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Big Mac · Jan 11, 2012, 11:06 PM

I'm considering moving some funds to a different online broker from my primary one, Charles Schwab. I like Schwab just fine for the most part, but there are some aspects to its online services that seem outdated. You can get a lot done online without having to resort to forms, but there are often forms required for a number of features that I'd prefer not to have to bother with paper to unlock. Options trading, for example. You can fill out an interactive form that provides the answers you give to the questions they ask, but once you complete it instead of submitting it online, you have to print it out and mail it or bring it into a branch. Dumb. I can understand why certain major requests or account changes may require paper forms, but approval for options trading doesn't seem like it should require it.

I understand that Schwab is a bit more traditional since it was one of the first discount brokerages, but that's not a comprehensive excuse for being stuck in the past in certain respects. (I also really can't stand the fact that they've never fixed the ridiculous eight character max limitation on passwords, but at least they seem to handle overall security well, as opposed to firms like ShittyBank with its ginormous security hole from last year.)

The most likely alternative I'm considering switching to is Fidelity. I had a business account there for a period of time and was quite happy with their service. But I wanted to hear any other reviews you may have regarding this paper form issue as well as the general richness/functionality of the online services of the brokers you use.

One caveat: I'm not considering ScottTrade-wasn't too satisfied with its service in the past. But I'm open to hearing any and all input on the subject.

tightsocks · Jan 12, 2012, 08:24 PM

Schawb only allows for 8 character passwords?
That doesn't inspire much confidence.

Does their web service allow for outgoing transfers?
If so, then this sounds crazy bad.

Then again, most hacks are probably are not going to be on a single account over the web interface - they are more likely to be on the entire back-end system.

Big Mac · 11:21 AM

Yes, Schwab makes outgoing online transfers pretty easy, although only to linked accounts. (Wire transfers get verified by phone.) I really don't understand why they haven't limited that password limitation - people have been talking about it for years now.

Cold Warrior · Jan 18, 2012, 10:46 AM

I use firstrade, but am not a big trader -- just the basic buy low sell high, no options or shorts. But I like the interface, it's fast and easy.

turtle777 · Jan 18, 2012, 01:03 PM

Originally Posted by Big Mac

The most likely alternative I'm considering switching to is Fidelity. I had a business account there for a period of time and was quite happy with their service. But I wanted to hear any other reviews you may have regarding this paper form issue as well as the general richness/functionality of the online services of the brokers you use.

I have my 401k as a brokerage account at Fidelity through the company I work for. I'm quite happy with their service and system.

However, I don't know how a retail investor brokerage acct. would differ.

-t

Chips G · Mar 16, 2012, 02:08 AM

I recommend Interactive Brokers - the lowest fees I have found, and a very competent trading platform. You can easily put protective stop losses (even trailing), and you will get super fast execution speeds (which doesn't really matter unless you are a high-frequency trader).

Security seems to be extremely high - a lot of hedge funds and other big accounts trade through IB. I was issued a security card (similar to

) which I have to use along with my (over 8-digit) passcode whenever I sign in.

If anyone is curious about my trading I have a blog at: Young Money Management

P · Mar 16, 2012, 04:47 AM

It seems that this thread is getting us some unwelcome attention from spammers of various financial "products". Nuking them as fast as we find them, but you have been warned.

Atheist · Mar 16, 2012, 08:55 AM

I'm happy with Schwab although I do find their website a bit of a mess. It could really use a makeover. I don't have much in my brokerage account but I'm slowly working on that.

I was initially drawn to Schwab for their checking account policy of refunding all ATM fees ... $400 in the past year alone!

el chupacabra · Mar 21, 2012, 01:02 AM

I've heard schwab is one of the best but never tried it. I use TD ameritrade. In the past I haven't been particularly happy with how they do the tax stuff, maybe i just dont know how to use it. I just get a schedule D and end up writing in hundreds of trades by hand. I continue to use them because Im used to the interface, I got the account when it was still Datek- online, I think the first online brokerage.

Big Mac · 06:07 AM

You have to write all your trades down manually? That sounds terrible el chup. I'll stay away from Ameritrade then, which is too bad because I've been impressed by some of what I've seen from them. On the subject of tax man compliance, I'm hearing a lot about a gigantic mess that the IRS has created with screwed up and conflicting requirements for cost basis reporting starting this year. I hear that brokers are totally screwing up many aspects of the reporting, and the resulting paperwork is impossible for even CPAs to deal with. See this petition. I've also heard that many have been stuck with the woefully outdated Quicken 2007 (which Intuit amazingly, with lightning speed, just sort-of-updated with an Intel binary because of the loss of Rosetta) because of its automated investment tracking features. Did I tell you how much I love taxation issues?

I'm starting to get annoyed with Schwab. My mother requested that one of her accounts be placed in Schwab Active Trader. She was told by the rep she spoke to most recently that it can take two whole months to make that change. Two months? It should take two minutes. The thing with Schwab is, I think Schwab is a high quality brokerage, even in the online area, but in some ways due to its history it's slow to move on certain fronts. Anyway, I think we may be moving accounts over soon. If we have to, I think we'll go with Fidelity.

chabig · Mar 27, 2012, 06:57 AM

TD Ameritrade uses a service called Gainskeeper. I just download a TXF file each year and Turbotax automatically fills out the schedule D.

I think TD's ThinkorSwim software is the best in the industry. I also have a Schwab account and I agree they are slow to change. They highly restrict option trading in IRAs, and their software is Windows only.

Big Mac · Mar 27, 2012, 07:36 AM

There are brokers that are more permissive when it comes to IRA options? TD is one of them? That's rather important info, thank you. And what you mention about Gainskeeper and TXF files sounds much better than what chup was referencing.

turtle777 · Mar 27, 2012, 11:14 AM

Originally Posted by chabig

TD Ameritrade uses a service called Gainskeeper. I just download a TXF file each year and Turbotax automatically fills out the schedule D.

TurboTax for Mac will ask for the TDAmeritrade credentials, and then automatically import all relevant tax data.

I don't know if that works with options trades, but it works for regular stock / ETF purchases, and dividends.

-t

Big Mac · 01:37 PM

I mentioned before that the last Schwab rep my mother spoke to implied to her at least that changing over to their active trader platform would take a couple of months. I knew that didn't sound right though, and the good news is it got activated today. I have to say it's a pretty nice looking platform.

Oh, another thing that's annoying about Schwab is that if a phone agent is playing hard-ass, you'll get told you can't have anyone else in participating in the telephone call, only the person listed on the account. Some of the agents are cool about this, but we've learned not to assume that so my mother has to do tasks that I could more easily handle for her. And it doesn't help when my mother is given inaccurate information by these reps!