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We put online brokerages
to the test
Michael Abramowitz
To experience what the real "mom and pop" investors
do when they trade online, Bankrate.com will spend real cash on
our e-commerce brokerage test. We'll base our reviews on actual
performance. We believe we are the first organization to spend
money making actual trades while reviewing online brokerages.
On Friday, Aug. 27, Bankrate.com will select its e-commerce
"Best Pick" from among the stock trading sites Media Metrix* rated
as the most heavily traveled in May: E*TRADE, Fidelity Investments,
Charles Schwab, Ameritrade and Datek Online. Then, each Friday through
Oct. 1, we'll review one of the trading sites to examine its strong
and weak points.
We'll look at several categories:
Ease of signing up for an account -- Was it
difficult to sign up? How long did it take to receive a confirmation
of funding for the account?
Ease of use of site -- Can an everyday Joe
quickly understand how to trade at the site?
Commission schedule -- Was it easy to find
out how much the brokerage charges for commission on trades?
Funding requirements -- Are the minimum balance
requirements appropriate?
Customer Service -- Is there a backup system
in case the server crashes? Can you reach a human being? And is
there a 24-hour toll-free number to reach customer service?
Quickness in executing trades -- How long does
it take to make buy orders, and what is the average time? How long
does it take sell orders? Did we pay a competitive price for the
stock?
Added Features -- Does the site offer trading
in initial public offerings? Free real-time stock information? Broker
recommendations? Free individual retirement accounts? After-hours
trading? Anything unusual or especially spiffy?
The online brokerage industry won't know what hit
it.
-- Posted: Aug. 20, 1999
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