What Do The Best Traders Look For In Their Stock Brokers?
When you compare stock brokers, there are many factors that come into play. You should look at features like commission on stock and option trades, customer service, trade tools and research, trading community and trading options, to name a few considerations.
You must also take note that each online stockbroker has specializations or niches.Ex: TradeKing is ideal for traders who primarily use the online tools and Scottrade is for those who like to drop by the local branches.
Your choice depends on your trading needs, not anybody else’s wants. Or better yet, you can always maintain accounts with the different online stockbrokers to fulfill your various trading needs!
TradeKing
With TradeKing, you need not maintain a minimum balance. The $4.95 lowest transaction fee is very reasonable although it must be emphasized that an additional fee of 0.0101 per share is levied on stocks less than $1.
On the bright side, TradeKing does give you the option of broker-assisted trades for $4.95/trade.You will like the savings because you wont be charged inactivity fees.
Scottrade
As previously mentioned, Scottrade are for traders who want the option of local offices for personalized service.The lowest transaction cost of $7 is offset by the minimum deposit requirement.
This brokerage deals with Pink Sheets too but the trades need to be executed with the help of a broker and the fees would be greater if the stock price is under $1. Touchstone IVR trades are priced at $17 per trade. Fortunately, there are no other extra fees imposed.
Charles Schwab firm
Considered the granddaddy of discount brokerage houses, Charles Schwab firm is surprisingly on the expensive side.Though TradeKing and Zecco let you get away with a no minimums, this broker requires a $2500 or $2000 balance for IRAs.
You will also shoulder extra fees amounting to $12.50 per quarter on accounts that fall below the minimum. Indeed, when you start to compare stock brokers, keep in mind that Charles Schwab firm takes plenty of money to use.
TDAmeritrade
A top-rated online stockbroker for many industry organizations, TD Ameritrade requires a minimum deposit of $2,000 although IRA accounts require half of that amount.Although IVR trades are charged $34, there is no other minimum deposit required.$99 per trade.
Its $44.99 fee on broker-assisted trades is one of the highest in the industry. You should also take note that additional charges on mail statements and trade confirmations in the US will be charged $2-$5 each.
Zecco
If you are an infrequent long-term trader, then Zecco is the right choice. As with TradeKing, there is no minimum balance required with the added bonus that some transactions have no fees whatsoever.
There is a catch, however. You must trade for 25 times per month, of which the first 10 trades are free.After the previously mention free trades, the flat charge is $4.50 per trade is levied. This is equally true if you maintain a $25,000 balance.
When you compare stock brokers, you will begin to see small and large differences in the fees, services and fine print by all these firms. Be sure to check these differences to secure the most value for your money.You do want folks on your side when increasing your wealth either as a trader or investor.
Whether you are looking for discount stock brokers or want to invest for a slightly longer period, it all starts with good but cheap stock broker comparison.
Getting to the Truths of Stock Trading
There are a lot of misconceptions surrounding the field of stock trading that trigger new trader’s fears and keep others from trying the profession at all. As a successful trader for over 15 years, I prefer to take a more positive approach and deal with the prevailing truths that exist in the field of stock trading. Here are just a few.
1. Stock trading success will come when you keep your trades low risk on a consistent basis over time. Sure, this attitude will result in you missing out on the occasional windfall that the movies have led us all to believe can happen all the time. However, I have discovered that searching for that godsend trade does nothing but result in a horrendous loss that can completely demolish the portfolio you have been working so hard to build. Better to stay lower risk with steady profits over time if you are looking to make stock trading more than a hobby.
2. You don’t have to spend all day trading to be extremely successful. This does not have to be a full time job. But please don’t misunderstand. I’m not suggesting another get rich with no work scheme. It takes time and effort to learn the sustems needed to achieve success at stock trading. But, by using GAP trading effectively, I profitably trade for 2-4 hours a day, plus another hour of pre-market preparation. In fact, I make a great income. With the right system, you can too.
3. Building on the knowledge and the experiences of other profitable traders can greatly accelerate your learning cycle. Don’t start from the drawing board because it will cost you a lot of money and ten or more years to make all the mistakes others have already made. It is just resourceful business sense to build on the knowledge of others. Didn’t your parents tell you “don’t reinvent the wheel”, but don’t we just turn around and do just that? Instead, read works by successful traders, take courses, find advisors and coaches, and use the insights of others to make your journey more enjoyable and low risk.
Stock trading is often depicted as mystical and only accessible to the gurus of the industry. Take it from a regular guy, that idea is not correct. With the right processes established and a good understanding of the basic truths of stock trading, anyone can be prosperous.