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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Labels: Best E Trade Company, Best Online Trading Company, Best Online Trading Site for Beginners, Cheapest Online Stock Trader, Share Trader, Stock Trader, Top Online Trading Sites, Top Stock Brokers in America
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