Back Home

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.

Top Discount Brokers

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.

Cheap Stock Broker – Why Good Brokers Don’t Have To Break The Bank is a post from: CompareOnlineStockBrokers.com

Services Offered

You and the full service stockbroker will conduct meetings to determine your investment plans, possibilities and profit goals.  You will then be provided with a custom investment plan for your review and approval.

Your stockbroker will be able to complete the investments as planned.  Regular meetings will be scheduled to discuss your investments’ progress, decide how you want to proceed from that point on, and determine adjustments, if any.

Full service stock brokers are wonderful agents of investments if and when you cannot be bothered with learning the ins and outs of stock trading.  You have a professional trained to do so who will provide valuable inputs on your decisions.

Brokerage Houses Ranking

With the recession in full swing, you will observe many full service brokerage houses having troubles of their own.  In fact, many have closed shop to the detriment of their customers.  Fortunately, there are still brokerage houses that have thrived under the recession.

It must be noted that the following full service brokerage firms are mentioned in random order.  Again, what may be best for your needs may not exactly fit the requirements of other investors.

First, Morgan Stanley serves a diversified group of individuals and organizations in 3 business segments.  These segments are institutional securities, global wealth management and asset management. Although its website earns top mark for excellence in design, its low customer trust levels offsets said advantage.  Customers are expressing disappointment over declining wealth, not to mention that Morgan Stanley has not been immune to controversies.

Second, Smith Barney gets high marks for its improved customer trust levels.  This is thanks to the development of better customer service, the addition of educational seminars and the publication of research papers on its website.  Still, you might want to look into its declining client assets before placing your bet in the merged company.

Third, UBS is the world’s second largest manager of private wealth assets.  Of course, its experience is working in its favor especially with the economic difficulties even the filthy rich has not been spared from.  In terms of customer satisfaction, UBS is topnotch although its website still requires substantial improvements.

Fourth, Raymond James provides full service stock brokerage facilities to individuals and corporations by way of subsidiary companies.  In many polls, the company is rated number one especially in terms of brokerage statements and customer satisfaction.  For many stock investors, Raymond James appears to be the best option at the moment.

When choosing from among the many full service stock brokers worldwide, it is necessary to do your research, determine your investment needs and decide with a clear head.  Keep in mind that you will be paying a handsome fee for their services and, hence, you must exercise due caution.  In the end, you will benefit through better (read: more profitable) investment decisions.

Full Service Stock Brokers – Why They Are Sometimes Worth The Cost is a post from: CompareOnlineStockBrokers.com

So, where do you start to evaluate the best internet stock broker for your needs?  It’s simple, really – start with the quantitative and qualitative aspects of what makes for an excellent broker!

Quantitative Aspects

We start with the quantitative aspects for obvious reasons.  Trading and investing in stocks is, first and foremost, about financial matters specifically of making a profit.  Thus, looking at the quantitative factors like broker commissions, trade fees and extra charges is a must especially as these represent your expenses.

Low broker’s commissions are desirable.  However, this does not necessarily mean that you have to sacrifice other factors for said low commissions.  You must look at the level of trading activity you plan to engage in as well as your expertise in the field.

For example, if you are a newbie seeking more guidance from an experienced internet stock broker and you intend to be an infrequent trader, then a relatively high commission is well worth it.  However, if you plan to be an active trader and you already have sufficient experience as a stock trader, then low commissions are the way to go.

Still, you must evaluate miscellaneous fees like inactivity and option fees.  You want to avoid the situation where the supposedly low broker’s commissions turn out to be just a small fraction of the total cost of trading.

Also, you have to determine if you are amenable to minimum maintaining balances.  You can find brokerage companies with zero maintaining balances like TradeKing while others like Charles Schwab require at least $2,500 minimum accounts.

Keep in mind that your stockbroker will cost money, which can and will eat into your profits if you are not too careful in choosing.  Ultimately, you should keep your costs low to gain a decent profit from trading in stocks.

Qualitative Aspects

Fees are not all there is to choosing the best stockbroker.  You also need to look at the qualitative aspects of what makes a stockbroker fit your investment needs to a T.

For one thing, you have to look at the customer service support offered by the brokerage company.  Is it online at all times?  Is phone access provided for in case of Internet and power shutdowns?  Is in-person assistance available?  These are just a few of the questions that you must ask in evaluating customer service.

For another thing, you also have to determine the availability of research, analytical and planning tools. These tools may include a wide trading community, streaming quotes and Level 2 access, all of which should ideally be made available for free on a 24/7 basis.

You can have the best of both aspects if and when you perform a thorough evaluation of each stock market broker and then comparison between other competitors.  Throughout the process of evaluation, keep in mind that you are the boss in choosing which one suits your investment strategy the best.  You may not be able to control the stock market but you can control your own choices.

Stock Market Broker – The Only Way To Pick The Best Internet Stock Broker is a post from: CompareOnlineStockBrokers.com

Important Points to Remember

There are certain things that must be remembered when dealing with small cap shares.  For one thing, you are dealing with possibly the riskiest investment ever, no thanks to the highly volatile nature of penny shares.

You can lessen your risks by trading under reliable platforms like the NASDAQ SmallCap Exchange.  Needless to say, you must do your research about the market before, during and after every decision taken.

For another thing, you should choose your stockbroker well.  Keep in mind that hidden charges can be tacked on the basic low-cost fees.  You might just find yourself paying more for your penny stocks transactions than your Big Board stocks!

If you apply 100 percent caution in Big Board stocks with the economy as it is today, you should exert 200 percent more effort where small cap shares are concerned.  You will appreciate it when you profit big-time where others lost money.

Plus, it is best to remember that penny stocks are meant to be traded on a regular basis instead of being treated as long-term investments.  Do remember to keep your penny shares to just 10 percent of your total investment portfolio.

Preferred Brokers

Since each trader has a different buying and selling style, it goes without saying that choosing from among penny stock brokers is a personal decision.  Just choose which among the following suits your trading style the best and you should be alright as a small cap share trader.

* ChoiceTrade – Winner of the prestigious Barron 4-star award, ChoiceTrade offers s flat fee of $5 on all trades.  Thus, you can avail of benefits like unlimited number of shares traded, no transaction surcharges and fees, as well as no minimum each trade.  Add in the excellent customer service and pricing options and you have one of the best penny share stockbrokers around.
* TD Ameritrade – This is one of the most popular discount online brokers and for good reasons, too. You can enjoy perks like a flat $9.99 fee on all orders regardless of size and price as well as no maintenance fees no matter the trading activity and account balance.  However, you have to deposit $2,000 to open an account.
* Zecco Free Trading – One of the rare brokerage companies that offer free stock trades, Zecco is slowly but surely making a name for itself in the industry.  You can avail of benefits like no minimum funding balance, low cost fees at $4.50 per trade, and a forex trading platform.
* Scottrade – Yet another popular discount broker, Zecco charges $7 on all orders although an additional fee is imposed on stocks valued at under a dollar.  If you are trading in relatively small amounts, it is the best choice.

There are many more penny stock brokers in the market today.  Just to mention a few more, you have Lowtrades. ShareBuilder and SogoTrades.  The dictum still remains, however, regardless of the number of brokers present – choose according to your trading needs.

Penny Stock Brokers – Not All Brokers Are Built The Same is a post from: CompareOnlineStockBrokers.com

So, how exactly do you weed out the undesirables to uncover the top stock brokers?  Well, you should evaluate the brokerage houses based on the following basic criteria.

Minimum Deposit Balances

Many discount stockbrokers now offer a no minimum deposit policy for its customers.  As such, you can immediately invest your money in the stocks of your choice without worrying about additional fees.

However, take note that there are brokerage sites that impose such a minimum deposit balance with a service charge should your account fall below it.  For example, TD Ameritrade has a $2,000 minimum deposit requirement while TradeKing and Zecco have none.

Brokerage and Account Rates

The brokerage rate is simply the fee imposed on your buying and selling transactions.  Usually, the top stock brokers apply a sliding scale where the more units purchased in a transaction, the lesser the cost per unit becomes.  However, there are cases where a flat fee is imposed.

Do read the contract’s fine print.  This way, you are assured that there are no hidden fees that will take away your profits for each transaction.  Then, you can choose the stockbroker whose brokerage rates meet your trading style.

This also goes for account fees especially when you are planning to request quick withdrawals of money.  You want to know the ins and outs of the costs involved with each transaction you authorized.

Level of Access to the Money

You must also determine the level of access available for your own money.  It is advisable to secure instant access instead of having to pay a fee for quick withdrawals especially for emergencies.

For example, you can have your MasterCard account linked to your trading account.  This way, you can use your trading account for normal purchases.  In this regard, your stockbroker should be able to offer several alternatives for holding your cash account.  If a stockbroker cannot do so, then you might want to look in other places.

Mobile Access

No matter how powerful the Internet may appear, it is still subject to technological problems.  As such, it is very important to choose an online stockbroker with full phone access so that you can make decisions even when the virtual world is experiencing shutdowns.

Extra Benefits

What would life be without the extras?  In this case, it is worth a look into the extra benefits offered by the brokerage company to determine if it suits your wealth objectives.  For example, some companies offer free stock trades in a month or a free BlackBerry when opening an account.

The best online stock broker is one that will work with you, for you and by your instructions.  Thus, you must establish exactly what you want out of your life as a stock trader and investor even before you go about setting your sights on a stockbroker.  But that’s another story altogether.

Best Online Stock Broker – What Should I Be Looking For? is a post from: CompareOnlineStockBrokers.com

It is best to choose two stockbrokers to service your investment needs.  This way, you have a backup stockbroker, so to speak, should your preferred stockbroker fail to provide the service expected of it.

Plus, you can focus on different investment segments and, hence, diversify your portfolio.  Keep in mind that it is not advisable to place all your eggs in one basket.

Things to Consider

As can be expected, there are many things to consider when choosing the stockbrokers.  For one thing, you have to consider the costs of trading.  Oftentimes, stockbrokers offer competitive rates on fees and commissions to attract customers to their fold.

However, it is a good idea to check the fine print as there are many ways to tack on additional rates.  In the end, the total cost may have risen to the point where the marketed low-cost rate is just a gimmick.

You should look into the qualitative aspects of the services offered by discount stock brokers.  You must evaluate the quality of customer service, the variability of the trading platforms, and the range of tools offered.

All these factors will help you make a balanced decision where quantitative costs and qualitative aspects are given equal importance.  Ultimately, you should benefit from your careful consideration of all the factors involved.

For example, if you are an active investor, you should look into a stockbroker with fast execution speeds, a wide range of investment options and low-cost fees and commissions.  If you only want to invest for your retirement, then excellent customer service is one of the most important criteria.

Top Stockbrokers

Admittedly, there are hundreds of online stockbrokers that you can choose from.  You can either spend hundreds of hours evaluating all of them or you can refer to the following top 5 stockbrokers rated by customers and industry insiders.

First, Zecco offers 10 free trades per month on two conditions.  You must either make 25 trades in a month or you maintain a $25,000 balance in your account.  Otherwise, be prepared to pay $4.50 on all trades with $.50 on the per options contract.

Second, TradeKing offers the best customer service support in the industry.  When coupled with very competitive fees and commissions, it is indeed the king of trades.  Or at least, where discount stock brokerage houses are concerned.

Third, Etrade offers many professional trading tools to help in choosing the best stock options.  You can take advantage of its generous current offer of either a new BlackBerry or 100 free stock trades on a new account.

Fourth, Scottrade boasts of more than 400 local offices around the world.  You should take advantage of its advanced trading tools, $7 flat fee and excellent customer service, all of which has earned it the 2009 #1 for Customer Loyalty Award from Brand Keys.

Fifth, OptionsHouse is considered as one of Barron’s 2009 Best Online Brokers for Options Traders. It offers a flat fee of $2.95 on stock trades as well as 100 free trades on new accounts.

Just choose from among these outstanding discount stock brokers and get started on the journey to wealth.

Discount Stock Brokers – How To Pick The Best Broker Without Losing Your Shirt is a post from: CompareOnlineStockBrokers.com

Importance of Choosing Right

Think of your stockbroker as your personal shopping assistant in that he will work with your investment goals in mind.  As such, it is his business to know your investment preferences, risk profile and trading style.

Of course, you will still be making the final decisions.  It is still your money and, hence, your stockbroker can only recommend trading choices.  This is with the assumption that you hired a full-service stockbroker.

Tips on Choosing Right

When making a stock broker comparison, you should keep your trading needs and wants as your main criterion.  For example, you may be willing to sacrifice on additional fees for inactive accounts and high trading fees but customer service must be topnotch.

To be more specific, the following tips are highly recommended when it comes to choosing the right stockbroker:

* Ask yourself about the level of trading activity you plan to engage in.  If you are an infrequent trader, then a reliable broker with the right analysis tools to assist in choosing from among good range of investment products will suffice.  If you will trade frequently, then low fees and commissions, good trading tools and 24/7 online support is the better option.

* Make your assessment about the online stockbroker based on your personal criteria.  Look at the website in terms of fees, commissions, interests, minimum deposit balance, customer service, research and educational tools, trading options and even a trading community.

* Look for assurance of security for your personal information.

The best way to ensure that your comparison will yield the best results is to research, research, and research.

Top Stockbrokers

To make your life easier, we have chosen the following top three stockbrokers.  Of course, these are only recommendations – the choice is still yours to make.

Voted as the best online broker, Fidelity offers a full range of financial services from international stock trading to personal checking accounts.  It has excellent research, educational and planning tools, to boot. However, take note that it requires a minimum opening balance of $2,500 along with higher commission fees.

Ranked number 1 in many discount broker polls, TradeKing offers excellent customer service and research tools.  If you are just starting on your investment portfolio, the low-cost trades and no minimum deposit policy will work in your favor.  The cons, however, take some getting used to – narrow range of investment products and limited mobile access, to name a few.

For active traders, Thinkorswim comes very highly recommended indeed.  It offers flat-rate commissions, state-of-the-art trading technology, excellent mobile access, outstanding educational and research tools, and easy-to-use trading platforms.  However, if you only want the basics instead of the bells and whistles, then Thinkorswim requires second thoughts.

Now that you know the importance, the tips and the recommendations in relation to stock broker comparison, it is time to do one of your own.  You should scour the Internet for more online stockbrokers, evaluate them based on your personal criteria and choose the one that’s right for you.

Stock Broker Comparison – How To Choose The Best Stock Broker is a post from: CompareOnlineStockBrokers.com

You may balance the need for low trade commissions and minimum opening deposit with excellent customer service, trade tools and research.  Ultimately, however, your trading needs and style determine your final choice. Well, to help you narrow the field, listed below are the top 5 online brokers.


Online Stock Broker Comparison


Thinkorswim

Voted the top online broker by Barron’s in 2009, thinkorswim offers its customers zero minimum deposit with a standard $9.95 on trade commissions.  Its broker-assisted trade fee is also at $9.95, which is considerably lower than the fees imposed by Etrade and TD Ameritrade.

Thinkorswim also offers 24/7 customer support, a helpful trader community, plenty of educational and research tools, as well as international, mobile and virtual trading.  With all these excellent features, you cannot help but download its trade platform for free.

Etrade

As you compare online stock brokers, Etrade appears to be an excellent choice.  It has the irresistible offer of either 100 free trades or a free Blackberry with a new account. Also, take note that Etrade was also ranked number 1 in 2009 albeit by SmartMoney.

You must maintain a $1,000 minimum deposit with inactivity fees imposed on the account.  Research and educational tools are also available for greenhorns and veterans.  Customer service is rated excellent in most instances.

TradeKing

Yet another online stockbroker with zero minimum balance required, TradeKing offers low trade commissions and broker-assisted trades at $4.95 each transaction. The $.65 per option contract is one of the lowest in the industry.

You can join the 150,000-strong trader community where ideas, market analysis and research are generously shared among members.  You will also enjoy the good customer service support as well as international and mobile trading options.

Scottrade

Another multi-awarded online stockbroker is Scottrade, which was recognized for its loyal customer base in 2009 by Brand Keys.  Rightly so as its features – personalized customer service, competitive fees on stock trades and premium trading tools, to name a few – are topnotch.

Scottrade also offers a low $500 minimum deposit with no inactivity fee.  Add in its options for international, virtual and mobile trading and you have a winner in your hands!

Zecco

If you are looking for free stock trades, then Zecco is the answer.  The catch is that the trader must engage in 25 trades per month to avail of the 10 free trades in the same period.

You can join the 150,000-strong ZeccoShare Community. The downside is that there are no international and mobile trading options, which are available in other trading sites.  Still, with its competitive pricing, Zecco is an excellent choice.

When engaging in online stock broker comparison, your trading needs is the most important determinant.  Just as long as you are satisfied with the service, the fees and the options, then stick with the online stockbroker.

Compare Online Stock Brokers – Top 5 is a post from: CompareOnlineStockBrokers.com

CompareOnlineStockBrokers.com takes your privacy seriously. This privacy policy describes what personal information we collect and how we use it. See this privacy policy primer to learn more about privacy policies in general.

Routine Information Collection

All web servers track basic information about their visitors. This information includes, but is not limited to, IP addresses, browser details, timestamps and referring pages. None of this information can personally identify specific visitors to this site. The information is tracked for routine administration and maintenance purposes.

Cookies and Web Beacons

Where necessary, CompareOnlineStockBrokers.com uses cookies to store information about a visitor's preferences and history in order to better serve the visitor and/or present the visitor with customized content.

Advertising partners and other third parties may also use cookies, scripts and/or web beacons to track visitors to our site in order to display advertisements and other useful information. Such tracking is done directly by the third parties through their own servers and is subject to their own privacy policies.

Controlling Your Privacy

Note that you can change your browser settings to disable cookies if you have privacy concerns. Disabling cookies for all sites is not recommended as it may interfere with your use of some sites. The best option is to disable or enable cookies on a per-site basis. Consult your browser documentation for instructions on how to block cookies and other tracking mechanisms. This list of web browser privacy management links may also be useful.

Special Note About Google Advertising

Any advertisements served by Google, Inc., and affiliated companies may be controlled using cookies. These cookies allow Google to display ads based on your visits to this site and other sites that use Google advertising services. Learn how to opt out of Google's cookie usage. As mentioned above, any tracking done by Google through cookies and other mechanisms is subject to Google's own privacy policies.

Contact Information

Concerns or questions about this privacy policy can be directed to compareonlinestockbrokers@gmail.com for further clarification.

This privacy policy was generated by the Privacy Policy for WordPress plugin.

Privacy Policy is a post from: CompareOnlineStockBrokers.com