Comparing stock brokers starts with figuring out what your priorities are and the different criteria. You should look at features like commission on stock and option trades, customer service, trade tools and research, trading community and trading options, to name a few considerations.
You must also take note that each online stockbroker has specializations or niches. For example, TradeKing is best for online traders while Scottrade offers the option of local offices.
Your choices vary depending on your needs without worrying what other people want. Of course, you can keep accounts with different brokers to satisfy your different trading needs!
TradeKing
With TradeKing, you need not maintain a minimum balance. The $4.95 lowest transaction fee is very reasonable although it must be emphasized that an additional fee of 0.01per share is imposed on stocks valued under a dollar.
On the bright side, TradeKing does give you the option of broker-assisted trades for $4.95 for every trade executed. You will appreciate the savings borne of no extra fees on inactivity.
Scottrade
As previously mentioned, Scottrade are for traders who want the option of local offices for personalized service.The lowest transaction cost of $7 is offset by the minimum deposit requirement.
This brokerage deals with Pink Sheets too but the trades need to be executed with the help of a broker and the fees would be greater if the stock price is under $1.IVR Touchstone trades are charged at $17/transaction.There are no other extra fees imposed.
Charles Schwab
Considered the granddaddy of discount brokerage houses, Charles Schwab firm is surprisingly on the expensive side.Though TradeKing and Zecco let you get away with a no minimums, this broker requires a $2500 or $2000 balance for IRAs.
You will also shoulder extra fees amounting to $12.50 per quarter on accounts that fall below the minimum. Indeed, when you start to compare stock brokers, keep in mind that Charles Schwab takes plenty of money to use.
TD Ameritrade brokerage
A top-rated online stockbroker for many industry organizations, TDAmeritrade requires a minimum deposit of $2,000 although IRA accounts require half of that amount.Minimum deposits dont have a catch except that telephone IVR trades cost $34 (flat).99/trade.
Its $44.99 fee on broker-assisted trades is one of the highest in the industry. You should also take note that additional charges on mail statements and trade confirmations in the US will be charged $2-$5 each.
Zecco
If you dont trade too frequently then Zecco will be just fine for you.Not only does Tradeking not have a minimum balance requirement it sometimes waives fees on certain types of transactions.
There is a catch, however.There is a minimum trade volume of 25 monthly, out of which the first 10 are free. After said free trades, a flat fee of $4.50 per trade is levied. This is equally true if you maintain a $25,000 balance.
When you compare stock brokers, you will begin to see small and large differences in the fees, services and fine print by all these firms.Make it a point to check the differences to get the best bang for your buck.You do want folks on your side when increasing your wealth either as a trader or investor.
Whether you are looking for discount stock brokers or want to invest for a slightly longer period, it all starts with choosing a stock market broker.
