Comparing discount broker fees

Money Digest, August, 1998

If you make your own investment decisions and do not need any advice, you can go through a discount broker and save a bundle on commission costs. The discount brokerages are becoming more and more competitive.

The cheapest way to trade is over the Internet. Here are the minimum commissions when you trade over the Internet: Scotia Discount Brokerage: 22.50; Bank of Montreal's InvestorLine $25; Investor's Edge $28; E*Trade: $28.88; Action Direct, CT Market Partner and TD Greenline: $29. (Minimum commission over the Internet, for example, covers up to 1,000 shares when you trade with TD Greenline.)

When you trade with a representative of the discount brokerage, then the cost could be higher. For instance, Investors' Edge and TD Greenline charge a minimum of $43, Action Direct $40 and CT Market Partner $39. Bank of Montreal's InvestorLine and Scotia Discount Brokerage charge the lowest minimum commission of $25.

Many discount brokers (such as TD Greenline, E*Trade, and InvestorLine) are open around the clock, making it easy for investors to place, revise or cancel a trade 24 hours a day.

For addresses and phone numbers please see our Resource Directory, Money Digest, July 98.