- See our Online Broker
Commission Comparison Table
- You can make a trade for $8 on Ameritrade, however, trading with a limit
order will cost $13, and trading options will cost a minimum of $29.
- The average online commission was between $15 & $16 for '98 & '99
according to investment firm Credit Suisse First Boston.
- Traditional brokerages are lowering their prices to become competitive.
- Cost
- Ease of use
- Access to a lot of information
- You need to be a do-it-yourselfer.
- Technical glitches have left customers unable to view their account
information for periods of time.
- Trades can get backed up during periods of high activity. Customers
have thought their trade didn't go through, and placed it a second time
resulting in duplicate purchases.
- Scams abound in the virtual world just like in the real one. People
have "leaked" incorrect information in investing newsgroups that
drove the prices of stocks up or down.
- The low cost and ease of emailing bogus information to investors makes it
easy to reach lots of potential victims.
- Some investors have become addicted to the excitement of online trading.
What kind of trader are you:
I want a lot of help & advice
I need tools to help me decide (research, screening tools, charts, etc.)
I just want to trade cheaply & easily
Ease of Use
- Don't use if you have trouble navigating the site! Some sites have
demos to help you decide.
Commissions
- See our Online Broker
Commission Comparison Table
- Suggestion: Limit Orders
will add roughly $3 - $5 to the cost of your trade, but may be well worth
using.
- Trading above 1,000 or 5,000 shares at a time may add surcharges to the
advertised price of some online brokers.
Types of investments available
- Generally, you may trade stocks, stock options, and mutual funds.
Research tools available
- Online portfolios
- Real-time stock quotes
- Research reports
- Charting services
- Worksheets & calculators to manage personal finances