Every year, the good folks at Barron’s put together a survey of the best online brokers.  This is actually the 16th time Barrons has surveyed the online investing channel and their kind enough not only to pick their favorites, but also review pretty much every major online broker and provide a rating.  This year, for the very first time, TradeStation won the honor of Best Online Broker and to be honest I’ve never heard of them before!

Barron’s #1 Broker for 2011 – TradeStation

Receiving 4.5 starts, TradeStation received the honor from Barron’s as best online broker for the first time.  Not being a highly experienced investor (I currently own a couple of shares of Google and that’s that), I had never heard of this broker.  After reading up on TradeStation, it’s apparent why.  Only experienced investors should be taking advantage of the tools TradeStation provides, offering just about every kind of trade available.  There is a $99 monthly platform fee (in addition to trade fees) for anyone who does not trade at least 50 options or 5,000 shares of stock a month.

Depending on how often you trade, TradeStation offers two different plans for equities trades, as well as a discounted plan for futures, options and forex.  Traders can pay on a flat price plan, which ranges from $6.99 per trade to $9.99 per trade, depending on frequency or on a per share plan in the following amounts:

• 100 shares costs $1
• 500 shares costs $5
• 1000 shares costs $8

Not bad for anyone who trades small amounts of stock, but remember, there is the $99 fee if you don’t trade a large amount of shares each month.  From top to bottom, TradeStation was voted number one because of it’s tools, available options for both domestic and international traders, and overall usability.

Barron’s 2011 Broker Survey

You may notice a lot of brokers boasting that they ranked well in one category or another and Barron’s gives plenty of opportunities to do so.  24 total brokers were surveyed and Barron’s lists they’re favorites in the following four categories:

1. Long Term Investing
2. Options Traders
3. Frequent Traders
4. International Traders

You’ll notice that TD Ameritrade actually finds it’s way into the above graphic three times, but it still wasn’t strong enough to overtake TradeStation as best overall broker.  Many brokers excel in one area or another but few excel in multiple areas.

Barrons 2011 Overall Ratings

Barrons compiled their rankings of 24 different online brokers using the following criteria:

• Trade Experience
• Trading Technology
• Usability
• Range of Offerings
• Research Amenities
• Portfolio Analysis and Reports
• Customer Service and Education
• Costs

From top to bottom, you’ll find the 24 brokers that Barrons’ reviewed below, along with their rank.  Don’t be discouraged if you find your broker towards the bottom of this table but do research why they aren’t closer towards the top.  You should start by visiting the complete Barron’s 2011 survey.

Online Discount Broker	Barron's 2011 Rating
TradeStation
MB Trading
Interactive Brokers
TD Ameritrade
OptionsHouse
TradeMonster
OptionsXpress
TradeKing
Fidelity
Lightspeed Trading
ChoiceTrade
Charles Schwab
E*Trade
Scottrade
eOption
Cobra Trading
SoGoTrade
Zecco
Just2Trade
Speed Trader
Merrill Edge
Firstrade	No Rating
TradingBlock	No Rating
AB Watley	No Rating

We’ve written quite extensively about the online discount broker known as OptionsXpress and earlier this week, Charles Schwab decided it was a good idea to take them over.  OptionsXpress will become an exclusive options broker house for Charles Schwab, which is actually somewhat different than what OptionsXpress is right now.  Yes, consumers might think options was the main product offered here, however OptionsXpress was actually quite focused on regular kinds of stock trades.

Not surprisingly, owners of OptionsXpress stock are filing a lawsuit because they claim the buyout came at too small a price.  It seems whenever there is a takeover, someone (or in this case a lot of someones) are not happy.  In this case, three separate lawsuits were filed in an attempt to block the transaction from occurring.  It’s also possible that Charles Schwab will continue to look at acquiring smaller brokerage houses in the coming months, so if you’re a little guy in this industry, familiarize yourself with Chuck.

Let’s see which articles we felt were the best of the week.

Six Things March Madness Can Teach Us About Business @ Weakonomics: Every year, I fill out my bracket in the hops of correctly picking 63 NCAA tournament games.  The lesson I learn in relation to business is not to bet on the games!  Every year, my win total is in the 40′s and that stinks!

Things You Should Never Skimp On @ Cash Money Life: Even though I love to save money, I have to agree with Ryan here as there are just some things you should never go cheap on.  I actually think toilet paper is something that deserves to be high on the list.

What You Need To Know About Long-Term Disability Insurance @ Go Insurance Rates: Long-term disability sucks, but if you find yourself in this position, be sure to understand the ins and outs of how to go about collecting your benefits and insuring yourself for the future.

10 Industries On Life Support @ The Street: It certainly is a convenience to have Netflix movies delivered to your door, but what happens if the United States Postal Service goes under?  The Street takes a look at 10 industries that could cease to exist.

Moving? Consider a City’s Cost of Living Index @ Outlaw Finance: Living in Miami is a little different than living in Cheyenne, so if you’re planning a move, make sure to look at certain cities cost of living index.  It could help in making your decision.

20 Things to Do With a Tax Refund @ Frugal Dad: Unfortunately, for the first time since I began filing my taxes, I won’t be receiving a tax refund.  Instead, I owe the government a fair amount of change.  All of the items on this list are good ones, but for me, it will be a long time before I see another refund check from the IRS.

And this past week, we participated in the following carnivals:

• Carnival of Personal Finance
• Carnival of Traders and Investors
• Festival of Frugality

Finding credit has become more difficult than ever and with local brick and mortar banks continuing to shut down daily, the search isn’t getting any easier.  Lending Club, the leader in p2p lending, is helping the cause by offering a $150 cash bonus to new and current borrowers.  If you’re not familiar with how Lending Club works, the process for signing up and being approved for a loan is simple and can be completed in under 20 minutes.

Unfortunately, Lending Club is not serviceable in all 50 states.  As a borrower, you cannot live in the following states:

• Iowa
• Idaho
• Indiana
• Kansas
• Maine
• Mississippi
• Nebraska
• North Carolina
• North Dakota
• Tennessee

In addition to the state requirements, you must also abide by the following rules in order to receive your $150 cash bonus.

1. The loan taken out must be at least $12,000.
2. The loan must be taken out after September 23rd and before October 1st (which means there are only two days left)
3. The term of the loan must be 36 months.

If you’re calculating the percentage in cash back you’ll be receiving, it’s only 1.2% at best, so diving into a $12,000 loan with a somewhat high interest rate (depending on your credit history) simply to receive a quick cash bonus is not smart.  On the other hand, if your looking for a personal or small business loan and are having trouble securing credit, Lending Club may the the place for you.

To sign up for Lending Club and apply for a personal or small business loan, visit their official website at www.LendingClub.com.