ETrade vs. Scottrade vs. Ameritrade: Which is Better?

E*Trade, Scottrade, and Ameritrade are today's leading online brokerage companies that offer a simple way to buy and sell stocks. If you're not an experienced investor, but still want to take a plunge into the stock market, learning about different options available can help you find out the benefits of each. Still, each brokerage offers different types of accounts and fees depending on the level of activity each period. Some also charge inactivity fees on top of variable commission rates and balance requirements. Knowing where to invest is the first step to building a successful portfolio. Here's a quick comparison of E*trade, Scottrade, and Ameritrade so you can make the best investment decisions:

E*Trade offers an extensive line of trading and investment services, covering many options in stocks, mutual funds, bonds, IPOs, Futures, and Options. The online resources are substantial, but may be intimidating for the beginning investor. E*Trade does offer a user-friendly help center to guide you through rates, news, and different account options but requires a fair amount of review to get started. Highlights of E*Trade offerings include:

• $6.99-$9.99 flat rates depending on number of stock and options trades with fees up to $12.99 for anything less than $50,000

• Mutual fund transaction fees of $19.99

• 1,000+ ‘no-load, no-transaction fee funds' for each account (but early redemption fees do apply)

• Asset allocation tools available online

• Access to advisors to help with asset allocation

Bottom line: E*Trade offers a variety of options for the seasoned investor, with premium services available for active traders. However, beginning investors may not find rates competitive enough to stick with them in the long term.

Scottrade is ideal for average and inexperienced stock investors, and offers competitive startup rats as well as low monthly fees. Highlights of scottrade accounts include:

• $500 account minimum requirements

• $7 flat rate for market and limit orders-no extra fees to worry about

• No inactivity fees; you can leave your account alone for a period of time without worrying about stacking up fees

• Three platforms to choose from: Scottrade.com, scottrader, and scottradeElite.

Bottom line: Scottrade is a great place for beginning investors to get started, and can help build a portfolio in a short amount of time.

Ameritrade offers a very easy trading platform with its online services. It boasts $9.99 internet equity trades with no maintenance fees, so you don't have to pay any additional fees to get started with an account. Other highlights of Ameritrade include:

• Easy-to-access reporting and stock analysis each day

• Access to Ameritrade representatives throughout your state if you need advice or guidance

• A ‘Command Center 2.0' to make trading very easy and simple to follow

• Free trades for $45 and a $100 bonus

Bottom line: Ameritrade offers plenty of options for beginning investors, and is a great choice if you're looking for something simple and straightforward. The flat-rate is competitive, but do read the guidelines on which types of trades qualify under this program. If you need to speak with a representative or advisor, Ameritrade does make it easy to locate someone to guide you through the process.

Today's online stock trading websites enable you to buy and trade stocks with ease; you don't have to depend on a middleman to guide you through the process, and each one offers helpful tutorials to take you through the steps. Still, the services come at a price; be sure to read the terms and conditions of each brokerage to calculate the ‘real' cost of your transactions. Ameritrade and Scottrade offer convenient accounts for beginners, while E*Trade is best suited for a seasoned investor.