Stock Broker Trading Fees Explained

The lower trading commissions have transformed how retail investors trade stocks. If you are looking solely on price, it’s quite easy. But if you are looking at the different options pass the price, then the decision isn’t so easy.

Unless you get free trades, there isn’t an option that’s cheaper than OptionsHouse. At $2.95, it’s the cheapest place to get your trades executed. However, the broker is relatively newer so you may want to do more due diligence.

Zecco revolutionize the industry with free stock trades. Although they’ve changed their rules, and pissed off many customers, they are still one of the few stock brokers that still offer free stock trades to those who qualify.

OptionsXpress is pretty awesome because they are a great options broker. However, their stock trades are $14.95 which is pretty high. This one is for those that don’t mind paying a little extra for a good broker.

Wells Trade is totally integrated with Wells Fargo so it’s easy if you are a Wells Fargo customer. If you have $25,000, you get 100 free trades. Otherwise, it’s $19.95 so only use this option if you have the funds.

The highest rated deep discount stock broker is TradeKing. The commission is $4.95 a trade and continues to be one of the cheapest per trade price out there.

Etrade has a special place in my heart because that’s who I started with. The broker is solid and the pricing is $9.99 ($12.99 if you have less than $50,000 in assets).

Scottrade thrives on their customer support, and it also has the most branches. The stock commission is $7 a trade and it’s middle of the road in terms of prices.

TradeMonster may be new to the game but it’s backed by celebrities like Guy Adami and the Najarian Brothers on Fast Money. It’s no wonder that they are quickly becoming a strong force in the industry.

The highest end stock broker in this list is Charles Schwab. While stock trades are $12.99, they do offer a 2% cash back credit card which makes up for some of the stock commissions.

TD Ameritrade isn’t that great but it works. The less than ten dollar trade was a first of its kind. They also advertise no hidden fees although there’s a fee if you transfer your account away from them.

I love my account at Scottrade review. Too bad there weren’t any Scottrade promo code when I signed up or else I would really be jumping around.

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