Tonight I wanted to take a look at some of the top online brokers that investors should look at when opening an account online. There are numerous online brokers out there for investors to research, but not all of them have built up a solid reputation. Investors would be wise to stick with online brokers who have proven to be customer centered and have user-friendly products.
The Top 5 
1. E*Trade- E*Trade has built up a solid reputation over the years as having a great research and great rates. The company has probably the most extensive line of banking products in the industry, and some of the best CD and savings rates on the internet. The site offers $12.99 commissions for balances under $50,000. E*Trade also achieves the #1 spot because of a great overall website that is very user-friendly.
2. Fidelity- Fidelity has all the trading tools and research you could ever possibly you want. The broker also has a terrific mutual fund program through which investors can buy and sell thousands of mutual funds. Fidelity has ranked highest in customer service numerous times, so customer service shouldn't be an issue.
3. TDAmeritrade- TD Waterhouse and Ameritrade combined to make TDAmeritrade, which has the best commission rate plan for small investors. The site charges $9.99 for all internet equity trades, regardless of your account balance. TDAmeritrade also has over 13,000 mutual funds for an investor to buy through their site. TDAmeritrade has an excellent trading tool in the streamer, which I personally have used for years now and am very happy with.
4. Scottrade- Scottrade requires only $500 to open an account, and charges only $7 per internet equity trade. The company also offers Scottrade Elite Services, which has been given solid ratings by many traders. The customer service at Scottrade is always ranked highly, and the company is a great choice for new investors. The company would be rated higher if it had some more online banking amenities.
5. OptionsXpress- This broker has really gained ground in the past year or so. Options XPress has won best online broker from Barron's several times, and from Kiplinger's last year as well. They offer low commissions on both stock and mutual fund trades, as well best in the category rates for those trading on margin.
I believe these five online brokers offer the best services to individual investors. If you would like to view another top 5 online broker list, stop by over at Stock Trading To Go, where they provided a nice rundown of the top brokers.
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Thanks for the mention, nice list. Interesting you threw Fidelity into the mix, I don't know too much about them, perhaps I should test them out :P
Posted by: Blain Reinkensmeyer | August 28, 2007 5:49 PM | Permalink to Comment