Barron’s magazine updated their stock broker survey for 2012. This is the 17th annual ranking of online brokers. Drum roll… this year Interactive Brokers gets the top pick. Last year their top pick was TradeStation, which came in fourth this year.
Personally I don’t see what’s so great about Interactive Brokers. They don’t meet the needs of most investors, and they cater to a specific audience. Interactive Brokers is definitely not for the novice trader. If you are an active trader, they are a great broker to use and have some of the best margin rates.
This year Barron’s adjusted their rankings to weigh more with mobile trading. Though if you read last year’s survey, most readers are not frequent traders. So while I think the ability to trade on the go is important, I suspect it’s a nice feature to have but not requirement. How often will you need to make a trade while out to lunch?
Not all of the mobile apps are about making trades. The TD Ameritrade iPhone app is unique in that it allows you to scan UPC bar codes for investment ideas. The iPad apps are especially a great way to sit down at the couch and to do some investment research.
If you are in the market for a new online broker, you might want to pick up a copy of the magazine at your local newstand. There is much more information in the article, and suggest you read it. Though you will need to be a Barrron’s subscriber if you want to read it online.
Best For Long Term Investing
| Name | Rating | |
|---|---|---|
| Fidelity | 4 1/2 of 5 | Sign Up Now |
| TD Ameritrade | 4 1/2 of 5 | Sign Up Now |
| Charles Schwab | 4 of 5 | Sign Up Now |
| E*Trade | 4 of 5 | Sign Up Now |
| TradeKing | 4 of 5 | Sign Up Now |
Best For Frequent Traders
| Name | Rating | |
|---|---|---|
| TradeStation | 4 1/2 of 5 | Sign Up Now |
| Interactive Brokers | 4 1/2 of 5 | Sign Up Now |
| MB Trading | 4 1/2 of 5 | Sign Up Now |
| Lightspeed Trading | 4 1/2 of 5 | Sign Up Now |
| TD Ameritrade | 4 of 5 | Sign Up Now |
Best For Options Traders
| Name | Rating | |
|---|---|---|
| tradeMONSTER | 4 1/2 of 5 | Sign Up Now |
| OptionsHouse | 4 1/2 of 5 | Sign Up Now |
| TD Ameritrade | 4 1/2 of 5 | Sign Up Now |
| optionsXpress | 4 of 5 | Sign Up Now |
| TradeKing | 4 of 5 | Sign Up Now |
Best For International Traders
| Name | Rating | |
|---|---|---|
| Interactive Brokers | 4 1/2 of 5 | Sign Up Now |
| TradeStation | 4 1/2 of 5 | Sign Up Now |
| ChoiceTrade | 4 of 5 | Sign Up Now |
| Fidelity | 4 of 5 | Sign Up Now |
| MB Trading (FOREX) | 4 of 5 | Sign Up Now |
Best For Novices
| Name | Rating | |
|---|---|---|
| TD Ameritrade | 4 of 5 | Sign Up Now |
| Fidelity | 4 of 5 | Sign Up Now |
| E*Trade | 4 of 5 | Sign Up Now |
| Charles Schwab | 4 of 5 | Sign Up Now |
| ShareBuilder | 3 1/2 of 5 | Sign Up Now |
| Kapitall (Stocks only) | 3 of 5 | Sign Up Now |
Best For In-Person Service
| Name | Rating | |
|---|---|---|
| Scottrade | 4 of 5 | Sign Up Now |
| Merrill Edge | 4 of 5 | Sign Up Now |
| Charles Schwab | 4 of 5 | Sign Up Now |
| Fidelity | 4 of 5 | Sign Up Now |
| TD Ameritrade | 4 of 5 | Sign Up Now |
