Competition in the online brokerage industry has never been hotter. As the major players have shuffled places after a couple of notable rounds of consolidation, individual investors find themselves facing a wealth of attractive options. Commissions have plummeted to the point that few industry observers feel they can possibly go much lower, and the various discount brokers are pretty much aligned in terms of their offerings in this respect. On the other hand, a wide variety of other features distinguish these most notable contenders from one another, so it pays for smart investors to do some research before opening accounts.
One of the most obviously noticeable such distinctions is the incentives each broker offers for those who are establishing new accounts. Investors looking to make such a move will want to check out the current promos that each broker is offering, as these can vary widely both with time and in terms of what they entitle one to. The cash incentives that have long a mainstay of the interest are still freely offered, although they may sometimes come with more restrictive terms regarding initial deposit amounts and the number of trades that must be completed before the money can be withdrawn.
This still hasn’t stopped some especially frugal investors from taking advantage of virtually every such offer that exists. In fact, it is possible for someone who is willing to do the work to score a thousand dollars or more in pretty short order just by cycling through promotions of this type, although many will find that the effort required doesn’t pay off compared to other sources of income. For those who are interested in more conventional usage of broker bonuses, though, these lump sum awards should still be taken into consideration when deciding where to open an account.
Other features of this sort include a number of free trades awarded to new account holders. These incentives can be worth hundreds of dollars a piece as well, although investors should take care that they don’t divert attention from downsides like higher commissions once those that are on the house have been exhausted. With the ability to pretty easily arrange for ten or more cost-free trades, in fact, many investors will be able to go for months without paying a cent in fees.