Which online broker is best?
Hi! I'm still in high school and I want to start investing. Which online broker should I use? My dad uses E*Trade but I want to see if there's a better option.
Should I want to in the future, can I switch brokers?
How much money should I start with? (keeping in mind that I'm not even in college yet)
- A nobodyLv 78 years agoBest Answer
In North America you must b e 18 to open a brokerage account in your name. A parent can open a custodian account using your social security number and when you turn 18 the assets in the account can be moved to an account in your name.
The custodian must manage the account, it is illegal for the custodian to give access either to you or to another adult.
All major brokerage firms provide their clients with on-line services, including trading platforms, latest market & financial news and research. You need to select the site that is best for you Traders have requirements in a site, while investors have other requirements.
Although most sites are geared to general securities and commodities, however customers may have special needs for the types of products they trade, and the markets in which they trade. For example I use Fidelity for investing. Scottrade for equities trading and ThinkorSwim for option trading
It seems that the most popular firms for on-line investing/trading all of which provide excellent platforms and services are; Scottrade; Chas.Schwab; TDAmeritrade; Fidelity; E-Trade and Thinkorswim
Since your dad is already with E-Trade, you should have him open a custodian accunt for you.
A customer of a brokerage firm can always switch firms. The easiest way is to have the new firm complete ACATS form and in about 7 days the account is moved.
Most firms require a new account to have at least $500. You can start investing with this amount you will need more if you are going to trade.Source(s): from the street
- 8 years ago
I personally use TD Waterhouse. It makes it easy for me since I also bank with TD. Even though TD Waterhouse is considered a discount brokerage, it still costs a flat rate fee of $29 per trade for commission. Of course that changes if you have a lot of equity with them -- if I'm not mistaken you get the greatest discount by having more than $100,000.00 worth of equity with them -- and then on top of that you have to pay a yearly maintanence fee for your account, I don't since I only have a TFSA with them. I don't pay attention to any of the trading fees since I mostly buy mutual funds with no load.
Keep in mind that you have to be eighteen to open such an account with TD Waterhouse, I'm not sure if it's different with other companies or if this is a legal issue? If you're not eighteen then perhaps you could either get your dad to open an account or possibly give him money to invest with E*Trade until you're eighteen.
As far as switching brokers goes, I have never tried it so I wouldn't know, but as has been said, there's probably going to be a fee.
- tjfinvestorLv 48 years ago
Hi nice that you are thinking for yourself but, in this case e-trade is fine for you. You can always switch brokers but, you may have to pay a fee to close or transfer your account. Go with your Dad's recommendation.
- Anonymous8 years ago
TDWaterhouse, or TD ThinkorSwim.
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- Anonymous8 years ago
Here a online stock broker review, it all depends if you trade regularly, what kind of securities..Source(s): http://yourportfolio101.com/