Which online stock broker should I use?
If you’re considering subscribing to a WealthSignals strategy, you may be on your way to becoming a self-directed trader (or Do-It-Yourself trader). You will be joining a fast growing trend in stock market trading. The availability of quality online resources from how-to knowledge-bases to point and click stock purchasing, makes becoming a DIY trader the next evolutionary step in stock investment management. In this process, one of the roles WealthSignals plays is robo advisor: You subscribe to a trading strategy that best fits your style and risk profile, and trade the signals the strategy provides – no guesswork on your part.
Which brings us back to the question of which online stock broker should you use. Assuming you intend to follow a WealthSignals strategy and trade its signals, then you wouldn’t require a Full Service Stock Broker. You can take advantage of the low cost or discount broker. A discount broker provides the service of stock buying or selling at a reduce commission rate. As opposed to a Full Service Broker which charges a higher commission but also provides their customers trading advice which, in the case of using WealthSignals, you won’t need.
How low can the buy and sell order fees go?
This might be hard for you to believe, but if you were a subscriber to ETF Pairs Arbitrage or ETF Gold, you could use an online broker called Robinhood and pay zero fees and zero account setup. This fast growing company provides their ETF, i.e. Exchange-Traded Funds, buying and selling service commission free. Like other internet business models, they believe enough of their members will end up buying their paid services and offset their cost of giving this service away for free.
How easy is it to use a discount broker?
In the case of Robinhood, like many other, it’s as easy as installing an app on your phone. Register, setup and fund your account. A buy or sell order can be place with as little as three or four screen touch gestures. Of course all of these online discount brokers have full websites for their customers which one is the easiest to user is up for debate. Check our our referral links below for comparison and more information.
Who’s the most trusted online discount broker?
Fidelity Investments, founded over 70 years ago, is one of the largest asset managers in the world. Fidelity has a very comparable online discount broker service with stock trade commission at $4.95. If you find yourself in need of assistance you’ll find it. There is no better company for customer service. And, if your account qualifies you can automate your WealthSignals orders or alerts from your own strategies using Fidelity Wealth-Lab Pro! Indeed, most of the strategies on WealthSignals are created and supported using Wealth-Lab.
For more information on online discount broker and DIY trading:
Comparison discount brokers
Review of Fidelity as a discount broker
Wealth-Lab Pro for U.S. Residents: https://www.fidelity.com/wlp
Wealth-Lab Developer for international users: https://www.wealth-lab.com