Are there Companies Offering Free Online Stock Trading?
by: Colin Peters
Although some companies will claim that they offer free online stock trading, it is not realistic to think that any company can offer a product for free; with exception of non-profit organizations with the goal stated to teach bad stock traders to make better trades. However, because no organizations of this type exist, then you will be trading and working with a company that charges either implicit or explicit fees.
If a company offers free online stock trading then it is usually only offering no-fee access to a members online stock trading site. These would normally permit the use of several stock trading analysis tools. You will likely gain aceess to many free tips on stocks and trading from a variety of sources; which could include newspaper articles about publicly owned companies.
Should you choose a free online stock trading company with a free membership, their revenue will likely be generated by selling advertising space or by charging fees or commissions on trades. If they use advertising revenue then your experience in stock trading may be inhibited by pop-ups, information with a bias or with flashy advertisements. However, they will often provide an 'upgraded' service without these annoyances if you agree to pay membership or high commission fees.
Alternatively there are some free online stock trading companies that charge membership fees but request no fee or commission to perform trades. So if your plans include many smaller stock trades per month then these companies are likely a good solution for you. If, however, your plans are for a few large trades then it may make more sense for you you to choose an online stock trading company that does not charge per month, but rather charges per trade.
There is no solution that fits everyone nor one that fits everyone's problems. A solution that is best for one traded is likely to be different than the best solution for you. So it is crucially important that you inspect each proposition in terms of what you will gain as an individual trader.