Best Online Brokers

Kiplinger's Personal Finance Magazine, Oct, 2001 by Brian P. Knestout, Erin Burt

Company

AVERAGE
COMMISSION
$20 OR MORE                                 WEB SITE (WWW)

Fidelity         Fund selection, Web site   fidelity.com
                   make it worth the
                   admission price
Muriel Siebert   Good research, funds,      siebertnet.com
  & Co.            cost basis info lift
                   Siebert
Charles Schwab   Crackerjack brokers and    schwab.com
  & Co.            best Web site
CSFBdirect       Smooth Web site doesn't    csfbdirect.com
                   offset creaky customer
                   service
Merrill Lynch    The best research comes    mldirect.ml.com
                   with a toll
Morgan Stanley   Sharp brokers, but you'd   morganstanley.com/online
                   expect more for paying
                   this much

AVERAGE COMMISSION UNDER $20

Scottrade        Cheap trades, lots of      scottrade.com
                   funds, smart brokers
National         Free research, good        ndb.com
  Discount         service boosts NDB
  Brokers
TD Waterhouse    Ample stable of funds      tdwaterhouse.com
                   and helpful brokers
                   buoy this firm
Brown & Co.      Cheapest commissions,      brownco.com
                   revamped Web site
                   still spartan
Datek            Handy features for         datek.com
                   frequent traders
Ameritrade       Solid service and nice     ameritrade.com
                   price
E*Trade          Poor service negates       etrade.com
                   good Web site,
                   cost-basis info
American         Decent price, good         americanexpress.com/trade
  Express          brokers, few extras
Quick & Reilly   Good service, wimpy        quickandreilly.com
                   Web site

                                                     Customer-service
Company                   Brokerage costs                criteria

AVERAGE                                                       RESPON-
COMMISSION                        EXECU-   MARGIN   MUTUAL   SIVENESS/
$20 OR MORE      COMMISSIONS      TIONS    RATES    FUNDS    KNOWLEDGE

Fidelity         $37.50   **      ****     ****     ****       **
Muriel Siebert    22.45   **      *****    *****    *****      ***
  & Co.
Charles Schwab    44.95   *       *        ***      ****       ****
  & Co.
CSFBdirect        30.00   **      ***      ***      ***        *
Merrill Lynch     44.95   *       **       *        **         *
Morgan Stanley    44.95   *       *        **       *          ***

AVERAGE COMMISSION UNDER $20

Scottrade          9.50   *****   ***      *****    *****      *****
National          17.25   ****    ****     ***      ****       *****
  Discount
  Brokers
TD Waterhouse     12.48   ****    *****    ****     *****      ***
Brown & Co.        7.50   *****   ****     *****    **         *****
Datek              9.99   *****   *****    *        **         **
Ameritrade        10.50   ****    ***      ***      ***        ****
E*Trade           18.70   ***     *        *        **         *
American          19.95   ***     **       **       **         ****
  Express
Quick & Reilly    17.45   ***     ***      **       *          *****

Company               Customer-service criteria        Overall

                                    COST-
AVERAGE                             BASIS
COMMISSION                   WEB    INFOR-             WEIGHTED
$20 OR MORE      RESEARCH   SITE    MATION   CONDUCT    SCORE

Fidelity          *****     *****   *****     *****      47.0
Muriel Siebert    ****      **      *****     ***        46.5
  & Co.
Charles Schwab    *****     *****   *****     *          41.5
  & Co.
CSFBdirect        ***       *****   ***       *****      35.5
Merrill Lynch     *****     ***     *****     *          29.5
Morgan Stanley    ***       **      ***       *          24.0

AVERAGE COMMISSION UNDER $20

Scottrade         *         **      *         *****      45.5
National          *****     ***     *         ***        44.5
  Discount
  Brokers
TD Waterhouse     ***       **      *         ***        41.0
Brown & Co.       *         *       *         *****      39.5
Datek             ****      ****    *         ***        36.5
Ameritrade        *         ***     *         ***        35.5
E*Trade           ***       ****    *****     *          31.5
American          ***       ***     *         *          30.0
  Express
Quick & Reilly    *         *       *         *          27.0