A large number of the readers who find their way to this website are beginner investors. In many cases they know very little about stocks, don’t have an online broker account yet, and just want to learn how stock investing works. They probably have under $5,000 to invest and want to find out how they can get started buying stocks without paying high fees.
For this type of investor, I recommend TradeKing (now named Ally Invest) because it is a reliable online broker that consistently gets good reviews but charges half the fees ($4.95) that many other online brokers charge. In today’s online world, why pay more than you need to when you have options that are very similar and half the price?
TradeKing/Ally Invest Has No Account Minimums
One of the questions I often get asked is about account minimums and it is important for soon to be investors. Many people who want to get started investing are concerned that they don’t have enough. They may only have $100 to $1,000 and fear that amount is too little. With TradeKing though, there are no minimums of any kind and that means you can open an account with as little as zero dollars just to test it out. Further more, there are no balance minimums that must be maintained in order to avoid charges to your account like at many other brokers. That means you can start with as little as you want and not worry about being charged an account “maintenance” fee.
$4.95 Per Trade – Why Pay More?
E*Trade charges $9.99 per trade. TD Ameritrade charges the same $9.99. Charles Schwab charges $8.95 per trade fees. Those are all good online brokers and there are a few others that charge similar fees.
But why pay that much when you can get $4.95 with TradeKing? For investors who don’t have a lot in their account or trade often, those fees become extremely meaningful. If you start with, lets say $500, you want to pay as little per trade as possible as those fees eat into your cash quickly. Remember, when you buy a stock you will eventually have to sell it and that is a total of two trade fees. So $4.95 x 2 is a lot better than $9.99 x 2.
The bottom line is that TradeKing is an established broker that has been online since 2005 and has all the services most investors need. There just isn’t any reason to pay more in fees to another broker, especially if you are just starting out.