Before you open an online trading account and begin your trading career, the first step you should follow is to choose an online stock broker that is right for you. There are many different brokers and they all offer their own special services and features. So how do you go about choosing the best one for you? Commission fees are NOT the only thing that you must look for when you do your research. Other factors also play significant roles in your decision such as account minimums, trading tools, customer service, account security, and speed. There are also many other factors that may play a role in your decision making. After thorough research and personal experiences, here are my top 3 recommendations for traders:

1. OptionsHouse.com

Well-known For:

- $2.95 per stock trade

OptionsHouse is one of the best and cheapest online stock brokers. The transaction cost per stock trade is $2.95 flat rate. The cost for trading options is 5 for $5 or $8.50 +.15/contract. The cost for spreads is 10 for $10 or $12.50 +.15/contract.

OptionsHouse is ranked the best for option traders by BARRON’S 2009 & 2010. It is backed by Peak6 Investments, L.P. One of the largest options trading firms in the U.S.

Virtual Trading with OptionsHouse

OptionsHouse offers a great virtual trading platform to test your stock and options trades. Learn to trade or test your strategies – before you invest. The system is built and tested by professional traders with more than a decade of experience, their virtual trading platform delivers the same professional-level tools, data and functionality as their live platform.

Trading Tools

OptionsHouse trading tools include streaming charts and news, volatility charts, a probability calculator, and an options hotlist, to name a few. Many of these tools were created by the options-trading pros at PEAK6, who continue to use the prototypes to generate and test option trading ideas.

Professional Investment Coaching

OptionsHouse Investment Coaching helps you learn how to more effectively capture opportunity and manage risk in your stock and options trading. The integrated learning environment offers you a customizable, self-paced solution based on your needs. Learn the PEAK6 Methodology and become a more effective investor who understands market risks and opportunities.

Promotions

OptionsHouse has a bunch of promotions that you can choose from upon signup.

1. Free 1-year subscription to Barrons.com

2. Free 1-year subscription to Wall Street Journal

3. 100 commission-free trades.

Visit OptionsHouse to learn more.

2. Zecco.com
Zecco is the online broker that I use and so far I am very satisfied with their service.
Well-known For:
- No minimum amount required to open an account.
- FREE online stock trading
- 10 free stock trades per month – No fees or commissions when you maintain a $25,000 balance or execute 25 trades each month. Otherwise, all trades are just $4.50, which is one of the cheaper options available.
- The 25 trade qualifications include stocks, options, and ETF trades and the 10 free stock trades count towards the 25 total. This is certainly great for swing traders.
- Low options trading costs: $4.50 + $0.50 per contract.
- No inactivity or maintenance fees. No fees to close account.
- A variety amount of stock trading, research, and analysis tools.
- Zecco community – This is a great investing community with forums, blogs, and groups to help you interact with other traders and share ideas.
- Zecco Forex- Trading Platform for foreign exchange traders which was recently released.
- Excellent Customer Service

The only downside to Zecco is that in order to receive the 10 free stock trades per month, you need a minimum of $25,000 in your trading account or you must execute at least 25 trades each month. You will not be eligible if you execute any amount below the 25 trades that is required. Anything beyond 25 trades is $4.50 per transaction and you are not allowed to receive more than 10 free stock trades for that month even if you execute over 25 trades. However, Zecco is still relatively cheap compared to many other online stock brokers, charging only $4.50 per transaction, which is half of what TD Ameritrade charges for their commission.

Click here to visit Zecco for more information

3. E*Trade.com

Well-known For:

- #1 online broker for 3 years straight.

- 100 free stock trades.

- Good customer support, trading tools and banking services.