There are a number of factors to consider when choosing a broker. Here's a rundown of the ten we think are the most important:

1. Are lower dealing charges very important to you?

In many people's minds, this is the most important question, and one to which they will always answer "YES!"

But there are a few issues you need to think about. Some brokers charge low fees for each trade but also charge an annual fee to manage the account. These kinds of deals can be attractive if you're going to trade a lot. Other brokers charge a higher fee per trade, but don't charge a management fee. So if you're not going to trade that often, this could work out cheaper.

2. Do you want "extras"?

Some online brokers offer a “no-frills” trading service where pretty much all you can do is buy and sell your shares. Others offer extra services such as charting packages or news feeds. While some of the extra services are nice to have, most of them can be found for free elsewhere on the web.

3. What type of account do you want?

There are three different ways you can hold your shares in a share dealing account, and you'll need to decide which one suits you best.

Nominee Account

The most common service is where you do not receive a paper share certificate. Instead, your shares are held in what is termed a "pooled nominee account", a pool of shares that the broker holds on your behalf and whoever else among its clients has invested in the same company. The broker's name appears on your holdings, so the individual company doesn't know you personally hold the shares.

Using a nominee account means you don't automatically receive a company's annual report, and you don't automatically have the right to attend and vote at an AGM. Some brokers will provide a copy of the annual report if requested, and they may also give you a “letter of representation” which enables you to vote at the AGM.

Certificated Account

Certificated accounts are a somewhat old-fashioned approach. Your broker sends you the share certificates when you buy, and you have to send them back when you sell. The biggest plus point is that your name is on the company's shareholder register and you automatically receive annual reports and invitations to the AGM.

And, if you have a certificate, you don't have to sell the share via your normal broker. You can use whomever you like – as long as the broker offers a certificated service.

The downsides are that certificated services, even execution-only services, are normally more expensive than nominee accounts. You also run the risk of losing your certificate; you may have to fork out around £50 to get a replacement. What's more, settlement times are slow. This means if you sell a share, you can wait for ten days or more before you get your cash.

Crest-sponsored member account

Crest is a similar to a nominee account in some ways, but it incurs an annual charge directly from the Stock Exchange rather than simply from the broker. Crest is the London Stock Exchange dealing system, and holding an account electronically registers you as a Crest member. Whenever you trade shares, your details are electronically passed along with the transaction rather than those of the broker, so that the company share register for that stock is automatically updated with your details.

4. Are low share transfer charges important to you?

If you decide to switch your online broker later on, your current broker may charge an exit charge, so check how high it is. Does it seem reasonable? Often the charge may be per holding, so it could be expensive to change broker if you hold a large number of shares.

5. Is customer service important to you?

Chances are the answer is yes, but how important? If the broker does your dealing, do you care that the e-mail or phone responses you get are curt, albeit efficient? And can you get through on the phone at all, even when the stock market is busy?

It's often difficult to rate a company's customer service until you've dealt with them for some time. But you can check out what other Fools think of various brokers by looking at our Brokers discussion board.

6. Do you want foreign dealing?

Most private investors stick to UK shares. But if you ever want to deal in foreign stocks on other exchanges, then you need to identify which brokers offer this service and, if so, how much the charge is.

7. Do you ever want ad-hoc statements and valuations?

Most companies provide an annual or bi-annual report on your holdings. What if you want an interim statement or valuation? You can normally get an overview on a broker's website but there are likely to charge for a printed copy, if that's what you want.

8. To ISA or not?

Do you want to trade within a Self-Select ISA? These protect your investments from Capital Gains Tax and, if you take out a maxi ISA, you can invest up to £7,000 within it each tax year.

Most brokers will charge an annual fee for using an ISA but you can often bundle ISAs for different tax years together so that you only have to pay one administration charge for the whole lot.

9. SIPPS

A SIPP is a Self-Invested Personal Pension. It allows you to buy and sell shares, plus other investments, within your pension scheme as and when you like. Charges for SIPPs tend to be higher than ordinary share dealing accounts.

10. Will you get a decent interest rate on your cash?

Particularly with ISAs and SIPPs (where there are tax-related restrictions on what you can withdraw) you may have to hold cash within your share dealing account for some time. For example, you may have sold some shares but not decided where to re-invest your money. If you think this may apply to you, you'll want to get a decent rate of interest of your money while you're waiting, so check what's being offered.

You're ready to choose!

You should now have a clearer idea of what you want from your broker, and how much you're prepared to pay for it. The next stage is to find out who's offering what you need. You can find out more in our broker centre where we have a comparison table of leading online brokers.

Once you've looked at that table and considered all the points we've outlined so far, we reckon there's a good chance you'll choose our own share dealing service. We've come up with an imaginative title for the service: The Motley Fool Share Dealing Service. Ta ra!

Next article: Buying Your First Share