Compare Stock Brokers
Over the years I’ve received a lot of emails from readers asking me for my recommendation on a discount stock broker. I’ve always stayed away from recommending any one broker, opting instead of just list the two that I currently use (TradeKing & E*Trade).
However, now that I’ve reviewed quite a few brokers and taken a look at their features, I’m comfortable doing a side by side comparison of my three favorite from a cost perspective. In the end, my choice of TradeKing was validated and I feel better pointing people to a side-by-side comparison of brokers, rather than an off the cuff listing of the brokers I use.
If there are comparable features I can list on this table that I haven’t included, please let me know and I’ll be sure to add it.
| Our #1 Pick | |||||
| Broker Compare |
TradeKing | E*Trade | TradeMonster | ||
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| Stock Trades | $4.95 / trade | $12.99 / trade | $7.50 / trade | ||
| – Broker Assisted | $4.95 / trade | $57.99 / trade | |||
| Options Trades | $4.95 + $0.65/ct | $12.99 + $0.75/ct | $0.50/ct, $7.50 min | ||
| – Broker Assisted | $4.95 + $0.65/ct | $1.50/ct, $14.95 min. | |||
| Mutual Funds | $14.95 | $19.99 | $15 | ||
| Bonds | $4.95 / bond | $1 / bond, $10 min | $15 / bond | ||
| Minimum Balance | $0 | $2,000 | $2,000 | ||
| Margin Rate | 6.25%+ | 7.99%+ | FF* + 3.25% (1) | ||
| Inactivity Fees | $0.00 | $0.00 | $0.00 | ||
| Cash Interest | 0.25% | 0.10% | 0.00% | ||
| Transfer Refund | Up to $150 | 100 free trades | Up to $250 | ||
| Review | TradeKing Review | n/a | TradeMonster Review |
If those three don’t interest you, there are plenty of other discount stock brokers you can look at. Another crowd favorite is Scottrade because they’ve been around for such a long time and consistently delivered great service. Scottrade has a $500 account minimum, $7 per stock equity trade, and no account maintenance fees to boot. They will also reimburse you up to $100 to transfer your account from another broker.
I also have a list of what I consider the best discount brokers (three of which are in the table above) and the best options brokers (which also include these three but a couple others as well). Between this list and the two I’ve just linked to, you should be able to find a broker that fits your needs. Don’t settle for one that doesn’t, there are far too many brokers out there.
