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Best Online Stock Trading Broker 2016

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Investors and stock traders are always eager to know which stock broker is best for them for online stock trading. Brokerage firms’ fitness with clients demand can be varied. What is a good online brokerage for active trader, may not be a good brokerage for 401k investors. Again some online brokerage firms could be very good fit for day traders or High Frequency traders, while those broker dealer could be unsuitable for position trader. Some investors try to take advantage of big volume of trading and targeting minimum profit while other investors could look for small volume of transactions of shares while holding the position long time. For first group of stock traders brokerage fee is key concern while second group of stock traders look for security and safety of his invested funds.

Interactive broker5 Star Best for Frequent trader and volume trader
  • Commission:
  •  Stocks:$ 0.005 per share ; Minimum Per Order $1 and Maximum Per Order 0.5% of trade value
  • Options: $ 0.70 per contract
  • Account minimum: $10,000  and $5,000 for IRA
Fidelity5 Star Best research tools and customer service
  • Commission:
  • Stocks: $7.95
  • Options: $7.95 + $0.75 per contract
  • Account minimum: $2,500 ($0 for IRAs)
  • Promotion: 200 commission-free trades
 Etrade5 Star  Provide Customer Friendly Brokerage Service, User Friendly platform
  • Commission:
  • Stocks: $9.99
  • Options: $9.99 + $0.75 per contract
  • Account minimum: $500
  • Promotion: Trade free for 60 Days and Gain Up to $600.
 optionshouse5 Star  Best for option trading
  • Commission:
  • Stocks: $4.95
  • Options: $4.95 + $0.50 per contract
  • Account minimum: $0
  • Promotion: Trade Commission free for 90 days

 

 optionexpress5 Star Intuitive and User Friendly trading Platform
  • Commission: $8.95 per trade
  • Account minimum: $0
  • Promotion: 50 commission-free trades
 Charles Schwab5 Star  Quality Trade tools and excellent research
  • Commission:
  • Stocks: $8.95
  • Options: $8.95 + $0.75 per contract
  • Account minimum: $1,000
  • Promotion: 500 commission-free trades for a year
TD AMERITRADE

5 Star

 

Provide access to all kinds of investments options, good quality educational tools                                    

  • Commission:
  • Stocks: $9.99
  • Options: $9.99 + $0.75 per contract
  • Account minimum: $0
  • Promotion: Trade free for 90 days  and get up to $600
 Tradeking5 Star  Competitive Fee Structure and Responsive live platform
  • Commission:
  • Stocks: $4.95
  • Options: $4.95 + $0.65 per contract
  • Account minimum: $0
  • Promotion: $1,000 in free commissions for clients with a balance of $5,000 or more
 Scottradefourhalf star  Solid Research tools
  • Commission:
  • Stocks: $7.00
  •  Options: $7.00 + $1.25 per contract
  • Account minimum: $2,500
  • Promotion: $2,000 in Cash Bonus and 50 Free Trades
 LightSpeed4 star  Good Choice for high volume traders
  • Commission:
  • Stocks: $0.006 per share
  • Options: $0.00 + $0.60 per contract
  • Account minimum: $5,000
  • Promotion: Get $10,000 cash back on trades with a new account
TradeStation4 star Best for active and Serious trader
  • Commission
  • Stocks: $0.01 per share
  • Options: $0.00 + $1.00 per contract
  • Account minimum: $0
  • Promotion: Save 20% on commissions
Merrill Edge4 star  Great Customer service
  • Commission:Stocks: $6.95Options: $6.95 + $0.75 per contract
  • Account minimum: $0
  • Promotion: Invest in a new account and get up to $600
Capital One Investing4 star  Low fee and Automatic investing
  • Commission:Stocks: $6.95Options: $6.95 + $0.75 per contract
  • Account minimum: $0
  • Promotion: Get up to a $600 bonus when you fund your new account

 

 

 Important factors for best online brokerage ranking:

  1. Stock Broker Reputation:

    Reputation is number 1 critical factor for online brokers ranking. People wants to feel their investment is safe before any investment decision. Without strong faith to stock broker, no one will open account with that brokerage firms. Charles Schwab, TD Ameritrade, Fidelity are ranked higher on this category. Especially Charles Schwab astonishing $2.51 trillion and Fidelity $1.56 trillion client assets clearly indicate their reputation to the American household names.

  2. Brokerage Firms Fee:

    Brokerage fee is 2nd critical factor  considered for ranking. Even though this is true that clients consider brokerage firms reputation to open account, Volume trader, HFT, Day traders give more priority to the brokerage fee than other factors. At the end of day brokerage fee is something that every investors has to consider. Sometimes stock trader overall position is negative, even though he made money from stock trading because of high brokerage fee. Interactive Brokers, Lighspeed Trading, Trade Station offer very good bargain for brokerage fees. Interactive brokers fees is $.005 per share and light speed trading charges $.006 per share.

  3. Easiness of Platform

    Our third factor for best online stock broker ranking user friendlyness of platform. Since Most of the clients of the brokerage firms are not professional traders and investors, clients have very few knowledge about trading jargon and their functionality. Misuse of any function could trigger an unintended trade and might lead to a huge financial loss for clients. Brokerage should make sure clients has deep knowledge about the trading platform before any trade initiated.

  4. Research:

    Research is another important factors for best stock trading site ranking. Since most of the people do not have enough time to research for right stock. Brokerage firms that offer research for the clients, help clients buy stock online and make decision promptly. This reduce clients research time and stress. Fidelity is ranked one on this criteria because of their versatile research offerings.

  5. Customer Service

    Customer service is important for clients. Clients want to make sure they can speak with the brokerage firms and will get proper support from stock broker if they faced any problems with the brokerage accounts and trade execution.

  6. Execution:

    Trade execution is very important for short term trading. In other words, time is money in short term trade. If a trade execute just one second late, that could be a huge loss for stock trading. Faster Execution and clearance is another important factor in our online stock trading broker dealer ranking criteria.

  7. Online Brokerage Firm Account Minimum Requirement:

    Minimum deposit is another factors for online stock trading. Lower the minimum deposit   requirement, better for the clients. Some online brokers require no deposit and some brokerage firms require deposit as high as $10000. High account deposit requirement acts as a barrier for novice traders and investors in the stock market. There is a tradeoff between high deposit requirment and online brokerage fees and commission. Usually low commission comes with high deposit requirement and vice versa.

  8. Option platform:

    Option trading is another point that is also important for stockbroker ranking. Now days lot of traders and investors use options for short term trading and risk management. One advantage with option trading is that Stock trader can calculate his risk and reward before enter into stock trading using advanced option trading strategy. Another advantage with option is you need less capital to trade option with high reward. Some online brokerage firms has advanced option trading platform that offer traders   simulated risk reward before enter the trade. Option house, Trade king, TD Ameritrade, option express are good option trading platforms.

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