By Ashley Redmond, Contributor
Technological advances in financial and investment tools give investors a myriad of options, including online trading. Online trading accounts can benefit many types of investors, from the beginner who needs assistance getting an investment plan started to the knowledgeable investor who can use the online trading tools to pursue an investment strategy.
GOBankingRates surveyed the best stock brokers for online trading based on an assessment of service features, fees, current offers and other criteria that are pertinent to potential investors of various experience levels. Website intuitiveness is also important. An investor needs to feel comfortable on the trading platform, so being able to switch easily between browsers and find information easily is integral. "Good reporting features are essential, displaying account information in a way that the investor understands," said Ryder Taff, portfolio manager, New Perspectives, Inc.
1. TD Ameritrade
Account minimum: No minimum to open an account
- Stock trades -- $9.99
- Mutual funds -- no commission on no-transaction fee (NTF) option for NTF funds held longer than 180 days; no-load option for $49.99
- Options -- $9.99 plus $0.75 per contract
- 24/7 customer service via email or phone; one-on-one, in-person assistance also available at local branches
- Thinkorswim, a platform offering user-friendly, sophisticated tools such as profit-and-loss charts, real-time market scans synced between desktop and tablet devices, beta weighting, Strategy Roller and more as well as third-party research from sources such as Morningstar and Thomson Reuters
- Free access to all trading platforms and real-time streaming quotes on all platforms plus live audio from the futures pit
Premium service: Investors that maintain a total account value of $100,000 and average at least five trades per month qualify for Apex, a program that has no service fees, gives client calls and emails top priority 24/7, and includes free access to in-depth, third-party research and reports.
2. Interactive Brokers
Account minimum: $10,000
Costs and fees: $10 minimum monthly activity fee for accounts with balances between $2000 and $100,000; $20 fee for accounts with balances below $2,000; no fee for accounts above $100,000
Current offers: n/a
- Intuitive smartphone and tablet app for mobile trading using IB's SmartRouting Technology, which finds the best price and routes and re-routes your order to achieve the best execution possible
- Investors' Marketplace connects clients with the broader investment community, enabling individuals and financial professionals to form connections with each other and third-party service providers
- IB Online Knowledge Base, a resource of how-to articles, troubleshooting tips and a glossary designed to help customers manage their accounts
Premium service: The service as a whole is designed to be a premium option for investors.
3. Fidelity
Account minimum: Free to open an account; minimum deposit of $2,500 to trade mutual funds
- Stock trades -- $7.95
- Mutual funds -- Fidelity funds are free; NTF non-Fidelity funds are free on purchase or $49.95 on redemption if held less than 60 days
- Options -- $7.95 plus $0.75 per contract
- Fast customer service 24/7 via phone, live chat or email
- Learning Center, which contains an abundance of material to teach beginner investors the basics and equip experienced investors with the courses and tools they need to implement their strategies
- Active Trader Pro platform enables investors to access market-tracking tools, charts and more; detailed ETF and exchange-traded product screener that allows you to research options by various criteria
Premium service: Investors with eligible retail household relationship assets totaling at least $250,000 qualify for Fidelity Premium Services, which include guidance regarding an overall portfolio, waivers of certain fees, free investor seminars and more.
4. Merrill Edge
Account minimum: n/a
- Stock trades -- $6.95
- Mutual funds -- fee-free NTF fund or $39.95 short-term redemption fee if held less than 90 days
- Options -- $6.95 plus $0.75 per contract
- Integration of Merrill Edge investment account with Bank of America bank account accessible with one login and real-time transfers between accounts
- Access to thousands of brick-and-mortar Bank of America branches nationwide for clients who want in-person assistance
- Some of the lowest fees among big discount brokers
Premium service: The Preferred Rewards Program is a three-tier program based on the investor's Bank of America account and Merrill Edge account. It views assets in both accounts and offers up to 100 free trades per month depending on combined account balances.
5. OptionsHouse
Account minimum: n/a
- Stock trades -- $4.95
- Mutual funds -- $20
- Options -- $4.95 plus $0.75 per contract
- tradeCYCLE tool set and platform, which includes tools for research, strategy creation and strategy testing, trading, analysis and trading plan adjustment
- Some of the lowest fees among the large discount brokers
- Intuitive New Customers section that provides easy, step-by-step instructions for how to use the OptionsHouse Platform, from placing an order and accessing mobile tools to how to create a spread
Premium service: No.
6. TradeStation
Account minimum: $5,000 for a stock trading account; other accounts vary depending on what assets are being traded, intended usage and assets held in the account
- Minimum monthly activity fee of $99.95 if account doesn't meet the minimum activity or other criteria options
- Three pricing plans are offered, so costs of trading will vary: The per-share plan is $0.01/share with a commission rate of $0.006 after the first 500 shares per trade. The per-trade plan (flat-fee trading) can cost between $4.99 and $9.99 depending on how many trades are executed. The unbundled plan offers trades as low as $0.002 per share -- trading minimum applies -- and passes liquidity rebates from exchanges onto clients.
- 24/7 customer support, and the investor gets a dedicated contact person
- Platform and mobile app offer trading and marketing analysis tools, real-time streaming quotes and more
- Unique pricing structures designed to help active, experienced traders save money
Premium service: The service as a whole is designed to be a premium option for investors.
7. TradeKing
Account minimum: n/a
- Stock trades -- $4.95
- Mutual funds -- $0 load mutual fund (subject to change from the mutual fund); $9.95 no-load mutual fund
- Options -- $4.95 plus $0.65 per contract
- Trader Network, an online trading network established in 2005 that connects investors with each other to share experiences and strategies
- Customizable dashboard settings, including background color, that are saved to be consistent across your devices
- Free technical analysis tools and education center broken down by experience level (rookie, veteran, all-star), market outlook (bullish, bearish, neutral, volatile) and investment product type
Premium service: No.
This article originally appeared on GOBankingRates.com: 7 Best Stock Brokers for Online Trading