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Which stockbroker should I use?


I plan to start with an investment of about $5,000. My main goal is to have a low commission and do all my trades on the internet. Initially I plan to only invest in stocks but I plan to hold short possitions also. I was thinking about Zecco and Scottrade.

You are looking for a margin account if you want to be able to short stocks.

According to ScottTrade the margin minimums for are:
Scotttrade $500
Charles Schwab $1,000
TD Ameritrade $0
E*Trade $1,000
Fidelity $2,500

With a $5,000 account, cost per trade is going to be important. I suggest you focus on the cost per trade.

discount broker.

Unless this is your gambling allowance, forget shorting stocks for now. You would be swimming up river.
Most responsible brokerages require you to have a track record before allowing you to margin. That goes double if you are selling short. Suppose that you sell short Whoopdedooo stock at 30 expecting it to drop in price. Lo and behold -- Sing Song industries takes an interest in acquiring Whoopdedooo. Sing Sing offers 50 as a way to make sure nobody else spoils their acquisition plans. Now you are in the hole $2000 plus interest and commissions.

$5000 is not enough money to purchase more than one or two round lots. A round lot is 100 shares of the stock you are purchasing. If a stock is priced at about 24 and small change, your 5000 is tied up.

i use scottrade myself.

bizbag security analysis
frank j kelly jr
analysts
fjkellyjr@bellsouth.net

zecco. free stock trade

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