What Are The Top-3 Financial Brokers?
The top global financial brokers include Charles Schwab, Fidelity Investment, and Merrill Edge. All these companies were founded in the United States although they have a worldwide online presence.
So, Fidelity Investment is available as a web-based platform in addition to smartphone applications for both iOS and Android. It avails assistive tools such as charts, charges $0 commission, and is easy to use.
Charles Schwab also charges $0 commission but limits this offer to transactions that do not require special handling among other conditions. Notably, it also provides online tools that help traders in decision-making.
Merrill Edge is a brokerage firm that enables traders to trade in stock, bonds, mutual funds, and ETFs. It provides tools and guidance. So, what distinguishing factors make these three the best financial brokers?
Aslo, Fidelity Investment does not charge any fee to facilitate transactions in mutual and index funds. Also, the brokerage firm does not have a minimum deposit requirement in order to open an account. The latter means that the minimum amount of funds a trader can have in their account is $0. It also offers its customers research tools that enable them to analyse the financial instruments they aim to trade.
It has an integrated Active Trader Pro feature which helps in decision-making. It is guided by technology and trading specialists. Collectively, the duo enables traders to make smarter decisions at every stage of trading. Its research tools isolate trends and help individuals to validate their choices, make in-depth analysis, and provide trading ideas using the traders’ goals.
In 2019, Investopedia ranked it the best overall broker. Investor’s Business Daily gave it the number 1 ranking in the 2019 review. Stockbrockers.com ranked it at position 2 in its 2020 review. The reasons given for its dominance included its exemplary research tools, the analysis and reports it conducts, site performance, and the educational resources it avails for its clients.
Pros of Fidelity Investment
a) It does not charge a commission for all transactions.
b) It has excellent customer service.
c) It offers extensive and reliable research and allied tools.
d) It avails the Active Trader Pro to all customers. It does not discriminate.
e) It is an easy-to-use platform.
Cons of Fidelity Investment
a) Only US citizens can open an account.
b) It charges $0.65 per contract for options trades.
Charles Schwab, an American bank, also offers brokerage services through a web-based platform. It facilitates trades in stock, mutual funds, stock, ETFs, and options trades, among others. The firm’s trading arm is part of three other divisions which include investing, banking, and wealth management.
The electronic trading platform does not charge a commission for ETF, stock, and per-leg option trades. However, for multiple legs, it charges $0.65 per contract. It is worth noting that in certain conditions, the broker charges a transaction fee. Some of these conditions include large transactions that necessitate special handling, limited stock transactions, and trades placed directly on forex. It also charges a service fee when the trade is placed through a broker. It does not have a minimum deposit requirement, thereby favouring traders from diverse backgrounds.
Stockbrockers.com ranks it at 3rd place in its latest review. In 2019, Investopedia ranked it in the 3rd position.
Pros of Charles Schwab
1. It does not charge a commission for certain transactions.
2. It is available on multiple platforms, namely web, mobile, and software.
3. It provides users with a wide range of educational and assistive research tools.
4. Users have access to a team of trading professionals.
Cons of Charles Schwab
1. Since it charges a fee for trades conducted through a broker, it pushes its users to use its financial advisors. This makes it expensive and also erodes the traders’ confidence in their ability to make good decisions.
2. It has hidden costs.
3. Its margin rates are greater than the industry average.
This brokerage firm is owned by the Bank of America (BoA). For this reason, it benefits BoA customers because it eases integration with their bank accounts. However, to open an account with the broker, a trader shouldn’t have an account with its parent company. It does not charge a commission on stock and ETF transactions. Moreover, Merrill Edge provides strong and reliable research using third-party researchers.
The company does not charge commissions on stock and ETF trades. It has excellent customer service. Of importance is that its clients can access services at any of the Bank of America’s branches around the United States.
Stockbrokers.com ranks it at 6th in its 2020 review.
Pros of Merrill Edge
1. It integrates BoA customers’ bank accounts with their brokerage accounts.
2. It provides reliable research using third party researchers.
3. It has excellent customer service.
4. It does not charge a commission to facilitate trades.
Cons of Merrill Edge
1. It has hidden transaction charges.
2. It charges commissions for traders who are not members of its Preferred Reward scheme.
Conclusion On Global Financial Brokers
Even, Fidelity Investment, Charles Schwab, and Merrill Edge are three of the best stock trading platforms. They also facilitate ETF and Mutual funds transactions. Notably, the three are investment companies and they employ trading specialists who help in conducting research. This adds to the reliability of the services they offer. As such, for a trader intending to make money, choosing the right broker is the first step.
The first step is looking for a reputable broker to facilitate trading. The broker should have the best reviews from notable reviewers such as Investopedia. It is worth noting that the reputability is dependent on many factors such as whether the broker is regulated, whether it provides reliable research tools, and the commission it charges. Upon identifying the right broker, the individual should open an account and then use the research tools to identify the best currency to buy. Trading then follows.
Forex has high leverage. This implies that even with a small amount of capital, the trader stands a chance of winning large profits. Additionally, unlike other financial markets that are negatively impacted by economic downtimes, a trader in the forex market can make money even when the economies are falling. The trick, therefore, lies in understanding the trends and this is only possible by conducting prior research. The trader should also learn how to read forex charts.