Anonymous
Asked on 18 Dec 2020
What is the best trading platform with low commission, low risk and can safeguard my funds?
0 comments
3 answers
Answers (3)
Nicholas Beh, Student Ambassador 2020/21 at Seedly
Answered on 18 Dec 2020
If you making very large trades often, you may not want to go for 0 commission brokers such as TD Ameritrade and Firstrade because they sell order flow. They receive payments for routing your order through a wholesaler and this could mean that your trades may not get executed at the best price possible.
Instead, go for brokers such as Interactive Brokers that do not take payments for selling order flow. Because you are making very large trades, the amount saved through price improvement could outweigh the cost of commissions. IBKR even boasts that they have the "best price execution", but you should do your due dilligence by checking the brokers' SEC Rule 606 disclosure reports which detail such behaviors.
As for the security of your funds, most brokerages should be fine whether it is local or overseas. After all, you are trading on the US markets, where the majority of shares are held under custodians. Brokers are required to segregate their customers' accounts from their own and hence your investments will still be protected even if the broker folds.
1
SQ
19 Dec 2020
Thank you Nicholas! Appreciate your post! Very good insight and useful info on brokerage practices which I wouldn’t have know. Thanks again!
Post
Chris
Top Contributor (Feb)
Answered on 08 Jan 2021
I would recommend Interactive Brokers. Interactive Brokers is a professional platform specifically geared towards traders. The commissions are low at ~USD 1, or even as low as USD 0.35 (using tiered pricing). FX rates are great and Interactive Brokers have been around for a long time and are a well established broker. Unlike TD which is also a commonly recommended broker, Interactive Broker does not sell order flow, which may be significant for a daytrader. All the best and happy trading!
0
Post
Jesslyn
Answered on 18 Dec 2020
Either firstrade or TD since both offers free commission trades...
Read 1 other answers with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Related Products
$10
MINIMUM FEE
0.08%
TRADING FEES
Custodian
STOCK HOLDING TYPE
[EXCLUSIVE] Get 2500 FSM Reward Points when you open an account with the code "SeedlyxFSMOne".
Related Questions