Comparing stock brokers starts with figuring out what your priorities are and the different criteria.The main features that you need to be looking at are customer service, trading tools, research options, real-time ticker streaming options, volume-based discounts among others.

Keep in mind that each stock broker specializes in certain niches.Ex: TradeKing is ideal for traders who primarily use the online tools and Scottrade is for those who like to drop by the local branches.

Your choice depends on your trading needs, not anybody else’s wants. Or better yet, you can always maintain accounts with the different online stockbrokers to fulfill your various trading needs!

TradeKing

When it comes to TradeKing, there is no minimum balance requirement. The $4.95 lowest transaction fee is very reasonable although it must be emphasized that an additional fee of 0.01per share is imposed on stocks valued under a dollar.

On the bright side, TradeKing does give you the option of broker-assisted trades for $4.95 per trade. You will appreciate the savings borne of no extra fees on inactivity.

Scottrade

As mentioned earlier, Scottrade is for traders who want more high touch or personalized service. Its lowest transaction fee of $7 is offset by the fact that a $500 minimum deposit is required.

This brokerage deals with Pink Sheets too but the trades need to be executed with the help of a broker and the fees would be greater if the stock price is under $1. Touchstone IVR trades are priced at $17 per trade.Thank goodness, there arent extra fees levied.

Charles Schwab brokerage

Considered the granddaddy of discount brokerage houses, Charles Schwab is surprisingly on the expensive side.Though TradeKing and Zecco let you get away with a no minimums, this broker requires a $2500 or $2000 balance for IRAs.

You will also shoulder extra fees amounting to $12.$50 quarterly on accounts that dont maintain the minimum. Indeed, when you start to compare stock brokers, keep in mind that Charles Schwab firm takes plenty of money to use.

TD Ameritrade firm

A top-rated online stockbroker for many industry organizations, TD Ameritrade requires a minimum deposit of $2,000 although IRA accounts require half of that amount.Although IVR trades are charged $34, there is no other minimum deposit required.$99 per trade.

Its $44.$99 fees on broker-assited trades is definitely on the higher side in the world of brokerages.Additional charges on statements and trade confirmations in the US will be billed at $2-5 each.

Zecco

If you are an infrequent long-term trader, then Zecco is the right choice.With the broker Tradking, you dont have to maintain a minimum balance and there are transactions that dont have any fees associated with them.

There is no free lunch, so.There is a minimum trade volume of 25 monthly, out of which the first 10 are free.After the previously mention free trades, the flat charge is $4.50/trade is levied.The same holds true if you keep a $25K balance.

As you compare stock brokers, you will notice subtle and significant differences between the fees, services and fine print offered by the companies. Be sure to check these differences to secure the most value for your money. In the end, you want an ally in your side when building your wealth as a stock trader and investor.

Whether you need a full service stock broker or want to invest for a slightly longer period, it all starts with choosing a stock market broker.

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This entry was posted on Thursday, April 15th, 2010 at 5:47 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.