Choosing The Right Broker

Choosing the right broker is an important decision that you must make before you start trading.  Throughout the years, I have used a number of brokers (trading platforms) and have found each to have Pros and Cons.  My personal preference is to use TOS (thinkorswim) because their trading platform is just feature rich and I currently use TOS for my personal trading!!

Here is a brief summary of my experience with the various brokerages!!

ETrade:  Offers many portfolio management tools and allows you to trade a variety of investment products (i.e. bonds, futures, stock, options, etc).  Commissions are on the high side and their options trading platform is very basic – no risk profile!!

Interactive Brokers:  Offers the lowest commissions of any broker, but their trading platform is not very user friendly.  They charge a small fee if you call into the trade desk to place/cancel an order or if you cancel an order yourself on the trading platform.  On the upside, they allow you to trade a variety of investment products.  No risk profile for options!!

Trade King:  Offers low commissions when compared to other brokers and allow you to trade a variety of investment products (i.e. Stocks, options, ETFs, bonds, etc.).  Have great support and you can call-in to the trade desk to place orders without incurring heavy charges.  The options trading platform has a lot of features, including risk profile!!

Thinkorswim (TOS):  The commissions are a bit on the high side, but still lower than ETrade and can be negotiated with the right approach.  Their trading platform is made for options traders and you can also trade stocks, bonds, FX (currency trading), etc.  The options trading platform is “feature” rich and you can call into their trade desk to discuss you trade with an actual broker.  No charge for canceling or modifying orders.

Disclaimer:  I use TOS for my own personal trading and at the time this post was published, I had no relationship/affiliation with the brokerage firm.