With the availability of online stock trading nowadays, many investors need to hire an online stock broker who will assist them with their online trading transactions. There is a variety of online stock brokers available, and wise investors need to make a research on these top online brokers in order to find the one that would best suit their needs and budget. It would be very prudent for these investors to compare stock brokers before finally opening an account with one of them. Below are five of the most popular, top online brokers that offer the best rates and lowest fees.
- OptionsHouse – the best stock 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. Their Research Center gives you the insights you need to make smart investment decisions, which is great when dealing with stocks online. They have on-site customer service with a team of experienced professionals ready to help you with any question or trading emergency – we even tested their support and it was great!
- OptionsXpress – this online broker charges $14.95 for market or limit orders of 1,000 shares or less. In fact, if the investor makes enough trade, the fee per order may fall to $9.95 for 1,000 shares. A fee of 1.5 cents per share may be charged for orders above 1,000 shares. No minimum required balance to open an account. For penny or Over-the-Counter trading, the charge is $14.95 for the first 1,000 shares. For more than 1,000 shares, a maximum of 4% of the total trade will be charged.
- Interactive Brokers – this online broker’s commission structure is a little bit more complicated, but it’s worth considering. They charge $1 to trade 100 or less shares. For more than 100 shares, the commission is $0.005 per share. For instance, if an investor buys 1,000 shares, this would cost him $5. But there is a minimum account balance of $2,000. For inactive investors, an additional fee $10 monthly may be charged.
- Lowtrades – this is another good discount broker to consider. If an investor makes as much as 401 trades a month, its commission is as low as $2.99 per buy and sell. But for inactive investors, the rate is different. For 1-50 trades a month, a $5 commission will be charged for both market and limit orders; for 51-100 trades a month, the commission drops to $4.75. Obviously, the more the investor makes a trade, the lower the commissions become. For penny stock investors, commissions are $5 per buy and sell order. Moreover, there is no minimum account balance required to open Lowtrades account.
- ChoiceTrade – this is one of the best online stock brokers as it offers a very simple commission structure. It charges $5 for everything It charges $5 per buy and sell order for both market and limit. It’s even $5 still for OTCBB and penny stocks. ChoiceTrade doesn’t have a minimum required balance to open an account as well. This is also recommended for inactive traders and investors, as there is no inactivity or quarterly fee.
- Scottrade – this is also one of the cheapest online broker available as it charges $7 for both market and limit orders. There are no quarterly or annual fees, and no inactivity fees as well. But they charge an additional fee of 0.5% of the total principal in addition to the $7 flat commission.