Etrade vs Sogotrade 2012: Commissions and Investments 2012
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- Stocks and ETFs: $9.99 if 0-149 trades per quarter; $7.99 if 150+ trades per quarter
- Options: $9.99 plus $0.75/contract if 0-149 trades per quarter; $7.99 plus $0.75/contract if 150+ trades per quarter
- Mutual Funds: $19.99
- Futures contracts: $2.99 per contract, per side + fees
- Investment products: stocks, bonds, mutual funds, futures, options, ETFs
- Minimum to open Etrade account: $2,000 for margin account. For securities accounts (except retirement accounts), an account minimum deposit of
either at least $500 in cash or a deposit of securities is required within 60 days of account opening for the account to remain active. There is no initial minimum deposit requirement for retirement, custodial, or employee stock plan accounts. Accounts not meeting the minimum deposit requirement will be closed after 60 days.
- All Etrade fees
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- Stocks and ETFs: $3
- Stocks and ETFs broker assisted: $25
- Options: $5 plus $0.50 per contract
- Options broker assisted: $25 plus $0.50 per contract
- Options exercise/assignment: $15
- No-load mutual funds: $15
- Investment products: stocks, options, mutual funds, ETFs
- Minimum to open Sogotrade account: $500
- All Sogotrade fees
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Compare Etrade vs Sogotrade: Pros
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- Very good trading tools
- No IRA account fees, no minimums with electronic statements and confirms
- Minimum to open: $1,000 for cash account, $2,000 for margin account
- Banking products: checking, savings, money market accounts, CDs and credit cards
- No surcharges on large orders, penny stocks and extended hours trading
- Great research amenities
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- Very low commissions
- Fractional shares available with no monthly subscription fee
- No inactivity, maintenance fees (accounts with over $100)
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Compare Etrade vs Sogotrade: Cons
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- High commissions on all investment products
- High margin rates
- Customer service complaints
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- For stocks priced under $1, the online commission is $3 plus 0.5% of the principal value
- Terrible trade executions
- Poor trading platform
- Frequent technical problems
- Very slow new account set up process
- Hard to reach, unresponsive customer service
- $30 annual IRA fee
- Can't short stocks under $3
- Cannot invest in CDs and bonds
- No interest on cash
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Etrade or Sogotrade: Comparison Summary
Commissions at Sogotrade (Sogotrade Review)
are much more attractive than at
Etrade (Etrade Review):
$3 per trade on stocks and ETFs versus $9.95 at Etrade. Sogotrade, however, has big, 0.5 cent per share, surcharge on
stocks under $1 (penny stocks). Both companies don't charge additional commission on large orders.
Sogotrade has a $30 annual IRA fee. Etrade does not have IRA setup and annual IRA fees. The firm, however,
did not make it into our Best IRA Companies in 2012 list.
There are better brokerage houses than these two for beginner investors, which offer vibrant online communities where users
could ask questions, learn from more experienced traders and even get investment ideas. Check out
our Top Brokerages for New Investors recommendations.
Etrade would be our suggestion for "buy-and-hold" investors. We recommend researching other
online brokerage firms that offer great commissions and better services.
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