5 Good Reasons to Switch to a New Brokerage Now

It's a great time to be an investor. A large number of brokerages offer taxable accounts and retirement accounts. Just about all the best stock brokers now offer commission-free trading, too. You don't need to pay costly fees to invest anymore.

You have options for where you invest. And in some situations, it makes sense to switch to a new brokerage. Here's when you may want to consider doing this.

1. You'd like to have your banking and investment accounts in the same place

Some brokers focus primarily on investing, with taxable brokerage accounts and individual retirement accounts (IRAs). Others offer investment accounts and bank accounts, such as checking accounts and high-yield savings accounts.

There are benefits to having all your accounts in one place. It's more convenient and easier to stay on top of your finances, since you can see everything by logging into a single account. You can also quickly transfer money between your accounts. If that's something you'd like, and your current broker doesn't offer bank accounts, there are plenty that do.

2. You want to expand your investment options

Pretty much every broker lets you invest in stocks. Other than that, investment options vary quite a bit from broker to broker.

There are many types of investments that not every broker offers. These include mutual funds, bonds, options, futures, and fractional shares (being able to buy a portion of a stock share). If you've found yourself wishing your broker had more ways to invest, it could be time to make a change.

3. You could earn a bonus

Stock brokers want your business. Many of them are willing to pay for it in the form of broker bonuses. Some brokers offer stock shares and even cash bonuses of up to $1,000 for new clients.

Many broker bonuses are based on the amount of money you deposit and transfer over to your new broker. For example, a broker may offer $300 for bringing over at least $50,000 in new money, $500 for at least $100,000, and $1,000 for at least $500,000. With a sizable portfolio, you could qualify for some impressive bonuses.

Keep in mind that a broker bonus alone typically isn't a good reason to switch to a new broker. What's important is having a broker you like, so you shouldn't pick one just for a bonus opportunity. But if you find a broker you like that's offering a bonus, then it's worth taking advantage.

4. You're looking for a platform you're more comfortable using

Every broker has its own unique trading platform. Some are more basic and well-suited for beginners. Others are far more advanced, which is harder if you're new to investing, but can be useful if you're an experienced investor.

It's easier to get into the habit of investing when you like using your brokerage account. If placing an order is a frustrating experience, or if you can't stand your broker's mobile investing app, look for one that you're more comfortable using.

5. You're not satisfied with your current brokerage

Finally, if you're dissatisfied with your brokerage in any way, remember that you don't need to stick with it. As mentioned earlier, there are quite a few brokers to choose from.

Unhappy with your current broker's customer service? Is it lacking educational tools and research offerings? Whatever your reasons, you could at least explore your options to see if there's a better fit for you.

Switching to a new brokerage can be a good financial move. I recently changed brokers myself, and I'm happy I did. Now that you know the best reasons to look for a new brokerage, you can decide if it's a move you want to make.