I’ve written in the past about the best online discount brokers, and I also did a preview of SmartMoney’s best and worst broker ratings. However, I completely forgot to wrap it up the SmartMoney business with a discussion of the top overall broker in their competition, so… Here goes…
While TradeKing took top honors as best discount broker in each of the last two years, they fell back to third place this time around. To be fair, this was most likely due to a change in the ranking scheme. While SmartMoney used to split brokers into three categories (Premium, Full-Service, and Discount), they’ve started throwing everything into one big category. As such, TradeKing is now competing against the higher-end outfits, and they fell down a few pegs because they don’t offer banking services.
So, with TradeKing out of the way, who took top honors? If you’ve read my earlier coverage of the SmartMoney competition, you won’t be too surprised to learn that E*Trade wound up ranked as the #1 overall broker. E*Trade actually offers a nice combination of (relatively) trades, good customer service, and integration with their online bank.
Here’s a complete rundown of SmartMoney’s rankings:
- TD Ameritrade
- Charles Schwab
- Muriel Siebert
- Interactive Brokers
- Banc of America
- Wall Street*E
- Zecco Trading