BROKER BAZAAR
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Waterhouse Securities
www.waterhouse.com
RATING 8.6
RECOMMENDED FOR hard-core day trader, long viewer
DETAILS The best word for Waterhouse, among the Top 10 brokers, is
"compromise." Its limit-order commissions ($12 per trade) are
lower than the other big discounters such as Schwab and
DLJdirect, but they're higher than sites like Suretrade and
Datek Online that are geared to hard-cores. Similarly, its
basket of products, services and research tools is more basic
than that offered by higher-cost services, but Waterhouse is
more comprehensive when compared to the lean, mean deep
discounters. It scores high in customer support, simplicity,
integration of data and research, and fees (it has the fewest of
the group). But we found its site navigation clumsy. A design
overhaul would be a boon to this service.
A.B. Watley
www.abwatley.com
RATING 8.5
RECOMMENDED FOR hard-core day trader
DETAILS Perhaps the most unusual offering in the bunch, A.B. Watley's
Ultimate Trader presents four levels of trading service, starting
at $16.95. (Commissions are calculated based on trades per
month.) What makes this site unique is its narrow focus on
hard-cores with above-average assets, trade sophistication and
need for real-time data. Investors willing to pay extra fees for
data and trade services get specialized software, instant trading
and account updates designed to help them react to the market on
a dime.
Suretrade
www.suretrade.com
RATING 8.5
RECOMMENDED FOR hard-core day trader
DETAILS At $9.95 per limit-order trade, Suretrade's a worthy
skin-and-bones option for hard-cores. Although we preferred
Datek's trade screen (especially for speedy trades), Suretrade
offers more robust research, planning tools and products,
including options trading. Suretrade has low fees and margin
rates to complement its commissions strategy too, but that comes
at a cost: a few areas of Suretrade are integrated poorly or in
some cases not at all (news, quotes, and graphs). Customer
service hours, as with Datek, are limited.
E*Trade
www.etrade.com
RATING 8.4
RECOMMENDED FOR fundamentalist, all-in-one
DETAILS Publicly, E*Trade has had its share of trouble. System
difficulties in early 1999 infuriated thousands of traders (and
prompted a number of lawsuits), and the resulting press turned
the service into a public relations nightmare. Site-availability
and customer-service problems are no laughing matter, and
E*Trade's future as a top contender now depends on its ability to
prove its stability as well as reverse public impression. Look
past these problems, however, and you'll find why E*Trade (which
charges $19.95 for limit orders) was drawing the attention of
fundamentalists from the get-go. The service provides a robust
set of tools and products, including interactive charts and
graphs, free real-time quotes, zero-coupon bonds and IPOs, and
decent life-event planners. It also offers a variety of extras,
such as specialized discussion groups and an investment game we
think other sites would do well to copy.
Datek
www.datek.com
RATING 8.1
RECOMMENDED FOR hard-core day trader
DETAILS Ask a hard-core which service reigns supreme for simple,
lightning-fast stock trading, and more often than not the answer
will be Datek. Aggressive day traders have consistently swarmed
this service, which nearly ties Suretrade for the lowest
commissions (around $9.99 per limit order). Its excellent trade
screen--in effect, a one-line form with drop-down menus--eliminates
clutter and confusion for investors who have come to trade, trade
and trade again. But its focus--almost exclusively on stocks (no
options trading yet, or equity extras)--is too narrow. It also has
comparatively limited products, services and research; lean
customer support hours; and occasional interface-navigation and
site-integration problems.
In the interests of full disclosure: Sean T. Kelly, a San
Francisco-based business and technology writer, uses Datek as
his broker
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