Online Discount Brokers Lesson 110

  Price is the new battleground for discount brokers, with some slashing their commissions in half. But who comes out on top in other areas, from research to customer service?
  This information was posted May 20, 2010. This information is intended to give an idea of what is available to the trader, and I recommended that you look at different brokers to find a service that has what you're looking for.

Online brokers are rated here on 1) Mutual funds and investment products, 2) Banking services, 3) Trading tools, 4) Research tools, 5) Customer Service.

The brokers are listed in order of quality as of the time of posting, and the number rating is from 1 to 5, and 5 being best.

                                                                                                                                                              
 Fidelity  http://www.fidelity.com/  Snags top ranking with robust mix of investments, tools and banking service. Commissions $7.95   This one overall rates 5 in all catagories.

  E-Trade http://www.etrade.com/  Strong in research and trading tools; Commissions 9.99, Smartphone aps include live quotes. Overall rating 4 and 5.

 TD Ameritrade http://www.tdameritrade.com/  Big inprovement in customer service. Commissions $9.99 Rating mostly 5.

  Charles Schwab http://www.schwab.com/  Offers more advice and research than many competitors. Commissions 8.95 Ratings mostly 5.

  TradeKing http://www.tradeking.com/  Regains top spot in customer service from last year. CEO is a frequent blogger. Commissions $4.95,  Ratings from 2 to 5.

  Scottrade http://www.scottrade.com/  Nearly 500 branch offices nationwide. Placing online trades is quick and easy. Commissions $7.00. Ratings from 2 to 4.

  WallStreet-E http://www.wallstreete.com/  New customer service system enables quick responses by phone and e-mail.  Commissions 7.99. Ratings from 1 to 5.

  First Trade http://www.firstrade.com/  Keeps No.8 spot with good mix of products, but light on research. Research tools are very important.   Commission $6.95  Rating from 2 to 4.

Just2Trade http://www.just2trade.com/  Cheap trades are geared to active investors. Short on research. Commissions 2.50 Ratings 1 to 4.

  Muriel Siebert http://www.siebertnet.com/  High marks for customer service, but the Web site was sluggish. Commissions $14.95 Ratings from 2 to 4.

  USAA http://www.usaa.com/  Newcomer to online brokerage is most affordable, with a wide array of products. This 9 decades old firm is best known for serving the military and their families. Commissions 5.95 Ratings Mostly 2.

  OptionsXpress http://www.optionsxpress.com/  Big emphasis on tools; new phone apps have options quotes. Commissions $9.95 Rating 1 to 5.

  Zecco http://www.zecco.com/  Ten free trades a month with $25,000 balence. Spiffed up web site. Commissions $0.00 Ratings over all 2.

  WellsTrade http://www.wellstrade.com/ Lags behind the pack in trading tools and investment products. Commissions 19.95 Ratings 1 to 5.

  Banc of America http://www.saisidirect.com/  Commissions and fees can be pricey for nonbank customers. Commissions $14.00 Ratings 1 to 4.

  ShareBuilder http://www.sharebuilder.com/  Expanded research and tools, but ranks low in banking and investment products. Commissions $9.95 Ratings over all 2.

  SogoTrade http://www.sogotrade.com/  No plans to offer funds or bonds. Slow to answer phone and emails. Commissions $3.00 Ratings overall 1.

  This is a quick overview of what's available to you for a trading, investing platform. For myself I use Scottrade because they have a branch I can walk into and talk to a person. A branch is not needed, but for me it's an extra perk. I will also add that, the online service, email response, and phone help has been the best.

  If your new to online trading, talk to a friend or family member that uses the service to get ideas. Opening an account is like opening a bank account. Online brokers make this very easy. The money needed to open an account can be as little as $500.00 (Scottrade) or more at other brokers.

  For more detailed information read blog number 108. If you have any questions, you may comment here, go to my website http://www.youcontrolinvesting.com/  or  http://www.twitter.com/ and search for StockMktTeacher and tweet your question.


Bruce Cortez, instructor