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|
|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.|
|Bonds||$4.95 / bond||$1 / bond, $10 min||$15 / bond|
|Margin Rate||6.25%+||7.99%+||FF* + 3.25% (1)|
|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.