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How to Choose a Stock Broker

Choosing a stock broker for long-term investing: the protections, costs and practical details that matter more than an app's design.

AtlanticQuote editorial team. Updated 26 September 2026. How we work

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The essentials

  • Confirm the firm is authorised by your regulator and check how client assets are held.
  • Compare total costs: dealing fees, platform fees, fund charges and currency conversion.
  • Check which markets, funds and tax-advantaged accounts are available where you live.

AtlanticQuote does not recommend brokers. Here is how to choose a broker using checks anyone can run.

Protection

  1. Authorisation. Look the firm up on your regulator's register (for example the FCA register, SEC/FINRA BrokerCheck, or your national regulator) using an address you type yourself.
  2. Client assets. Your shares should be held in a nominee or custody account separate from the broker's own assets.
  3. Compensation schemes. Check what applies if the firm fails, such as SIPC in the US or the FSCS in the UK, and the limits.
  4. The right entity. International groups may open your account with an offshore company offering weaker protection. Check the name on the account agreement.
Phone showing a verification screen with a shield icon

Costs

  1. Dealing charges per trade, and whether regular investing is cheaper.
  2. Platform or custody fees, flat or as a percentage of assets. Over many years a percentage fee on a growing portfolio can become the largest cost.
  3. Currency conversion. Buying foreign shares usually involves an FX fee, often a percentage built into the rate. See trading fees explained.

Fit

  1. Account types: tax-advantaged accounts available in your country.
  2. Range: the exchanges, ETFs and funds you want; whether fractional shares are offered.
  3. How you found it: unsolicited calls, social media "mentors" and guaranteed returns are warning signs. See scams.

Reader questions

Is a commission-free app really free?

Many earn money in other ways, such as currency conversion fees, interest on cash balances, or payments from market makers for order flow. Read the fee schedule.

What happens to my shares if my broker goes bust?

If assets are properly segregated, they should be returned to you, though it can take time. Compensation schemes may cover shortfalls up to a limit.

Sources

  • UK Financial Conduct Authority register
  • FINRA BrokerCheck
  • Securities Investor Protection Corporation
  • Financial Services Compensation Scheme

Further reading