Which Online Broker?

What is a Dividend Reinvestment Plan?-AKA DRIP

2009-09-07T12:42:00.000-07:00

I'm going to start doing a few definitions of key phrases as a lot of online brokers offer some pretty cool features that differentiate them from others (and you might not know about these!). One of these features is something called DRIP or "Dividend ReInvestment Plans". Here is the definition:

A DRIP allows shareholders to automatically reinvest cash dividends and capital gains distributions without a broker and the fees they might charge.

So a specific online broker like Computershare might let you invest in certain companies it has deals with to offer DRIPs. For some real world examples of how this works I recommend reading the Sun's Financial Diary. The post explains why and how he buys into a DRIP at the Bank of America. For even more info the 2MillionBlog has a number of posts on drips. Go here to view them all, he covers strategy, what online brokers sell them, and lots more. Great resource!'

Is the Dollar Ever Going to be Strong Again?

2009-09-04T15:04:00.000-07:00

I just found a great post by the 2Million's finance blog talking about how the dollar decline has affected his day to day expenses over the last 8 months in China. The article really shows the real world effect the dollar's decline has had on our purchase power abroad. I used to travel to Europe fairly often during the summer and I can't even consider that possibility now with the Euro hovering around $1.50 US. When it was at $1.33 it sucked but now it is too expensive to even consider traveling there. If you are wondering how this decline compares to past historical declines here is a great article on the subject. The dollar started declining in July 2001 and has currently dropped about 40% making it one of the longest and most severe in history (keep in mind this article was written in a while ago so it doesn't include the further decline from the last few years.

The average bull market for the US Dollar is 1,710 days long for an average gain of 48.90%. The average bear market is 1,610 days for an average decline of 31.84%. Based on these averages, the current bear market is both longer in duration and more extreme in its decline.

My answer? I moved some of my investments into Euros using Everbank. At least this way my savings is not 100% based on the dollar.

My Review of ShareBuilder

2009-09-03T07:08:00.000-07:00

I haven't used ShareBuilder yet.

Blog and User Reviews of ShareBuilder

SlackerWealth's Review of ShareBuilder - SlackerWealth wrote a great review of ShareBuilder with a focus on the good and the bad. The good includes things like free dividend reinvestment, fractional shares, and fast money transfers and the bad just some missing options the author wanted. Overall the conclusion is its not a bad choice for buy and hold investors but for active traders the fees are way too much.

2 Million Blog's Review of ShareBuilder - 2 Million Blog posted a great in depth review of ShareBuilder that I recommend you read! He goes over the pros and cons from his point of view. He also writes about the transfer process of moving from eTrade to ShareBuilder.

The Sun's Review of ShareBuilder - The Sun's Financial Diary posted a nice explanation of why he left ShareBuilder due to their lack of flexibility and that they now seem to have fixed that. Nice overview of the automatic investing feature they offer.

My Review of TD Ameritrade

2009-08-31T01:36:00.000-07:00

I've been using an TD Ameritrade for about six months and love them so far! They have one of the best web interfaces I've used. It loads quick, has lots of options, and just makes sense when you use it. I haven't had a chance to use the Windows software they offer but I will soon. I'll have a few review in the next few weeks.

Blog and User Reviews of TD Ameritrade

Free Money Finance\'s Review of TD Ameritrade - The Free Money Finance blog posted a short bit about TD Ameritrade and their decision to move because of customer service. They do say the online interface is great. I haven\'t used Ameritrade\'s customer service via phone yet but it sounds like from a few reviews it is not a fun experience.

My Review of Scottrade

2009-08-29T08:24:00.000-07:00

Scotttrade was the first broker I tried and I have used them for the past couple of years. I am very happy with their prices and their Windows based trading software but their online interface sucks. Their customer service is great and it is nice to have an office nearby that I can visit to drop off or pickup checks. I'll post a full review shortly.

Blog and User Reviews of Scottrade

SlackerWealth's Review of Scottrade SlackerWealth posted an excellent review of Scottrade and made some valid points that I have to agree with after using them for so long. Their main complaints are online customer service and the speed a deposit is made available. Good read with a nice example of how not to treat a small customer.

My Money Blog\'s Initial Review of Scottrade My Money Blog decided to open an account with Scottrade and this is their review of the signup process. Nice overview of the setup process and options you have during signup. They should have a more substantial review soon and I will post a link to it then.

The Sun Review of Scottrade - The Sun's Financial Diary posted a nice review of Scottrade with the focus being on their improved mutual fund center. The review covers what you can use the mutual fund center for, how it works, and soon. He seems pretty happy they improved this and he has used Scottrade for over five years.

My Review of eTrade

2009-08-29T08:07:00.000-07:00

I've been using eTrade since October 2007 and so far I am pretty happy with them. My main reason to signup was their Global Account but I also opened just a plain brokerage account. Their website interface is easy to use and I will write a full review soon. I've also split their reviews into this section for the traditional brokerage account and one for their global account which is new and still buggy but a great product.

Blog and User Reviews of eTrade

Investor's Journal eTrade Review - The Investor's Journal did a short review of eTrade and rated them on site layout, tools, security, customer service, commission fees, and overall. The review is positive but they do point out the higher commission fees if you don't make the minimum amount of trades.

Zecco Online Trading Review

2009-08-28T06:52:00.000-07:00

I haven't had a chance to try Zecco yet but friends of mine have and they love it. I'll be trying their service soon and will post my review once I do. Zecco Trading is offering 20 free stock trades -- a $90 value -- to all new brokerage customers who sign up by Sunday, September 13th 2009! Use promo code "bonus1" to qualify.

Blog and User Reviews of Zecco

My Money Blog\'s Review of Zecco - My Money Blog posted an in depth review of Zecco and I highly recommend reading it! They cover everything from signup to funding and in part 2 they go over the web interface, his experiences so far, and a lot more. Great review and overall they are pretty positive as long as you are the type of trader that will benifit from the free trades and some of the downsides.

The Paranoid Brain's Review of Zecco - The Paranoid Brain posted a three part review of Zecco. Part one covers signup, part 2 covers the interface, security, and their conclusion so far. Part 3 covers the speed of trading and their conclusion thus far. They seem pretty happy with the basics and web interface.

1st Million at 33's Review of Zecco The 1st Million at 33 blog posted a three part review of Zecco covering everything you can imagine. For part 2 click here and part 3 is an update that covers the changes Zecco has gone through since he signed up. Their conclusion is that Zecco is good for basic investors or advanced looking for a backup account.

Sun's Review of Zecco - Sun's Financial Diary posted a great review on their first trading experience with Zecco. The review has some nice screenshots of the interface and overall he was not happy with their interface as there were some odd bugs.

CashMoneyLife wrote a nice review comparing Zecco to both ShareBuilder and TradeKing. Bottom line is that with Zecco's new pricing structure-free trades with a $25,000 balance instead of $2500- Zecco is good but no better than ShareBuilder or TradeKing

My Review of TradeKing

2009-08-28T05:49:00.000-07:00

I signed up for TradeKing just a few weeks ago so I'm still waiting to move a little money over to them. So far I am really impressed with their site and the way they have organized all the info. I've been using Scottrade and their online interface is horrible so it is refreshing to see that TradeKing's interface is well organized. I also love their web 2.0 social features that connect investors and allow everyone to share info! I'll update this as I use them more with details and my full review.

Blog and User Reviews of TradeKing

My Money Blog Review of TradeKing - My Money Blog is one of my favorite finance and investment blogs out there and they write a really nice review of TradeKing. The review is after a year of using their services and is from the perspective of a buy and hold trader. Overall he is pretty positive on them and you can read the review and user comments here.

Investing Adventures Review of TradeKing -Investing Adventures posted a long review of TradeKing and their summary was that it was "a nice discount broker for novice investors" and their main complaint was the slow ACH transfers. They also complemented the customer service they received.

SlackerWealth TradeKing Review - SlackerWealth posted a review of TradeKing and what they see as the good, the not so good, and the bad. Overall the review is positive and he likes how cheap it is to trade and customer service.

Welcome to WhichOnlineBroker.org

2009-08-28T05:20:00.000-07:00

This site is going to be THE destination for news and reviews on online brokers. I've been interested in the stock market ever since I was a kid and over the last few years I've become a pretty active trader. When I first started earlier this year I did a lot of research on which online broker I wanted to use and it was hard to find user reviews and get more info.

This site is here to solve this problem! I will post my ongoing review of the online brokers I use, any user reviews, news, and my personal thoughts on the future and the market in general.

If you have any suggestions or ideas please email me. My name is Mike and I will usually respond within 24 hours or so.