Discount Online Brokers:
What are Your Best Options?

Are discount online brokers what you're looking for? We can help you find the best brokers online, with tips and professional advice from our investment expert Dan Fournier.

On this page, we'll start by reviewing the difference between discount and full-service brokers. Then, you'll receive insight into choosing the online broker that's best for your future investments and current financial situation.

If you're looking for more advanced topics about online brokers, and links to over 40 brokerage companies, then scroll down to the bottom of the page. There you'll find links to our learning resources for beginners and advanced investors.

What is a Discount Broker?

To understand what discount online brokers are, we must first discuss its counterpart. A full-service broker offers his clients a wide variety of services. This may include personal advice, tips, placing trades, and sharing research.

A discount broker, on the other hand, merely trades securities for his clients without these additional services. That means that you have to do the research yourself when it comes to your investments.

Many people choose to work with discount brokers because they are far cheaper than the full-service kind. Whereas full-service brokers can be as much as $100 per trade, you can find discount brokers for as little as $10 per trade.

Choosing an Online Broker

According to our investment expert, Dan Fournier, there are several important factors that all investors should consider when choosing discount online brokers. Below we have highlighted a few tips from his breakthrough investment guide.

1. Costs

Although cheaper than the full-service alternative, there are still minimum costs involved in operating a discount broker. This includes both trading commissions (a fee for each trade made by the broker) and hidden fees (annual fees, account maintenance fees, etc.). Researching online broker ratings and reading online broker reviews can help you compare costs from various brokers.

2. Minimum Initial Deposit & Account Balance

Start-up costs for online discount brokers can vary anywhere from $500-$2,500. Therefore, it's worthwhile to do an online broker comparison to find one that fits your budget. You'll also need to maintain a minimum balance in the account, and it's important that this corresponds with your investment goals for the future.

More Expert Tips

Dan Fournier offers 10 expert tips for choosing discount online brokers in his investment guide. This is the ultimate resource for both beginner and advanced investors who want to improve their investments.

You'll also receive links to over 40 online broker companies, both of the full-service and discount variety. For more information, and for full ordering details, please visit the Ordering page on the left-hand menu.