Kiplinger’s Top Discount Brokers

While perusing the latest issue of Kiplinger’s Personal Finance, I ran across an article critiquing the top online brokers (see also my earlier article on the best online discount brokers). They rated twelve different brokers based on commission, research/tools, commissions/fees, investment choices, and ease of use, and customer service.

Here’s what they came up with:

  1. Fidelity
  2. Charles Schwab
  3. Muriel Siebert
  4. TradeKing
  5. E*Trade
  6. OptionsHouse
  7. TD Ameritrade
  8. WellsTrade
  9. Firstrade
  10. OptionsXpress
  11. Zecco
  12. Scottrade

Frankly, I was surprised to see TradeKing and E*Trade back in fourth and fifth place, as they’re both popular among FiveCentNickel readers. Moreover, SmartMoney picked E*Trade as their top online broker, and TradeKing has received rave reviews for their combination of excellent customer service and cheap trades.

Looking further down the list, Zecco came in second to last despite their free trades. When it comes to Zecco, people either seem to love them or hate them. However, if you don’t have a lot to invest and you’re trying to keep your costs as low as possible, it’s hard to argue with free.

6 Responses to “Kiplinger’s Top Discount Brokers”

  1. Anonymous

    I do not see Interactive Brokers (IBKR) on this list. You can trade stocks,bonds,options,futures, and currency. I think they just started offering some mutual fund companies. Their commissions are only $1 for first 100 shares then drop to 1/2 penny a share . Cheapest in the industry unless your high volume trader. Great execututions. Have used them for over 5 years.


  2. Anonymous

    Been using Zecco, don’t need much customer service, but I am annoyed about their 5 day holding period for ACH transfers. Means you can’t hurry and move money in to buy stock on sale.

  3. Anonymous

    I love Fidelity! I’ve been a satisfied customer now for over 10 years and must say that they definitely deserve the top spot. I just wish their commissions were a little less.

    I am also an E*Trade customer and can say that they have improved over the past couple of years, but still fall short of Fidelity.

  4. Anonymous

    Wow – I wonder why they ranked Scottrade so poorly. I’ve had an account with them for a number of years now and am constantly amazed by their superior customer service.

    Granted, I don’t trade very often, but ranking them even lower than Zecco (whose customer service is abysmal in my opinion) seems odd.

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