TradeKing vs. Firstrade :: Lowest Cost Online Stock Trading

Online Stock Trading: The TradeKing vs. Firstrade Battle

If you are considering investing in some securities, what you need first is a brokerage account. It is quite difficult to compare the qualitative differences between different each brokerage. However, you can easily compare the quantitative differences-the fee schedules of each.

A recent survey found Firstrade to be the online trading broker which offered the most no-load mutual funds without a transaction fee. There are absolutely no minimum deposit requirements to open an account in Firstrade.

Firstrade has low fees; $6.95 market, $9.95 limit. The company also has free real-time quotes and also allow you to trade in penny stocks for the same cost. Another advantage is that, for your first six months, you get $20 a month in free commissions. Firstrade also has excellent banking amenities as well as efficient bond trading. It also provides free dividend reinvestment which is an unusual feature, according to some investors, in the low end of the brokerage market. There is no activity or account maintenance fees either. However, some investors feel that Firstrade is suited more for people who don't intend to make their living out of the stock market; for the casual investor. Also, there is only a web based trading platform; no stand alone one. The fund transfer speed is also purported to be slow. You cannot buy fractional shares here either.

In a survey of Best Online Brokers, TradeKing was selected recently as one among the best five Web-based online brokers. TradeKing was ranked second in the list for the criteria-‘usability' and ‘cost.'

TradeKing has often been hailed as having the lowest commissions. However it also has a few pricey quirks; there is a $14.95 transaction fee for buying mutual funds. Another feature of TradeKing is that it offers a non-tiered commission schedule in such a way that all its investors get the same rates regardless of their account balance or trade activity. The trades are just $4.95 and $0.65 per options contract. Like Firstrade, TradeKing too doesn't have a minimum account balance which feature would be of great benefit to somebody who is just starting an account. With TradeKing, you can also set up an IRA account for your retirement as well as an education savings plan for your kids or even for yourself.

TradeKing has also been known to offer a money-market ‘sweep' account. However, though TradeKing has low commissions, it charges $20.00 for wire tranfers back to your bank.

Asha Prakash

Hi-Tech Editorial Division