Online Discount Brokers
There are many things to consider when choosing an online discount broker. Most traders would rank commission prices first, but customer service and inactivity fees are just as important. I also recommend taking a look at the amount of money needed to open an account and options available for funding your account.
- Scottrade.com
PROS: only $500 minimum opening deposit, $7 market orders, real-time quotes, over 200 local offices, ranked "Highest in Investor Satisfaction with Online Trading Services" by J.D. Power and Associates for the fifth consecutive time, no inactivity fee
CONS: website design is disappointing
- Sharebuilder.com
PROS: no minimum opening deposit, $4 commissions or lower for purchases, dollar-based investing instead of share-based, no inactivity fee, automatic funding and purchases
CONS: must purchase on Tuesdays for low commissions, no real-time quotes, can only buy certain stocks
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