Online brokerage firms have taken the stuffiness out of the investing business.  Because of the power of computers and the automation of many of the functions that a traditional brokerage provides, the online brokerage can offer market trades, options and other functions at seriously discounted prices.

 

When choosing an online brokerage several factors should be taken into consideration: fees and costs, trading commissions, research tools and broker advice.  Both Schwab and E*Trade have maintenance fees if your account assets are less than a certain amount.  Question is, since the account is 'maintained' digitally, what are the maintenance fees for?  Easy, the maintenance fees are there simply to provide more revenue for the brokerage since they do not actually serve a purpose.  The same for inactivity fees.

 

An activity fee is charged on an account that does not make a certain number of trades per quarter, or per year...trades where the online brokerage can charge a commission.  Fidelity, Schwab, E*Trade, and TD Ameritrade all charge inactivity fees.

 

Fidelity, even with an inactivity fee, is an excellent online brokerage due