How much does a stock broker charge?

How much does stock broker charge in commission per trade to buy or sell stocks in 2014?




What Stock Brokers Used To Charge To Buy or Sell Stocks


I remember during the internet stocks bubble in the late 1990s when the market was hitting new highs, and investors were making fortunes on the stocks, everyone was excited about Etrade. With Etrade you could pay a measly $20 brokerage commission to buy or sell stocks! What a deal! Conventional stock brokers charged $80 commission for stock trades. Then TD Ameritrade showed up on my radar and it charged only $15 to buy or sell stocks. A bit later I've learned about Scottrade with their unheard-of $7 per trade rate. Then Sharebuilder appeared and charged only $4 for their unique kind of trades - automatic investments at the end of the day on Tuesdays - which many people hated. There were other low-priced online trading companies too, but many of them were bought up by bigger players and few remember their names.

Over the next few years most of us settled with our $7-$10 per trade online brokers. We went through the stock market surge that brought Dow to the new highs. Now we are healing the wounds of the biggest recession in the last 80 years. We are wary of the stock market and still worried about economy. And many of us do not know that prices on stock trades kept falling all these years. What used to was cheap is considered expensive now.


New Online Brokers


There are new, ambitious players in the discount online trading world. These companies are young and nimble, and they charge much less than the veteran online brokerage houses. How about $5 per trade? Unbelievable? The reality is that it can be that cheap to buy stocks, and most people do not realize it.

If you are a relatively active investor, I don't see any reasons to pay $15 or even $10 commission per trade to buy or sell stocks online. There are online brokerages that are very highly rated by all financial magazines and investor surveys that will charge you only $5 per trade. I have been with TD Ameritrade since year 2000, paid diligently $10 per trade, and when I discovered how much less the other companies charged, I was in shock! I cannot believe I was overpaying my stock broker so much and for so long! I transferred few of my accounts to the newer firms in 2009-2011, and the experience has been great so far.

So how much does your stock broker charge you to buy and sell stocks? I encourage investors to research companies in Online brokerage comparison article, such as TradeKing (TradeKing review), Optionshouse (Optionshouse review), and TradeMonster (TradeMonster review), and make more educated decisions about where to invest. All these companies are members of SIPC and FINRA, and client accounts are protected and insured the same way as at the older brokerage houses: $500,000 per customer, including up to $250,000 for cash.


Brokerage Commissions Charged To Buy or Sell Stocks


Brokerage Website Rating Stock/ETF Commissions Minimum to Open Stock Broker Review
TD Ameritrade 4-star brokerage firm rating

$9.99 $0 TD Ameritrade Review
Buyandhold 2-star brokerage firm rating

$14.95 $0 Buyandhold Review
Charles Schwab 4-star brokerage firm rating

$8.95 $1,000 Charles Schwab Review
ChoiceTrade 3-star brokerage firm rating

$5 $0 ChoiceTrade Review
Etrade 4-star brokerage firm rating

$9.99 $500 Etrade Review
Fidelity Investments 4-star brokerage firm rating

$7.95 $2,500 Fidelity Review
Firstrade 3-star brokerage firm rating

$6.95 $0 Firstrade Review
Interactive Brokers 3-star brokerage firm rating

$1-$100 $10,000 IB Review
Kapitall 2-star brokerage firm rating

$7.95 $0 Kapitall Review
Just2trade 1-star brokerage firm rating

$2.50 $2,500 Just2trade Review
LightSpeed Trading 3-star brokerage firm rating

$4.50 $10,000 LightSpeed Review
Merrill Edge 3-star brokerage firm rating

$6.95 $0 Merrill Edge Review
Muriel Siebert 3-star brokerage firm rating

$14.95+ $0 Muriel Siebert Review
Motif Investing 3.5-star brokerage firm rating

$4.95 $200 Motif Investing Review
Optionshouse 4-star brokerage firm rating

$4.75 $1,000 Optionshouse Review
Scottrade 4.5-star brokerage firm rating

$7 $500 Scottrade Review
ShareBuilder 3-star brokerage firm rating

$6.95 $0 ShareBuilder Review
Sogotrade 3-star brokerage firm rating

$5 $500 Sogotrade Review
SpeedTrader 2-star brokerage firm rating

$6.95 $0 SpeedTrader Review
Thinkorswim 4-star brokerage firm rating

$9.99 $2,000 Thinkorswim Review
4.5-star brokerage firm rating

$4.95 $0 TradeKing Review
TradeMonster 4-star brokerage firm rating

$4.95 $2,000 TradeMonster Review
TradeStation 3-star brokerage firm rating

$9.99 $5,000 TradeStation Review
Trading Block 3-star brokerage firm rating

$7.50 $500 Trading Block Review
USAA Brokerage 3-star brokerage firm rating

$8.95 $0 USAA Review
Vanguard 3-star brokerage firm rating

$7 - $20 $1,000 Vanguard Review
WellsTrade 3-star brokerage firm rating

$8.95 $1,000 WellsTrade Review

See above how much commission does TD Ameritrade, Charles Schwab, Etrade, Fidelity Investments, Scottrade, TradeKing, Vanguard and other stock brokers charge per stock and ETF trade in 2014.

This article was updated on 3/26/2014.


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