Online Brokers: Reviews

Updated February 2009

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Best online broker overall

Charles Schwab scores high marks for its range of investment products, along with easy-to-use research and trading tools on its website, good customer service and overall customer satisfaction. A Schwab account requires a… minimum opening balance of $1,000. Commissions range from $8.95 to $12.95 per trade. Schwab offers more no-load and no-transaction-fee (NTF) mutual funds than its main rival, Fidelity, as well as a robust bond selection, access to international stock exchanges and even Coverdell education savings accounts. Investors who want advice can contact a professional via the website or visit one of Schwab's 300 branch offices across the country.

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Expert & User Review Sources:

SmartMoney.com: SmartMoney's 2008 annual survey lists the best and the worst online broker in each of six areas. SmartMoney staffers open ...

Barron's: Charles Schwab ranks right in the middle among the 23 brokers in Barron's annual rankings, but earns four out of five stars ...

Kiplinger Personal Finance: Editors at Kiplinger's Personal Finance magazine evaluate a dozen brokerages by scrutinizing costs, site features and research ...

J.D. Power & Associates: Charles Schwab comes in third overall out of 15 brokers in this annual customer satisfaction survey of 6,000 self-directed ...

ConsumerReports.org: Consumer Reports rates 19 online brokers by opening accounts, making trades and calling each broker's customer service hotlines. ...

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Best discount broker

TradeKing

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TradeKing's $4.95 fee for any type of trade is one of the lowest available. There are no hidden fees and no minimum required to open an account. In multiple reviews, this broker is also named as having the best customer… service of any online broker. Part of its award-winning customer support is the online TradeKing Community, where investors interact with one another and with professionals. Experts also praise this online broker's trading tools and range of investment products. However, TradeKing doesn't have as many features for those who need more help. There's no in-person investment advice available, but its active forums are liked in reviews.

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Expert & User Review Sources:

SmartMoney.com: SmartMoney's 2008 annual survey lists the best and the worst online broker in each of six categories, based on hands-on tests and ...

Barron's: Barron's presents its 2008 review of 23 online brokers, where companies are evaluated based on in-depth analysis of site ...

Kiplinger Personal Finance: Kiplinger's Personal Finance evaluates a dozen online brokers by opening accounts at each of them and testing their products and ...

ConsumerReports.org: Almost 20 online brokers are rated by Consumer Reports, where editors test each broker's research tools, site features and ...

StockTradingToGo.com: This website offers commentary from investment professionals and ranks online brokers based on cost alone. Blain Reinkensmeyer ...

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Best for active traders

Interactive Brokers

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According to the experts, Interactive Brokers (IB) offers the best of both worlds: low costs and cutting-edge technology for day traders, including real-time data and charting and analysis tools. Commissions are only… $.005 per share for trades of up to 1,000 shares. SmartMoney's 2008 review names it the best online broker in the category of commissions and fees. IB offers direct access trading; trades made using its platform go directly to the market. It offers a broad range of investment products, including access to 70 foreign markets. However, this isn't the site for those who need more handholding and educational tools. You can't trade mutual funds, and you have to spend at least $10 per month in commissions.

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Expert & User Review Sources:

SmartMoney.com: The 16th annual survey of online brokers picks the best and the worst broker in each of six areas. Interactive Brokers is named ...

Barron's: Interactive Brokers ranks third overall out of the 23 online brokers included in the 2008 rankings chart at Barron's, which ...

Technical Analysis of Stocks & Commodities Magazine: Subscribers to the magazine Technical Analysis of Stocks & Commodities name Interactive Brokers the best direct-access stock and ...

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E*Trade

5 picks including: Barron's, SmartMoney.com…

ShareBuilder

4 picks including: Barron's, J.D. Power & Associates…

Scottrade

3 picks including: Barron's, J.D. Power & Associates…

TD Ameritrade

3 picks including: Barron's, J.D. Power & Associates…

Fidelity

2 picks including: Barron's, J.D. Power & Associates…

TradeStation

2 picks including: Barron's, Rival SC7600 VersaWare…

Zecco

2 picks including: Barron's, SmartMoney.com…