I am looking for very low commissions and hoping to find an online brokering firm where I can trade small amounts of stocks easily and without losing money to fees. Also, my starting balance is small so I need a low minimum requirement.
Lastly, I really need to be able to trust the firm with my money, so no one that I haven't heard of.
Thanks!
2007-03-21 10:02:45 · 8 answers · asked by Anonymous in Business & Finance ➔ Investing
There are a lot of good brokerages depending on what you like and how you trade.
Barron's has a great article on brokerages that they publish each year. (Latest one I have a link to was in March 6, 2006, but March 5, 2007 "just" came out). Kiplinger does one too.
Here’s the link to the Barron’s article.
http://webreprints.djreprints.com/1550280182488.html
Here’s the link to the Kiplinger’s July 2006 article which isn’t bad either.
http://www.kiplinger.com/magazine/archives/2006/07/brokers.html
For basic stuff, E*Trade, Ameritrade, and Scottrade are sufficient. For more complex trades, I'd recommend Optionsxpress, ThinkorSwim, or interactivebrokers.
Based on what you put in your question, I'd recommend one of the first three, but all are very good. Cheapest probably is scottrade (of the larger online firms). Yes there are cheaper like interactivebrokers, but you'll have to get used to their software based platform (which is doable). They're only about $1/contract on options!
Brokerages like Fidelity are horrible for anyone with any decent experience.
So, decide what's important to you as a trader and compare the brokers! You can use the article, or go to each website as they all seem to have comparison charts!
And if there are particular things that you want to mention as being most important to you (such as executions, cust svc, cheapest trade - which you mentioned, flexibility on allowing you to do certain types of trades, stop and stop limit orders, contingent orders, great graphing, what if scenarios, training, etc), I'll be glad to help discuss this with you too!
If you have any questions, let me know.
Hope that helps!
P.S. I just found a link to a review of reviews as well! Here it is:
http://www.consumersearch.com/www/internet/online-brokers/reviews.html
2007-03-21 11:11:01 · answer #1 · answered by Yada Yada Yada 7 · 2⤊ 0⤋
well, I have been with buyandhold.com for 7 years. Here is why I like them. It is $6.99 a month and that includes 2 free trades. Any additional trade is 2.99. That is the real key because if you are investing $100 then paying $14 for a trade your stock has to go up 28% to make 14% since your investment is so low. In the link listed you can read about it under financials.
What I like is you can buy partial shares and they automatically reinvest the dividend for free. I do not get a referral and I am a personal user.
They recently added a few closed bond funds which pay a dividend monthly.
2007-03-21 10:23:47 · answer #2 · answered by Domino 4 · 0⤊ 0⤋
I think http://sogoinvest.excellentabc.com would be a good fit for you. I use them and the most I pay per trade is $3 and the account minimum is only $500 which is lower than most of the other brokers. Plus they are regulated by all the normal agencies for stock brokers so I feel safe having my money there.
Good luck trading
2007-03-21 16:03:47 · answer #3 · answered by KevinM200 2 · 0⤊ 0⤋
I really like sharebuilder.com. There are no minimums and trades are only $4 a piece. Selling is a little more expensive, at 15.95 per trade, but they are trying to encourage you to invest for the long haul.
Their IRA maintenance fees are very low as well, and they have now added options trading and margin loans. You should look into them.
2007-03-21 11:51:40 · answer #4 · answered by park_brit 2 · 0⤊ 0⤋
I started with 200 dollars and I love my broker they have no hidden expences and they are very reliable. They have real time quotes for free when you trade a few times a month. I also like their anylists and the way the site is set up. Email me at franksprung@yahoo.com and I will send you right to them so you can see for your self.
2007-03-21 11:12:21 · answer #5 · answered by franksprung 3 · 0⤊ 1⤋
Most trading firms such as CyberTrader require a min investment of $25,000 to give you 4 to 1 intraday buying power. My firm, www.rematatrading.com has several relationships with such firms, one being CyberTrader which is owned by Charles Schwab. Anyway we also bring in traders with small amounts of capital and then give them leverage, we have had traders come to us with as little as $2,500. Anyway check us out on our web page, email me if you would like more info, tlanzana@rematatrading.com
2007-03-21 10:41:19 · answer #6 · answered by phantomtrader2 2 · 0⤊ 1⤋
Zecco.
2007-03-21 10:40:40 · answer #7 · answered by Anonymous · 0⤊ 1⤋
scottrade hands down
2007-03-21 11:42:33 · answer #8 · answered by godzillasagoodman 2 · 0⤊ 1⤋