some may consider pretty hefty minimum deposit policies. TD Ameritrade’s minimum is listed at $2000 and Schwab’s is $2500. After I verified this information on the respective web sites, I chose Sharebuilder for that reason.
Another important criterion to consider when you compare brokerage firms is the price of the trades or online market orders. Sharebuilder charges from $11.95 to $15.95 depending on which plan you choose. Since I chose the freebie plan, my market trades would compare brokerage firms me $15.95 each.
TD Ameritrade however, won the coin toss at $9.99. Since I was already locked in on the minimum deposit though, I would just have to live with this. Besides, I wouldn’t be making very many trades with my $100 investment. All five brokerage firms involved in the comparison offered online statements and confirmations and reinvestments of dividends. Finally, something they agree on.
Annual maintenance or low balance fees was an interesting comparison. Three of the brokerage firms, including Sharebuilder did not charge any fees for this while Etrade and Schwab charged $160 and $120 a year respectively.
See, isn’t this fun? The important thing and the only important thing to consider when you compare brokerage firms is which one can meet your needs. All of the companies mentioned in this article are upstanding companies with variable policies. Choose the one that’s best for you and you’ll be on your way.
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