Friday, November 2, 2012

Additional Online Brokerage Firms

Hey everyone! I apologize for the hiatus in the postings. Hope that everyone reading this is safe and sound after this Sandy fiasco that we had to go through here in the east coast. One thing about NYC though--- no matter what we go through we sure know how to get up, dust off and keep going. Slowly but surely we'll be back to normal.

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On this post, I just want to share a  few additional online brokerage firms that are out there, how much the charge per trade and whether or not there is a minimum deposit to open the account. I personally havent used any of the firms I am about to list but I have heard about them through different financial podcasts I listen to as well as from friends that have used them. So here they go:


First Trade
Firsttrade.com
  • No minimal deposit to start (you can open the account and dont have to fund it right away).
  • $6.95 per stock trade. (As previously explained: means they charge a fee of $6.95 when you buy any number of shares and the same fee when you sell for a total of $13.90).
Scottrade
Scottrade.com
  • Require a minimum deposit of $500 to open an account
  • $7 per stock trades
E*Trade
etrade.com
  • Also require a $500 minimal deposit
  • Stock trade fees range from $7.99-$9.99 depending on your trading volume

Merrill Edge
merrilledge.com
  • No minimal deposit required
  • $6.95 per stock trade
  • They offer rewards of $50+ but the "catch" is depositing $10K+ to trade
Options House
optionshouse.com
  • $1,000 minimum deposit for cash accounts
  • $3.95 per stock trades
  • This site gives you the option of openning a "virtual account" first where you can practice before you get started with real investing (which I think is pretty cool)
Please keep in mind that the fees posted are only for when you are trading stocks. You may or may not know that there are a lot of other more "sophisticated" kind of investments out there besides stocks (Ie: options trading). For these kind of "different" type of investments the fees vary in each of the different online brokerage firms. I personally dont trade anything other than stocks and the blog is currently just focused on stock trading so lets focus on that!

Also--- just a heads up that the online brokerage firms noted above and the other two I mentioned in my previous posts are just SOME of the firms available out there! There are many, many to choose from. If you do a google search for it; you will see. If you decide to do research on your own to choose the best for you--- just make sure you read about how these firms are insured and make sure they are part of the SIPC (security investor protection corporation). Also, very important that they are reinsurred. In addition, I would personally avoid online brokerage company's that note the following on their website: "...we provide no guarantees in the event of unauthorized access...".
I found this in the optionshouse website. Make sure you look in to how your money will be protected. Some firms, such as TDAmeritrade, offer protection if someone tries to illegally trade without your permission, etc. Little perks like that would help me sleep better at night.

Remember: Research, Research, Research!!

NEXT POST: The online brokerage application and clarification of "weird" or "confusing" questions.