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dustygoon · 05-20-2008, 11:51 AM

I am US based.

I wouldn't worry too much about commission prices as long as you are not going to trade too much (not a good idea unless you follow markets a lot to make up from all of the commissions). An extra $5 is not much in the scheme of things.

I think trade execution time is more important and good pricing if you are dealing with smaller companies that have stocks that don't trade as much. Tough to see good pricing unless you have access to live markets (i don't mean the last trade but i mean the live bid and offer to see where dealers are willing to buy and sell). The smaller and less liquid your stock, the more likely you get ripped off on pricing. You can over come this by using a "limit" on your price. If you are buying stock, set your limit to a couple pennies higher than the last trade. That way you know what you will pay and likely be able to get the trade done. Set the limit too high, and you might end up paying too much needlessly. Set the limit too low, and you might not get the trade done....stock will run up on you and you have to chase it to buy it.

I used to use TDWaterhouse but their merger scared me off when their trading systems kept going down and there were errors in my account....probably fixed now.

I switched to etrade. Very fast trade execution and prices, but they had a shakey financial position a few months back....they invested too much of their own money in mortgage backed securities and other instruments affected by credit squeeze. They got an influx of capital ($2b) but i said forget it. Deposit insurance does not extend to brokerage accounts. The brokerage insurance wasn't very strong and i didn't want to have to rely on it to get access to my cash if etrade went under.

I moved to fidelity. They have been good so far. etrade clients like me moved to them in droves.

It seems the online banks like etrade have better technology and execution and prices, but good old bricks and mortar banks tend to have stability.

05-20-2008, 11:51 AM	#5
dustygoon Franchise Player Join Date: Jul 2004 Location: Bay Area Exp:	I am US based. I wouldn't worry too much about commission prices as long as you are not going to trade too much (not a good idea unless you follow markets a lot to make up from all of the commissions). An extra $5 is not much in the scheme of things. I think trade execution time is more important and good pricing if you are dealing with smaller companies that have stocks that don't trade as much. Tough to see good pricing unless you have access to live markets (i don't mean the last trade but i mean the live bid and offer to see where dealers are willing to buy and sell). The smaller and less liquid your stock, the more likely you get ripped off on pricing. You can over come this by using a "limit" on your price. If you are buying stock, set your limit to a couple pennies higher than the last trade. That way you know what you will pay and likely be able to get the trade done. Set the limit too high, and you might end up paying too much needlessly. Set the limit too low, and you might not get the trade done....stock will run up on you and you have to chase it to buy it. I used to use TDWaterhouse but their merger scared me off when their trading systems kept going down and there were errors in my account....probably fixed now. I switched to etrade. Very fast trade execution and prices, but they had a shakey financial position a few months back....they invested too much of their own money in mortgage backed securities and other instruments affected by credit squeeze. They got an influx of capital ($2b) but i said forget it. Deposit insurance does not extend to brokerage accounts. The brokerage insurance wasn't very strong and i didn't want to have to rely on it to get access to my cash if etrade went under. I moved to fidelity. They have been good so far. etrade clients like me moved to them in droves. It seems the online banks like etrade have better technology and execution and prices, but good old bricks and mortar banks tend to have stability.