Monday, September 25, 2017

How to Pick the Right Brokerage

Picking the right brokerage for you is essential to gaining profits, as each brokerage has its pros and cons, and promotions that benefit the investor. Some investors would like to trade frequently, whereas others might want to hold a long position in the market, so the trade fee isn’t applied to multiple transactions. There are a wide selection of brokerages that each have special fees and commissions. The comparison chart below sums up the top brokerages in the U.S:

One of the best brokerages currently is Robinhood. Robinhood can be downloaded as an app on any phone or tablet. This brokerage has no trade fees and no account maintenance requirements. They recently launched a Robinhood Gold version that offers margin trading for free for 1 month, then $13-15 per month to margin $1,000-3,000, with no interest. This app is great because it features a very friendly user interface. This brokerage has grown tremendously within the last five years, and has been targeting the new generation of investors as its audience, because of its cheap price compared to other brokerages. However, the main con for this brokerage is that it does not offer the same premiums as a platform like E*Trade does. Robinhood lacks in depth analysis and news, but these can be achieved through other research means. The premarket and afterhours time frame on Robinhood is also limited. Premarket opens at 7:00 AM for trading and Afterhours ends at 6:00 PM. E*Trade is $9.99 per trade with $100 minimum balance to open a checking account. It provides heavy analysis and all the research necessary to set up a investor for success. I highly recommend both a Robinhood account since it is free and another brokerage account to use as a resource for research.

Edited by Shaheer Hassan


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