What is the best Online Broker?

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Permalink Reply by Mark Hodge on December 21, 2009 at 3:18pm

I see this post is from a few weeks ago, so hopefully this doesn't come too late...

You have some good questions, but to do them any justice and for the Traddr community to really help, it would be important to know the markets you trade, and the type of trader that you are.

Why? If you are a position trader or swing trader using end-of-day (EOD) data for entries and know how to place an order, your basic online platform that is available with online brokerages would be adequate. If you are a more active trader or day trader, speed of execution is a must and you should consider a broker that has a software-based order entry platform. It is also important to know the type of orders you will be using because many (but not all brokers) offer advanced orders (contingency orders, bracket orders, etc).

Although many online discount brokers now offer comparable features with software based trading platforms AND online platforms, this can vary from broker to broker, so here is a list of questions to ask your potential broker while making your decision:

What is the minimum balance to open an account?

What are commissions for the markets I will trade (make sure this is all-inclusive for futures so you compare apples to apples)?

What are margin requirements for the markets I will trade (if applicable)?

What types of trading platforms do you offer (web, software, both)?

Are there any inactivity or monthly fees?

Are there additional charges for phone orders (assuming you will be placing orders online)?

Many new traders put all of their energy into finding a broker with the lowest commissions, but this isn’t everything. Your broker should be part of your trading team, and it’s okay if you pay a little more in commissions to get the guidance and features that YOU need…sometimes you get what you pay for.

Since you asked here are a few to consider…

Futures – Infinity Brokerage (www.infinitybrokerage.com) is great, they offer competitive margins and commissions, great service, and a good trading platform.

Stocks & Options – In addition to the ones you mentioned, OptionsXpress (www.optionsxpress.com) , Interactive Brokers (www.interactivebrokers.com) , Charles Schwab – but usually better for larger accounts (www.schwab.com), Trade Station (www.tradestation.com) Light Speed (www.lightspeed.com)

Forex – Since I trade currency futures instead of Spot FX, I’ll leave this for another Traddr member to comment on.

On another note, charting is usually a separate consideration and again will depend on the trader’s needs.

Do you need historical data for backtesting?

Do you want to run automated tests and program custom indicators?

Do you want “replay” capabilities to test strategies and ideas in a simulated environment?

For these types of features a more advanced charting package is required. I personally like Genesis Financial’s Trade Navigator (www.genesisft.com ) Infinity can be linked to Trade Navigator as well as brokers like PFG. Many traders also swear by Tradestation which would offer a comparable solution.

If you just need basic charts and indicators without a lot of intraday historical data, online charting platforms will usually be fine. During search, your potential broker and charting platform should be able to offer you a trial to test the platform’s features before deciding on the best solutions for you.

Hope this helps!
Coach Hodge

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Permalink Reply by Kriston Renshaw on December 27, 2009 at 1:56pm

For the STOCKS/EQUITIES Market im with
http://www.iii.co.uk/

No admin or management fees, GBP10 dealing fee



For FOREX Im with
http://www.gftforex.com

I have had no problems with them. Very Helpful and friendly. Orders fill quickly.

for more on forex you shoould have a look around these:


http://www.forexfactory.com/forumdisplay.php?f=74

http://www.babypips.com/school/

http://www.babypips.com/tools/forex-brokers-guide/

http://www.babypips.com/tools/forex-brokers-guide/compare.php

On babypips you will find a section...WHAT TO LOOK FOR IN A BROKER... (ABOVE)



Good Luck!!

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Permalink Reply by Marek Pawlewski on January 13, 2010 at 4:05am

Hi,

I use ThinkOrSwim. Probably one of the best, especially for trading options, but also perfect for stocks.

Marek.
http://stockflags.blogspot.com

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Permalink Reply by BasicAssumption on January 29, 2010 at 9:01am

I have no complaints about Forex-Metal broker (Forex and CFDs).

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