If you make less than $1000 in capital gains but have other income you may have a tax liability.
Ameritrade enjoys a better reputation than does TradeKing, there is no comparison between the two, Ameritrade is far greater than Tradeking.
Also, in North America you must be 18 to open a brokerage account. A minor CAN NOT open a custodian account, the account must be opened by and operated by an adult - the custodian CAN NOT permit the minor or another adult to enter activities into the account.
You may not need to file if your earnings are below $1000 in that account. Below $2000 and you will still qualify for the 0% tax rate, on year and a day investments. Over 2000 and you will be taxed at your parent's rate.
Ameritrade has better features, and in my opinion, better customer service. It also has a higher price tag on most things.
A great place to start to learn about investing or hone your skills is the blog InvestLikeMe.blogspot.com. The author provides market news and articles regarding the technicals of stocks. He also shows you his current active portfolio and updates his trade real time on twitter so you can make the same trades as him.
So I am 14 and I know that I need a custodial account. A side question would be this: I heard that as long as you make under $1000, your custodial account doesn't get taxed. Is this true?
My main question, and the one that I was mainly looking for was what one of the two would be better for a beginner who want to do short-mid term investments. Like I might keep a share for up to 5 years, but most likely shorter than that. What one would be better for this, and what one is better overall? I am currently doing research and learning more about the stock market, so I will have moderate knowledge before I purchase a share. I will only be buying and selling shares, nothing else. So what one should I choose? If you answer my first question, you are more likely to get chosen as best answer, but it isn't required.
Thanks in advanced, Alex :o
