Cheapest Discount Broker Options
Investing with an online stock broker is the least expensive way to invest in the stock market. Gone are the days when investors were required to pay a stockbroker to handle their market trading requests. With online options such as OptionsHouse, Zecco or TradeKing, you can invest in various stocks while paying low fees on each transaction. Before choosing such a discount online broker, be sure that you read the terms and conditions of the account. For example, you may be required to pay an extra fee if you do not make a minimum number of trades each month.
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OptionsHouse
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OptionsHouse was rated as the best online trading option for in 2009 and 2010 by Barron's. As of March 2011, the site offers flat-rate trades at cheaper rates than its competitors TradeKing, tradeMONSTER, Schwab and E*TRADE. Barrons described the site as "extremely flexible with readily customized platform loaded with streaming data." In addition to flat rates for stock trades, users also receive two different price points each when trading options contracts and spreads contracts.
Zecco Trading
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According to Moolanomy.com, Zecco Trading is the second-cheapest discount broker among identified competitors. As of March 2011, users can make ten free stock trades per month if their balance is at least $25,000. However, there is no minimum to open an account with the site. Zecco users can invest in stocks, ETFs, options contracts and mutual funds. Its fee is lower than several competitors, including Scottrade, Schwab, TD Ameritrade and E*Trade.
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TradeKing
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As of March 2011, TradeKing offers the same rate as Zecco Trading for stock and ETF trades. However, the rates are different for options and mutual fund trades. If users trade more than eight options contracts, they receive discounts on those trades. According to the TradeKing website, the stock trade flat fee beats several competitors, including Scottrade, OptionsXpress, E*Trade and TD Ameritrade. TradeKing does not limit the numbers of stock trades, allowing users to invest in as many stocks as desired at the site's trading price.
E*Trade
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Thanks to a consistent television advertising campaign, E*Trade has become one of the most well-known online discount stock brokers. According to the E*Trade website, the company has 2.3 million customers and has been in the investment business for more than 20 years. The E*Trade service includes access to more than 7,600 mutual funds as of March 2011. Around 1,100 of these funds are no-load, no-fee investment opportunities. Account users enjoy free quick transfers to and from outside institutions, such as checking and savings accounts at banks.
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