Online Trading Firms Compared

There are a plethora of online firms through which you can trade stocks, some of which are more popular than others.  The value of these firms depends on your specific goals and the characteristics of each firm.  Some online trading firms require account maintenance fees, some have tiered commission structures, some do not work on smartphones, and so on.  The key to finding the best online trading firm for you is doing your research and making side-by-side comparisons.  Listed below is information on three of the more popular online trading firms.

Fidelity

Fidelity is the only online trading firm that provides a one-second trade execution guarantee on eligible orders, otherwise the trade is commission free.  This is important for people that cannot afford to wait on a trade execution while prices are shifting.  Trades cost anywhere from $7.95 to $19.95, and you need a $2,500 minimum investment to open an account.  Applications are available for all major smartphones.

E*Trade Financial

E*Trade Financial was one of the pioneers of the online trading business, offering a very diverse selection of investments.  The company uses a tiered pricing system that works in your favor if you have over $50,000 in assets to invest or make at least 1,500 trades per quarter.  If you have less than $10,000 in investment assets, E*Trade charges you a $40 maintenance fee each quarter.  Thus, E*Trade is really only an intelligent trading option for those with a large investment balance or those who trade often.  Applications are available for all major smartphones except the Android.

Charles Schwab

Charles Schwab is an online trading firm that is best for those seeking an entire investment package.  They offer more no-load mutual funds than just about any other online trading firm.  The company's largest selling point is that they have 300 offices around the country and 24/7 customer support.  They do not have Blackberry or iPhone applications, however.