Finding information for online stock brokers isn’t easy. Every company is unique and the important things aren’t always obvious. To complicate things even more, companies that review brokers provide contradictory comparisons. It’s difficult to come to any definite conclusion on which broker is the best. I’ve tried to be objective and pick the best brokers based on a broad range of factors. The research also made it clear that different brokers are better for different kinds of trading.
To make this concise there are some companies I deliberately left off. The three reasons most companies didn’t make the list is that they 1) didn’t have a mature offering 2) they weren’t technically online discount brokers 3) They were so close in price and offering to other players that including them would have been redundant. For example, Ameriprise is not on the list because they aren’t a true discount broker. They are more interested in using financial advisors instead of individuals trading. Another one I left off is BuyandHold.com due to their oversimplified offering. Lastly, there are many companies I left off because their pricing all hovered around $19.95/order and their offering was very close to Wells Fargo or Vanguard.
This list is a sample of unique discount stock brokers.
Best All Around Winner
Overall TradeKing Rating
Pros:
- Very low online trading cost $4.95
- Lowest broker assisted trades at $4.95
- No minimum balance required
- Lowest amount of fees compared to other brokers
- IRA friendly with no maintenance fee.
- Trade Stock, Options, Mutual Funds, Bonds, and CDs
- Top rated website for usability.
- Generous interest rate on cash balances
- Best interest rates on margin accounts for small and medium accounts
- Full suite of investing tools
- No gimmicks or subscriptions to get the best price and service
Cons:
- They are lower on their cash balance interest rate than Sharebuilder’s money market sweep. But it’s only by 0.7%.
- For accounts with $1 Million+ OptionsXpress and Fidelity’s Margin interest rate is 5.25% instead of TradeKings flat rate of 7.25%. If you have less then a million dollars in your account TradeKing smashes the competition in their margin interest rate.
- If you trade heavily with options they are second place to Zecco’s price.
- No checking or debit card.
Absolute Lowest Cost (Stocks & Options): OptionsHouse.com
Only $2.95 for stock trades and $9.95 flat rate for options (no additional contract fees). This is by far the best pricing on stock trading online. The best part is that they are backed by professonal grade investment tools. There are no maintenence fees, volume penalties, low account fees, and broker assisted trades are only $2.95. It took a little digging but they support bonds and mutual funds in addition to stock and option trading. This is the best deal I’ve seen in a long time. Visit OptionsHouse | See Full Comparison
Low Cost with Powerful Trading Tools: OptionsXpress.com
Specializing in option tools and eductions as well as stocks, futures, mutual funds, bonds, ETFs, and SSFs. They are very competitive on pricing across the board with ultra low cost on option trading. No unexpected fees and no maintenance fee on IRAs or any other account. No extra cost for broker assisted trades, webinars, or tool center. | See Full Comparison
Best mid-range broker: Scottrade.com – Use Code HXOA4390
Get Three Free Trades with Scottrade Code: HXOA4390
This is for the best broker that is in the middle between Premium and Standard discount brokers. Scottrade offers competitive rates with a lot of service and tools. They have the most physical branches than anyone else in the country. Scottrade is a broker that you can grow into and still feel comfortable with. They accommodate the small and large accounts nicely.
These are the complete numbers from the research:
Stock and Equity Trades |
|||
|
Base Rate
|
Phone Order
|
Broker Assisted
|
|
| OptionsHouse |
2.95
|
2.95
|
2.95
|
| Bank of America |
14.00
|
32.50
|
42.50
|
| Charles Schwab |
12.95
|
12.95
|
32.95
|
| E-Trade |
12.99
|
N/A
|
52.99
|
| Fidelity |
19.95
|
0
|
0
|
| Firstrade |
6.95
|
16.95
|
26.95
|
| OptionsXpress |
14.95
|
N/A
|
14.95
|
| Scottrade |
7.00
|
17.00
|
27.00
|
| Sharebuilder |
4 Buy/15.95 Sell
|
19.95
|
N/A
|
| Sogotrade |
3.00
|
N/A
|
N/A
|
| TD Ameritrade |
9.99
|
34.99
|
44.99
|
| TradeKing |
4.95
|
N/A
|
4.95
|
| Vanguard |
25.00
|
40.00
|
45.00
|
| Wells Fargo |
19.95
|
19.95
|
44.95
|
| Zecco |
4.50
|
N/A
|
19.99
|
| AVERAGE |
11.87
|
24.91
|
32.47
|
Account Details |
|||||
|
Minimum Balance
|
Fractional Shares
|
Branches
|
Inactivity Fee
|
Sign-up Bonus
|
|
| Bank of America |
0
|
–
|
Bank
|
100
|
–
|
| Charles Schwab |
1,000
|
–
|
303
|
0
|
–
|
| E-Trade |
1,000
|
–
|
28
|
160
|
–
|
| Fidelity |
2,500
|
–
|
118
|
0
|
–
|
| Firstrade |
0
|
–
|
–
|
0
|
Yes
|
| OptionsXpress |
0
|
–
|
–
|
0
|
–
|
| Scottrade |
500
|
–
|
326
|
0
|
–
|
| Sharebuilder |
0
|
Yes
|
–
|
0
|
–
|
| Sogotrade |
2,500
|
Yes
|
–
|
0
|
–
|
| TD Ameritrade |
1,000
|
–
|
103
|
0
|
Yes
|
| TradeKing |
0
|
Yes*
|
–
|
0
|
–
|
| Vanguard |
4,000
|
–
|
–
|
30
|
–
|
| Wells Fargo |
1,000
|
–
|
Bank
|
60
|
–
|
| Zecco |
0
|
–
|
–
|
0
|
–
|
*Only with dividend reinvestment
Option Cost & Margin Rate |
||||||
|
Option Trading Costs
|
Margin Interest Rates
|
|||||
|
Base
|
Per Contract
|
Exercises
/Assign. |
Under 10K
|
50-100K
|
1 million +
|
|
| OptionsHouse |
9.95
|
None
|
0
|
4.45%
|
4.45%
|
4.45%
|
| Bank of America |
19.95
|
1.50
|
42.50
|
n/a
|
n/a
|
n/a
|
| Charles Schwab |
9.95
|
0.75
|
8.50%
|
6.50%
|
6.00%
|
|
| E-Trade |
12.99
|
0.75
|
19.99
|
6.99%
|
3.99%
|
3.99%
|
| Fidelity |
19.95
|
0.75
|
0
|
8.57%
|
4.50%
|
3.75%
|
| Firstrade |
6.95
|
0.75
|
0
|
9.00%
|
8.75%
|
5.75%
|
| OptionsXpress |
0.00
|
1.25
|
0
|
6.25%
|
4.00%
|
4.00%
|
| Scottrade |
7.00
|
1.25
|
17.00
|
7.75%
|
6.75%
|
5.25%
|
| Sharebuilder |
9.95
|
1.50
|
30.00
|
10.50%
|
8.00%
|
5.25%
|
| Sogotrade |
N/A
|
N/A
|
N/A
|
9.50%
|
9.25%
|
7.00%
|
| TD Ameritrade |
9.99
|
0.75
|
19.99
|
9.00%
|
6.25%
|
6.25%
|
| TradeKing |
4.95
|
0.65
|
9.95
|
9.00%
|
6.25%
|
6.00%
|
| Vanguard |
30.00
|
1.50
|
$30 + $2.50
|
?
|
?
|
?
|
| Wells Fargo |
9.95
|
1.00
|
34.95
|
9.50%
|
8.25%
|
7.25%
|
| Zecco |
4.50
|
0.50
|
4.50
|
7.95%
|
7.45%
|
7.45%
|
Cash Issues |
||||||
| Cash Balance Interest Rates | Accessing Cash | |||||
|
Under 5K
|
50-100K
|
1 million +
|
Check Writing
|
ATM
|
Bank Account
|
|
| Bank of America |
?
|
?
|
?
|
–
|
–
|
Yes
|
| Charles Schwab |
0.50%
|
0.50%
|
2.05%
|
–
|
–
|
Yes
|
| E-Trade |
0.05%
|
2.65%
|
3.50%
|
Yes
|
Yes
|
Yes
|
| Fidelity |
?
|
?
|
?
|
Yes
|
Yes
|
Yes
|
| Firstrade |
1.50%
|
1.75%
|
2.00%
|
–
|
–
|
Yes
|
| OptionsXpress |
3.76%
|
3.76%
|
3.76%
|
–
|
–
|
Yes
|
| Scottrade |
0.50%
|
3.25%
|
4.75%
|
Yes
|
–
|
Yes
|
| Sharebuilder * |
4.18%
|
4.18%
|
4.18%
|
–
|
–
|
Yes
|
| Sogotrade |
1.25%
|
2.25%
|
3.25%
|
–
|
–
|
Yes
|
| TD Ameritrade |
0.05%
|
0.30%
|
1.85%
|
–
|
–
|
Yes
|
| TradeKing |
3.41%
|
3.41%
|
3.41%
|
Yes
|
–
|
Yes
|
| Vanguard |
?
|
?
|
?
|
–
|
–
|
Yes
|
| Wells Fargo |
?
|
?
|
?
|
–
|
–
|
Yes
|
| Zecco ** |
4.08
|
4.08
|
4.08
|
–
|
–
|
Yes
|
*Sharebuilder uses DBMXX money market account.
Mutual Funds Details |
||||||
|
Mutual Fund Trading Costs |
||||||
|
# of No |
No-Load No
Fee Program |
No Load Fee
|
Load Funds
|
|||
| Bank of America |
1,300
|
Yes
|
45
|
45
|
||
| Charles Schwab |
2,000
|
Yes
|
49.95
|
49.95
|
||
| E-Trade |
1,175
|
Yes
|
19.99
|
19.99
|
||
| Fidelity |
1,400
|
Yes
|
19.95
|
19.95
|
||
| Firstrade |
Yes
|
9.95
|
0
|
|||
| OptionsXpress |
N/A
|
No
|
14.95
|
14.95
|
||
| Scottrade |
1,150
|
Yes
|
17
|
17
|
||
| Sharebuilder |
N/A
|
No
|
N/A
|
N/A
|
||
| Sogotrade |
N/A
|
No
|
N/A
|
N/A
|
||
| TD Ameritrade |
1,300
|
Yes
|
49.99
|
0
|
||
| TradeKing |
–
|
No
|
14.95
|
14.95
|
||
| Vanguard |
N/A
|
No
|
N/A
|
N/A
|
||
| Wells Fargo |
800
|
Yes
|
35
|
25
|
||
| Zecco |
–
|
No
|
10
|
N/A
|
||
IRA Details |
||
|
IRA Costs
|
||
|
Annual Fee
|
Termination
|
|
| Bank of America |
0
|
75
|
| Charles Schwab |
0
|
0
|
| E-Trade |
160
|
60
|
| Fidelity | ||
| Firstrade |
0
|
0
|
| OptionsXpress |
0
|
0
|
| Scottrade |
0
|
0
|
| Sharebuilder |
25
|
50
|
| Sogotrade |
No IRA Available
|
|
| TD Ameritrade | ||
| TradeKing |
0
|
50
|
| Vanguard |
30
|
|
| Wells Fargo |
30
|
50
|
| Zecco |
30
|
30
|
