Online Broker Promotions

Today, the top online brokers offer customers a promotion for opening a new account. There are a few that either do not have an offer, or only run an offer occasionally. Most, though, have at least one solid offer running at all times. And it would seem, based on internet user research, that more and more traders are making their decision about which broker to open an account with based on the promotion that broker is offering.

There are basically three types of online promotions, in order of popularity:

1) Reimburse Account Transfer Fees - Under this type of promotion, the new broker will reimburse to you any account transfer fees you incur by moving your account from the old broker to the new broker. This is an attempt to remove one of the reasons a customer might have for switching. Depending on the broker, you could be reimbursed up to a certain amount, usually $100 or $150.

2) Free Trades - Some brokers will offer you free trades to be used over a period of time, usually the first 30 or 60 days from your account opening. In a way this can be seen as an offset of any fees or other pain a trader may experience due to switching brokers. The small print usually lists a maximum number of free trades that can be used over this period.

3) Cross Promotional Offers - These are not common. Among the most popular brokers, OptionsHouse participates in this kind of offer. They may have up to 8 different offers running at a time, where the trader can select the one they most prefer. In the past, these offers have included a free subscription to the WSJ, Morningstar or a free Dell monitor. This is an innovative approach that has set them apart from their competitors and given them a unique selling point to the market.

Visit the Current Broker Promotions page to view the current promotions running among the top brokers.

Return to the home page to continue to compare online brokers.