The stock market is very fickle and unstable, and no one could ever tell as to when this will become strong and stable once again. However, no matter what the risks are, the stock market is still a very popular investment that most investors prefer to have. When we invest in the stock market, we will need to hire a brokerage firm to process our transaction. There are two major types of brokers: full service brokers and discount brokers.
Investors who like to save on investment costs are more recommended to find discount brokers to hire, as this type of brokers is more affordable when it comes to transaction fees and commission rates. Minimizing our costs is very important in order to get the most benefits from our investments and to maximize our profits. After all, investment in stocks may not promise a very big return — thus, we have to be more prudent when it comes to our expenses.
Best Discount Brokers
There are plenty of discount online brokers available these days, and finding one that will match our needs and preferences is made more possible. Of course, it would be more prudent if we make our own research on the best online brokers list available these days, so we will able to know which one offers the best service at a reasonable or cheap price. Reading various broker reviews from different online stock investors is also a good idea, so we will know which one is most recommended by the investors.
The cheapest online broker does not necessarily mean the best broker that we could hire. We have to find out, first and foremost, the kind of service that they offer. Below, we compare stock brokers which are few of the best and cheapest brokers available:
- OptionsHouse - the best discount broker we’ve found! They have NO hidden fees, NO trading activity requirements, and NO minimum balances! OptionsHouse is one of the cheapest brokers with a flat free trades rate of $3.95, with two flexible rates for options trading. Our recommended online stock broker!
- Zecco - Zecco is also a competitive and unique discount stock broker, as there is a potential of being able to trade for free. They are one of the cheapest discount brokers available today with trades starting at $4.95 per trade! They also have no minimums to open your account, so they are a wise choice for beginner investors that don’t have a lot of start-up capital.
- TradeKing – With TradeKing, the customers are believed to be always treated as kings. TradeKing is definitely one of the cheapest and best online brokers available in the market today. They charge very reasonable rates: Investors pay $4.95 for stock and ETF trades and $4.95 plus 65 cents per contract for options trades. If more than 8 contracts are traded, the cost will be lowered to $8.95 per trade plus 15 cents per contract. And they are also very famous when it comes to best customer service.
- ETrade – ETrade is also very popular when it comes innovations. In fact, they offer a full range of innovative investment choices, which will best suit each and every investor, no matter what their investment styles are. They also offer the best and most innovative investment and trading tools, and give the best service at reasonable prices.
- Scottrade – Scottrade is also one of the best options in order to lower our investment costs. Most online trades are only $7* and it takes just $500 to open an account, with no set-up or maintenance fees. Furthermore, Scottrade offers a wide selection of investment products and services, best and powerful online trading tools, and convenient customer support.