Melonie's "contrary investments" thread has inspired me. Can anyone recommend an online brokerage?
Thanks,
Lena





Melonie's "contrary investments" thread has inspired me. Can anyone recommend an online brokerage?
Thanks,
Lena
Whichever online broker you decide on will probably be bought by Ameritrade. That's what happened to me, twice. So I just use Ameritrade. They're OK. I can trade 100,000 shares of something without having to pay more than 11 bucks, which is the main thing I'm looking for.





Lena, I actually have to use two different online brokers. The first is Ameritrade (formerly Datek), which charges really low commissions and is fine for buying and selling shares on US and Canadian exchanges.
But to get involved with stocks listed on other exchanges i.e. South Africa, Hong Kong, DAX, S. America, India, and also to get involved with buying and selling options and futures as well as just stock shares, margin, shorting etc. you'll also need a broker with greater capabilities. I use Prudential.
Lena,
You do not have to have an "online broker" to trade online. Most regular brokerage firms like Schwab, Fidelity, or Quick and Reilly and a zillion other ones can be used to trade online. Depending on the degree of service you need, as well as the number of trades you want to do, other considerations other than just $7 or $11 per trade may be more important than $25 per trade. Some services may be available at the $25 per trade place for free which they charge you $7 or $11 at the other place. All depends on you.
I would investigate 4-6 of different before I did anything. Also look for ones which have both offices and low online fees like Scottrade, etc. . I have never dealt with them, but I know they have an office 3 miles from my home and 197 others. Also look out for inactivity fees in any plan.
It is just like picking a bank for your checking account.





For a begining investor, a place like Vanguard is an excellent option (low fees, no load mutual funds), if you're looking to do a lot of stock trading try Ameritrade or E-Trade (low fees, low commissions). All of the above offer online trading as well as 1-800 numbers that offer assistance (although they may charge more if you are looking for specific recommendations).
If you're just starting to invest I'd recommend a mutual fund or two, they give you instant diversity, professional management, and low fees.
I have used Scwab for a few years and I am pretty happy with them. The customer service has been good and I like the software(StreetSmartPro). Over the summer I thought about trying to save money and looked at Ameritrade and Scott. I decided for me I would be better off staying with Scwab. I was told Scott does not allow spreads, and I don't remember why I did not choose Ameritrade(may have been the same reason)
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