Best online brokerage account

[fredhe12]

I plan on starting some small scale investing, mainly in stocks, and I've seen threads here before regarding the subject.

I wanted to gather some opinions on best online brokerage sites out there. I'm looking for the best combination of lowest fees, best research, easy to use, etc...

Would love to hear what AT'ers are using. Thanks all!

 

[DaveSimmons]

My "stock" recommendation: Don't. Buy and hold stock index mutual funds or ETFs instead of gambling on individual stocks.

Vanguard.com has Target (year) funds that are pre-diversified with S&P 500, other US, foreign and bond funds. I'd pick the farthest year out for more agressive mix (more stocks, less bonds) but otherwise it's a good single fund of funds.

Vanguard also has good funds for S&P 500, the rest of the US, and several non-US regions (Europe, Asia, emerging markets).

 

[wedi42]

zecco - free trades

scottrade - popular low fees

thinkorswim - my broker, low fees, more advanced software options

 

[FallenHero]

You wanna make a quick buck or invest for retirement? I think that should also influence your choice.

 

[Cuda1447]

Why is everyone on here so negative about trading individual stocks? I understand they are more risky, but it seems that the hatred for them is HUGE. Are they really THAT BAD?

 

[DaveSimmons]

Originally posted by: Cuda1447
Why is everyone on here so negative about trading individual stocks? I understand they are more risky, but it seems that the hatred for them is HUGE. Are they really THAT BAD?

It's not everyone, I just reply to all of the threads

And I don't hate gambling on individual stocks, I just recommend against it because most people who try, including the professionals running actively managed funds, do worse in the long run than if they'd just bought and held index funds.

People here will brag about how much they made buying 1 stock at just the right time, but they rarely admit that it was being lucky once with less successful buys before and after it.

 

[FallenHero]

Originally posted by: Cuda1447
Why is everyone on here so negative about trading individual stocks? I understand they are more risky, but it seems that the hatred for them is HUGE. Are they really THAT BAD?

Unless you really know what you are doing, they are very dangerous and very very risky. My roommate is a perfect example...he had 10k and invested it all in one stock (not sure which one.) When the giant downturn hit, his 10k investment plunged to 6k. Its up now to 7k, but he still took a hit greater than the market took. Stocks are risky and you HAVE to pay attention to them in order to maximize what you are doing. Mutual funds are generally better as they minimize risk and are kinda like "fire and forget" investments.

 

[Cuda1447]

Originally posted by: DaveSimmons

Originally posted by: Cuda1447
Why is everyone on here so negative about trading individual stocks? I understand they are more risky, but it seems that the hatred for them is HUGE. Are they really THAT BAD?

It's not everyone, I just reply to all of the threads

And I don't hate gambling on individual stocks, I just recommend against it because most people who try, including the professionals running actively managed funds, do worse in the long run than if they'd just bought and held index funds.

People here will brag about how much they made buying 1 stock at just the right time, but they rarely admit that it was being lucky once with less successful buys before and after it.

Alright, so answer me this. I'm a complete stock noob, just toying with it for fun right now. The VSE.Marketwatch site that allows the virtual stock market, I realize its far off from the real market. But lets assume for a second you have good success there. When I say good success, I mean long term success. Let's say one year plus for the hell of it. Then lets also assume you are responsible and aren't investing more than 20% of your portfolio in one stock.
Now lets finally assume that you aren't investing money that you can't afford to lose (the rule I placed on myself for playing poker, something that worked out pretty well). Do you still think stocks F'n suck Dave?

 

[Cuda1447]

Bump since it fell to the third page and I want an answer from Dave

 

[darthsidious]

Originally posted by: Cuda1447

Originally posted by: DaveSimmons

Originally posted by: Cuda1447
Why is everyone on here so negative about trading individual stocks? I understand they are more risky, but it seems that the hatred for them is HUGE. Are they really THAT BAD?

It's not everyone, I just reply to all of the threads

And I don't hate gambling on individual stocks, I just recommend against it because most people who try, including the professionals running actively managed funds, do worse in the long run than if they'd just bought and held index funds.

People here will brag about how much they made buying 1 stock at just the right time, but they rarely admit that it was being lucky once with less successful buys before and after it.

Alright, so answer me this. I'm a complete stock noob, just toying with it for fun right now. The VSE.Marketwatch site that allows the virtual stock market, I realize its far off from the real market. But lets assume for a second you have good success there. When I say good success, I mean long term success. Let's say one year plus for the hell of it. Then lets also assume you are responsible and aren't investing more than 20% of your portfolio in one stock.
Now lets finally assume that you aren't investing money that you can't afford to lose (the rule I placed on myself for playing poker, something that worked out pretty well). Do you still think stocks F'n suck Dave?

Let's put it this way: market returns are the average of what all investors make (infact, they're somewhat better because of better tax efficiency and lower costs, but let's ignore this for now). The bulk of the money in the market is institutional, and backed by tons of research by the institutional investors. These people have better research, more time, and some of the smartest brains in the world. As a small investor, what makes you think that you can do a better job than these people? Even if you have a solid plan, as a new investor, you're prone to get nervous, and react to all sorts of market noise. The fact that "one year" for you is long term investing seems to indicate to me that it would be unwise for you to invest in individual stocks. Even if you came out ahead, your tax efficiency would be much lower than a well diversified set of index funds. If you want to take this approach, go to diehards.org, and read through a few threads. They're also extremely friendly and helpful to newcomers.

But hey, at the end of it all, I'm just some 22 year old shmuck on the internet giving you his opinion. If it's truly money you don't mind losing, go do what you want with it (But remember the lost opportunity cost).

 

[IHateMyJob2004]

Before investing in individual stocks, go to gurufocus.com and ask for advice. Fidn the forums there and join and ask. You'll probably be told to do an index fund till you understand investing.

 

[DaveSimmons]

Originally posted by: Cuda1447

Originally posted by: DaveSimmons

Originally posted by: Cuda1447
Why is everyone on here so negative about trading individual stocks? I understand they are more risky, but it seems that the hatred for them is HUGE. Are they really THAT BAD?

It's not everyone, I just reply to all of the threads

And I don't hate gambling on individual stocks, I just recommend against it because most people who try, including the professionals running actively managed funds, do worse in the long run than if they'd just bought and held index funds.

People here will brag about how much they made buying 1 stock at just the right time, but they rarely admit that it was being lucky once with less successful buys before and after it.

Alright, so answer me this. I'm a complete stock noob, just toying with it for fun right now. The VSE.Marketwatch site that allows the virtual stock market, I realize its far off from the real market. But lets assume for a second you have good success there. When I say good success, I mean long term success. Let's say one year plus for the hell of it. Then lets also assume you are responsible and aren't investing more than 20% of your portfolio in one stock.
Now lets finally assume that you aren't investing money that you can't afford to lose (the rule I placed on myself for playing poker, something that worked out pretty well). Do you still think stocks F'n suck Dave?

That you're placing this in the same category as poker shows you realize it's much more risky than buying and holding stock index funds.

Stock index funds are collections of stocks (500 for the S&P) so I'm not against the stock market itself, just dabbling in individual stock picking. Again, most people who try do worse at it long-term (which more like 5 years than 1) than if they just bought index funds.

Some people enjoy the thrill of stock-picking, so even if they make less than the funds they still get entertainment value out of it. Some people have a lucky streak and do much better than if they just did nothing and let the index funds grow. Safe, but boring.

you aren't investing money that you can't afford to lose

Why take the risk? Go to Vegas for the gambling fun, buy safe boring index funds for your retirement.

I don't hate stocks, picking them yourself is just the wrong way to invest long-term for most people.