While selecting your online brokerage firm, cheap stock trades matter the most. Who wouldn’t want to reduce the expenses involved in trading? The brokerage fee is paid each time you trade stocks online, irrespective of your position on the trades. This is a recurring charge. Hence it is advisable to choose a cheapest online stock trading, firm that charges lesser commissions for trading stocks, ETFs & options.
As a first time trader you must go through the fine-prints of commissions and other fees. Some brokerage firms may charge less on share value but they oblige you a minimum balance or minimum number of trades. Usually it is advisable to have multiple accounts. Chief editor of CompareBroker.com suggests opening an account with a cheap stock trading broker, and another one with a quality broker such as TD Ameritrade. Find more details about TD at Editorial Review and Ratings of TD Ameritrade.
Below, you can find our list of Cheapest stock brokers sites. Take a look and read their reviews. You can also use our comparison tool to narrow down to the best broker.
According to the 2012 survey by Smart Money 2012, the average broker commissions were just under $8. In our list, the cheap broker has commissions lower than the average, without compromising on the trading platform and the customer service. Cheap Stock & Options broker is a certainly the best option for novice traders. Opening an account with stock trading sites that charge less commission is beneficial because it dramatically reduces the cost and hence boosting the profits. While comparing cheap brokers, traders must give a preference to those who come to the top, based on criteria mentioned before.
We must caution the traders that low cost may not always be that beneficial. You should always look for other pitfalls to make sure you get a really good deal and are able to focus on trading business versus dealing with an unreliable-but-cheap-broker. You must look at the quality of the trading platform, market research, and customer service in our reviews.
Our research team spent several hundreds of hours researching various brokerage firms. The aim was to find the top cheap online trading brokers for our readers. Our team gave Brokerage commissions special attention, as most novice as well as advanced traders always look to reduce it. Options trading is also quite reasonable at these brokers as their base options charge as well per contract charge is low. Traders looking to switch brokers or start a new trading account should find this analysis useful.
After extensive research we have found OptionsHouse to be among the cheapest online broker. It is also the cheapest options broker. Its options pricing is the most attractive to the traders. They have multiple options pricing available for traders, suited for all levels of traders. 5 for 5$ pricing is perfect for traders who trade in small lots. The other pricing scheme ($8.5 + $0.15 per contract) is targeted for traders who trade big lots hence prefer low per contract fee.
Another broker with cheap stock trades is Tradeking group with comprises of Tradking and Zecco. With $4.95 as commissions, excellent trading platform, and good customer support it is surely the top choice for many traders. It also has one of the cheapest online trading platform. To read complete analysis, please visit Editorial Review of Tradeking.
Interactive Brokers is another low cost broker, but it has a serious downside. There is a minimum opening deposit requirement of $10,000 which is very high. This prevents many newbie and middle-tier traders from opening a trading account. To read more, please visit Editorial Review and Ratings of Interactive Brokers.
Examples below show the trading costs comparison for the brokers in Cheapest Online Broker category:
Stock Trading Cost:
Assuming 15 trades per month (with 1000 shares per lot):
Interactive Brokers : $150
Options Trading Cost:
Assuming 15 trades per month with 10 contracts per trade:
Assuming 30 trades per month with 100 contracts per trade: