Brokerages
I’ve been doing some research lately on different discount online brokers, trying to decide which I should move my IRA holdings into. So I reckoned I might as well put together a table comparing them.
Some notes:
1. Clearly the table is not entirely filled in. I left cells empty when I couldn’t find the information for that entry on the broker’s website.
2. Please let me know in the comments if you find any mistakes, or items that need updating. Thanks.
3. The bulk of the numbers in this table were last updated in late April 2007.
4. Some brokers will discount their rates if you make enough trades a year (generally at least 30)/have a high enough balance in your account (generally at least $25,000)
5. DISCLAIMER: I don’t guarantee any of the figures in this table. Do your own homework before signing up with any broker.
| Zecco Trading | E-Trade | TD Ameritrade | TD Ameritrade (Apex) | Scottrade | Bank of America | Tradeking | Sogoinvest | Sharebuilder Basic | S-builder Std | S-builder Advantage | Charles Schwab | Fidelity (Bronze) | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main Details | |||||||||||||
| Stocks & ETFs | |||||||||||||
| Internet | $0.00 | $12.99 | $9.99 | $9.99 | $7.00 | $0-$5-$7 | $4.95 | $3 | $15.95 | $14.95 | $11.95 | $$19.9512.95 | $19.95 |
| Broker Assisted | $19.99 | $57.99 | $44.99 | $44.99 | $27.00 | $42.50 | $4.95 | $27.00 | $37.95 | $55 | |||
| Share Max per trade | 2000, then $0.015 per share | Unlimited | Unlimited | Unlimited | Adds 1c per share for stocks priced $2 or less | 5000, then $0.0005 per share | 1000, then $0.015 per share | 1000, then $0.015 per share | 1000, then $0.015 per share | ||||
| Auto Investment Plans | $3 - $2 - $1 | 4 | 6 per month, then $2 each | 20 per month, then $1 each | |||||||||
| Mutual Funds | |||||||||||||
| No Load Internet | $10.00 | $0.00 | $0 for "No Transaction Fee" Funds; $49.99 for others | $0 for "No Transaction Fee" Funds; $49.99 for others | $17.00 | 6 | $14.95 | $0.00 | $75 | ||||
| No Load Broker Assisted | $19.99 | $64.99 | $49.99 | $49.99 | $0.00 | $25.00 | 0.75% of principle | ||||||
| Options | |||||||||||||
| Simple Internet + Per Contract | $3.50 + $.60 | $12.99 + $1.25 | $9.99 + $.75 | $9.99 + $.75 | $7.00 + $1.25 | $19.95 + $1.50 | $4.95 + $0.65 | $15.95 + $1 per contract | $14.95 + $1 | $11.95 + $1 | $9.95 + $.75 | $19.95 + $.75 | |
| Simple Broker Assisted + per Contract | $19.99 + $.75 | $57.99 + $1.25 | $44.99 + $.75 | $44.99 + $.75 | $39.95 + $1.75 | $34.95 + $.75 | $55 + $.75 | ||||||
| Inactive Fees | None | $40 / quarter | None | None | None | None | None | None | None | None | None | ||
| Subscription Fee (monthly) | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | 0 - 10 - 15 | $0.00 | $12.00 | $20.00 | $0.00 | $0.00 |
| Account Minimum | $1,000.00 | $2,000.00 | $2,000.00 | $500.00 | $25,000.00 | $0 | $2500.00 | $0.00 | $2,500.00 | $0.00 | |||
| Specials | DETAILS | $100 bonus w $10,000 min deposit for 9 months | $100 sign-up bonus for non-IRA; $50 for friend referrals | $1 trades for 90 days | $50 bonus w SHARE50 promo code; $70 costco giftcard (LINK) | ||||||||
| Customer Service | terrible | good | good | good | |||||||||
| Zecco Trading | E-Trade | TD Ameritrade | TD Ameritrade (Apex) | Scottrade | Bank of America | Tradeking | Sogoinvest | Sharebuilder Basic | S-builder Std | S-builder Advantage | Charles Schwab | Fidelity (Bronze) | |
| Other Fees | |||||||||||||
| IRA annual fee | $30.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | NO IRA | $25.00 | $0.00 | $0.00 | $25 | ||
| IRA closing fee | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $50.00 | $0.00 | $50 | |||||
| Electronic statements | $0.00 | $0.00 | $0.00 | ||||||||||
| Electronic confirms | $0.00 | $0.00 | $0.00 | ||||||||||
| Option Exercise | $3.50 | $19.99 | $19.99 | $19.99 | $9.95 | $20.00 | |||||||
| Option Assignment | $3.50 | $19.99 | $19.99 | $19.99 | $4.95 | $20.00 | |||||||
| ACH Transfers | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ||
| Outbound Full/Partial ACAT Non-IRA Transfer | $50.00 | $60/$25 | $50.00 | $0.00 | $0.00 | $50.00 | $50/$10 per security | $50/$25 | |||||
| Outbound Full/Partial ACAT IRA Transfer | $50.00 | $60/$25 | $25.00 | $0.00 | $50.00 | NO IRA | $50/$10 per security | $50/$25 | |||||
| Inbound ACAT Transfers | $50.00 | $0.00 | $0.00 | $0.00 | $1.00 | $2.00 | $0.00 | $0.00 | |||||
| Outgoing wire transfer (domestic) | $15.00 | $25.00 | $20.00 | $0.00 | $20.00 | $20.00 | $20.00 | $30.00 | $25.00 | $15 | |||
| Outgoing wire transfer (foreign) | $55.00 | $25.00 | $30.00 | $0.00 | $40.00 | $50.00 | $40.00 | $30.00 | $25.00 | $15 | |||
| Incoming wire transfer (domestic) | $15.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |||
| Incoming wire transfer (foreign) | $55.00 | $0.00 | $0.00 | $0.00 | $0.00 | $50.00 | $0.00 | $0.00 | $0.00 | $0.00 | |||
| Check stop payment | $25.00 | $25.00 | $0.00 | $25.00 | $25.00 | ||||||||
| Returned checks | $20.00 | $25.00 | $20.00 | ||||||||||
| Returned ACH | $25.00 | $20.00 | $25.00 | ||||||||||
| Copies of checks | $10.00 | $0.00 | $5.00 | $10.00 | |||||||||
| Check reorder | $6.00 | $0.00 | First 185 free; then $11.50 per 150 | ||||||||||
| Zecco Trading | E-Trade | TD Ameritrade | TD Ameritrade (Apex) | Scottrade | Bank of America | Tradeking | Sogoinvest | Sharebuilder Basic | S-builder Std | S-builder Advantage | Charles Schwab | Fidelity (Bronze) | |
| Margin Rates | |||||||||||||
| $0 - $9,999 | 10.50% | 10.24% | 0.25% | 0.25% | 10.50% | 8.00% | 9.50% | 11.00% | 10.75% | 10.50% | 11.075 | ||
| $10,000 - $24,999 | 10.50% | 10.24% | 0.25% | 0.25% | 10.45% | 8.00% | 9.50% | 10.00% | 9.75% | 9.50% | 10.575 | ||
| $25,000 - $49,999 | 10.00% | 10.24% | 0.25% | 0.25% | 10.25% | 8.00% | 9.50% | 10.00% | 9.75% | 9.50% | 10.075 | ||
| $50,000 - $99,999 | 9.50% | 9.24% | 0.25% | 0.25% | 9.50% | 8.00% | 9.25% | 9.00% | 8.75% | 8.50% | 9.575 | ||
| $100,000 - $249,999 | 9.25% | 9.24% | 0.25% | 0.25% | 9.25% | 8.00% | 8.50% | 9.00% | 8.75% | 8.50% | 9.075 | ||
| $250,000 - $499,999 | 8.75% | 8.24% | 0.25% | 0.25% | 8.75% | 8.00% | 8.25% | 8.00% | 7.75% | 7.50% | 9.075 | ||
| $500,000 - $999,999 | 8.75% | 8.24% | 0.25% | 0.25% | 8.65% | 8.00% | 8.00% | 8.00% | 7.75% | 7.50% | 6.00 | ||
| $1,000,000 - $1,999,999 | 8.00% | 7.24% | 0.25% | 0.25% | 8.00% | 8.00% | 7.00% | 8.00% | 7.75% | 7.50% | 6.00 | ||
| $2,000,000 - $4,999,999 | 8.00% | 7.24% | 0.25% | 0.25% | 8.00% | 8.00% | 7.00% | 8.00% | 7.75% | 7.50% | 6.00 | ||
| $5,000,000+ | 8.00% | 7.24% | 0.25% | 0.25% | 8.00% | 8.00% | 7.00% | 8.00% | 7.75% | 7.50% | 6.00 |
Footnotes
$0: $0; 10 in one day max, 40 in month max, then $3.50 a trade
$0-$5-$7: $0 if 30 trades/month or maintain $25,000 account balance. >See Bank of America Investment Services Fee Table
$3: $3 each standard; if on $10
monthly plan, 5 free, then $2 each; if on $15 monthly plan, 15 free, then $1.50 each
0.6% of principle, $45 min: >See Bank of America Investment Services Fee Table
DETAILS: > Link, Terms: $25 will be credited to your Complete Savings Account within 30 days of the account being funded with a minimum deposit of $1. Payments will be reported as interest income. Accounts must be opened by April 30, 2007 to quality for the $25 offer. Must be a new account opened with new funds. Offer applies to one new account per customer. Not good with any other offer. This offer is not valid for E*TRADE FINANCIAL employees.
0.75% of principal: $100 min, $250 max
$19.95: Bronze: $19.95 per trade; Silver: if 36 trades/yr + $25,000 in household assets, or $50,000 in household assets, $10.95 per trade; Gold: if 120 trades/yr and $25,000 in household assets, or $1 million in household assets, $8/trade. >Full fee schedule (PDF)
Different brokers will work for different investors, which is why I created this table, but I decided to go with Tradeking. I originally went with them a year ago when opening my regular brokerage account mainly because they were the cheapest around at $5 a trade. But then I did also when creating my IRA account in spring 2007 because Zecco had >ridiculously bad customer service, and Sogoinvest does not yet offer IRA accounts (although they said they were planning to around summer 2007). I’ve been quite happy with Tradeking’s execution speed, ACH and settlement of funds speed, and customer service, though I’ll probably give sogoinvest and zecco another shot at some point.
laura
Updates:
http://www.sogoinvest.com/Home/Pricing.aspx minimum is $2500
https://www.tradeking.com/PublicView/services/FAQ/accounts.tmpl#accountMinimum tradeking has no min
Aug 13th, 2007 5:57 pm
admin
thanks Laura! I’ve updated the table accordingly.
Aug 13th, 2007 6:22 pm
Anonymous
http://www.just2trade.com
Sep 14th, 2007 5:06 pm
katie and andy
who is laura??
Nov 27th, 2007 4:45 pm