Tuesday, November 27, 2007



Ranking by Mutual Fund Advisor

A study has been made on the brokerage firms that have survived the round of consolidations. The researchers took the following steps in order to provide for the realistic results of the study:

The researchers opened accounts with 14 brokers.

They purchased and sold corporate bonds, little and big stocks, and covered calls.

They executed numerous calls to the customer-service centers to check the responsiveness and overall customer service levels of the companies involved in the research.

Discovered the companies which charge their clients high transaction fees for out-of-network funds, in order to check the expenses surrounding the trade of mutual funds.

They thoroughly read through more than 1100 tax forms to check for the adequacy and thoroughness of the information provided.

The researchers verified the readability of account statements.

An evaluation of the brokerage companies' web sites was made for the purposes of determining their ease of use and navigability.

A cash rate was included so that the can choose among the best rates. Another option is the transference to money market funds that give high yields.

The following chart provides the results of the study, but keep in mind that the company on the first position is not suitable for day traders or investors heavily concentrating on mutual fund investment.

Charles Schwab
Bank of America
TD Ameritrade
Wells Trade


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