The good news for investors on a budget is that they can still participate in frequent day trading and not have to pay excess fees, as they have gotten a lot cheaper over the years, thanks to top discount brokerage firms online. The primary fees usually charged by brokers, like commissions or trading fees, are something every stock investor has to consider carefully, and those fees are now lower than they’ve ever been.
It’s important to understand the difference between discount brokers and full-service brokers. The discount variety, obviously, isn’t going to do all your research for you. A good discount brokerage company WILL provide you with the resources and educational tools you’ll need to conduct your own research, however. They might even offer “robo-advisors”, while not human, are still IT robots that are programmed to help traders with decision making by taking out the human elements of trading. With a robo-advisor, you will be less likely to fall prey to your own emotions.
There are still some online discount brokers that charge unreasonable fees, like inactivity fees. Even if you are an active daily trader, you never know when something might happen that could cause you to suddenly stop making trades, or slow down on them. This is something to think about when looking for the top discount brokerage firms. Carefully read over the fees and commissions to see if any of them seem unreasonable or useless.
In today’s global economy, it’s also good to go through a brokerage firm that offers international opportunities. If there are dozens of international exchanges in many countries around the world, with very small fees and commissions to worry about, that is a good thing – especially if you get access to global markets 24/7.
Top Discount Brokerage Firms With Minimum Requirements
There might be a minimum requirement on the money you use to start an account with a particular firm. It depends on the firm’s policies and what kind of account you wish to start, such as a cash account or margin account.
Ideally, sign up for a company that offers various investment opportunities, and not just penny and OTC stocks. It’s always worth considering investing in bonds, options, mutual funds, EFTs, and even Forex for the purpose of currency exchange.
Some accounts might even be insured, by being protected by SIPC (Securities Investor Corporation), so this is something you’ll want to look into.
Among the top discount brokerage firms online, the one you’ll most likely want to start with is Zacks Trade. It’s a great option for daily traders who want research, no unnecessary fees to worry about, and a variety of investing opportunities. There is great customer service as well.