discount brokerage comparison

Depending on how you invest and what your strategy is, discount brokerages can make a big difference in the profitability of your strategy.

For example, day-trading strategies are very much affected by the costs associated with trading very frequently.

Many of the online brokerages are discount brokerages.

The online environment allows for cheap operating costs, which can be transferred to the client.

If the brokerage has its core operating strength at executing the trades clients make (and offers very little in terms of other services), the discounts over full-service houses can be substantial.

Discount Brokerage Comparison

Even among the discount brokerages there are lots of differences to be found.

There are different rankings for discount brokerages available. Here are the most important rankings.

Discount Brokerage Comparison - SmartMoney 2004 Broker Survey

The SmartMoney rankings are based on 246 criteria, and the ranking process rewards firms that excel in all areas and punishes those that specialize in one or two.

Premium Discount Broker Rankings

1. Fidelity Investments
2. E*Trade
3. Charles Scwab
4. USAA
5. T.Rowe Price
6. Vanguard

Discount Broker Rankings

1. OptionsXpress
2. Muriel Siebert
3. TD Waterhouse
4. Ameritrade
5. Harrisdirect
6. Firstrade
7. Scottrade
8. Wall Street Access
9. BrownCo
10. Wall Street*E

Discount Brokerage Comparison - J.D. Power & Associates Online Investment Firm Ratings

According to the J.D. Powers study, released on September 14, 2004, cost and customer service have become the primary drivers of satisfaction with online brokerage firms, followed closely by the integrity of the firm.

Trade execution, Web site capability and information resources also impact investor satisfaction. The industry has experienced an upswing in satisfaction overall and across all factors.

Online Brokerage Rankings Based on Overall Customer Satisfaction

1. Scottrade
2. BrownCo
3. Fidelity Investments
4. Smith Barney Access
5. American Express
6. Charles Schwab
7. TD Waterhouse
8. Harrisdirect
9. Ameritrade
10. Merrill Lynch Direct
11. E*Trade Financial

Discount Brokerage Comparison - The Keynote Broker Web Transaction Performance Index

The Keynote Broker Web Transaction Performance Index shows the average response times and success rates for creating a standard stock-order transaction on selected brokerage Web sites.

The sites that appear in the Index are selected based on publicly available market-share information published in The Wall Street Journal and other reliable industry sources.

The Index is updated weekly, and you can see the latest results at the Keynote broker web transaction performance index (opens up a new window) for all the major brokerages.

These brokerages include Ameritrade, BrownCo, Charles Schwab, E*Trade, Fidelity,Firstrade, Harrisdirect, Merrill Lynch, TD Waterhouse, and Wells Fargo.


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