The internet has changed the game for stock trading, as it is now possible for the casual investor to trade stocks without the need for a personal stock broker. Do-it-yourself investing is here to stay. The problem is wading through the many discount online stock brokers to find the best. Here, we compare the best online stock brokers so you can easily see features and pricing side-by-side to choose the best broker for you.
Online Stock Brokers Compared
| Broker | Commissions | Minimums to Invest | Features |
Scottrade
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Special Offer: No Transfer Fees, No Inactivity Fees | ||
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Online Trades |
Brokerage Margin Retirement |
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TDAmeritrade |
Special Offer: Trade Free for 60 Days and Get an Opening Bonus Up To $600 | ||
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Online Trades |
Brokerage Margin Retirement |
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OptionsHouse |
Special Offer: Get 100 Commission-Free Trades |
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Online Trades |
Brokerage Margin Retirement |
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E*Trade
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Special Offer: Trade Free for 60 Days | ||
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Online Trades |
Brokerage Margin Retirement |
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TradeKing
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Special Offer: Outgoing Transfer Fees Reimbursed Up To $150 | ||
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Online Trades |
Brokerage Margin Retirement |
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Zecco |
The Best Value in Online Trading | ||
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Online Trades |
Brokerage Margin Retirement |
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ShareBuilder
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$50 After Your First Trade | ||
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Online Trades *As low as $1.00-$4.00 with automatic investing. |
Brokerage Margin Retirement |
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More About Recommended Stock Brokers
1 (Tie). TD Ameritrade. After its recent acquisition of high-powered trading site, thinkorswim, TD Ameritrade has moved to the front of the line among online brokers. TD Ameritrade has an appealing mix of research tools, low-cost trading, mutual fund options, and fast customer service. thinkorswim makes the choice a no-brainer for serious traders. Not for nothing did Barron’s rank TD Ameritrde as the #1 best online broker in 2011 and 2010 with four and a half stars. Stock trades cost a flat fee of $9.99 each, although there are many pricing systems for the trading of options. Each options trader will want to review these different price levels to find what will work best for him. Like other sites, thinkorswim does offer account transfer fee reimbursement for new members-as much as $100. New members also get a 30-day trial period where there is no consequence for terminating service. In addition, make 40 or more trades per month, and thinkorswim will actually pay for your internet connection. Three free trades (mutual funds) each month are a part of your membership, and their IRAs have no associated fees. As if all that were not enough, you will also receive a plush thinkorswim monkey when you sign up. Icing on the cake!
Visit the primary TD Ameritrade site in order to open your account.
1. (Tie) Scottrade. I have been trading stocks using Scottrade for five years, and I can’t say I’ve experienced a single problem, delay or inconvenience. With no fees for IRA accounts and fabulous customer service, Scottrade is a great site for the beginning trader. Trades are $7 each (and trades assisted by a broker cost $27), which is higher than other sites’ costs, but since this site has been consistently fantastic in offering similar services as the cheaper guys, I’d rather not chance problems with another site to save the occasional buck. Scottrade requires that you keep at least $500 in your account. Finally, you can do all of your trading with the various mobile or cell phone tools (e.g., iPhone, crackberry, Palm, etc).
Visit the primary Scottrade site in order to open an account.
2. Zecco.com. This site may well have the top offering on my list of brokers. Each trade is $4.95, and there is no tiered pricing to worry about. For those interested in Forex trading, Zecco provides an avenue to practice the extremely complicated Forex trading with an account that’s virtual, so that you can learn the ropes before diving in. The customer support team is both very fast in responding to emails, and it offers a 24/7 live chat. Finally, the site offers a very thorough community area so that you can see the top-earning investor portfolios and possibly inquire of the big-earners.
Visit the primary Zecco.com site in order to open an account.
3. SogoTrade. You may not have heard of SogoTrade, as they’re among the more quieter trading sites. However, they only charge $3 per trade and offer three unique platforms for trading, making them a leader in both inexpensive stock trading and in employing cutting-edge technology. All three platforms-SogoElite, SogoTrade, and Laser-each offer very current information so that customers are able to maximize their trades. With no fees for account maintenance or inactivity and account protection up to $500K, SogoTrade is a quiet player that is certainly worth a look.
Visit the primary www.SogoTrade.com site in order to open an account.
4. TradeKing. Since it is consistently good at everything it does, TradeKing is a great middle-of-the-road option. TradeKing only charges a $4.95 per trade commission, and this cost won’t change even if you take advantage of the opportunity to consult with a broker by way of phone. $4.95 will also pay for options trading, although there is an additional 65 cent charge for every contract. Readers of Barron’s, SmartMoney and other publications that rank online stock traders may already know TradeKing’s name, as they consistently win awards for all that they do. With customer support offered for extended hours (although not twenty-four/seven), and with a policy that reimburses $150 dollars worth of your transfer costs if you choose to transfer a current account, TradeKing is definitely user-friendly. The greatest asset TradeKing offers is its stance on educating customers-this means there are many resources available for amateur through professional investors.
Visit the official TradeKing site in order to open an account.
5. OptionsHouse.. If you are trying to do an online stock broker comparison, you can’t forget the options sites. This is a fairly new player in online trading, and it definitely tops the list of brokers by offering $3.95 trades. Best of all, the same $3.95 is all you pay if you are in need of broker assistance, which makes OptionsHouse the most economical site for online trading. Despite their name, OptionsHouse does not just focus on contracts or options. OptionsHouse also has great customer service, by offering 24/7 live chat support. Barron’s voted OptionsHouse the best broker when doing options trades in 2009 and 2010.
Visit the primary Optionshouse site in order to open an account.
6. E*TRADE. We’re all familiar with the E*Trade television commercials featuring the talking baby, so this online broker has the most name recognition of any on this list. Being well known does have a price, and at $7.95 for each trade and they then charge you $45 for broker assistance on each trade, E*Trade ranks as one of the most costly trading sites out there. The site recognizes their costs, however, and offers free trades (with certain restrictions) within the 1st sixty days of account opening. E*Trade has an account min. bal. of one-thousand dollars, and there are both inactivity and maintenance fees. Keeping one’s account in active status is important. Before you decide that E*Trade is too rich for your blood, remember that E*Trade’s platform and technology are second to none-so experienced investors will find that this site is the best option. The armchair investor, however, will probably find that the fees and cost for each trade are too high to effectively utilize this site.
Visit the primary E*TRADE site in order to open an account.
7. ShareBuilder.com. This site was once home to a leading trading platform where users could trade online for only $4 per trade. Unfortunately, even though this opportunity is still available, ShareBuilder seems to be lagging behind some of the other brokers. The platform is based on “automatic investing,” which means that you must make the $4 trade in advance as the trades are only performed on Monday. Now that other stock broker sites can offer real-time trades for cheap, ShareBuilder’s once awesome platform now comes up short. But, it’s important to note that ShareBuilder does offer real-time trades for $9.95 each, and it offers most of the tools and resources you’ll see on most other sites on my list. In addition, ShareBuilder can connect to any ING Direct checking or savings account, which makes transactions between the site and your bank extremely simple.
Visit the primary ShareBuilder site in order to open an account.
8. tradeMONSTER™. optionMONSTER, the successful education and news website for people who like options trading, created the broker site tradeMONSTER, which offers a disciplined style for those who want to trade in stocks and options. Barron’s has awarded tradeMONSTER 4 and 1/2 stars in the “best for options trading” category. However, inexpensive stock trading is also an option, as well. Trades are $7.50 each. This is a great site for learning, as tradeMONSTER offers webinars, a number of articles on online trading, and their blog which is packed with info and advice showing how the different strategies can work for you-and all of this information is free for the users. This website is perfect for options traders who are also interested in trading stocks on occasion. If transferring one’s accounts over to the tradeMONSTER system, incurs transfer fees, the site will reimburse you as much as $250 of the fees.
Visit the primary tradeMONSTER site in order to open your account.
9. ChoiceTrade. One visit to ChoiceTrade’s website and it will be clear that this is not your average online broker. Barron’s has rated ChoiceTrade a 4-star brokerage for the past five years, and the site promises five dollar trades online without any fees for penny stocks-which is extremely rare. ChoiceTrade’s platform can be a drawback, however, as you’ll be forced to afford their technology through pricing. You may use the standard platform free a total of 4 long months, but from there your cheapest option is $14.95/month. ChoiceTrade also offers a large and extensive community of investors, like Zecco, and this community allows you to ask questions of their many investors.
Visit the primary www.ChoiceTrade.com site in order to open an account.
10. Fidelity. An online stock broker comparison wouldn’t be complete without a mention of Fidelity. With Fidelity being a household name, this is not exactly your typical online stock broker, although the power of the Fidelity name brand is helping this site to join the ranks of other discount brokers. Trades cost an $8 commission, and you do need to be wary of possible fees for acct maint. However, the $8 is a flat rate that includes market, broker-assisted, and option trades. If you require assistance you will not be facing an extra charge. While Fidelity offers chat (live), it is not available 24/7. The tele-support (which I have personally tried) is quite fast, easy to use, and free. Because they offer many webinars and have compatibility with most mobile devices, Fidelity is an excellent place for beginning investors.
Visit the primary www.Fidelity.com site in order to open your account.
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