If stock traders from a century ago were to suddenly come back to life in today's age of wondrous technology, they would no doubt be amazed by the fact that millions of private citizens now routinely trade their own stocks online. The internet has brought about the age of the day trader, and has created a whole new industry full of online stock brokerage firms that assist these individual investors both in executing trades and in making good decisions. Unfortunately, not every new stock trading firm that appears on the internet is as reliable or effective as most investors would like. In stock trading online, as with so many other things in the world, experience and a solid track record still matter. In fact, some of the best cheap stock broker assistance can be found by aligning yourself with some of the better known online brokerages.
Cheap versus experienced
When most people think about finding a cheap online broker, they immediately start looking for the ones that cost the absolute least amount of money to execute a trade. To be sure, you can find online trading firms that will offer to make trades for you for under $3 a trade - but sometimes you really do have to pay for what you get. New trading firms often offer price structures that are significantly lower than more established firms, but those prices are sometimes reflective of a drop-off in service and the quality of advice that you get. Ultimately, you will have to make the decision as to whether saving a few dollars per trade is worth the risk of dealing with less experienced trading staff.
The bigger players
The fact is that you can still obtain cheap stock broker assistance without paying too much more than you would by dealing with the cheaper, less experienced firms. Some of the more well known firms provide a host of valuable services, while still maintaining fairly reasonable trading commission rates. Firms like Scottrade, which charges about $7 for each transaction and E*Trade, which charges just under $8, are two of the more renowned - primarily because of their superior advertising and marketing abilities. Each requires that you maintain a minimum balance of trading activity, and each provides you with access to respected trading experts who can assist you with your analysis of the markets and which trades will help to balance your portfolio.
The newcomer
One of the newer online brokerage firms is also trying to earn a reputation to compete with the big boys of the industry. The company's name is OptionsHouse, and they are one of those companies that charge just under $3 for a trade. Unlike the major companies, those rates do not increase if you need a broker to make the transaction for you. The one drawback to this firm may be the $3,000 minimum balance that is required - more than six times that of Scottrade, and three times the balance required by E*Trade. Despite the fact that they are so new to the playing field, however, OptionsHouse seems well positioned to emerge as one of the rising stars among companies offering cheap stock broker services.
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