Cheap Stock Broker – Why Good Brokers Don’t Have To Break The Bank
It has been said many times that keeping all your eggs in one basket is asking for troubles. Well, when it comes to investments, this is all too true. To counteract such an unfortunate investment strategy, perhaps it is time to look into the possibility of hiring a cheap stock broker.
Services Provided For by the Cheap Broker
Unlike full service stockbrokers, cheap brokers do not offer investment advice at any point of the transaction. You should approach him with specific instructions on the stocks to be traded in, the size and type of the order and other relevant information.
Beyond that, you must not expect the cheap stockbroker to strike up a friendly conversation about the market trends. In fact, it is all business from the moment you pick up the phone or log in to the website to place your orders. Think of him as just an order taker, if you must.
With that being the case, you should learn everything about the stocks and the stock market. This way, you will always be on top of your investments instead of blaming the order taker, er, cheap stock broker for your mistakes.
Like full service stockbrokers, discount brokers area also ranked according to criteria like opening requirements, fees and commissions, customer service and available tools, to name a few. Here then are the top discount brokers named in random order because each one has its merits and demerits depending on your investment and trading needs.
* TradeKing – With useful tools and calculators, TradeKing is suitable for newbie traders. In fact, it has been voted best online stockbrokers for years in a row by a jury of its peers and customers. You can also avail of excellent customer service, thanks to a live representative available for online chats, e-mails and phone consultations. Other perks include an extra $150 for switching accounts as well as for referrals.
* OptionsHouse Online Brokerage – One of the few discount brokers to offer free stock trades on new accounts, OptionsHouse also provides for affordable commissions at just $2.95 per trade. However, you will miss the helpful trading community present in other sites like Zecco and TradeKing.
* Zecco Online Brokerage - Just like OptionsHouse, Zecco offers free trades under certain conditions. The commissions are relatively high at $10 per trade on the no-load list but with other excellent features, it is money well spent.
* Scottrade Online Brokerage – Although the $7 online stock trade fee is reasonable, you might want to rethink doing your transactions over the phone and with a broker. If you are a retail investor with an active record, then Scottrade is worth a second look.
* Etrade – The services offered in terms of assistance rival those of full service brokers. You will also enjoy the benefits of a wide range of investment options and trading tools, all of which one may confidently state put Etrade in line with Charles Swabh. Still, you must beware of their inactivity fees and the high commissions on broker-assisted trades.
The right choice for a cheap stock broker can be the beginning of a more profitable, more diverse and more resilient investment portfolio. The trick is in evaluating each and every one of the prospective brokerage sites according to your own predetermined criteria.