Looking back to predict what will happen when the Fed raises interest rates

According to this article by WSJ: Goldman Sachs before and after Fed
the market will probably dump -5% of it's value in the first 3 months after the Fed raises rates, and then it will recover and go back to the normal stock market growth of +6% 3 months after that and will basically stay there horizontally for the next 6 months after that.

Brokerage Firms Opinion

For all of those that are looking for a brokerage firm in which to put your hard earned money to work in the stock markets, here are a few thoughts:

The primary concern is how safe your money will be in the hands of the brokerage firm.  Follow the advice on this Nasdaq's article and research the reputation of the firm you are considering.
The 2nd concern is the diversity of the instruments that you will be able to invest in.  This is what will enable you (in combination with proper strategies) to hedge your money from the downturns of the market.  Your grandfather's mutual fund or corporate investment account just can't compete in this area.
The 3rd concern is technology and speed of execution.
A 4th concern is the commisions and fees they charge for the value they offer.
Finally but not to forget, keep in mind that customer service will be the icing on top of the cake that gives that oh so good flavor in the end.

Now on to the references on which we base our opinion.

First and foremost let's start with Barron's review of the best online brokers in the market. By the way, if the broker you are considering doesn't give you immediate online access, then simply scratch it off the list (they don't belong in this century).

Barron's 2014 Best Online Brokers article

Next let's complement J.D. Power's 2013 full service investment firm ratings

and finally J.D. Power's 2012 full service ratings

Out of this list, based on our experiences as customers for 10 -15 years from the following brokerage firms, we have the following opinions:

Interactive Brokers (previously known ads Timber Hill Group) is simply the largest online broker in the US and the best brokerage firm around... by far.  Their platform technology, speed of execution, customer service and API openness set them far ahead the competition for 3rd consecutive year.

Fidelity is one of the best full service investment firms (see the J.D. Powers and Associates comparison) as well as one of the best online brokers that handles all levels of service for their customers (aside from being one of the largest pensions fund managers and mutual fund managers in the U.S.).  In the 3 presented reviews above it is the only firm that ranks high in all 3.  They have comparatively very few regulatory troubles over the years as well as relatively good customer service and very acceptable technology in their trading platform, although they could improve in their openness regarding their automated platform.  To top it all, their fees are very much on par with the rest of the market (only to be overcome by Interactive Brokers).

Scottrade has excellent customer service but their technology lags the whole market.  Their applications feel like they were built 10 years ago, sluggish and hard to trust.

TD Ameritrade  is a small brokerage firm that caters mostly to retail investors (usually beginners) and which recently has also become a bank.  It recently acquired ThinkorSwim  to support more advanced traders.  It has 25% higher than average commission & fees, so not for high frequency traders.  It has  two controversies/lawsuits of concern for investors (not enough to draw you away, but enough to be careful when considering their offerings).

• Marketed a product to their customers that crippled them.
• 2008 pushed a fund to their customers, that later "broke the buck" leaving investors without liquidity

Finally, a few comments on some well known firms that ranked fatally in this reviews (by no surprise).

Morgan Stanley Smith Barney

This firm has the absolutely worst possible review from J.D Powers and associates and one of the longest line histories of controversies and lawsuits for bad behavior. Among these most concerning are misleading of their customers which involves several cases.  Just because of this, our money is staying away from this firm.

Misleading customers/investors

• 2014 Paid $95 million to settle a lawsuit on misleading investors in mortgage backed securities
• 2014 Lawsuits and investigations because they Downgraded earning forecasts for Facebook IPO while managing their roadshow
• 2012 Paid $2.4 million for inappropriate recommendations to their brokerage customers on ETF products.
• 2009 paid more than $7 million for misconduct in the handling the accounts of 90 retirees
• 2009 trader ddeliberately disadvantaged clients by prehedging trades without their consent
• 2007 fined $1.5 million and paid $4.6 million in restituion for excessive markups in transactions
• 2004 paid $311,510 for failure to make proper disclosures to municipal bond investors
• 2004 paid $19 million fine for failure to deliver prospectuses to their customers and other operational failures
• 2003 paid $125 million intentionally misleading research motivated to win investment banking business

Unethical/inappropriate/ilegal behavior on the market

• 2012 Paid $5 million fine to the CFTC and $.175 millino to the CME and Chicago Board of Trade for improperly executing sale sin Eurodollar and Treasury Notes.
• 2011 A morgan stanley trader entered fake trades to fool firm risk managemement causing millions in losses
• 2011 Paid $4,8 million for price fixing scandal with Con Edison
• 2010 Paid $14 million for an attempt to hide prohibited trading activity in oil futures
• 2009 Paid 1.4 million briths pounds for failing to put controls on their trading desk which resulted in $120 millin losses
• 2006 Paid $15 million for deleting emails and failing to cooperate with SEC

Citgroup

This firm got some of the worst reviews from the J.D. Powers and associates ratings on full service investment firms.  Our personal experience with Citigroup has been terrible.  Their availability of products is totally old and outdated.  Their technological platforms to access their products is extremely limited in capabilities.  Their acquisitions during the late 2000's complicated their customer service delivery irreparably.  This seems to be our grandfather's financial institution that never made it past the 1990's.
Regarding their reputation, just the fact that this bank (which was in 2008  the largest company and bank in the world) was rescued by the U.S. government on November 2008 by purchasing 36% of it's stock to prevent it's bankruptcy because of irresponsible risk taking.  The government also took control of half the seats in the board of directors essentially making it a government run institution for many years.  Although the bank has paid back the rescue money it has not undergone any fundamental change that makes us think that they are now worthy of consideration.