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Home | Getting Started | Personal Finance | Q & A | Sample Portfolio | Glossary | About Us |
| Date: Tuesday 13th 2008f May 2008 02:54:48 PM |
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Choosing a Discount Broker |
| By: Hari Wibowo |
| (Last Updated Oct. 23rd 2004) |
| Which broker should you choose? |
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All right. You've already set aside some money and you are ready to invest. After doing some analysis, you decide to invest in XYZ corporation. So, what now? Wait... you can not just buy it from your neighbor Sam across the street. (Although you might, if he happens to own XYZ corp. stock certificate). Other than that though, you have to buy your stocks through brokers. The next step is therefore to choose which brokers you would want to use. Some brokers require minimum amount to open an account, some require maintenance fee and they all charge different rates for each transaction. Choosing your broker carefully will save you the headache later on your investing career. Please note that brokers may change their policy in the future. Therefore, check on their websites for the latest development. |
| Broker | Scottrade | Firstrade | Ameritrade | E-trade | Brown Co |
| Website | |||||
| Minimum Investment | |||||
| Cash acct. | $500 | $0 | $2,000 | $1,000 | $15,000 |
| Margin acct. | $2,000 | $2,000 | $2,000 | $2,000 | $15,000 |
| Commission | |||||
| Market Order | $7 | $6.95 | $10.99 | $19.99 | $5 |
| Limit Order | $7 | $11.95 | $10.99 | $19.99 | $10 |
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Miscellaneous Fee and Others |
|||||
| Maintenance Fee | $0 | $0 | $15/quarter | Unknown | Unknown |
| Inactivity Fee | $0 | $0 | N/A | $25/quarter | $0 |
| Transfer Fee | Unknown | Unknown | $25-$50 | Unknown | Unknown |
| Once you choose a broker, opening an account is fairly easy. For most brokers, you can simply download an application form from their website, sign it and mail them the checks. You will receive confirmation to trade shortly. Every brokers are not the same, however. Therefore, be advised to check with individual broker for the procedure. |
| Still want to know more about online stock broker? Well, here is the site that gives a more comprehensive solution. It has a lot of information about broker and I think you might opt for a simpler version. You have been forewarned. |
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