Online Trading Companies
Comparing The Best Online Trading Companies
Stock brokers used to be extremely valuable. They are now becoming irrelevant. This is due to the surge of online trading companies. These online trading companies allow you to trade on your own without having to use a stock broker as a middleman. Stock brokers didn’t just have value because they were the ones putting the trades in, they also had great value because of the knowledge they possessed. Looking back on it, they didn’t have as much knowledge as everyone thought. Plus, these days, many online trading companies offer all the information necessary to make profitable trades. To find out more about the best online trading companies, please read below.
Many people immediately want to know which is the best of all online trading companies. This is a difficult question because everyone’s needs are different. One trader might be a beginner just getting his feet wet while another might trade options at a professional level. The best online trading broker will depend on what you’re looking for. That said, we will still be able to eliminate some online trading companies from your list based on some key factors.
First let’s start with the most trusted online trading companies. These include OptionsXpress, TradeKing, OptionsHouse, Scottrade, Fidelity, E*Trade, Firstrade, ShareBuilder, Charles Schwab, and TD Ameritrade. The first thing most people are going to look at is the cost of a trade. This is important, but it should not determine what online trading broker you’re going to use. The amount of money you can make with the right tools greatly outweigh the extra few dollars you might have to pay on a trade. For instance, TD Ameritrade charges $9.99 per trade, but they have some of the best trading tools in the industry. It’s also a flat rate.
Trading fees range from as low as $2.95 at OptionsHouse to $9.99 at TD Ameritrade. A novice might immediately think OptionsHouse is a better option, but OptionsHouse doesn’t offer virtual trading, automated trading, analyst research reports, mobile tools, or Level II Quotes. There’s a reason their trading fees are so low.
Let’s narrow down the options for online trading companies based on what you might be looking for. If you’re looking for an online trading broker that offers all types of investments, your best choices will be OptionsHouse, E*Trade, Charles Schwab, and TD Ameritrade. If you’re a beginner and want simplicity, consider OptionsXpress, Fidelity, E*Trade, or Charles Schwab. If 24/7 support is what’s most important to you, then you will find it only at these four online trading companies: OptionsHouse, E*Trade, Charles Schwab, and TD Ameritrade. For those who are always on the go and require mobile tools, look into OptionsHouse, Scottrade, or TD Ameritrade. And if you don’t want to have to worry about account maintenance fees or minimum account balances, avoid Fidelity, E*Trade, OptionsHouse, and Scottrade.
As you can see, there’s a lot of mixing and matching. Some online trading companies are stronger than others in certain areas yet weaker in other categories. There is no online trading broker that offers perfection across the board. Make sure you do enough research on these online trading companies prior to investing. Hopefully, this article will provide you with a good head start.
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