Online Broker Comparison

[Pytheas]

One of the many newsletters I belong to made a comparison of all the reputable online brokers. I would like to pass it on to you guys and girls. Hopefully it will help answer MANY of the same questions we see constantly see here.


Check it out. Here’s my official Online Broker Review (in no particular order)...

1) E*TRADE: E*TRADE charges $12.99 for both market and limit orders -- including
penny stock trading for $1 or less and all OTCBB stocks. You need at least $1,000
to open an account with E*TRADE. And there is a $40 quarterly fee for using their
services. E*TRADE is a cheap online broker mainly for active traders who don’t
need a lot of handholding.

E*TRADE’s contact info: phone: 1-800-387-2331, Web address: www.etrade.com.

2) Fidelity: Fidelity charges $19.95 for both market and limit orders --
including all penny stocks. You need an opening balance of $2,500 to open an
online account. But once you do, there is no quarterly or annual fee.

Fidelity offers a lot more research capabilities -- and is marketed for the more
serious investor (with a higher net worth) who likes the bells-and-whistles of a
full-service broker.

Fidelity’s contact info: phone: 1-800-544-6666, Web address: www.fidelity.com

3) Scottrade: Scottrade is one of the cheapest online brokers you will find. It
charges $7 for both market and limit orders. There are no quarterly or annual
fees. So even if you are an inactive investor, you won’t be penalized for “not
trading.” The only drawback for penny stock investors is this...

In addition to the $7 flat commission, they charge an additional fee of 0.5% of
the total principal. So if you spend $500, you owe Scottrade an addition $2.50
added onto that $7 commission -- making your total commission come to $9.50.

Like E*TRADE, Scottrade is a very bare-bones broker. If offers no handholding
whatsoever. But it is cheap!

Scottrade’s contact info: phone: 1-800-619-7283, Web address: www.scottrade.com.

4) Charles Schwab: Charles Schwab may be the pioneer in the discount broker
world, but it isn’t the cheapest. It charges $19.95 for market and limit
orders -- and an additional $0.015 for all shares over 1,000. In addition,
Schwab charges you a service fee of $45 a quarter.

To open an account with Schwab, you need a minimum of $2,500. And for small-cap
investors, you need to be aware of one thing…

It only costs $19.95 to buy or sell any small-cap or penny stock. However, if you
buy more than 5,000 shares, you have to pay $0.003 for every additional share.

Charles Schwab’s contact info: phone: 1-866-855-6770, Web address:
www.schwab.com.

5) TD Waterhouse: TD Waterhouse charges $17.95 for market orders and $20.95 for
limit orders. You need a $1,000 starting balance to open an account with TDW. And
you are charged a $25 quarterly fee -- which is waived if you make three or more
trades in a 6-month period.

For you small-cap (or penny stock) investors, there is no additional fee to trade
or invest in OTCBB stocks.

One note to keep in mind about TDW: It is in the process of being acquired by
Ameritrade. So my guess is it will soon adopt Ameritrade’s commission and fee
structure. Of course, we’ll have to wait and see. The “helpful representative”
I spoke to couldn’t tell me a thing. Shocker!.

TW Waterhouse’s contact info: phone: 1-800-934-4448, Web address:
www.tdwaterhouse.com

6) Ameritrade: Ameritrade is one of the better-known deep discount online
brokers. It charges a flat $10.99 for all market and limit orders -- and that
includes your OTCBB and penny stocks. You need $2,000 to open an account with
Ameritrade. And you are charged a $15 quarterly fee if your account balance falls
below $2,000 OR you don’t make four trades every six months. (In other words, if
you make four trades, you are exempt from the $15 fee).

Ameritrade’s contact info: phone: 1-800-454-9272, Web address:
www.ameritrade.com

7) Firstrade: Firstrade is one of the online brokers I never heard of before
today. But it caught my attention with its $6.95 commissions, no annual or
quarterly fees and no minimum opening balance required. It is truly a deep
discount brokerage service that should only be used if you don’t need any help
whatsoever.

As far as buying and selling penny stocks, Firstrade does mark up their
commissions a bit. If you trade stocks that sell for $2 or less, you must
tack on an addition fee of ½ a cent per share. So if you buy 1,000 shares of
a $1 stock, it will cost you $6.95 plus $5. So your total commission would
equal $11.95.

Firstrade’s contact info: phone: 1-800-869-8800, Web address: www.firstrade.com.

Vanguard: Vanguard is a more full service online broker -- similar to Fidelity
and Schwab. So it should come as no surprise that you must pay more that you
would with E*TRADE or some other deep discount broker.

Vanguard charges $25 to execute any market or limit order. It assesses a $30
annual service fee for every client. You need a minimum opening balance of
$3,000. And if you are interested in buying penny stocks, it gets a little hairy.
You pay a flat $20 commission per play plus 2% of the total principal.

Vanguard’s contact info: phone: 1-800-992-8327, Web address: www.vanguard.com.

9) Wang Investment: This is another broker I knew nothing about before today.
But it too is competing with the likes of E*TRADE, Firstrade and Scottrade. Wang
Investment charges $8 for most market and limit orders. I say “most” market and
limit orders because it costs $25 to buy or sell stocks that trade for $1 or
less.

They charge a $30 service fee every six months. And there is no minimum opening
balance required to open an account with Wang.

Wang Investment’s contact info: phone: 1-800-353-9264, Web address:
www.wangvest.com.

10) Trading Direct: Trading Direct charges $9.95 for all market and limit
orders -- including OTCBB and Pink Sheets stocks. There is no minimum opening
balance required to start an account up. But they do charge a $60 annual fee --
unless you make at least one transaction per year.

Trading Direct’s contact info: phone: 1-800-925-8566, Web address:
www.tradingdirect.com.

[TripleBuy]

Well done. Thanks for all the research. This should be a sticky so we don't have all the online broker threads.

[xboilermaker]

BrownCo had market orders for $5, but limit orders cost $10. I don't know if they are the same since E-Trade bought them. I see one thing under TD Waterhouse above that is underexplained though. The sentence that says no additional charges for OTCBB stocks, because neither has Scottrade unless they are under $1. I know, it states penny stocks under Scottrades fees, but that sentence could infer that others charge more on all OTCBB. Nitpicking, I know, but don't want anyone coming to the wrong conclusion.

[NINOHERO]

Doesn't anyone on this board use OE Options Express? $13 options and $10 stock. And the company stock OXPS is/was "en fuego".

[Thierry Martin]

Originally Posted by TripleBuy

Well done. Thanks for all the research. This should be a sticky so we don't have all the online broker threads.

Sticky it is.

[Code Butcher]

I'd like to add my Online Broker as well. I have a Wells Trade account. I also have a Wells Fargo Investments managed account.

The Wells Fargo Investments is like any other fullservice broker account. Maximum $35 per trade commission, or a percentage depending on how much money you have in the account.

Recently, about 6 months ago, Wells Fargo jumped in the Online Brokerage arena. They have 4 levels, depending on how much money you have deposited in any of the Wells family accounts. I'm right beloew the top level which suits me fine.

For the amount of deposits I have qualify for $2.95 trades up to 50 per year and $9.95 for ever trade above 50. Penny trade, anything under $1.00, are $24.95 or 2.5% of principal and does not count towards the 50 trades. An Extra $25+commission for Agent-Assisted Trading.

Here is more info for anyone interested.

https://www.wellsfargo.com/investing..._fees/standard

[deepinwonder]

I use Banc of America... full service... just lowered their online trading fees to $7 for active traders and $14 for non-active traders. You can also place phone orders for more money, I think it's $25. Not sure what the minimum balance is to open, but I liked them so much, I stuck it out with their higher fees until they finally came down. Whew! It was costing me too much before, I like the change.

I might add you have more access to pre-market and after hours trading than some other online brokerages offer. You can trade whenever it's open, right alongside the "big boys." Not everyone cares, but for some, it can come in handy.

[the_menace]

Originally Posted by deepinwonder

I use Banc of America... full service... just lowered their online trading fees to $7 for active traders and $14 for non-active traders. You can also place phone orders for more money, I think it's $25. Not sure what the minimum balance is to open, but I liked them so much, I stuck it out with their higher fees until they finally came down. Whew! It was costing me too much before, I like the change.

I might add you have more access to pre-market and after hours trading than some other online brokerages offer. You can trade whenever it's open, right alongside the "big boys." Not everyone cares, but for some, it can come in handy.

I use their bank and been a member forever. I read somewhere about them doing that (trading stocks) but usually, BOFA is expensive in terms of their fees that's why I didn't bother researching further. How active do you have to be, to be qualified as an active trader? Just curious. I'm using Scottrade but I hate mailing out a check that takes a few days before it goes to my account. I like online transfers better cause its faster; plus I find it safer nowadays better than sealing it in an envelope.

[Pytheas]

Originally Posted by "the_menace

I'm using Scottrade but I hate mailing out a check that takes a few days before it goes to my account. I like online transfers better cause its faster; plus I find it safer nowadays better than sealing it in an envelope.

the_menace, as far as Scottrade is concerned, I'm not sure if online transfers are safer than mailing a check. lol. Ugh, I'm in the same boat as you are, I have Scottrade and dont like the inconvience of going down to the office to deposit funds in my account.

Anyone know when Scottrade will resume their echeck service?

[deepinwonder]

BAC dropped their fees a couple of times in the past two years. To qualify as an active trader and pay $7, you have to have 31 transactions in six months, but we thought we noticed they were including other things in those transactions, like dividend payments, etc., so it might not have to be all trades. I would have been more active, had it not been for the fees I was paying, previously. My husband is a very active trader, too much... and I get stuck watching them all! LOL This is all Cramer's fault. :P

I can't really tell, but it looks like you pay less if you have a checking account with them. Maybe $10? I just noticed that, when I went to search for the link to give you. Maybe I should open an account there! I don't know what the minimum balance in your trading account has to be, but check them out online for more information.

https://www.baisidirect.com/Promotio...029h220000c530

Might add, here, that they also get me the best price they can, no matter what my limit order said, and have not taken advantage of my stupidity or mistakes, in any way. Saved me a lot, in that respect, too.