Sharebuilder (Est. 1996) Sharebuilder
is a site that I strongly recommend, especially for beginners. They offer the lowest entry level funding and have a content–rich site, so you can research the stocks that are available there. At only four dollars a trade, you would be hard pressed to find a less expensive site to begin trading and investing. There is no minimum amount to open an account, so you have no excuse not to start building your future today. ShareBuilder allows you to buy stocks and exchange traded funds.
Limitations: You can’t beat the four dollar trade price, but that price is only for automatic trades.
E*Trade (Est. 1991) has the second lowest entry level starting balance at $1000 for standard trading and $2000 for margin trading. As with most online brokerage firm there is a large library and research area for investors to do their due diligence on potential investments. The pricing system for buys and sells is tiered with the standard price being $12.99. If you do enough trades in a three month period the price can go as low as $6.99
E*Trade allows you to buy stocks, bonds, IPO’s, mutual funds and exchange traded funds.
TD Ameritrade (Est 1975, Online trading as WealthWEB® in 1994) In order to start an account with TD AmeriTrade, you must have a minimum of $2000 for standard trading (limit and market orders) or just $1000 if you are starting an IRA. AmeriTrade also has a large amount of content for research and due diligence. Buy and sell cost is $9.99 and pretty much any stock you want to purchase can be bought through them. They were rate the #1 web based online broker in Barron magazine’s 2007 Review of Online Brokers. TD AmeriTrade allows you to buy stocks, bonds, mutual funds, options and CD’s.
Fidelity Investments (Est. 1946, web presence 1995) To establish a basic account the minimum balance is $2500 dollars, margin accounts, $5000. IRA $2500. Standard trades can coast as little as $8 per transaction, up to $19.95 per transaction. They also carry a full range of stocks and bonds, including international and domestic.
Fidelity allows you to buy stocks, bonds, IPO’s, mutual funds and exchange traded funds.
Many of the top firms online have the same fine features, as described above. It really comes down to where you are in your investing. If you are doing a lot of trading, the cost per transaction is going to have a a huge impact on what firm you use. If you are a buy and hold investor, then monthly fees may have the largest impact on your choice. I recommend Sharebuilder as a great platform for beginners, but as I said earlier, everyone needs to do their due diligence and select the company that best meets their needs.