W P1BW066010-0-W01500-117E9B Composite 30 % § Review of Online Brokers March 7, 2005 March 7, 2005 % 15 What’s on the Menu? C r M Here are the main services offfered by each online broker. Check Websites for details. For mutual funds, NL means no-load Y and NTF means no transaction fees. For bonds, C means corporates, T means Treasuries and M mean municipals. K BROWSER-BASED Smart Customer- Number of Account Interest Paid Order Directed Execution Mutual Commissions Margin Rate Maintenance On $25K Cash Broker name Routing Routing? Guarantee Funds Bonds Options Futures International Market Limit Options $25K Balance $50K Balance Fee Balance (taxable) Ameritrade (Apex) Yes Yes Yes 13,264 Live Broker Yes No No $10.99 $10.99 $25.99 6.25% 5.75% $15/quarter if under 0.40% I T USED TO BE, STOCKS AND BONDS ALONE www.ameritrade.com (3,921 NL) $2,000 or fewer than P1BW066010-0- 888-871-9007 4 trades in 6 months. Brown & Co. No No No 7,000 Live Broker Yes No No $5.00 $10.00 $20.00 5.25% 4.75% None 0.65% www.brownco.com (2,000 NL, WERE ALL YOU NEEDED.NOT ANYMORE. 800-822-2021 700 NTF) E*Trade (Priority E*Trade) Yes Via Live Yes 6,361 C, T, M Yes Yes Yes $11.99 $11.99 $26.99 8.99% 7.99% None 1.26% www.priorityetrade.com Broker (1,685 NL, 888-387-2336 5,788 NTF) I’ve been retired 15 years. Retirement for me is going to be different. Fidelity Investments Yes Yes Yes 4,592 C, T, M Yes No Equities $10.95 $10.95 $47.50 7.33% 6.83% $50/year if under 1.50% A little work. A little travel. www.fidelity.com (in Active (2,575 NL, Only $25,000 or fewer than 800-343-3548 Trader Pro) 1,247 NTF) 2 trades in 12 months. In my day, retirement meant having a pension. Traditional savings won’t be enough for me. Firstrade No No Yes 9,578 C, T, M Yes No No $6.95 $6.95 $19.45 7.00% 6.75% None 1.36% CYAN MAGENTA YELLOW BLACK www.firstrade.com (1,058 NL, 800-869-8800 689 NTF) We saved what we could My Merrill Lynch Financial Advisor’s helping Foliofn No No No 750 No No No No $3.95 $3.95 NA NA NA $14.95/quarter if 1.56% and Merrill Lynch helps me manage it wisely. me go beyond 401(k)s and IRAs. www.foliofn.com (all NL fewer than 3 trades 888-973-7890 NTF) in prior quarter. We’re set. I’m going to be set too. Freetrade by Ameritrade Yes No No 13,264 No Yes No No $0.00 $0.00 $25.50 6.00% 5.75% None 0.40% www.freetrade.com (3,921 NL) NA Composite Harrisdirect Yes Yes No 10,800 C, T, M Yes No No $19.95 $19.95 $36.45 7.00% 6.50% $15/quarter if under 1.51% www.harrisdirect.com (through (through (2,100 NL, $10,000 or fewer than 800-825-5723 software) software) 850 NTF) 4 trades in 12 months. Merrill Lynch Direct Yes Via Live No 3,500 C, T, M Yes No No $29.95 $29.95 $35-$64 8.00% 8.00% $25/quarter if under 0.40% www.mldirect.ml.com Broker (500 NL, $25,000 or fewer than 877-653-4732 all NTF) 2 trades in 6 months. Muriel Siebert & Co. Yes Via Live No 12,973 Indications Yes No Via live $14.95 $14.95 $58.50 5.00% 5.00% None 1.57% www.siebertnet.com Broker (4,388 NL, online, orders broker 800-872-0711 1,335 NTF) via broker optionsXpress Yes Yes Yes 10,000 C, T, M Yes No No $9.95 $9.95 $15.00 5.75% 5.00% None 1.28% www.optionsxpress.com (5,400 NL) 888-280-8020 Schwab Yes No Yes 5,000 C, T, M Yes Through Live Broker $12.95 $12.95 $23.95 7.50% 6.50% $30-$45/quarter 0.5%-1.92% www.schwab.com (4,700 NL, partner and for accounts 800-435-4000 4,000 NTF) Lind-Waldock Lind-Waldock under $25,000 Marcia Davis & Scottrade No No No 8,917 C, T, M Yes No No $7.00 $7.00 $19.50 7.00% 6.25% None 0.85% her daughter Kim www.scottrade.com (2,762 NL, 800-619-7283 871 NTF) TD Waterhouse No No No 11,700 C, T, M Yes Yes Yes $11.95 $14.95 $29.45 7.25% 6.75% $25/quarter if under 1.70% www.tdwaterhouse.com (2,900 NL, $25,000 or fewer than 800-839-2837 1,364 NTF) 2 trades in 6 months. TD Waterhouse Trade Ctl. No Yes No 11,700 C, T, M Yes Yes Yes $9.95 $9.95 $22.45 7.25% 6.75% None, but must 1.70% www.tradecentral.com (2,900 NL, trade 30 times/ 1-800-934-4448 1,364 NTF) month to qualify. Wall Street Electronica Yes Yes Yes 15,000 C, T, M Yes No Live Broker $9.99 $9.99 27.50 5.75% 4.25% None 1.42% www.wallstreete.com (2,000 NL, 888-925-5783 1,500 NTF) WellsTrade No No No 9,000 Live Broker Yes No No $19.95 $19.95 Min $40 6.75% 6.25% $15/quarter for under 1.42% www.wellsfargo.com (2,500 NL, $20,000 or fewer than P1BW066010-0-W01500-117E9B 800-872-3377 900 NTF) 2 trades in 6 months. SOFTWARE-BASED Smart Customer- Account Interest Paid Order Directed Execution Mutual Options: Commissions Options Margin Rate Maintenance On 25K Cash Broker name Routing Routing? Guarantee Funds Bonds Simple Futures International Market Limit Contracts $25K Balance $50K Balance Fee Balance (taxable) AB Watley* Yes Yes No 1,000 Live Broker Yes Yes No $6.95 $6.95 $29.95 5.50% 5.00% $50/month 0.70% www.abwatley.com (500 NL) for fewer 877-229-2853 than 20 trades. ChoiceTrade Yes Yes No 5,500 Live Broker Yes No Some via $5.00 $5.00 $9.90 5.95% 5.70% None 1.45% www.choicetrade.com (4,000 NL) live broker 877-731-9114 CyberTrader Yes Yes No Live Broker Live Broker Yes No No $9.95 $9.95 $19.95 5.95% 5.95% $49-$249/month 1.556% www.cybertrader.com based on package 888-762-9237 and trading activity. E*Trade Pro Yes Yes Yes 6,361 C, T, M Yes Yes Yes $9.99 $9.99 14.49 6.99% 5.99% None 1.26% P1BW066010-0-W01500-117E9B www.poweretrade.com (1,685 NL, and up 888-388-2900 5,788 NTF) Interactive Brokers Yes Yes Yes None C Yes Yes Yes $5.00 $5.00 $10.00 3.83% 3.83% Minimum 1.826% www.interactivebrokers.com $10/month 888-442-2757 in commissions. MB Trading** Yes Yes No Phone Phone Yes Yes Yes $5.00 $5.00 $10.00 5.95% 5.95% None 0.70% www.mbtrading.com 866-628-3001 Preferred Trade Yes Yes No None T Via Yes No No $9.95 $9.95 $15.00 5.50% 5.50% $35/year if 1.32% www.preferredtrade.com Live Broker fewer than 3 You live differently now. You have more opportunities. More potential pitfalls. Your financial life is more complicated. Managed separately, the pieces of your financial 888-781-0283 trades per year. RushTrade Yes Yes No 3,000 Live Broker Yes No No $9.95 plus $9.95 plus $12.50 6.20% 6.20% $35/year for IRAs 0.70% life may not take you far enough. A Merrill Lynch Financial Advisor, however, can help you make all the pieces— mortgages, investments, insurance, retirement — work harder www.rushtrade.com ECN fees. ECN fees. by working together. Experience the value of this integrated approach. Call a Merrill Lynch Financial Advisor today at 1-800-MERRILL or visit www.totalmerrill.com. 800-422-2004 Schwab Active Trader Yes Yes Yes 5,000 C, T, M Yes Yes Live $12.95 $12.95 $23.95 7.50% 6.50% $30-$45/quarter 0.5%-1.92% www.schwabat.com (4,700 NL, Broker for accounts 888-245-6864 4,000 NTF) under $25,000 Cynthia Hewitt, ADVICE AND RETIREMENT BEYOND CREDIT AND Terra Nova Trading Yes Yes No 8,000 C, T, M Yes Yes Yes $7.50 $7.50 $26.50 6.25% 6.00% $100-$260/month 1.625% Merrill Lynch PLANNING BANKING LENDING www.terranovaonline.com for fewer than Financial Advisor 866-996-8566 50 trades/month. thinkorswim Yes Yes No 4,900 Live Broker Yes Live Live $7.50 $7.50 $24.95 5.95% 5.50% None 1.44% www.thinkorswim.com (1600 NL, Broker Broker 866-839-1100 4,900 NTF) TrackData (myTrack) Yes Yes No 10,000 No Yes No Yes $12.95 $12.95 Min $25 6.50% 5.75% None 0.70% ESTATE INVESTMENTS BUSINESS TRACKING www.myTrack.com (4,500 NL) PLANNING FINANCIAL PROGRESS SERVICES SERVICES 800-698-7225 03/07/2005 EE TrackData (TrackTrade) Yes Yes No 10,000 No Yes No Yes $5.00 $5.00 $10.00 6.50% 5.75% None 0.70% , EU www.TrackTrade.com (4,500 NL) , 877-998-7225 MW TradeStation** Yes Yes No 6,900 Live Yes Yes Yes $5.00 $5.00 $10.00 6.625% 6.625% $99.95/month for 0.75% Client profile simulations are for illustration only.