Which is Your Favorite Discount Broker?

Posted by Madison on April 5, 2010

I’m reevaluating the discount broker scene to add to our emerging market holdings, specifically looking for the best discount brokers.

When we made changes to our most recent asset allocation to include more international exposure I identified the need to pick up more emerging markets, in an ETF instead of index funds.

I hold a lot of our index funds at the big names… Vanguard, Fidelity, and Charles Schwab, but I’m looking specifically for discount brokers here for the ETF to pick it up on the cheap.

I’m evaluating all the discount brokers based on cheap trades, account fees, ability to easily transfer in and out of, and how IRA friendly they are. Of course, low minimum account balances are nice too, since I like to move my money around. Based on those requirements, I came up with the list below.

The other important piece in finding the best discount brokers is getting your input. I have accounts at half of these, but not the others. However, with the OptionsXpress $100 Sign Up Bonus, I’ll probably open an account there soon.

So tell me, which is your favorite discount broker? Feel free to leave comments why you like or dislike each.

* This poll is closed. *

Email readers can vote here: Which is Your Favorite Discount Broker?

Update: Here are the results on the best online discount brokers.

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Comments to Which is Your Favorite Discount Broker?

  1. Interactivebrokers is far and away the best.
    It lacks nothing. Commissions are so low as to be irrelevant. Pros use it.


    • Good to know! I’m off to check them out…


  2. Tradeking gets my vote. And so far, everything has been going smooth with them.


    • Thanks for the input Brandon!


  3. Using a low-cost, buy and hold strategy I like Vanguard. Clean and simple!


  4. Personally, I only have used two brokers, ShareBuilder and Fidelity.

    Fidelity recently lowered their trading fees from 19.95 to 7.95 per transaction. This is a huge change in an attempt to keep more of their investors from going over to the discount brokers.

    I can’t imagine traders with accounts at 2 or 3 or even 5 different discount brokers. You get a better treatment from your broker with a large account versus a small account so why spread it around?

    I guess it is up to you what kind of stocks you are looking for and your time frame. In the end, I think some brokers do trade OTC stocks and some don’t.

    Personally, I can’t recommend anything. My experience with ShareBuilder was okay, nothing thrilling to write home about. Fidelity does a decent job but not as quickly as I would like.

    I look forward to your review.

    Editor @ Double My Net Worth

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