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. Hereâ?‚??„?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 donâ?‚??„?t
need a lot of handholding.
E*TRADEâ?‚??„?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.
Fidelityâ?‚??„?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 wonâ?‚??„?t be penalized for â?‚??“not
trading.â?‚?? 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.