Dear List members Since any investment strategy should ensure safety of principal, having a safe broker is an essential part of the strategyThe broker should also NOT be too expensive , that he makes trades impossible Could you please share your experiences with various online / discount brokers you know of ... ? Interactive brokers is one name that springs up, but are there any other ? RE Hypothecation risk is also often times mentioned, though I can't fathom who is the angel and who's the devil in that game Of course, all posts / replies are for sharing information only and I *will* do my own due diligence before investing with / opening an acct. with anyone ... thanks for sharing regardsSubu
Hey Subu !Welcome. At the top of this page, find "How To Invest" ... run your mouse over it ... below that click on "Find a Broker". There are many.Personally, I use Scottrade and TD AmeritradeBest,Rich (haywool)
Hi Subu - 'risk' is a very subjective issue in any such selection. For example, by paying unusually low fees to any corporate entity for its services, you're automatically taking on the risk of (a) it not surviving for very long (b) facing high future fees to help it survive (c) your identity and/or assets being used to help it stay afloat.Swings and roundabouts :)One way of checking out a broker's 'safety' as a going concern is to see how it fared during the 2008 meltdown. ETrade, for instance, was in dire straits.In terms of safety of your assets, my experience with Schwab has been that they're extremely safety conscious in authorizing any transactions. Painful sometimes, but intended for your own peace of mind. I'd strongly recommend them to any one as a safe bet.---------------MDP Home Fool
The best place to post your question is the Discount Broker discussion board--http://boards.fool.com/kiplingers-broker-ratings-30321628.as...They are most up to date on how discount brokers compare. Personally I use Fidelity brokerage services. They claim to be the largest discount broker. No complaints.As to safety, your investments are insured by SPIC. That does not insure the success of your investment choices, but it does insure against theft of assets from your brokerage account.Some brokers carry additional insurance. That can be a question to ask.Reading postings on the Discount Brokers board will probably remind you of questions you haven't asked yet.
Thanks a ton pauleckler and all those who repliedAs pauleckler said, I shall check the other listRegardsSubu
i will chime in and agree with Cog on Schwab...while they are not the cheapest $8.95/trade this is the same price for market or limit orders....commission free Schwab ETFs (others $8.95)several commission free mutual fundscommission free Global Trading desk (until March) (have not tried this feature)i don't trade warrants, options, etc, but i understand they are also quite affordable....while they are principally online, they have a human presence, in many cities, and solid telephone service, and have been very helpful to me, well trained, and effective.
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