- The Wisdom Journal - http://www.thewisdomjournal.com/Blog -
How Much Does It Cost To Open An Online Brokerage Account?
Posted By Ron On October 11, 2012 @ 1:00 PM In Investing,Personal Finance,Reviews | Comments Disabled
I recently received this email from a reader named Jeff:
Ron, how much does it take to set up an account at one of the online brokerages you’ve written about? I don’t have much to get started but I’d like to open a Roth IRA and maybe even a regular taxable investment account. Thanks for your reply and I love your site. You have a TON of information and I’m trying to sort through it all. I have especially enjoyed your recent series on Exchange Traded Funds (ETFs).
Thanks Jeff. Investing in your future really doesn’t cost that much, though some brokerages do have minimum starting investment amounts, others allow you to set up your online brokerage account without funding it at all! That means you can get your brokerage account set up and ready to go when YOU’RE ready to invest  (and remember: you have to be ready ). Of course, to earn a return you have to put up some money somewhere eventually.
And please, DO look at opening and funding an online brokerage account as an investment in your future. One of the best descriptions I’ve heard is that you’re sending money to your future self. That rang true for me and is one of the reasons I invest  my money.
Here’s a table of the minimum starting investment required at several of the largest and most reputable online discount brokerages:
|Broker (click to view)||Minimum Starting Investment||Stock Commission||Notes|
|Scottrade ||$500||$7.00 per trade||Well established, 30 year old company with local branches in dozens of cities, probably near you.|
|E*trade ||$500||$9.99 per trade||Popular and well known for their “talking babies” ads and their long history in the business.|
|TradeKing ||None||$4.95 per trade||Highly rated broker that has won awards its trading tools and customer service over multiple years.|
|tradeMONSTER ||$2,000||$7.50 per trade||Ranked by Barron’s as among the best of the best in online brokerage houses.|
|Zecco ||None||$4.95 per trade||A deep discount brokerage that allows you to trade from your Facebook  account. Trading from Facebook ?|
|Sharebuilder ||None||$4.00 per trade
(on automatic plan)
|No account minimum, no investment minimum, no inactivity fees and an easy automatic investing program.|
||None||$9.95 or $0.01/share for over 1000 shares||One of the easiest online brokerages to set up. No paper forms or signatures required.|
||$1,000||$3.95||This is basically the least expensive online brokerage for most traders and investors.|
I personally use Scottrade  and I really love their Knowledge Center and how incredibly easy it is to use the site. I can read up on the latest relevant news, get investment education, and get tax tips, investment strategies and much more. For a finance junkie like me, it’s incredible.
That said, if I were starting out again today with an online brokerage, I think I’d probably go with either optionshouse  or Sharebuilder . You just can’t beat their trading commissions and when you’re investing small amounts, trading commissions are an important consideration.
For example, if you’re investing $500 and have a trading commission of $10, you’re actually only investing $490. You’ve already given up 2 percent!
Another great “option” at optionXpress  is their Virtual Trading Account with $25,000 in play money. You can experiment with your trading ideas with no risk.
Of course, if you’re not comfortable making your own investment decisions, there’s always WiserAdvisor , which matches you with professional financial planners in your area. You’re able to choose between different financial advisors similar to the way LendingTree  or InsureMe.com  matches you with mortgage  companies or insurance agents.
Online brokers are eager to get your business and as a result, competition is fierce! How that benefits the beginning investor is that these brokers will do whatever it takes to make things easier to get you up and running.
Article printed from The Wisdom Journal: http://www.thewisdomjournal.com/Blog
URL to article: http://www.thewisdomjournal.com/Blog/how-much-does-it-cost-to-open-an-online-brokerage-account/
URLs in this post:
 Tweet: https://twitter.com/share
 invest: http://www.thewisdomjournal.com/Blog/go/scottrade.php/
 you have to be ready: http://www.thewisdomjournal.com/Blog/why-people-dont-invest/
 E*trade: http://www.thewisdomjournal.com/Blog/go/etrade.php/
 TradeKing: http://www.thewisdomjournal.com/Blog/go/tradeking.php
 tradeMONSTER: http://www.thewisdomjournal.com/Blog/go/trademonster_information.php
 Zecco: http://www.thewisdomjournal.com/Blog/go/zecco_information.php
 Facebook: http://www.facebook.com/profile.php?id=1019456723
 Sharebuilder: http://www.thewisdomjournal.com/Blog/go/sharebuilder.php
 optionshouse: http://www.thewisdomjournal.com/Blog/go/optionshouse.php
 optionXpress: http://www.thewisdomjournal.com/Blog/go/optionsxpress.php
 WiserAdvisor: http://www.thewisdomjournal.com/Blog/go/wiseradvisor.php
 LendingTree: http://www.thewisdomjournal.com/Blog/go/lending-tree.php
 InsureMe.com: http://www.thewisdomjournal.com/Blog/go/insureme.php
 mortgage: http://www.thewisdomjournal.com/Blog/mortgage-basics/
 The Wisdom Journal: http://www.thewisdomjournal.com/Blog/
 subscribe today: http://www.thewisdomjournal.com/Blog/welcome.php/
 Twitter: http://www.twitter.com/wisdomjournal/
 Facebook: http://www.facebook.com/pages/The-Wisdom-Journal/147054648679421
 »crosslinked«: #
Copyright © 2008 The Wisdom Journal. Some rights reserved.