Online Investing Review

Details

Category: Online Invest

The most detailed review we found, and the thorough research methods lend it a high degree of credibility. The review names the best and worst online broker in each of six categories: commissions and fees, research, trading tools, mutual funds and investment products, banking services and customer service. At the end a chart shows the overall rankings as well as the category ratings for each broker. The top five are, in order, Fidelity, E*Trade, TD Ameritrade, Charles Schwab and Trade King. Financial Analyst Robert Stammers offers fairly short reviews of 12 online brokers.

For the 2010 rankings, Barron's rates the top 22 online brokers, and summarizes the results in a table. Another table ranks the least-expensive online brokers for occasional traders and frequent traders. Overall, this is a thorough, well-researched review with useful information for every type of investor. The accompanying news release notes that Vanguard, which ranks the highest, "performs particularly well in account offerings and account information." Charles Schwab & Co. also scores well, especially in the areas of interaction and information resources. Scot trade ranks third, and draws kudos when it comes to trading charges and other fees.

The Readers' Choice Awards are presented based on subscribers' votes for the best online brokers and trading services. For the second year in a row, Interactive Brokers is voted best stock brokerage, best futures brokerage and best Forex (foreign currency trading) brokerage. Trade Station is first runner-up in all of those categories. TopTenReviews.com offers detailed reviews of 18 brokers, and it summarizes their findings in a comparison chart. Ratings are based on other reviews as well as hands-on research. Forbes.com offers short reviews of 28 online brokers. Charles Schwab is named a Forbes Favorite, and Brown Co (which has been acquired by E*Trade), Fidelity, Merrill Lynch Direct, Share Builder and TD Ameritrade get Best of the Web awards.

Stockbrokers.com reviews 23 online brokers and rates each on seven factors, including commissions and fees, ease of use, customer service and investment offerings. The editors explain that the ratings are based on hands-on research. A section of the report focuses on each of the areas brokers are rated on; a chart at the ends summarizes the ratings and ranks the brokers. Keynote Systems, Inc., rates online brokers based on response time for placing a stock order and the success rate of order completion. Results are tracked continuously, with updates published weekly. An archive lists results as far back as 2006. Fidelity and Charles Schwab most often lead in one or both categories.