WHich is cheaper, Ameritrade or E Trade?

Question

I want to start trading stocks online. I'm a complete newcomer to the whole thing. Which website is cheaper for someone who won't trade a lot, but just a few times a month? And how can I learn about trading without getting a broker or stuff? Any helpful websites that explain everything in very simple terms?

If you can answer any of the above, then please do.

Answer 1

I have used TDAmeritrade for several years and am very well satisfied.  Their fee for trading is $9.99 per order.  If you submit a limit price order good for the day, which for whatever reason cannot be filled in one lot, but is filled in several separate lots, the total fee is still only $9.99 for the complete transaction.

I think AOL Financial News and Yahoo Financial News are both better news sites than Ameritrade.  Overall, I am happy with the site.

I know nothing about E Trade.

Answer 2

If you are new to investing, you should definitely check out Investopedia ( http://www.investopedia.com/ ).  It's a great website to learn about investing in the stock market.

There are ways to trade without a broker.  You can buy stocks directly from a company through a dividend reinvestment program (DRIP).  Not all companies offer this though so I would recommend just going through a broker.  Discount brokers aren't that expensive anyway.

In terms of the commission rates, Ameritrade ($9.99/trade) is cheaper than Etrade ($12.99/trade).  Etrade also has maintenance fees ($40/quarter) if you do not meet certain trading requirements.  However, both of these discount brokers are very expensive compared to Firstrade ($6.95/trade).  I've been using them for quite awhile now and have had no problems at all.  Their website is very easy to use and they have excellent customer service.  I would definitely recommend you to check them out.

Firstrade ( http://www.firstrade.com ) currently has a refer-a-friend program, so if you're interested in opening account with them, email me for a referral code. It's a win-win situation because you'll get your first 5 trades free.