What do I consider good mediation?
Trying to find a reliable broker can be a headache for ordinary investors. One of my regular brokers that I use is Just2trade. I have used multiple trading platforms such as Fidelity, Zecco, Vanguard, Lightspeed and Just2trade. For me, the brokerage must meet the following requirement:
1. Low commission fees for trading stocks, ETFs and mutual funds (if required)
2. Reliable, can be freely accessed, stable trading platform
3. Offer electronic ACH transfer
4. Responsive and accessible customer service
How do I open a Just2trade account?
Opening an account is straightforward, although it will be a bit slower than a typical brokerage. You can either apply online or print out and fill out the form. So far I fill out the form online and print out the form. I later mailed the form and also submitted the copy via fax/online. My account was opened within 1 week after submitting my application.
My experience
I deal with various discount brokers. I started investing with Fidelity in 2006, mostly buying mutual funds. I then tried Zecco because there are no commission fees. However, due to the limit of 10 free trades per month and the limit of $25,000 to get the free trades, I branched out to Just2trade. It has a low commission. I started using Just2trade in 2009. Compared to other brokers, just2trade offers low commissions for trading. It only costs $2.50 to trade. There is no limit to the number of shares. This means trading 1 share or 10 shares or 1000 shares costs only $2.50/trade. The trading option costs $2.50+$0.50/contract. So for 2 option contracts you pay $3.50 ($2.50 + 2 x $0.50). Margin rates are also competitive. Current margin rates are as follows (as of July 30, 2010). To open an account you need to deposit $2,500.
The trading platform is very simple and responsive. I can place either a market order, limit order, stop loss, stop limit, market on close and trailing stop. I can also trade pre-market and post-market, which can be very useful.
Just2trade has 2 types of platforms (web based and J2trader). I usually access it over the internet. Your computer must also support the Java application, so the trading system runs on Java. It also offers J2trader as a trading platform. I also like the in-house trading tools like the Maxit control software that are available online. Maxit offers access to all tax-related topics in retail. Other features such as sales numbers, stock alerts, market data and transaction details, options and mutual funds screeners are available in real time. It also offers Zacks Screener for screening different stocks and mutual funds. I only use just2trade to trade stocks and ETFs. I never use it to buy mutual funds, but I believe it should be very easy as well.
I usually email customer service when I have a problem. Customer service is very responsive. Other people have mentioned unresponsive customer service, although I’ve never had an issue.
Problem / Complaints about Just2trade
Some complaints about Just2trade that I found:
1. In 2007 there was a problem with their former clearinghouse, North American Clearing. Their assets were frozen by the SEC pending fraud investigation, resulting in the client’s assets being unable to be liquidated. This has been happening for 2 weeks and has been fixed. Current clearinghouse is Legend Clearing.
2. Little to no support for beginners or novices
3. Incorrect cash balances and other account balance discrepancies.
4. Poor selection of mutual funds
5. Minimum balance required of $2,500
6. Too simple trading platform and difficult to navigate
Awards Just2trade is featured in SmartMoney and Kiplinger magazines as one of the best brokers with low fees and commissions.
Disclaimer: I have no affiliation with Just2trade other than using it for trading. Please do your own research for more details. All information is correct as of July 31, 2010. Please act responsibly.
margin account fidelity
