Review of Online Stock Brokers

Online brokers provide low cost stock and options trades through easy to use websites. They all provide a wealth of educational resources, stock and options trading tools, and various ways to interact online with other investors. Here is a quick summary of the top on line brokers, followed by a more detailed description of what each has to offer:

Online BrokerPricingFeaturesReview/Apply
Scottrade
St. Louis, MO
  • $7.00/trade
  • $7.00 options trade + $1.25 per contract
  • Choose from a Full Range of Investment Products
  • Scottrade is a Leader in Technology, Customer Service and Value
TradeMonster
Chicago, IL
877-598-3190
  • $7.50/trade
  • $12.50+ options trade
  • Real Time Streaming Data
  • Easy Customization and Drag & Drop Functionality
  • Built-in Educational Resources
  • Technical Analysis Studies
Zecco Trading
Pasadena, CA
877-700-7862
  • $4.50/trade
  • Up to 10 Free Trades/Month
  • Trade options
  • Open an IRA
  • Powerful Trading tools
Trade King
Boca Raton, FL
877-495-5464
  • $4.95/trade
  • $4.95 options trade + $0.65 per contract
  • #1 rated customer service
  • Free trading tools
  • Options trading
ShareBuilder
Bellevue, WA
800-747-2537
  • $4.00 automatic trades
  • $9.95 real time trades
  • Automatic Investing
  • Buy partial shares
  • $50 bonus for transferred accounts
OptionsXpress
Chicago, IL
888-280-8020
  • Options: as low as $12.95
  • Stocks: as low as $9.95
  • Free broker assistance
  • Free trading tools
  • Free IRAs
OptionsHouse
Chicago, IL
877-653-2500
  • Options: $9.95
  • Stocks: $2.95
  • Virtual Trading
  • Professional grade trading tools
  • Retirement accounts

Zecco Trading

Zecco is best known for giving investors 10 free trades per month. To qualify, you must maintain $25,000 in your account or make at least 25 trades per month. Beyond the 10 free trades, Zecco charges $4.50 for stock or options trades. Options trade also add $0.50 per contract. Investors can also trade in the forex market, and Zecco offers online video investing tutorials and trading tools. You can visit www.zecco.com or read our Zecco review.

TradeKing

TradeKing was named #1 in customer service by Smart Money Magazine in June 2008, and #1 discount broker by Smart Money Magazine in August 2007. It's low cost $4.95 trades, online trading tools, and extensive educational resources sets TradeKing apart from many other discount stock brokers. You can visit www.tradeking.com for more information.

ShareBuilder

ShareBuilder is designed for those that want to invest monthly with dollar cost average. With monthly, automatic investments, the cost is just $4. On addition, ShareBuilder allows investors to buy partial shares of stock. As a result, we use ShareBuilder each month to invest in Berkshire Hathaway. The interface is also very easy to use. For active traders, the other options here are probably better. But for those looking to make monthly, automatic investments, ShareBuilder is hard to beat. You can visit www.sharebuilder.com or read our ShareBuilder review.

OptionsXpress

OptionsXpress is the online discount broker designed for those looking to trade options. Barron's has rated OptionsXpress as one of the best online brokers four years running. One unique aspect of OptionsXpress is that it offers free broker-assisted trades. The cost of option trades depends on volume, and can be as low as $12.95 per contact. Investors can also trade stocks and futures. You can visit www.optionsxpress.com for more information.

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