Since we have been talking about investing lets look at the top discount brokerage firms in the industry, because in order to invest you are going to need a broker! A discount broker is defined as a stockbroker who carries out buy and sell orders at a reduced commission rate. Basically instead of paying a brokerage house a 1 or 1.5% commission on your assets under management you are paying a set dollar amount per trade. In my opinion everyone should at least open a discount brokerage account just to test the waters and see just how easy it is to invest your money. With that being said, lets get into the list:
- Robinhood: Everyone who has every looked into buying and selling stocks has heard of Robinhood. It’s commission free so it’s held as a holy grail type of platform but in all honesty it is very lacking in ability and information. Look, I get the free trades idea is revolutionary but they offer no type of equity or stock research for users. As the saying goes, there is no free lunches.
- Fidelity: I am biased towards Fidelity just because I have an account with them. They have a very user friendly platform and have an awesome customer service department. It’s only $4.95 commission per trade and offers tons of research and data for their users.
- E*TRADE Financial: The original place to trade online, E*TRADE charges customers $6.95 per trade! However, if you make 30 trades per quarter, the price per trade gets reduced to $4.95. Not so bad if you are actively trading.
- Charles Schwab: Charles Schwab is pretty massive as if has over 11 million accounts. They also charge $4.95 per trade but have adopted was Investopedia calls as “Netflix Approach” to trading. Basically what they are doing is offering a $360 a year service where you are able to trade. Oh, and by the way there is a $30 monthly subscription fee you need to pay.
- TD Ameritrade: TD Ameritrade also charges $6.95 per trade. What is cool with TD Ameritrade is that no matter what you account balance is you are able to pay this and trade. Some brokers have a minimum amount you must need in your account to invest.