It's the same with broker efficiency. Though the Fool's broker discussion board contains some excellent feedback, you'll never know how good a broker really is until you begin trading, when such things as the punctuality of dividend payments, the ability to trade illiquid small-caps and dealing inside a share's quoted spread become apparent. The main issue with selecting your first broker therefore is it requires a leap of faith. So bear in mind none of them are perfect and simply plump for the one that appears to suit your circumstances at present. The Fool's broker centre has comparative details on several leading brokers to help you get started. That said, there is nothing wrong with opening accounts (though not self-select ISAs in the same tax year) with different brokers, to try out and compare their facilities. And whatever you do, don't forget the research spent picking shares -- not your broker -- will have the greater effect on your portfolio! Where now? Use The Fool To Compare Brokers