It has been a little while since I have reviewed online brokerages and I think it is about time to take another look at what some of them have to offer. The information in my previous reviews is somewhat old, so the major benefits and prices may need to be reviewed.
The reason that I bring this up is that I am currently reviewing my portfolio and I am wondering if I should consider moving my brokerage account. I currently have accounts with Fidelity (IRA), Scottrade (Open account), and Credential Direct (Canada).
Since spring and summer tend to be a little slower as far as investing goes, I’m sure that some of the brokerages are going to be promoting trade specials for new accounts and possibly creating new active trader promotions.
Several online brokers, such as E-Trade, are offering high interest savings accounts for your cash position. This is an attractive feature for me because I like to save some cash for buying opportunities that may arise. That said, with the recent new highs being made each day, the buying opportunities are few and far between. However, it is important to have capital ready to deploy when one of those great dividend growth stocks gets itself into buying range.
I would encourage you to read through the features and benefits of each broker that was reviewed in the previous articles and decide which options or features are most important to you. If you are like me and invest in high quality dividend paying stocks, you won’t be doing much trading, so the active trader prices may not apply. That is, of course, unless you are currently building multiple large positions in dividend growth stocks with a large amount of cash.
I would highly suggest that you deal with a reputable online broker even if it means paying a little bit more per trade. Some of the newer “fly-by-night” operations make me a little nervous with their too good to be true offers.
Selecting the right online broker is like investing in a stock…you have to be prepared to investigate and complete your due diligence to ensure that you are getting the most bang for your buck!
Which online broker do you use?