Best Stock Broker 2019 – Here’s what you need to know…


So, right now, I want to talk about the best stock broker. Now, here’s the deal. When you are trading, when you’re trading in general, you do need a broker. You need a stockbroker, or if you’re trading options, you need options broker. If you’re trading Forex, you need a Forex broker. Now, you know how I personally feel about Forex. I don’t like it at all. My favorite is trading stocks and options. So, this is why I want to talk about different stock brokers. I want to compare them. I want to tell you what to look for so that you know that you can make an informed
decision of who would be the best stock broker for you. I want to compare four different brokerages here for you. So, the first thing is we want to
know how much do we pay in commissions? Because when trading, you need to pay commissions to your broker. So, it is important to know how much does your broker charge you. And I want to compare commissions
for those of you who are trading stocks and I also want to compare commissions for those of you who are interested in trading options. Another thing that we need to know
is what about the platform? How good or bad is the trading platform? Because you do need a trading
platform to place the trades, right? You have to tell your broker
what you want to do and in order to do this, you don’t call the broker. You’re a self-directed trader. That’s a beautiful thing about
trading. It’s just you and the computer. So, you need to use their trading platform to tell the broker what you want to
do. So, we’ll have the platform and I’m moving my picture around
here so that you can see all this. The next thing is we want to compare the customer support. Especially when you’re new to trading, you want to make sure that you are getting customer support. So, this is what I’m writing in
there. And the last thing is the account minimum. For some of you, this might be important to know how much money do you need to put in the account. The brokers that I want to
compare… The first broker here is as Interactive Brokers. So Interactive Brokers is a broker that I personally use. Let’s actually go over to their website, and this is what I recommend, whenever you see this video right
now, commissions are subject to change, and they change all the time. So, let’s go to their website. Interactive Brokers so that you see exactly what the commissions are right now. I want to assume that you’re trading
100 shares. Let’s just make this
comparable. So, you just go to pricing commissions. We want to go for the tiered pricing here. You see, it’s really quick to find this information, and here, you see, they are… I’m making this a bit bigger, charging 0.0035 cents so three tenths of a cent to get this information. So, let’s calculate this. I’m using my iPhone here as my handy dandy calculator, and let’s say we are having 100
shares times 0.0035 means that it would be $0.35, and as you can see, it’s also the
minimum order. So, Interactive Brokers definitely dirt cheap here when it comes to commissions. So, for 100 shares, this would be $0.35. I promised you that we’ll also look
at options. So, if you’re trading one option, so per option that you’re trading on Interactive Brokers… Let’s take a look at the pricing
here. If the premium is more than $0.10, which most often will be, it is $0.70 per contract. So, $0.70 per contract with a minimum of $1, but as you can see, this is definitely one of the cheapest brokers that are out there. Now let’s talk about the
platform. Their platform… well, I personally think it looks like
from the 90’s. I have been using them since 1998 and I believe their platform is
still the same. I believe that the platform hasn’t changed much. So, let me just go back to the different comparisons here, and the platform, I would say it’s okay. I actually give it a minus. I do believe that there is better
platforms out there. Now the next one is customer
support. Now, the customer support… I’m not impressed with their customer support at all. When you try to call Interactive
Brokers or contact them by chat, it is actually quite hilarious. I might have a screenshot for you here. Let me see if I find this, a screenshot that I took… Here it is. Let me bring this up for you real
quick. It’s a screenshot where I asked them a very simple question about a combo selection tool. And after 20 minutes, I still haven’t received an answer
here. So, I don’t think that the customer
support is any good. They are not known for their
customer support, which I guess is fine. So, you get what you pay for. The account minimum… Let’s talk about this before we move
on to some other brokers. The account minimum is $10,000 so they are more geared towards traders who know what they are doing. When you know what you’re doing, and you don’t care about having the best platform, if you just want to enter an order, the platform is absolutely fine and does the trick. And as you can see, it is really, really cheap. Now let’s go to the other end of the
spectrum and on the other end of the spectrum there is, in my opinion, TD Ameritrade. And again, all of this is my
opinion. I’m not being compensated by any of these brokers to say any of these things. T.D. Ameritrade, on the other hand, is a broker. So, let’s go to their website to get an idea. Always make sure that you look up
the latest commissions that they have because they’re subject to change. Right now, as I’m recording, it is March… No, it’s April 2019, but always make sure if they might have better pricing by the
time you watch the recording of this
video. So, the pricing here… Pretty straightforward. As you can see, it is $6.95 per trade. So, compared to Interactive Brokers, that is a little bit more expensive. Let’s take a look at options here. So, for options you are actually paying $6.95 plus $0.75. So, this would be $7.70. Let me go back here to my handy dandy calculations. So, this here is supposed to be a
75. So, as you can see, $7.70, this is their price for trading one option. Their platform is called Think or Swim and I believe it is one of the best platforms out. Very powerful. I really like the platform. It’s almost too powerful. There’s so many features that in the beginning, it might be a steep learning curve, but let’s talk about their customer
support. I believe their customer support is
definitely one of the best in the industry. And here’s why. When you open an account with them, they know that they have
a really powerful platform. So, they call you and say, “Would you like us to walk you through this platform in
detail?” And when you say, yes, they will. So, this might be helpful for you. The account minimum, the account minimum is a whopping
$0. You can open an account with $0. So, this is where TD Ameritrade again, it’s on the other side of the
spectrum. Now let’s talk about a few other
brokers and I want to basically say they are all pretty much the same. So, if you look for example at E-Trade, if you look at Schwab, if you look at Fidelity, so… They’re all pretty good. Middle of the line here. So, what does this mean? Their commissions are usually $4.95. When trading options, it is $4.95 plus $0.65 per option. So, it is $5.60. Their platforms are usually pretty good. I’ll give them a plus, not a plus, plus. Their customer support is also
really good. The account minimums are usually anywhere between a $1,000-$2,000 so not as low as TD Ameritrade but you need to have money in your account anyhow to
trade. So, it’s $1,000 to $2,000. The last platform that I want to
talk about here so that we complete everything is Robin Hood. So, Robin Hood is a platform that is free. So, what are the commissions for
stocks? Free! What are the commissions for options? Free! Actually, we can make the screen
because hey, free is good. So, free is green. So, commissions for stocks, free. Commissions for options, free. So, you might wonder, how do they make money? Well, this is where they say here, very easy. They publicly stated in their
statements; they make money by selling your information. When you open an account, you have
to disclose your net worth. You have to disclose how much money
you want to put in the trading account, your liquid assets. So, in the account process, there’s quite a few things, and they will sell the data. They will also sell the data of say whether you make money, or you lose money, right? And this is all in the
disclaimers that you sign when you open an
account. You also don’t have a so-called margin account. And it might be difficult to short stocks. When you want to do this, you have to pay for their premium platform. And I believe, let me just quickly look… I believe that Robin Hood Gold. This is called their premium
subscription. It is $200 per month. Now, when you do this, you get a margin account. As a trader, you do want to have a margin account, and I’ll cover this in another video of what that means. Let’s wrap up this comparison and I’m going to remove my little bubble here so that you can
see it. There’s four different types of
brokers. There is deep discount brokers, as you can see, it is Interactive
Brokers. So, this is the first one here. Dirt cheap. Platforms, so, so. Rather bad customer support, pretty bad. And the accounting
minimum is pretty high. Then you have T.D. Ameritrade the 900-pound gorilla in this industry. Commissions are $6.95 so commissions are definitely higher. Often, you get a deal that you can
trade for two months for free but then you’re paying pretty high commissions. The platform, I believe one of the best platforms there is. Their customer support is
a really, really good. The account minimum is $0. So, then you have middle of the road brokers, and this, I want to say E-Trade, Schwab, Fidelity, Merrill Lynch, whoever else might be in this
category. As you can see, the commissions for stocks and options in between deep discount here, and also the expensive T.D. Ameritrade. Platform, good. Customer support, good. Account minimum is usually $1,000-$2,000. And then you have Robin Hood which is free. But again, you know there’s nothing free, that you always pay the price
somehow. So, you either have to upgrade to their gold platform, and when you do, it is $200 per month, or they’re selling your data. And the platform, I think it’s an okay platform. So, let’s just complete this here since we did have the
comparison. I believe their platform is good. It’s on mobile. So, it is on your phone. I don’t think that they have a
desktop application, so it is definitely on their phone, which for some of you, might be a minus because if you want to fiddle around on your
phone, you’re good. I personally prefer to do things on my computer, but this is just me. Their customer support, I don’t know much about the customer support. Never talk to them. I would probably say it’s neutral. I wouldn’t expect much in terms of
their customer support here because again, it is free. So, they have a help center on the website. These are the stock brokers for 2019. A quick update of what to expect. So, what is best for you? Well, if you know what you’re doing, you might consider Interactive
Brokers. Again, very little support. The platform does the basics. You can enter an order and that’s all you need, right? If you are a beginner, I would say start with TD Ameritrade. TD Ameritrade is very helpful. They answer your questions. They get on the phone with you. They provide excellent
customer support. If you already have an
account with E-trade, Schwab, and Fidelity, stick with them. They’re fine. There’s no need to switch brokers. I personally would not trade on Robin Hood so it’s not one of my
favorites. But again, this is your decision, and this is why I’m doing this video to show you quickly here that you can make an informed
decision of what broker is right for you. Well, I’m having a blast here and I hope that you’re enjoying this show as much as I enjoy making it for you. If you found this helpful, please, like it. Comment on it. And if you think that there’s
anybody who you know that might benefit from this information, feel free to share this video because the more you share it, the more people get exposed to this, and I think it is good information that I hope helps many traders. Have a fantastic evening and I’ll see you tomorrow. Click on
like, and leave a comment, and let me know what you think. And make sure to subscribe to this
channel to get new videos automatically.

Leave a Reply

Your email address will not be published. Required fields are marked *