What I consider as good brokerage? Trying to find reliable brokerage can be a headache for regular investor.
One of my regular brokerage I have been using is Just2trade.
I have been using multiple trading platforms such as Fidelity, Zecco, Vanguard, Lightspeed, and Just2trade.
For me, the brokerage needs to satisfy the following requirement: 1.
Low commission fees to trade stocks, etf, mutual funds (if necessary) 2.
Reliable, can be access freely, stable trading platform 3.
Offer ACH electronic transfer 4.
Responsive and contactable customer service How to open Just2trade account? Opening account is straight forward though it will be slightly slower than typical brokerage.
You can either apply online or print out the form and fill them.
Previous, I fill the form online and print out the form.
Later, I mailed the form and submitted the copy through fax/online as well.
My account was opened within 1 week after I send my application.
My experience I have deal with various discount brokerages.
I started investing with Fidelity on 2006, mainly buying mutual fund.
I then tried Zecco due to their no commission fees.
However due to limit of 10 free trades per month & $25,000 limits to get the free trades, I branched out to Just2trade.
It has one of low commission.
I started using Just2trade on 2009.
In comparison with other brokerage, just2trade offers low commission for trading.
It only cost $2.
50 for trade.
There is no limit for amount of shares.
This means trading 1 share or 10 shares or 1000 shares will cost only $2.
50/trade.
Trading option will cost $2.
50+$0.
50/contract.
So for 2 contract of options, you will pay $3.
50 ($2.
50+ 2 x $0.
50).
Margin rates are also competitive.
The current margin rates are as follow (per July 30th, 2010).
To open an account, you need to fund of $2,500.
The trading platform is very simple and responsive.
I can place either a Market order, Limit order, Stop Loss, Stop Limit, Market on Close, and Trailing Stop.
I also can trade pre market and post market hours which can be very useful.
Just2trade has 2 type of platforms (web-based & J2trader).
I usually access them through web.
Your computer also needs to support Java application hence the trading system is run through Java.
It also provides J2trader as trading platform.
I also like its in-house trading tools like Maxit tax software that are available online.
Maxit provides access to all tax related issues in trading.
Other features like sales figures, stock alerts, market data and transaction details, options and mutual fund screeners are available in real-time.
It also provides Zacks Screener to screen various stocks and mutual funds.
I only use just2trade to trade stock & etf.
I never use it to buy mutual fund, but I believe it should be very straight forward as well.
I usually email the customer service if I have any issue.
The customer service is very responsive.
Other people have mentioned a non responsive customer service, though I never have any issue.
Issue / Complaints about Just2trade Couple complaints about Just2trade that I found: 1.
On 2007, there is an issue with their previous clearing house, North American Clearing.
It has had their assets frozen by the SEC pending fraud investigation and this has resulted in inability to liquidate the customer asset.
This happen for 2 weeks and has been resolved.
Current clearing house is Legent Clearing.
2.
Little to No support for beginner or novice investors 3.
Incorrect cash balances and other account balance discrepancies.
4.
Little choice of mutual funds 5.
Minimum $2,500 account balance requirement 6.
Too basic trading platform & difficult to navigate Awards Just2trade is feature in SmartMoney and Kiplinger magazine as one of best brokerage with low fees & commissions.
Disclaimer: I have no affiliation with Just2trade other than I use it for trading.
Please do your own research for additional details.
All information is as updated as July 31, 2010.
Please trade responsibly.