Sunday, May 25, 2008

Eany Meany Miney Moe

I have spent a better part of the morning looking into the various stock trading companies. Specifically, I have been looking into eTrade, ScotTrade, and TD Ameritrade. (I suppose I also looked at a few other random ones as well, but those are the ones that I have focused on.)
I need to figure out some sort of online stock trading company because I need to get some of my money out of ACN. Right now, I have around 50% of my savings in it and it makes me a bit nervous. Plus, it seems like it would be a good way to save up for our next house - try to grow it slowly through stock trading.

Throughout my research, it seems that each of the companies have different pros and cons. eTrade seems to be catering towards the people who day trade - or trade very very often. Therefore, unless you trade 50+ times per quarter, their trades are $13 each. That really left ScotTrade and TD Ameritrade as viable options.

I ultimately chose ScotTrade. The main reason was that they did not charge a fee for withdrawing money like Ameritrade did. The charge was substantial - $25 - $75, and would likely eat up any low balance charges (ScotTrade has a $500 minimum balance) rather quickly. Not to mention the fact that their trades are $7 instead of the $10 that TD Ameritrade wanted. I was considering TD Ameritrade because they offer an automatic dividend reinvestment service that would have been really nice. Instead, I am just going to have to be conscious of when those dividends are deposited and reinvest them as I see fit.
Now, i just need to get all signed up and start making millions.