Q: I want to get started investing online, but I don't know how to choose a broker. Is there any real difference between all the online discount brokerages out there? -- C.Q., via the Internet

A: Good news -- the short answer to your question is that it doesn't make much of a difference which discount brokerage you use as long as you're picking your own stocks. Savage competition has forced virtually all the big players to offer some excellent services at good prices. If you aren't trading in and out of stocks very often (and you shouldn't be), and you're not too concerned about whether your trade is executed within 15 seconds or 2 minutes (and you shouldn't be), there really isn't a significant difference at all.

Here are a couple of things to keep in mind:

1. Fees. Many of the advertisements that you'll see for discount brokers focus on the price per trade. While choosing the brokerage that provides the absolute lowest price per trade might be attractive -- and might even make sense for a frequent trader -- it is likely that you'll find that there is a trade-off between service and price. (You've probably discovered that once or twice before in your life.)

   Online brokerages can be categorized roughly into three categories.

   • Supercheap brokers that charge from $4 to $12 per trade. Best used by those who plan on trading very frequently.
   • Midpriced brokers that charge between $12 and about $20 per trade.
   • High-priced brokers that charge more than $20 per trade, typically around $29.95 per trade, which is supposed to sound like it's lower than $30 per trade, but really isn't.

2. Customer service and site performance and interface. Check out the Web sites and make sure each site's interface is intuitive and pleasing. This probably shouldn't be too difficult because the determination of what makes a pleasing Web site is entirely subjective, and by now all brokerages have had years to test-market their sites on lab rats and occasionally even human beings.

   You also want to know what kind of customer service the brokerage has. In researching this, you'll want to see how the brokerage does at sending you any relevant material you request online.

3. Other freebies and perks. Beyond the low costs, some brokerages will give you frequent-flier miles, books, months of Internet access, or just plain old money for you to open up an account. While the freebies probably shouldn't determine your choice, free money is free money. If you find yourself absolutely deadlocked on which brokerage to go with, cash can be a persuasive tie-breaker.

WHAT NOW? One brokerage that is offering something slightly different is FOLIO[fn]. Hard to explain in this small a space, but worth a look.