Does it matters whether you use a big online brokerage (which charges high fees) or a small cheaper brokerage?
Sunday, July 19th, 2009
at
10:44 am
2h4u623 asked:
I have the choice between a major bank’s online stock brokerage, which charges $30 per trade, or a small brokerage, which charges a few dollars per trade.
I have the choice between a major bank’s online stock brokerage, which charges $30 per trade, or a small brokerage, which charges a few dollars per trade.
What is the worst case scenario that can go wrong with a small brokerage? Can you lose your investment or some other undesirable things could happen?
Tagged with: Investment • Online Stock • Stock Trade
Filed under: Online Banking
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You can lose your investment either way. There is no sure thing that you will make money playing the stock market. Personally I think, you should do some research your self before investing and maybe do something like scottrade.
I’ve used TradeFreedom for 2 yrs. 9.95 per buy. Free sale. No probs. Pain in the “a” to set up (bout 2 weeks) but easy after that. Need one thou to open acc. Keep track of yer stocks on.
In my experience with many the many firms I have used, there is not a noticeable difference for the average person. In some high-end services, that charge a lot of money, they promise great price execution or a few other things. But in reality, it might not even be any significant difference. For most people, unless you’re a trader and doing daily trading, all those things really don’t matter to you and won’t make a difference. In either case, you are still the owner of the stock, and you’re not going to notice any difference. I would just go with the cheaper trades.
Check out their prices and their customer service. That is where the big difference is. I use interactivebrokers b/c for the type of trades I do, they are the least expensive and they have good execution.
You usually get what you pay for,
Not sure what or who you mean by a small cheaper brokerage firm, but if you talking major firms that give discounts, if you’re just a beginer, go with the cheaper firm
You’ll find that some of the more advanced investors will go with the larger firms since they have better trading platforms and provide nationally known research
Advanced traders like the larger firms since they have very good trading platforms, good order routing, and access to IPO The larger firms also provide discount for investors with larger value accounts and give traders discounts based on the volume of trading.
Usually with the smaller firms, as you grow in experience and expand your trading products, the smaller firm at time can not provide you with services that you need or want.