Best Online Stock Brokers 2010
Online brokers are more popular than ever. As the economy continues to recover, more investors are gearing up to get back into equities markets–and more online brokers are competing for the expected increase in business. Some of the things to consider in an online broker are pricing, investment choices, platforms and tools, and customer service.
If you are anxious to get back into equities markets, weighing your options (no pun intended) can and should take some time. The brokers we have reviewed so far all offer their own respective advantages, and your portfolio size and investment style are no small consideration when looking for an online broker. Here are BankShout’s top picks for 2010:
Scottrade leads the online brokers market. In our opinion, Scottrade’s combination of low prices, investment products, and customer service and support that remains the industry standard. The broker’s standard $7 per trade won’t cut into your porfolio like other traders do; this goes for all-important international stocks as well, so that traders who want a piece of emerging markets can get in without breaking the bank. Even though Scottrade is online, they also have over 400 physical branches, for those who like to deal in person. Scottrade’s support system includes everything from how-to articles to video seminars.
Scottrade is our online broker of the year because of the combination of products, pricing, and high service quality. Especially designed for the investor just starting out online, Scottrade also has a low minimum account balance (just $500) and all the support you need. The company seems to recognize that even seasoned traders may not be comfortable with online platforms, while the more web-savvy customer needs more investment support. Scottrade is set up to accommodate all comers.
- Low pricing, even for international equities
- Wide range of investment products
- High number of branch offices
- Number and quality of support tools
If you are already familiar with trading, ETrade may be your company. ETrade offers what they call a “full range of investments,” and they aren’t kidding: in addition to stocks and options, the broker also has over 7,000 mutual funds and every exchange trade fund (ETF) there is–literally. You can also go for futures contracts or jump into fixed-income markets in ETrade’s “Bond Superstore.”
ETrade has been around longer than many of its online broker competitors, so its trading platforms and other tools tend to be more efficient that most. ETrade’s pricing runs in the middle of the road compared to other online brokers, but the company’s giveaways and bonus offers are very generous. ETrade is best for its sheer number of products, however, allowing the investor to truly diversify his or her portfolio across many different investment types.
- Number of mutual funds and exchange-traded funds
- Futures Trading
- Bond market access
- Giveaways and bonuses
With so many people going into online investing, it was bound to happen: one company would find its niche with beginning investors. Although all of TradeKing’s customers may not be equities newbies, the pricing, tools, and even the tone of TradeKing’s website all seem to be designed to help newly-minted traders get their feet wet. This is a wonderful thing; among online brokers, there needs to be a destination that simplifies the trading process and doesn’t make newer traders feel lost amidst a sea of jargon and broker-babble.
TradeKing has features that would make any trader feel welcome, regardless of experience. Low prices? Check. No-nonsense website? Check. High quality of support tools? Yep, including a “rookies corner” for the less-experienced trader. TradeKing doesn’t even charge anything extra for broker-assisted trades, which is a huge advantage over other companies that will cost you up to $45 for the advice.
- Low pricing at $4.95 per basic trade
- Outstanding website
- Strong online support tools
- No fee for broker-assisted trades
Zecco’s very name means “zero cost commissions.” Your first ten trades with Zecco are free, if you either maintain a $25,000 account balance or execute 25 trades minimum. Simply put, no one is offering a deal like this right now. You would need to watch the other potential fees at Zecco–from $10 no-load mutual funds fees to a $20 charge to upgrade to their best trading platform. But traders who want no-frills, dirt cheap equities trading have a home at Zecco.
There are no account balance minimums. You can also get a referral bonus of $75 when you sign up a friend for Zecco. The broker also has foreign currency exchange trading (FOREX) in addition to the usual stocks, mutual funds, and ETFs.
- 10 free trades a month
- No account balance minimums
- FOREX trading
- Referral bonus
