facebookUndecided on which brokerage to use for buying US stocks??? - Seedly

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Anonymous

01 Nov 2020

General Investing

Undecided on which brokerage to use for buying US stocks???

For now, trading in and out for quick profits using spare cash.

Been using tiger for past 2 months. Simple interface. Not SIPC - my concern.

IBKR - In progress of opening. Not SIPC and acct min. fee - my concerns.

TD - opened but not using it now. best for no commission and SIPC. High withdrawal fee of $25 and customer service (not sure if they will take long to respond like the account opening stage?) - my concerns.

Discussion (2)

What are your thoughts?

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Check out this brokerage comparison table (https://plannerbee.co/best-trading-platforms/) and see the fees for US stocks. It appears that moomoo is the cheapest so far!

Nicholas Beh

01 Nov 2020

Student Ambassador 2020/21 at Seedly

If you make frequent trades, going for a 0 commission broker like TD Ameritrade will save you a lot in the long run. They certainly do have a expensive withdrawal fee, but how often will you be withdrawing cash? It would be better to leave the money there and put it into investments rather than repeatedly depositing and withdrawing.

SIPC coverage is a plus for me, but not a deal breaker. IBKR (which is also Tiger's custodian) is very reputable and won't be folding anytime soon. IBKR LLC is covered under SIPC but its international subsidiaries are not.

Do note there may be some deal breakers for each of them. For IBKR, that could be the lack of free market data and minimum monthly commissions. For TD Ameritrade, they actively enforce the Pattern Day Trader rule which restricts you to a maximum of 3 round-trip trades within 5 days. And for Tiger, they are relatively new and may not seem as reputable as other brokers.

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