Best discount brokerage 2015
Written by Jin Won Choi on Aug. Last update on July 27, Man using trading terminal from Shutterstock. Unfortunately, answering this question can be complicated because each broker has his best discount brokerage 2015 her own unique way of charging fees.
This means that different brokers will cost more depending on how the individual uses the account. In particular, I will look into three popular Canadian brokers - QuestradeInteractive Brokersand Virtual Brokers - to see which one of the three would end up being the least expensive, taking earnings into consideration.
Before we go on, I must disclose that I receive affiliate income from Questrade. The following list spells out the exact assumptions I used in my analysis. Note that Virtual Brokers has different commissions structures, so I chose to use the "Classic" commission structure for comparison.
Out of the three brokers, trading stocks cost the most with Virtual Brokers. This wasn't the case up until recently, when they used to charge just 1 cent per share for each trade. However, they have since changed commission structures to court more active traders. Questrade's trading costs are half that of Virtual Brokers.
That means a trade would only cost 1 cent per share if you buy between and shares. The biggest drawback of Interactive Brokers is their inactivity fee. If you pay less than 10 USD in trading fees each month, they will charge the remainder as an inactivity fee. Furthermore, they will charge this amount per account. Lastly, whereas it costs nothing to register an RSP account with best discount brokerage 2015 Questrade or Interactive Brokers, it can cost substantially more if you want to hold U.
While an RSP account that can only hold Canadian dollar investments costs nothing, an account that can hold U. Under Virtual Broker's old commission structure, best discount brokerage 2015 which broker was cheapest wasn't so straightforward.
But with the commissions changes, I believe Questrade is currently the best discount brokerage 2015 out of all the major discount best discount brokerage 2015 firms that offer registered accounts. Broker Interactive Questrade Virtual.
If you enjoyed this article, you might be interested in our free newsletter. Enter your email to get free updates. Choi is the founder of MoneyGeek. He has a PhD in financial mathematics, and he worked at a top performing fund for 2 years. Virtual Brokers Questrade vs. This article has been updated to reflect prices as of July 27, Has 2 registered savings accounts RSPs.
This fits the description of someone who makes a monthly contribution to buy one ETF a month. I will also assume that each trade i. Will purchase stocks 4 times a year and sell stocks once a year. I will also best discount brokerage 2015 that each trade consists of shares. A Canadian who wants to buy U. Which One Should You Choose?
Broker Interactive Questrade Virtual Short url: Choi's commentary on best discount brokerage 2015 financial events All this is available for free. Join others and subscribe using the box below.
Investors should know the best online brokers to trade with. Some online stock brokers are known for their award-winning customer service while best discount brokerage 2015 are known for inexpensive stock trades or powerful trading tools. This guide will highlight some of the best brokers available today with tips and advice for choosing a broker.
Its platforms thinkorswim was 1 desktop platformtools, mobile apps including Alexa Skill and Facebook Messenger botresearch, customer service 1 for phone supportand education 1 are all award best discount brokerage 2015. Get up to free trades best discount brokerage 2015 2 years. Fidelity is best known for its value driven customer experience. Beyond cost and ease of use, Best discount brokerage 2015 also finished 1 for research tools.
OptionsHouse has been rated the 1 platform for Options Trading the past seven years. Merrill Edge is the online broker of Bank of America and is available to all investors, regardless if they are a current BofA customer. Like TD Ameritrade and ETRADE, Merrill Edge is well-rounded; however, it has a huge advantage over all other brokers thanks to its Preferred Rewards program where customers can earn free trades, credit cards bonus cash back, priority customer service, and more.
I have best discount brokerage 2015 been using the program since it launched in With its competitive commission rates best discount brokerage 2015 stocks and options trading, investors who have previous market experience will find themselves right at home. However, unless you are already an Ally customer, you will find that there are better offerings available.
Having the best stock broker to serve individual needs is very important for any investor. For example, cheap trades most often come at the expense of less research tools and a more simplified trade platform. Consider these 12 key factors to help compare all stock brokers and ultimately best discount brokerage 2015 the best broker to suite your needs.
Trade Commissions What does it cost to buy shares of stock? Does the fee change based on the type of order or size of order? To keep it simple, look for brokers that offer flat-fee trades, ie charging a flat rate regardless of the type, price of the stock, or size of the order. Customer Service When picking up the phone or emailing a broker, best discount brokerage 2015 a well trained customer service representative ready to assist? How any investor is treated as a client is more important to some than others.
Trading Tools Trading successfully is a lot easier when investors have great tools at their disposal. A top stock broker should offer access to a wide variety of trade tools to help make the most of each and every trade. From real-time streaming quotes to last sale tickers, quality stock scanners, mobile trading apps, and level II quotes to name a few. Strong tools are essential for active investors.
Account Best discount brokerage 2015 Some brokers allow you to open an account with no minimum deposit while others may require several thousand dollars. Also know that some brokers require higher minimums to gain access to premium platforms, functionality, and personalized support. Market Best discount brokerage 2015 A good online broker will provide a variety of market research tools.
The rule of thumb here is simple: Investment Options A online stock broker should offer access to not only trading stocks, but also a strong selection of no load mutual funds, commission free ETFs, and complex options.
Other unique investment offerings to look for could include direct market routing, conditional orders, futures trading, and forex trading. Other Fees Fees beyond trade commissions include inactivity fees common with active trading brokers such as Interactive Brokers, Lightspeed, and TradeStation and IRA fees for having a retirement account.
Just like a bank account, stock brokers also make a portion of their profits off miscellaneous fees. There is no reason why you should pay an annual fee to have an retirement account.
If managing your own portfolio is not of interest, all full-service brokers offer optional advisory services as well.
Furthermore, robo-advisors such as Betterment are growing in popularity. Once again, the experience at larger established brokers is going to be superior to smaller best discount brokerage 2015.
Banking Larger online brokers offer banking and other financial services. This goes beyond money market accounts and CDs. Checking accounts, mortgages, debit cards, and credit cards can also be offered. The leader in this space is, hands down, Bank of America Merrill Edge.
Account Security Because of the web today, all online brokers invest heavily into account security. Just like shopping online and choosing a trustworthy website to purchase from, the best bet is to choose a well-known, established broker for your portfolio. To understand Order Execution, read this guide. International Trading For investors in the United States this is not a problem but for investors living outside the US, when comparing brokers it is important to make sure they offer service in your country.
If you need help deciding which broker to choose best discount brokerage 2015 have a broker specific question please feel free to email me and I will be happy to help. To view star ratings, summaries, screenshots, and more for these brokers, see our stock broker comparison tool. This took many dozens of hours to put best discount brokerage 2015 so I appreciate your support! Enter your email address.