- Stock Broker Comparison -
- * for stocks trading under $1/share
- ** discounted with higher trading activity/account balance
- *** up to 1 million shares per order
- * may require higher initial funding levels
- ** $4 or less for automatic investments, or $9.95 for real-time trades!
- Large order surcharge: In addition to the base commission, a large order surcharge of $0.015 for each additional share over 1,000 shares will be incurred. The total commission (base commission + surcharge) is subject to a maximum of 2.5 percent of the principal, but no less than the base commission. (does not apply to Automatic Investments)
- The large order surcharge described above will affect your commissions on stock orders over $400. We recommend ShareBuilder for orders $500 or less, with stocks trading at $1 or more, or with the automatic investment program.
- *** up to 10 free trades per month with a $2500 minimum balance. Then $4.50 each thereafter, or if account balance is less than $2500. Note: This has has recently changed as of October 2007, all new accounts will be affected by this policy.
- Stock Broker Details -
ShareBuilder® is a relatively new, and very unique online discount broker. Opening in 1999, ShareBuilder's CEO Jeff Seely made it his goal to let everyone participate in a market dominated by large brokerages. The Sharebuilder philosophy is based on three concepts: Discipline, Diversification, and Dollar Cost Averaging. Just recently, ShareBuilder merged with ING, and now the deal is even sweeter with $9.95 real-time trades! What makes their service unique, however, is the Automatic Investment Plan. You can schedule dollar amount trades for Tuesday of every week and pay a commission of $4 or less! This is a great feature for making longer term investments, allowing you to build your portfolio slowly and affordably. With no minimum funding or inactivity fees, opening a ShareBuilder account is a good idea even if you already have an online broker. That way you can take advantage of the extremely low fees for your longer term investments.
ShareBuilder's contact info - phone: 1-800-747-2537 Web : www.ShareBuilder.com
TDAmeritrade® is one of the best known discount online brokers. Formerly Ameritrade and TD Waterhouse, the companies have now merged. Since the merge, things have only gotten better for traders. They now charge a flat $9.99 for all market and limit orders no matter the order size, or stock price - including OTCBB/Pinksheet penny stocks. There are also NO Inactivity or Maintenance Fees no matter what your balance and trading activity level are. Generally there is a $2000 minimum funding level to open an account. Promotional offers may lower this, however.
TDAmeritrade's contact info - phone: 1-888-871-9007, Web : www.TDAmeritrade.com
Zecco® is an online broker that is defying all others by offering FREE... yes, you read it correctly, free stock trades. They are able to do this by making their profits via interest on your money, as well as using ads on their site. Other brokers do the same, but still charge fees for each trade. Zecco offers up to 10 trades a month, completely free. After that you pay only $4.50 a trade. Even more, they now have NO minimum funding level, however, you will need a minimum of $2500 to qualify for free trades. For investors trading with small amounts of money, that don't need much customer service, Zecco is certainly a broker to consider.
Zecco's contact info - phone: 1-909-657-6655, Web : See link below
Scottrade® is another inexpensive online broker. They charge $7 for both market and limit orders. There are no quarterly or annual fees, but there is a $500 minimum funding to open an account. The only issue with trading penny stocks with Scottrade is an additional fee for stocks under $1. In addition to the $7 commission, Scottrade charges an additional fee of 0.5% of the total stock value purchased. So if you spend $1000 on a stock, an additional $5 will be added to the $7 commission. For new investors trading small amounts, this won't be much of an issue. For larger trades, however, TDAmeritrade might be a better option.
Scottrade's contact info - phone: 1-800-619-7283, web: www.Scottrade.com
E*TRADE® is a cheap broker that benefits active traders who don't need much support from customer service. E*TRADE charges $12.99 for both market and limit orders (lower for large and active accounts) - including penny stocks on the OTCBB/Pinksheets. You need at least $1,000 to open an account with E*TRADE. There is a $40 quarterly fee that is assessed mainly when an account is inactive (see Fees and Commissions for details).
E*TRADE's contact info - phone: 1-800-387-2331, web: www.ETrade.com
LowTrades® is a basic discount broker with very low commissions of $4.95 per trade. An Inactivity Fee of $50 is charged for the two trading periods between January-June and July-December of each calendar year. To avoid inactivity fees, one executed trade must be completed during each trading period. There is no minimum account balance to sign up, unless you open a margin or a day trading account.
Lowtrades' contact info - phone: 1-800-597-8767, web: www.LowTrades.com
Trading Direct® charges $9.95 for all market and limit orders up to 1 million shares - including OTCBB/Pinksheet penny stocks. There is no minimum opening balance required to start an account up. They do charge a $60 annual fee unless you make at least one transaction per year or meet one of several other requirements. See more details through the link below. Trading Direct does look a bit "bare bones" but it's low prices are attractive.
Trading Direct's contact info - phone: 1-800-925-8566, web: www.TradingDirect.com
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