Forex is an international global market. The quality of the goods here are a currency. The name Forex means “foreign exchange”. It is quite acceptable to compare this market with the exchange office, in which one currency is bought (or sold) for another. For example, if in the near future it is known that there will be a price increase in the US dollar, then this circumstance can be used to make a profit by buying the US currency and reselling it at a favorable price for yourself. Financial transactions in the international market occur in a similar way, but with larger amounts.
Best Discount Stock Brokers 2019
The best discount brokers of 2019 are presented to your attention — this rating of dealing centers will help traders of the currency market to choose a broker for work. The right choice is one of the most important components of success in Forex. After all, the reliable work of the dealing center and honesty in relation to customers are very important in the foreign exchange market.
This broker provides its clients with a high-quality trading platform, the development of which was attended by leading IT specialists, analysts, traders. The user interface of the platform is fully suitable for professional trading and for Amateur trading. As part of the platform there are traditional binary options on standard assets and gaining popularity turbo options, the expiration time of which is 60 seconds. The list of assets of the IQ Option trading platform has recently been replenished with a unique Bitcoin Index, which allows trading operations regardless of the time and days of the week.
The cost of real contracts starts from $1. This is not the lowest price on the market – some brokers already give the opportunity to trade contracts from 1 cent, but it is still competitive. There are two types of contracts available for trading: binary and turbo. The first allows you to change the expiration time in increments of 5 minutes, the second-in increments of 15 minutes. The payout percentage of the option may vary depending on the time, type of contract and trading instrument (sometimes up to 85%). Currency pairs, commodities, stock indices, and stocks are available for trading.
TD Ameritrade4.6/5 in this category.
For American investors and traders using the services of this broker is the optimal solution with many assets optimized for securities trading, including over-the-counter spot currency trading, as well as exchange options and futures (including bitcoin futures). The project, known for its powerful options trading platform on which stock and currency trading are available, was acquired in 2009 by the large American brokerage house TD Ameritrade and has since continued to develop as an innovative brand within the company.
Charles Schwab4.2/5 in this category.
The Charles Schwab Corp-one of the old-timers of the American financial market, working in the field of banking and trading since 1971. the Broker manages its own exchange-traded investment funds, provides services for trading stocks, futures contracts and options. Offers fixed income investment strategies and margin lending.
E*TRADE4/5 in this category.
Investing with E*Trade brokers is a quality alternative to independent trading. On the website, you can choose investment portfolios that bring more than 5% profit per year. It is a stable investment from $5000, which protects money from inflation. E*Trade’s services also include access to investing in hedge funds. These are quite complex tools, they are suitable only for experienced users. Depending on the selected product, the minimum investment amount is 1–5 thousand dollars.
Interactive Brokers4/5 in this category.
Since Interactive brokers is a provider with direct withdrawal of transactions to the interbank market, a Commission is deducted for each order. For example, the Commission when trading shares is $0.005 per unit of the asset (which equates to an average of 8–10 cents for every $1000 turnover).
This terminal, regardless of the version used, has several features:
- Extensive user interface customization options thanks to Mosaic technology.
- Special addition Option Lab, thanks to which you can not only add built-in trading tools but also implement external strategies and trading systems.
Initially, it may be difficult for a beginner to understand the platform system, but over time its potential is revealed at 100%.
The table below will help you compare the main fees of organizations and choose the best discount broker for this year.
|Feature||Iqoption.com||TD Ameritrade||Interactive Brokers||Charles Schwab||E*TRADE|
|Stock Trade Fee (per trade)||$0.00||$0.00||$0.00||$0.00||$0.00|
|Stock Trade Fee (per share)||N/A||N/A||$0.01||N/A||N/A|
|Options Base Fee||$0.00||$0.00||$0.00||$0.00||$0.00|
|Options Per Contract Fee||$0.00||$0.65||$0.50||$0.65||$0.65|
|Mutual Fund Trade Fee||$49.95||$49.99||$14.95||$49.95||$19.99|
|Broker Assisted Trades Fee||0.25%||$44.99||$50.00||$25.00||$25.00|
|IRA Annual Fee||$0.00||$0.00||$35.00||$0.00||$0.00|
|IRA Closure Fee||$0.00||$0.00||$50.00||$50.00||$60.00|
Is it expensive to trade stocks with the best online discount brokers?
Those who want to make money on the stock exchange will have to prepare for additional spending:
- Broker commissions.
- The stock exchange commission.
- Monthly maintenance fee.
- Commissions for the use of programs for operations on the exchange.
- Commission for depositary services (maintenance of accounts on which securities lie).
- Additional fees may arise during the investment.
The largest commission, as a rule, is the broker’s one. One company may have 0.5% of the share price, the other — 0.055%. This means that when buying securities for 100 thousand rubles, a broker in one case needs to pay 500 rubles, and in the second — 55 rubles.
How to Compare Fees of discount stock brokers
The investor’s costs in buying and selling securities on the stock exchange do not consist only of the taxes. The exact number of items of expenses and their size depend on the terms of service of the particular broker and the tariff plan that you choose.
Broker’s commission for granting access to the exchange.
It is charged at the end of the month or every day on which you have concluded at least one transaction. No transactions per period — no commission. Often the user can find tariff plans with a floating rate: the higher the amount for which the client has already concluded transactions with the help of the broker, the lower the percentage that will be valid for him. Depending on the specific tariff plan, the current value of the floating rate can change both within each day and at the end of the previous day or the previous calendar month. In some cases, the Commission may be determined not as a percentage, but as a fixed amount for each transaction (for example, $0,5).
Fee for maintaining the brokerage account.
In contrast to the monthly minimum commission is payable regardless of whether you have made transactions with securities or not. As a rule, it is $2–5 per month and is not withheld if the client’s commission for the expired period exceeds this amount. Individual brokers do not have a fee for maintaining a brokerage account.
Fee for depositary broker services.
Undertakes the custody of securities and the processing of transactions with them. It can be charged daily, at the end of the month or once a year. Usually, it is $2-5 per month and is not withheld for the months in which you did not conduct any transactions on the exchange, but simply stored your papers. Depositary tariffs of top discount brokers are usually published separately from the tariffs for all other brokerage services. Therefore, it is important not to forget to find them and study them separately, when comparing the terms of service of different brokers.
The Commission of the exchange when buying or selling shares.
It is 0.01% of the value of the package, but not less than 3 cents on the transaction. When buying or selling bonds, the exchange Commission is calculated by the formula: 0.0001% * K, where K is the number of calendar days remaining until the bond is redeemed. Commission when crediting or withdrawing money from a brokerage account, as a rule, is about 0.2-1.5% of the transaction amount. Most often, brokers keep it only when withdrawing funds, and some do not charge at all.
Payment for other broker services.
It is useful but optional. For example, access to an extended news feed, SMS-informing about the market situation and the status of your account, the printing of any paper documents, etc. can be paid.
Final Thoughts about finding top discount brokers
If at the first stage it is difficult for you to understand what exactly you want from the broker — choose simplicity. Brokers with simple rates will allow you even with a little amount of money to look around and get practical experience on the stock exchange. Investments on the stock exchange similar to an enterprise. You need to start somewhere, and then work day after day to gradually improve the result.
Look for new ideas, adapt to changes in the economy, legislation, the market. The broker is only part of this process or even just your tool. If you don’t work with one, you’ll find another. Do not chase the lowest Commission on transactions, because you do not yet know how many transactions and how much you will make. Instead, pay attention to mandatory payments. Over time, you will understand how the commission affects your result, and if necessary, you will be able to find a platform with more suitable conditions among the best online discount brokers.
Feel free to contact support and ask a question. You can not only find confirmation of what you read in the rates but also learn additional nuances. And also be able to estimate the speed of reaction to your request.