Premium investing content with specific tips, mid-week. All for free. Only for subscribers of our free newsletter >>

5 US Broker-Dealer Stocks With Significant Upside Potential

Trading and investing is made easy since the advent of the internet. Brokerage firms which we call broker-dealers have reduced commission fees significantly. Nowadays literally everyone is able to trade through a mobile phone with the trading apps. No coincidence broker-dealers have seen a huge inflow in recent years. But what to think of investing in broker-dealer stocks? This article features 5 top U.S. broker-dealer stocks which have significant upside potential in 2018 and beyond.

U.S. broker-dealer stock ETF

There is just one ETF that tracks the performance of this sector: iShares US Broker-Dealers ETF (Ticker IAI). We screen the profitable stocks in this ETF, and pick out the top 5 stocks with their charts in this article.

The monthly chart of IAI shows that after completing a pseudo U shape bottom, price finally broke out above resistance. And this signals that it could be time to allocate some funds though only in selected stocks.

5 U.S. broker-dealer stocks

Charles Schwab (SCHW) – one of the famous investment and brokerage firms is set to test its all-time high at 51.25 (monthly chart). From there, either it consolidates before a convincing break or it can simply break out it straight away with a move towards 60-65 by the end of 2018. The downside risk is a swift retracement to ~39.

dealer broker stocks charles schwab

Next, we have TD Ameritrade (AMTD) which mimics the monthly chart of Charles Schwab. From the monthly chart price has 61.4 in sight before making an attempt to break out. Keep a close eye on the downside risk of ~37-46

dealer broker stocks td ameritrade

At the time of writing, Lazard (LAZ) is trading at 48.19, ~57.25 is definitely the next target before a subsequent upside move. The very same price of 48 could be the first support should price reverse.

dealer broker stocks lazard

Of course, there are certainly stocks that are lagging behind. E Trade Financial Corp (ETFC) is one of them. It is safe to say that the monthly chart still looks like a downtrend with price definitely approaching the resistance area at 54-57. From there it is likely to consolidate and make one more attempt to break the downtrend line. Looking at the way price collapsed during the 2008 global financial crisis, E Trade almost didn’t make it. In case it fails to break the downtrend line, the next support will be ~25.

dealer broker stocks e trade financial corp

Lastly, BGC Partners Inc (BGCP)  is also making a serious attempt to reach ~28 which we suspect will need a little consolidation as the next and most bullish upside target is 85 (do not expect a swift rise though).

dealer broker stocks bgc


We are not suggesting investors should buy into the story of all these stocks. We rather recommend investors to work out which of the 5 stocks suit their balanced portfolio.

INVEST NOW IN CRYPTO & BLOCKCHAIN: Get access to our first aggressive BUY alert in 15 months! Find out our top 10 cryptocurrencies to buy and top 10 blockchain stocks to buy NOW. Get instance access to our crypto & blockchain investing service + portfolio >>