Finally Some Good NEWS!

Best online broker? Why Ameritrade? (sorry, shameless plug)

Actually, the best broker really depends on your investment experience and goals.

Quick Breakdown-
Full Service Brokers: These guys do everything for you. They consult with you on your investment needs/wants/desires. You say, I've got $1,000,000 please go forth and bring me a return based on my objectives, or I need you to birth my new baby cow and they are all over it.

Upsides: Good professional advice, money management services. Most of them are dealers as well as brokers (they sell you inventory from their own stores instead of just from market makers. this can ensure a fill when ordinarily you wouldn't get one)

Downsides: $$$$$$$ They are expensive. Plain and simple. Small time investors ($5,000-$200,000) don't get the perks and such that they could really use.

Examples- Merrill Lynch, Charles Schwab, and T.D. Waterhouse

Discount Brokers: These brokers mainly offer online services that allow the client to have complete control of their accounts. They pay relatively low prices per trade and use different routing systems to ensure the orders get routed to the market effectively.

Upsides: Total control of your account. You get to decide what stocks you want to buy, when to buy them, and how many to buy. No sales pressure, and dirt cheap commissions.

Downsides: You get to decide what to buy, when to buy, and how many to buy. Seriously, there is a lot of research that needs to be done in the stock market and these firms require that you do ALL of it yourself.

Examples: Ameritrade, E*trade, and Scottrade.

I'm partial to Ameritrade (obviously) but you should all look at your own objectives and financial situation and determine which one is better for you. You should research your brokerage company just as much as you do your penny stocks. Nothing is worse than finding your gold mine only to realize your company requires a 10 day hold on a check and you can't invest with the cash in your account.