Forbes "Best of the Web"

Brokers

Despite consolidation in this industry, competition among e-brokers remains hot and heavy. The good news is that many of the firms that tried to be all things to all clients have pulled back. The industry is segmented and the cheapest commissions go to customers who trade the most. Beginning investors should consider ShareBuilder, which is heavy on investor education and dollar-cost-averaging plans and those who like to trade more frequently should look to Ameritrade or BrownCo. -- Ben Berentson

ShareBuilder

ShareBuilder is the most popular dollar-cost averaging brokerage with nearly one million accounts. It is a great place for a gift account, building up a college savings plan or for the starter investor: nearly 70% of its clients have fewer than three years of investing experience. ShareBuilder has succeeded by creating a variety of innovative programs, like its new $20 Investor Starter Kit, which makes a perfect gift for a beginning to intermediate investor and includes the Wall Street Journal Guide to Understanding Personal Finance, a guide to using ShareBuilder, a subscription to SmartMoney and a $25 investment cash certificate. Another nice feature is PlanBuilder, which gives you a simple risk-tolerance test and then will recommend your ideal asset allocation, as well as certain ETFs and groups of stocks that fit your profile. Other new features include tracking of unrealized gains/losses and asset allocation. ShareBuilder offers three different purchasing plans based on steady long-term monthly investing: Basic ($4 per investment, $16 per market order), Standard ($12 permonth fee, six free auto-investments per month and $2 for each additional and $15 per market order) and Advantage ($20 per month, 20 free auto-investments and $1 for each additional and $12 per market order). Avoid the Basic plan unless you're only investing in one or two stocks: you don't get the gain/loss tracker.

BEST: ShareBuilder has a special section devoted to understanding and investing in ETFs. 40% of the top ten most-bought stocks by its users are ETFs.

WORST: Limited equity research for a site aimed at beginner investors.