Many individual investors and even traders are still unaware that there are deep discount brokers that charge $5 or less per trade to buy or sell stocks or ETFs.
Stock commissions came down a lot since the time Charles Schwab introduced discount stock trading at $30 per trade. Competition
among brokerage houses is now stronger than ever, with new companies constantly pressuring established players with aggressive pricing. There is
a clear trend of lower trading commissions and fees that continues in 2014.
Let's review the pricing of the best deep discount brokerage firms offering $5 or less commissions on trading stocks and ETFs in 2014.
TradeStation offers one of the lowest commissions among discount online brokers: it charges just $0.01 per share for the first 500 shares,
$0.006 per share thereafter, with $1 minimum per trade. With that rate all stock trades of up to 100 shares will cost you
Unfortunately, there is a serious disadvantage with this broker: $99.95 fee will be charged to use their trading platform if customer did not trade at least 5,000
shares in previous month. With this fee it does not make sense to open account at the firm unless you can meet this requirement.
In 2013 TradeStation was rated Best for Frequent Traders by Barron's magazine. We rated the firm Best for Futures Traders in 2014.
Right now for a limited time the company offers 90 days of free trading promotion, which gives you an opportunity to try them commission-free for 3 months
(promotion link below).
Read full: TradeStation Review.
Trade commission-free for 90 days.
Optionshouse is a top deep discount brokerage firm charging flat-rate $4.75 for stock or ETF trades regardless of the number of shares in the order. For stocks priced $2 or less that are not
options eligible, there is additional surcharge of $0.005 per share for the entire order.
Options trading is available with two pricing plans (customers are free to switch between plans as often as they like):
Plan 1. Up to five contracts for $5; each additional contract is $1
Plan 2. $8.50 plus $0.15 per contract (great if trading over 10 contracts)
Mutual funds are priced lower than at Interactive Brokers: $9.95 per transaction.
Optionshouse is one of the top choices for active traders and day traders looking for flat rate commission account to make larger
trades that will be too expensive with per-share plan. The firm offers free real-time quotes and virtual trading. Unlike TradeStation,
there are no fees for inactivity and for IRA accounts.
Read full Optionshouse Review.
Get 100 commission-free trades at OptionsHouse.
This article was updated on 3/26/2014.