First, the size and strength of brokers. Securities brokers in the United States are not state-owned monopoly industries, and there are countless large and small stock brokerage companies. Investors should first choose well-known brokers with large scale and strong strength, so that investment security will be relatively guaranteed. At present, charles schwab, TD Ameritrade, E*Trade, Fidelity Wealth Management and InteractiveBrokers(IB) are the top online traders in the US stock market. For online merchants, we can't simply draw conclusions about the size and strength of the company through the brokerage website, but we should consult the websites of third parties or regulatory agencies. For example, American stockbrokers generally join FINRA, and they can check whether brokers belong to their members on FINRA's website. 2. Tradeable varieties The trading varieties that China investors are concerned about generally include US stocks, ETFs, options, foreign exchange, Hong Kong stocks, futures and bonds. There are many kinds of securities companies that can trade US stocks, so it is necessary to know in advance whether the selected securities companies can meet their own needs. US stocks are the most basic trading varieties, and all brokers can support them. Because of its geographical location, Hong Kong stocks are also the focus of China investors. Brokers such as IB, E*Trade and charles schwab can offer Hong Kong stock trading at the same time. Option is an essential skill for US stocks, and almost all brokers offer option trading. However, some securities companies will limit the choice of investment portfolio. Scott Securities, for example, does not allow investors to make naked short selling. This restriction can avoid the mistakes of novice investors, but it is inconvenient for experienced investors, because sometimes naked short selling put options can help investors reduce costs. ETF funds are also common varieties. There are many ETF funds linked to indexes, gold, oil, sectors and markets in the US market, which opens a convenient channel for ordinary investors to allocate assets. Most brokers can buy and sell ETF funds, but a few brokers such as SogoTrade do not offer ETF trading. 3. Transaction fees The transaction fees charged by American brokers are different. For investors who trade in the day, the difference in transaction fees of different brokers can reach hundreds of yuan per month, so we should carefully compare and choose. Most online traders charge a fee for every American stock transaction. For example, TD Ameritrade charges a fixed fee of $9.99 for each transaction, regardless of the number of shares traded. Some securities companies charge a fixed fee for each transaction, and if the number of shares in each transaction exceeds the limit, they need to pay an extra fee. For example, charles schwab charges $65,438+02.95 for each stock transaction, and $0.065,438+0000 for each share if the number exceeds 65,438+0000. There are also some brokers who charge according to the number of shares traded, while IB charges according to the number of shares traded, with a charge of half a cent (US$ 0.005) per share. In order to attract customers, some brokers give new investors free trading opportunities. For example, SogoTrade offers 65,438+000 free transactions in the first month for new accounts, while Zecco offers 65,438+00 free transactions in a month. Option investment is a necessary investment method for senior investors. In this regard, most brokers charge a fixed fee for each transaction and then charge an additional fee according to the number of contracts in the transaction. For example, Scott Securities Options Company charges $7+$65,438+$0.25 per contract. Brokers of professional investors such as IB charge a fee of $0.7 per contract according to the number of options traded. In contrast, IB has an advantage in transaction costs. If you are an experienced investor, the financing interest rate is also a key factor to consider. Some brokers have a financing rate of 3%, and some have a financing rate as high as 9%. If the financing scale is large, the cost difference is quite huge. 4. The language barrier of Chinese service may be the biggest obstacle for many China investors to enter the American stock market. Many American securities companies have recognized the investment needs of China. Some only provide Chinese web pages and Chinese trading software, while others will provide Chinese customer service hotlines and set up branches in Hong Kong to directly serve China investors. In terms of cultural services in China, Scott has done a very good job and is deeply loved by China investors and overseas Chinese. 5. Capital security Investors put money on the other side of the ocean, and capital security must be considered. Fortunately, most well-known securities companies have participated in the insurance of the Securities Investor Protection Company (SIPC), which provides up to 500,000 US dollars of protection for each investor's account, including up to 6,543,800 US dollars of cash protection. Other brokers also bought insurance from commercial insurance companies to provide additional insurance for investors' accounts. For example, IB protects its customers' accounts up to $30 million through SIPC and Lloyd's Insurance Company in the United Kingdom. The above are five factors that need to be considered when choosing a US stock broker. In addition, some details such as transaction speed, transaction spread and investor education also need investors' attention. To choose a suitable brokerage firm, we need to comprehensively consider these factors according to our own investment needs and investment styles, and after careful comparison and selection, we can find a suitable brokerage firm.