Here's a look at what the best online trader has to offer in terms of education, tools, research and affordability. Some traders save 35% or more by switching from their old brokerage to a better company. You might wonder how that's possible.
If you think about it, you'll realize that there are few costs involved in running a brokerage. Brokers can charge what they want. In years past, they have kept their fees high. Traders had no choice but to pay the price.
In today's more competitive market, traders have options. They can stay with a company, because they are satisfied or comfortable. It's more likely that they are comfortable, rather than really satisfied.
But no trader is stuck paying high fees, not today. No one has to be dissatisfied. It may take you out of your comfort zone to switch, but earning 35% more on every single trade makes being a little uncomfortable okay.
Several companies are charging less than a buck for options contracts. Trading stocks has never been more affordable. That's what competition does for consumers.
It may take a little time away from your trades to do the comparative shopping and find out what the best online trader has to offer. But it will be time well spent. If you do not do it now, you will never know how much money you are spending needlessly.
There are other things to consider, too. You may already be signed up with a brokerage that charges reasonable fees. You might be worried about transfer fees. Some brokerages charge over $ 100 for transfers.
There is at least one company that covers the account transfer fees, as long as they do not exceed $ 250. So you really have everything to gain and nothing to lose.
But what else is the best online trader have to offer? They may offer the most powerful trading platform and analytical tools available.
They may provide some extra education. No matter how experienced you are, you might be able to learn a thing or two. Without every one of your trades is profitable, you might be able to improve on your technique.
Beginners can obviously benefit from the education. They really can not trade without it.
For options traders, there are really only one or two companies to choose from. The best online trader earned the highest rating for options trading from Barron's. Can your broker say that?