When a trader needs a broker, one obvious choice is some discount online brokerage firm. And there is also the question in the mind: Are they better than full service stock brokerage companies?
Major features of the best discount stock brokers
Such online brokerage firm is a good option for private trading. What really matters is quality of execution.
Speed of execution
These online discount brokerages are oriented only to execution of trade orders provided by clients. A good online discount brokerage should execute trades in seconds and provide good fills (good price) without big slippage.
Direct access to different exchanges
It’s also very good if the discount online brokerage offers direct access to several different exchanges. It means the trader could route his order to a specific exchange or ECN. This feature is very important if you’re looking for a daytrading brokerage company, but it’s also very useful for swing and position trades.
Flexible commissions per trade or per shares
Although I think the value of commissions is not the most important issue (good execution is the primary goal), the standard basic fee for trade should not exceed $15 USD. For traders who trade small amounts of shares per trade (up to 500 pcs) it’s also good to check per share fees.
Online discount stock brokers with good trading software
I haven’t mentioned it yet, but brokerage firms should offer a trading online through the Internet. They should offer good online software for trade execution. Electronic online trading is now widely available but quality of different trading programs varies. Best discount stock brokers continuously upgrade their trade platforms and add new features based on request from their clients.
The best brokers I can recommend for stock trading are Pinnacle Capital Markets and Interactive Brokers. They both are good brokers.