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If You Dont Like Your Broker Why Dont You Fire Him?
By Mike | March 25, 2010
No two stock brokers are the same and there are quite a few choices for you to look at.The main features that you need to be looking at are customer service, trading tools, research options, real-time ticker streaming options, volume-based discounts among others.
You must also take note that each online stockbroker has specializations or niches.Ex: TradeKing is ideal for traders who primarily use the online tools and Scottrade is for those who like to drop by the local branches.
Your choice depends on your trading needs, not anybody else’s wants. Or better yet, you can always maintain accounts with the different online stockbrokers to fulfill your various trading needs!
TradeKing
When it comes to TradeKing, there is no minimum balance requirement. 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 per trade.You will like the savings because you wont be charged inactivity fees.
Scottrade
As mentioned earlier, Scottrade is for traders who want more high touch or personalized service.The lowest transaction cost of $7 is offset by the minimum deposit requirement.
Scottrade deals in Pink Sheets, too, although said trades must be broker-assisted with additional fees on the penny stocks priced below $1.IVR Touchstone trades go at $17/trade. Fortunately, there are no other extra fees imposed.
Charles Schwab firm
Considered the granddaddy of discount brokerage houses, Charles Schwab brokerage is surprisingly on the expensive side.Unlike TradeKing & Zecco, you have to maintain a balance of $2500 or $2000 for IRAs with this broker.
Extra fees of $12 will also be charged.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, TD Ameritrade brokerage requires a minimum deposit of $2,000 although IRA accounts require half of that amount.Although IVR trades are charged $34, there is no other minimum deposit required.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.With the broker Tradking, you dont have to maintain a minimum balance and there are transactions that dont have any fees associated with them.
Dont forget,.There is a minimum trade volume of 25 monthly, out of which the first 10 are free.After the previously mention free trades, the flat charge is $4.50 per trade is levied. This is equally true if you maintain a $25,000 balance.
As you compare stock brokers, you will notice subtle and significant differences between the fees, services and fine print offered by the companies. Be sure to check these differences to secure the most value for your money. In the end, you want an ally in your side when building your wealth as a stock trader and investor.
Whether you want to compare stock brokers or want to invest for a slightly longer period, it all starts with choosing a stock market broker.
Topics: Investing |
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