Tuesday, June 10, 2014

Review of online stock trader::3 Great Stock Trading Software Platforms







Review of online stock trader::3 Great Stock Trading Software Platforms








Trading               stock               has               always               had               one               fly               in               the               ointment               for               the               low               dollar               trader:               the               cost               of               commissions.

Online               brokerage               houses               solved               the               problem               of               the               high               commission               by               offering               low               cost               stock               trades               that               ranged               from               $3               to               $12.

Today,               several               brokerage               houses               have               done               even               better               with               commission-free               trades.

Their               stipulations               and               your               circumstances               determine               whether               no               commission               stock               accounts               are               truly               free.

Online               brokerage               accounts               started               with               the               first               trade               in               1983               when               a               dentist               from               Michigan               made               the               first               online               trade               with               Trade*Plus,               a               company               that               eventually               became               E-Trade.

When               the               competition               for               your               business               began               to               grow               in               the               1990s,               many               online               brokerages               lowered               their               rates               to               secure               your               business.

They               fought               harder               for               business,               and               companies               like               Zecco.com,               Bank               of               America               and               Wells               Fargo               began               to               offer               commission-free               trades.

The               no               commisssion               stock               account               free               trades               vary               from               10               per               month,               30               per               month               or               your               first               100               trades.
               Free               trades               at               Wells               Fargo               and               Bank               of               America               are               available               to               those               who               meet               certain               requirements.

Bank               of               America               offers               30               free               trades               per               month               for               those               with               a               combined               deposit               account               balance               of               $25,000.

You               can               use               10               percent               of               your               credit               balance               to               make               up               the               $25,000               with               Wells               Fargo               for               the               first               100               free               trades.

Watch               out,               they               do               charge               much               higher               for               stocks               under               $1.00.

If               your               balance               drops,               the               cost               of               the               trades               skyrockets.

Zecco               requires               a               balance               of               $2500               per               month               for               10               free               trades               per               month               and               charges               a               reasonable               price               for               further               trades.
               You               might               see               some               Google               ads               on               Zecco,               one               of               the               free               trade               sites.

They               derive               some               of               their               income               from               placing               the               ads               on               their               website.

They               aren't               plastered               everywhere               and               the               ads               don't               interfere               with               trading,               so               it's               barely               noticeable               and               does               help               defray               the               cost               of               free               trades               and               lower               cost               trades               after               you               use               the               free               ones.
               See               if               you               get               the               highest               interest               rates               on               your               cash               on               hand               or               your               banking               relationships.

If               you               keep               a               lot               of               extra               money               in               your               brokerage               account               in               a               money               market               account,               you               might               be               losing               more               than               you               gain               because               of               the               lower               interest.

Also,               check               the               interest               on               your               bank               accounts               and               loans               that               you               use               to               maintain               the               relationship.

If               you               pay               higher               interest               on               loans               or               receive               lower               interest               on               savings               than               you               get               elsewhere,               you               pay               for               the               free               trades               and               relationship.

A               1               percent               difference               on               the               $25000               minimum               is               $250               per               year.

Once               you               use               all               the               free               trades,               you               pay               two               ways.

One               is               in               lower               interest               on               your               money               and               the               other               is               for               the               trade.

Calculate               your               average               return               and               see               if               it               pays               to               get               a               free               trade.
               The               brokerage               houses               find               other               ways               to               make               money               on               the               accounts.

Zecco               offers               free               premium               tools               for               the               first               two               months               and               then               if               you               want               to               continue               with               them,               you               pay               a               premium               service.

Make               sure               that               the               brokerage               site               that               you               select               offers               all               the               tools               you               need               for               trading,               calculate               them               into               your               cost               if               you               want               to               go               for               low               cost               stock               trades               or               no               cost               stock               trades..
               Watch               out               for               the               transfer               fees.

If               you               find               that               you               don't               like               the               no-commission               trading               accounts,               it               costs               you               to               move.

There               are               fees               for               changing               brokerage               houses               that               vary,               but               often               are               around               $50.

Before               you               open               the               account,               you               need               to               check               all               the               costs               on               the               account               and               keep               the               thought               of               longevity               in               mind               when               you               open               it.

Some               companies               charge               semi               annual               fees               if               your               account               or               relationship               drops               below               a               specific               amount.

An               inactivity               fee               for               many               traders               is               important               so               don't               overlook               it               if               it's               part               of               the               no               commission               stock               trading               account.

Look               for               a               brokerage               house               that               offers               the               most               economical               package               for               your               trading               style               and               don't               be               seduced               by               the               word               free.






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