Money Blue Book

(Updated List Of The 10 Best Discount Brokerage Firms Below)

So, you are finally sold on the idea of signing up for an investment brokerage account so you can start making money by investing in the stock market. Or, perhaps you are already an experienced trader but at times still wonder what other brokerage options are out there? These days there are a lot of options but it can be sort of confusing trying find the right online broker. There are many choices available, from full service premium brokerages to deep discount online brokers. Relying on authoritative financial and investment sites for guidance and opinion reviews isn’t always definitive either since they occasionally have differing opinions. The best way to choose the best broker is to do a combination - by sticking with the popular ones that have been around for some time, that have been subjected to adequate scrutiny by the investing community, and have that have consistently appeared in the top reviews.

Know Thyself To Better Determine Brokerage Fit

Factors to consider when choosing the right online broker include the type of investment vehicle you intend to trade (stocks, bonds, mutual funds, indexes, options), the amount of your investment, the type and amount of research material you want, customer service, website design and layout, and trading reliability. It’s important to know what type of investor you intend to be. Do you plan on being an active trader with numerous trades per week, or do you plan on being an index, mutual fund type investor who prefers to leave and then forget it. These things matter because many brokerages charge fees and commissions that differ depending on how much you invest and how frequently you trade.

Choosing Discount Brokers Over Full Service Brokerages

I am a hands on investor so I prefer to do things myself. This is not to say I want to handle every single minute detail, but I personally don’t need the services of an expensive account adviser for investment decisions. That’s why I prefer to go with more affordable online discount brokers over their more expensive full service cousins.

Full service brokers offer a much broader variety of financial products and provide a much wider array of investment advice and research than do discount brokers, but then they charge much higher fees for their services. They justify the much higher commission rates by offering a lot of investment advice and by providing active recommendations. However, keep in mind the advice they provide are usually just educated guesses. Frequently, much of the investment advice and research material can be found elsewhere for free and the educated guesses they provide doesn’t always lead to the best investment decisions since no one can truly predict or time the market. It’s primarily sales commission-based so they frequently have an incentive to solicit business and encourage active trading, which can occasionally cause suspect and even conflict of interest investment choices. Because of the excess premium you must pay for full service firms, I recommend sticking with discount brokers.

Due to continual competition, many discount brokers now also offer a decent wealth of financial research and investment material at your online fingertips. There are less frills than premium brokers like Merrill Lynch, Morgan Stanely, or Wells Fargo, but I think for most reasonably educated investors, the discount path is the way to go. The considerably lower fees will enable you to lose less money from unnecessary commissions and help you maximize your money.

There are many brokerage firms out there from expensive fancy pants full service brokerage firms to more affordable premium discount and deep discount brokers. Since I advocate sticking with much cheaper do-it-yourself online discount companies, I’m listing the best ones in my opinion. However, all of these discount broker choices would certainly benefit more experienced, seasoned investors as well. I’m also recommending a few popular more-premium brokers such as Fidelity and Vanguard that many like for the exceptional low cost funds they offer as part of their own transaction free network of mutual funds.

The Top 10 Best Online Discount Broker (Listed In No Particular Order)

1) Zecco - Zecco is a popular online broker choice among investors who want to enjoy free trades and not have to pay a fee for each equity transaction. Currently the commission cost is free for the first 10 trades per month if you maintain a minimum of at least $2,500 in total account equity (total balance of all cash and stock value). If you are unable to maintain the balance requirement, then each trade will require a $4.50 trading fee. Even with the fee, Zecco offers one of the lowest trading fees among all popular discount brokers. Also, there are no hidden inactivity fees, which is great for those who don’t intend to trade too often. For more information, check out my review of Zecco, and my account trading experience with them.

2) TradeKing - (Note: Tradeking is currently offering new account applicants an instant free $50 bonus when they fund and trade via the provided link). TradeKing offers exceptionally low $4.95 equity trades, with no inactivity or maintenance fee, which is very good. The trading interface is pretty average but decent, and the online customer service chat feature is useful, although many brokers are starting to provide this function as well.

3) ShareBuilder / ING Direct - ShareBuilder was recently acquired by ING Direct. This broker provides good tutorials for beginners and is a great choice for those new to investing. I suggest sticking with the Standard subscription account as it provides more features, but those who don’t plan on trading too often may prefer the Basic account, which doesn’t charge a fee at all. Sharebuilder also offers the very useful option of automatic investment as well as dollar based investing, which allows you to invest in a particular dollar amount you choose rather than by a particular number of shares. The dollar based investing feature is very handy for trading stocks with high individual share prices like Berkshire Hathaway A Shares (BRK-A), which was last trading at $138,500 per share!

4) Fidelity - I personally use Fidelity Investment as my primary individual stock and mutual fund account. Not only is the company’s customer service top notch, I think its online trading website is clean and easy to use. I invest in many of Fidelity’s high performing mutual funds and by having a brokerage account through Fidelity directly, I don’t have to worry about transaction fees when I trade Fidelity funds. Standard stock trades are $19.95, but due to its tiered system, the fees are much lower depending on the total value of your assets. I highly recommend this brokerage firm.

5) Vanguard - Vanguard is more expensive in terms of fees as each online trade costs $25 or $0.025 per share (whichever is greater). However, because Vanguard’s exceptionally low expense ratio mutual funds have performed so well, this company is great for people like me who want to invest in high performing diversified Vanguard funds without having to pay hefty fees through another broker.

6) Charles Schwab - Charles Schwab used to be a more expensive premium broker, but it seems to be matching itself up with its competition better these days by lowering and simplifying its commission tiers. The company offers an impressive wealth of research related information and fees are currently $12.95 per trade, with extra charges past 1000 shares. Schwab offers other financial features such as personal banking and credit cards, and its customer service has been decent and dependable.

7) E-trade - Etrade has been around for some time and is quite popular due to the wealth of tools and research information the company provides to account holders. Despite its recent mortgage arm troubles, I don’t think the problems will disrupt its regular trading performance, although it’s understandable why some account holders have become a bit edgy of late. Its stock commission rate is tiered at a standard rate of $12.99 but drops the more frequently you trade and the higher the value of your accounts. Customer service has occasionally been spotty and they need to work on being more timely with their response time. To prevent customer attrition, Etrade also needs to continue reassuring its account holders and assuage fears about its possible going concern problems.

8) Scottrade - Scottrade offers actual brick and mortar branches throughout the country that some investors find useful. I personally don’t find it necessary but many appreciate the convenience of having actual branches nearby that they can visit, a benefit not offered by many other online brokers. Its biggest downsides include providing much less research material for account holders and offering a much lower interest rate for its cash accounts than its competitors. However, there are many pluses as the company offers very good customer service and provides a wide selection of No Transaction Fee (NTF) funds. Its commission fees for equity and limit trades are exceptionally low at only $7 with no share limit, and there are no inactivity fees.

9) TD Ameritrade - Ameritrade bought out Datek and merged with TD Waterhouse to finally become TD Ameritrade over the years. Among the features offered, one stands out - a predicable and single priced commission fee - a straightforward $9.99 for each market and limit trade. TD Ameritrade is not the best for mutual fund investing, but it’s very good for individual stock trading. The stock streamer program is a nice feature, but I’ve found it to be occasionally buggy and not always working properly.

10) Firstrade - Firstrade is a decent discount broker with a very low and easily priced flat $6.95 for all online market and limit trades. They are one of the least expensive brokers with no minimum account balance requirements.

For More 2007 Online Broker Rankings and Review, Please Check Out:

1. Barron’s
2. J.D. Power &, Associates
3. Kiplinger
4. Smart Money
5. USA Today

Merry Christmas everyone! It’s exciting that Christmas is now upon us and I’m quite eager to find out what’s in store for the coming new year. I’m feeling a bit wistful right now so I’d like to look back at the wonderful and memorable presents I’ve received over the years since childhood and even into adulthood. Many of the presents continue to have a special place in my memories and I still remember them quite fondly.

I know some parents advocate the teaching to children of the true meaning of Christmas - the valuable lesson that Christmas is not only about presents and receiving gifts, but that it’s also about family, sharing, and spending time with loved ones. Although I believe these themes are worthy ones, I don’t think we should completely deprive children and the younger generation of the simple and innocent joy of receiving and giving presents. The simple act of giving and receiving presents is often an annual ritualistic event that holds a special place in the historical hearts and minds of many children, teens, and adults alike. Instead of trying to compel the thematic shift of Christmas from presents into the non-material aspects of the holiday season, we should try to encourage and teach children to not only receive, but to give. It’s an inevitable fact that children will ultimately grow up into a materialistic world. Rather than shield them or futility try to sanitize their environment, we should prepare them for reality and the future by showing them that the Christmas giving spirit is just as important or even more important than Christmas receiving. The ritualistic exchange of presents, offerings, and tidings is part of the growing up experience that shouldn’t be eliminated or watered down. Depriving them of such innocent childhood memories would be a shame.

So what are some of the childhood or even adulthood presents that hold special meanings for you? I’ve given nice presents in the past, but I look back and particularly remember the best and most touching presents I’ve received in my life. Here are some of my favorites:

1) Pet Hamster - I can’t recall at what early age my younger brother and I received our first pet, but it was a hamster! I loved that little fur ball and enjoyed watching him run like crazy on his hamster wheel, which clumsily squeaked as he churned. With my first pet I also learned a valuable life lesson - hamsters don’t live forever (lifespan 2-3 years) and eventually like all living things, they too will pass away.

2) Tiger Handheld LCD and Game & Watch Gaming Systems - These were my first portable video gaming systems, if you can even call them that. They were tiny plastic video game toys that displayed black LCD images that moved across tiny screens. They were so addicting and top of the line at the time. I remember prizing them as a little kid and keeping them safe from scratches and nicks.

3) Nintendo (Old School NES) - The original Nintendo Entertainment System was one of my all time life changing presents. I devoted so much of my childhood to it and spent countless allowance money and neighborhood lawn mowing income on buying pricey games for my Nintendo system. Much of my childhood memories from Christmases to birthdays centered around Nintendo and video game playing. Ah, priceless memories.

4) Star Trek Autographed Photo - I received this creative surprise during my recent adult years. My girlfriend had the fortune to take an acting class taught by actor J.G. Hertzler, the guy who played the recurring Klingon character, General Martok in the Star Trek sci-fi television series. I’m a huge Star Trek fan and followed the entire Next Generation show and later spin offs my entire life so this present really meant a lot to me. He was only a bit character but I loved the nostalgic surprise. Kapla!

I am the type of person who likes to maximize everything that I do. Particularly when it comes to hobbies and interests, I always want to think - how can I find a way to monetize or turn the hobby into a beneficial endeavor? Not that I have to profit from everything, but I just have a very entrepreneurial and “see the bigger picture” personality. However, there are some things that I just can’t seem to spin into a financially worthwhile venture - research intensive, but addictive hobbies like fantasy football. For the last few fall and winter seasons, I’ve been embroiled in the fun of online fantasy football. I’ve been the league commissioner for my church league for several years now and this is the first year where Ive made it to the final championship game. I’m so excited!

What Is Online Fantasy Football?

If you don’t know what fantasy football is, allow me to explain. First of all, it’s not some silly “fantasy” thing where people pretend to be in the game like some of my female friends jokingly think it is. I think people who aren’t into fantasy football or other online fantasy sports see it as a childish game, but in fact, most of the online fantasy sports leagues are played by adults.

Football football is generally an online game played by participants (called owners) arranged into online leagues. Usually there is a draft at the beginning of the sports season where owners acquire players on their team comprised of real life NFL football players for preset football team positions based on their league’s setup. Each week, owners are matched up with other owners, usually head to head, where they compete for the most total points, derived from their roster’s actual player statistics for that week. For example, if I own the New England Patriot’s Tom Brady as my quarterback and he scores 300 yards passing with 3 touchdown scores for that weak, I’ll earn points for his on field statistical performance for that week. Owners can trade players with other owners and can pick up unused players from the league’s online waiver pool. Eventually, the owners whose teams have the most points compete in a playoff series to determine the champion at the end of the football season.

Although I Can’t Monetize Fantasy Football, I Still Enjoy It Immensely

But the fact remains that fantasy football is a fun hobby that consumes a lot of time and research energy. I spend a great deal of spare time researching players and following their on the field performance and statistical progression. It’s sort of like the same way I track my financial investments but instead of stocks, bonds, and funds, I’m following the stats of quarterbacks, touchdowns, and interceptions.

Some online public leagues offer cash and reward prizes for the best overall fantasy football teams, but some require buy-ins and upfront fees, while others border on more shady sports betting. Perhaps some things in life are better left as simple as they are. Although I make nothing from all of the time I spend on fantasy football, I still love and enjoy the time and competitive spirit I put into it. Some people like to pass the time by playing videos games or even knitting. I have my fantasy sports!

By the way, if you’re curious, here’s my awesome Yahoo Fantasy Football roster this year. Note: I ultimately placed 2nd overall out of 12 teams.

I had Lasik surgery a few years ago and it completely changed my life for the better. For those considering the procedure, I highly recommend it wholeheartedly. Particularly for those people like me who spent the majority of their lives dependent on corrective lenses, Lasik will truly transform your life in an almost miraculous way. Freedom from glasses and contact lenses has been such an amazing and liberating experience.

The procedure is considered elective by most health insurance companies and the cost can range between $3000 to $5000. Although the cost has gone down over the years, it’s still quite an expensive procedure. But if you can afford it, the potential benefits greatly outweigh the limited health risks and possible fear factor. It’s one of the best financial expenditures I’ve ever made for myself.

My Background Of Wearing Glasses and Contact Lenses At An Early Age

Since I was little kid I’ve always had terrible eye sight. I started wearing glasses during second grade and my prescription only worsened and thickened over time till they essentially became bullet proof eye guards. I went from thick plastic frames and lenses to sleeker wire frames and ultra thin prescription, but with my horrendous eyesight of -7 in the left and -8 on the right, it was impossible to reduce the lens thickness by much.

I’m not particularly vain but I guess I always felt constrained with having to wear such thick glasses and being recognized by my thick “nerdy” goggles. Since my vision was so bad, I was basically blind without my glasses, frequently having to fumble around for them at night just to do simple things like checking the time. One one occasion, I broke my frames in college, popping out the lenses by accident, causing me to have to tape them up like an uber-dork and attend classes because I did not have a backup pair with me.

Thankfully, I eventually transitioned into contact lenses, but the honeymoon was short lived. Contact lenses were easy and clutter free, but required extra time and effort day and night to maintain and clean them properly. I tried different types of contact lenses but even Acuvue disposables caused eye irritation problems. I had severe dryness in my eyes and they frequently turned blistering red due to contact lens irritation and oxygen deprivation. Remembering to take them out before sleeping or swimming, and having to readjust them after unwittingly rubbing my eyes and dislodging them were always problems to contend with.

It was not until my last year in college that I finally decided to do something about my vision situation and seriously pursue Lasik vision corrective survey as the solution to permanently correct my vision and rid myself of the shackles of contact lenses and glasses forever.

What Is Lasik and What Does Laser Vision Corrective Surgery Involve?

Lasik stands for Laser Assisted In Situ Keratomileusis and is a type of refracted laser eye surgery used to correct most forms of near sightedness, far sightedness, and astigmatism. It has become a very popular alternative to wearing corrective eyeglasses or contact lenses. The operation is performed by an ophthalmologist who creates a thin flap on the surface of the eye using a specialized blade, and uses a special excimer laser machine to modify the eye tissue underneath the flap. After the laser has corrected the vision surface, the flap is then returned to its normal position where healing commences fairly rapidly.

The procedure is usually performed with the patient awake, sitting in an operation chair with the head rest tilted back. Anesthetic eye drops are used to numb the eyes while the surgery is underway. There is usually little to no pain involved other than temporary dryness or mild soreness in the eyes after the procedure. Functional recovery occurs within a day but permanent healing takes a few months.

My Lasik Experience At The Laser Eye Center (TLC Vision)

I had my Lasik procedure done in 2000 at The Laser Eye Center, a popular laser vision correction center in my area known for its Lasik procedures on celebrities like Tiger Woods. There were other popular Lasik center choices available aside from TLCV, such as Lasik Plus Vision (LCAV), but I chose the Laser Eye Center due to its strong local presence. There are even more Lasik choices available today, but personally, I would still choose to go with more established brands.

The Lasik procedure itself was pain free, albeit a bit scary. Two close friends came with me for moral support and to drive me back home afterwards. Since my vision and eye had already been mapped out and calibrated during a consultation the day before, all I had to do was pay the $5500 Lasik charge in full by credit card before the procedure would begin.

I remember nervously sniffing the refrigerated freon scent as I sat in my operating chair. Once the anesthetized drops were placed in my eyes, and the eye clamps were put on to keep them open, everything else seemed quite automated. The suction device caused my vision to fade into white but I felt no pain or discomfort as the blade created the flap and the laser device went to work. I remember the physician and his nurses talking excessively to one another during the procedure, which I found kind of annoying since I was a bit nervous and wanted complete silence. The laser excimer created an electrical tapping sound as it zapped my eyes and the buzzing sound lasted longer than usual since my vision was so bad, requiring extra correction. After one eye was done, the procedure was repeated for the other eye. All in all, it only lasted maybe 15 minutes before I hopped out of my chair to face the world again. Immediately I knew my vision had been corrected because I could make out distinct objects, although it initially felt like I was peering through a sheet of gauze.

I was given pain killers and antibiotic drops for my eyes and I went home with my friends who had been watching the entire procedure from a video monitor in the waiting room (I think they were fascinated and grossed out at the same time). The next day, my vision was almost a perfect 20/20 and I was on my way to vision bliss, already returning to my normal routine like nothing had happened. Since then, I’ve remained extremely satisfied with my long term Lasik results.

My Advice To Those Considering Laser Eye Surgery and What To Keep In Mind:

1. Not Everyone Is A Good Candidate For Lasik - Lasik is not a good idea for those whose vision is still fluctuating or for those with unusually thin corneas. Ethical physicians will usually reject those that don’t qualify as good candidates for the procedure. I did not become a good Lasik candidate until my vision stabilized during college. Once your vision has remained consistent for a few years, I recommend undergoing the procedure sooner than later. The younger you are, the quicker your eyes will heal and the lesser the chances that complications may arise.

   Also, if the corneas in your eyes are too thin, you might be rejected for the Lasik procedure as well. A sufficient corneal diameter is needed to properly create and lift the flap. Unlike cornea thickness, having a high prescription is generally not a major problem for the Lasik procedure since advances in laser technology have greatly enlarged the treatment range.

2. Lasik Is Permanent, But Over Time, Your Vision Is Likely To Regress A Bit - It’s been several years since my Lasik surgery and my vision has since regressed very slightly towards nearsightedness again. Fortunately, I still have excellent vision and don’t require a follow up procedure.
3. The Nighttime Halo and Glare Problems That Lasik Patients Complain About Are Real - Lasik has been known to cause one to see fuzzy halos and glare at night - this is true. When I gaze at a street lamp at night, I will frequently see an unusually large ball of light surrounding the light source. It was a bit strange at first, but I’ve gotten so used to it that I don’t even notice it anymore. It’s not a real inconvenience at all. The glare was much more significant immediately after the procedure but my eyes have since adapted well.
4. After the Lasik Procedure Your Eyes Will Likely Turn Red and Become Very Dry - Immediately after the procedure my eyes hemorrhaged slightly and displayed small patches of red, but this went away after a day or two of rest. This is a normal and natural response, and you eyes will soon recover. My eyes were also very dry for weeks afterwards and I remember avoiding malls because the dry air wrecked havoc with my post op vision. Your eyes recover within days after the procedure, although the corneal flap doesn’t fully seal until 9 months later.
5. Price Is Important But It Should Not Be Your Main Consideration When Choosing A Lasik Physician Or Facility - For both eyes I spent a total of $5500 for the procedure, back when Lasik was just coming out. The price was high but it was the best decision I ever made. I paid a premium for it but I received premium results. Don’t try to save money by going to some unknown or amateur physician with little experience in using the Lasik machine or in creating proper corneal flaps. Yes, your chances of ending up blind are extremely remote, but eye surgery is still serious business. Don’t risk it!