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Opening an online brokerage account is easy: With most online stock brokers, you can sign up and start investing in minutes. But don't just sign up with any stock broker. The best stock brokers can save you hundreds of dollars by offering low or $0 fees. Often, these brokers offer additional services like financial advice, research tools, or high APY accounts for uninvested cash.
After hundreds of hours of reviewing over 47 stock brokers (we look at commissions, fees, account types, customer service, and more) our experts came up with the below list. These are the best stock brokers we've seen. These are the brokerages we brag about to our friends at summer weddings and picnics, the trading platforms we can't get enough of. Get more info on our favorites below.
Robin Hartill, CFP®, is Motley Fool Money’s Head of Product Ratings and has worked for The Motley Fool since 2020. Her work has appeared in various national publications, including Yahoo! Finance, NerdWallet, Investopedia, CNN Underscored, MSNBC, USA Today, and CNET Money. She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column.
We've highlighted a short list of online brokers below, in case you're short on time:
Broker/Advisor | Best For | Commissions | Learn More | |
---|---|---|---|---|
2024 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For:
Managing your finances under one roof |
Commission:
$0 for stocks, $0 for options contracts |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For:
Low and transparent fees |
Commission:
$0 commissions, 1%-2% crypto markups |
Learn More for Public
On Public's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For:
Charts, research, and data analysis |
Commission:
Commission-free; other fees apply |
Learn More for E*TRADE
On E*TRADE's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For:
Low fees on stocks, ETFs, crypto, and options |
Commission:
$0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold |
Learn More for Robinhood
On Robinhood's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For:
Advanced trading and analysis on mobile |
Commission:
$0 per trade |
Learn More for Webull
On Webull's Secure Website. |
2024 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For:
Active trading on a feature-rich platform |
Commission:
As low as $0 stock trades |
Learn More for Interactive Brokers
On Interactive Brokers' Secure Website. |
2024 Award Winner
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For:
$0 commission mutual funds |
Commission:
$0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
2024 Award Winner
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For:
Beginners learning how to invest |
Commission:
$0 commission for online U.S. stock and ETF trades. No fees to buy fractional shares. |
|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For:
Bank of America banking customers |
Commission:
$0 for online stock and ETF trades |
|
2024 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For:
Low cost ETFs and index investing |
Commission:
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares. |
|
2024 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For:
Low cost ETF and mutual funds |
Commission:
$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million) |
When we researched online brokers to create this list of the best online brokerages, here are a few essential features we looked for:
TD Ameritrade has been acquired by Charles Schwab, and the company expects all accounts to be transitioned by the end of 2024. We've removed TD Ameritrade from our best-of lists to align with this development. Here at Motley Fool Money, you can trust that we're constantly evaluating our top broker picks to bring you current recommendations.
This brokerage is a clear standout for its well-rated mobile app and 1% IRA match. It also has unique investment offerings like IPOs, options, and fractional shares.
$0 for stocks, $0 for options contracts
$0
Get up to $1,000 in stock when you fund a new Active Invest account.
On SoFi Active Investing's Secure Website.
"My experience with SoFi Active Investing isn't extensive, but it's been positive so far. I primarily use this account for hobby investing, and I'd recommend it for folks who want to experiment with retail trading. Their experience and reputation isn't strong enough for me to put my retirement funds there. One tip I have is to look for a welcome bonus, as you can usually get a free share of stock or two."
-Brittney Myers, Writer here at Motley Fool Money, a Motley Fool service
Why is SoFi Active Investing one of our best online stock brokers? SoFi lets you manage all your money in one place. You can trade stocks, invest for retirement, and open bank accounts without paying fees. You even get discounts for using more than one SoFi product. For example, opening a SoFi Active Investing account may get you lower APRs on personal loans.
It's easy to get started. SoFi gives you fractional investing, the power to buy fractions of companies. For example, you can buy some Apple stock for as little as $1. This way, you can decide how much money to invest without worrying about the share price.
Other nifty perks like mutual funds trading and IPO access make SoFi worth a look. Check it out if you want to do all your money management in one place, at great prices.
What it looks like:
Public combines low fees for trading stock, bonds, and more, with a transparent pricing model that avoids payment for order flow. All the fees are upfront, nothing is hidden, and you get access to uncommon investment types for cheap.
$0 commissions, 1%-2% crypto markups
$1
On Public's Secure Website.
Why is Public one of our best online stock brokers? Public is the red pill to brokers like Robinhood, which make money off of payment for order flow (PFOF). Instead of using PFOF, Public charges customers up front, doing away with any uncertainty about price execution.
Public offers a ton of investment types relative to similar apps. Common investments like stocks and ETFs are available to you, but so are bonds, options, OTC stocks, and cryptocurrencies. It's all transparently and affordably priced.
Plus, you can start small. Public offers fractional shares of stocks and bonds, so you can get started at any price point -- perfect for beginners new to investing. Public is worth a look.
What it looks like:
E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.
Commission-free; other fees apply
$0
Open and fund and get up to $1,000
On E*TRADE's Secure Website.
"E*TRADE is a powerful platform that's easy to use, especially for someone new to investing like myself. I've run into errors when connecting my external accounts with other brokers, but E*TRADE made it simple to open and fund a new account. The homepage gives me a comprehensive overview of my accounts while providing a real-time look at the market (although the index looks to be only slightly behind)."
-Kathryn Mallari, SEO Content Strategist here at Motley Fool Money, a Motley Fool service
Why is E*TRADE one of our best trading platforms brokers? E*TRADE offers a buffet of investing options. You get stocks, ETFS, options, and thousands of no-load mutual funds. Many investments, like stocks, are commission free.
If you're an investor who loves data, you'll love the analysis you can do on the platform. We're talking customizable charts with up to 16 columns, 65 different metrics to choose from, and the ability to sort and prioritize metrics that are most important to you.
Check out E*TRADE for its deep desktop and mobile platforms. We think it's one of the best online brokers for analytical, research-driven investors.
What it looks like:
Robinhood is a simple, low-cost brokerage with a few rare perks. What it lacks in customer service it provides in a smooth in-app experience. Without membership, you will lack research resources but still be able to trade affordably. With a membership, you can earn 3% and 1% match on IRA and taxable deposits. The app grows fast -- new perks are being released at a rapid pace.
$0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold
$0
On Robinhood's Secure Website.
"I've been using Robinhood since it launched. At the time, it was one of the only platforms to offer zero-fee trades. The platform was developed to be mobile-first, so the app is clean and easy to use. It also recently launched an IRA product, which is built in to the existing app. The account was easy to open, and since I was already familiar with the platform, it's intuitive to fund the IRA and buy stocks."
-Louis Feldsott, Data Analyst here at The Motley Fool
Why is Robinhood one of our best online brokers? Robinhood lets you do all the basics at very competitive prices. You can even trade options without paying per-contract fees, a rare perk.
Even rarer is Robinhood's IRA match. Like some employers, Robinhood will match your retirement account deposits. All members get 1% match, and Robinhood Gold subscribers get triple that. It's a unique perk that no other broker offers to this extent, and it's perfect for the self-employed.
Fractional share trading makes it easy to get started. Check out Robinhood to start trading the basics for as little as $1.
What it looks like:
Webull is a standout mobile investing app. You can access advanced trading tools on desktop and mobile. Basic trades are commission-free, so it's competitive with similar apps. The mobile app offers Lite mode, a simpler interface for beginner investors. Consider opening a Webull account for its advanced toolset, more powerful than its closest competitors'.
$0 per trade
$0
On Webull's Secure Website.
"I've had my Webull trading account for three years and primarily did my trading using my mobile device. I love that the app allows you to check your individual account's risk level based on your investments. Trading isn't too complicated on it, but beyond the risk assessment component, it was pretty similar to other platforms I've used. It could be worthwhile for people seeking to buy OTC and fractional shares."
-Sharice Wells, Editor here at The Motley Fool
Why is Webull one of our best trading platforms? Webull combines nifty charts and a customizable interface with $0 commissions. Even better, it does it on a mobile app. That's uncommon. For getting fancy on your phone, Webull is tough to beat.
A standout feature is Webull's lack of options contract fees. Most online brokers charge per-contract fees for options. Webull is a rare exception.
Like many of the best trading platforms, Webull lets you trade fractional shares. Check out Webull to buy stocks and ETFs for as little as $5.
What it looks like:
A great low-cost option for small trade volume. While the interface isn't as clean or modern as that of other brokers, it gets the job done. Interactive Brokers is also a great choice for options investors, traders, and those trading on margin.
As low as $0 stock trades
$0
On Interactive Brokers' Secure Website.
"I've used Interactive Brokers for five years, as my advisor uses it to manage my SMA (Separately Managed Account -- the advisor manages the trades in this account on my behalf), and overall I think it has improved a lot in that time. I still find their two-factor authentication the most clunky of all the brokerages I use, but I think their PortfolioAnalyst feature is very good and is not something you can get elsewhere. Overall, I think it has excellent advanced features, but seems to be lacking easy access to the basics of checking on your individual positions. I'd recommend it more to advanced brokerage users."
-Tim White, Tech Leader here at Motley Fool Money, a Motley Fool service
Why is Interactive Brokers one of our best online brokers? Interactive Brokers gives you access to stocks, ETFs, options, futures, forex, cryptocurrencies, and mutual funds in over 150 markets. That's the widest range of tradable securities on this list by far, and the most comprehensive access to global markets among our best brokers.
Interactive Brokers charges $0 commissions on stock and ETF trades, the industry standard, but where it really shines is its margin rates, which are lower than most competitors we've reviewed. This makes the trading platform an excellent choice for margin traders.
The desktop platform offers advanced charting and technical analysis tools. For those who actively trade, it's hard to beat. Check it out to choose between Lite and Pro plans, for beginners and active traders respectively.
What it looks like:
Why is J.P. Morgan Self-Directed Investing one of our best trading platforms? What really sets J.P. Morgan apart is its no-transaction-fee mutual fund offerings. We believe it's one of the best stock brokers because it's one of the only brokers that offers $0 commissions on all mutual funds, not just a subset of no-transaction-fee funds.
The online broker is extra convenient for Chase users. The J.P. Morgan Self-Directed Investing platform integrates into all Chase accounts, so existing Chase customers are able to sign up for an investment account right from the app.
What it looks like:
Fidelity is massively popular because it works for beginners and advanced investors. You get $0 commission trades, tons of investment types, and good customer services you can meet in-person. Fidelity's research is top-notch without being overwhelming. Open an account with Fidelity to invest on an affordable platform that grows with you.
$0 commission for online U.S. stock and ETF trades. No fees to buy fractional shares.
$0, ($1 minimum per fractional share transaction)
"I've been using Fidelity for over a decade, and my experience has been excellent. I've found it to be an easy-to-use platform, has great customer service, and the fees are low or nonexistent. An underrated feature is the ability to change your core cash position to high-yielding options including a money market fund or a treasury fund. The yields on these funds are very attractive and it means you can feel comfortable keeping cash here that you're waiting to invest -- these funds currently earn a rate similar or higher than many high-yield savings account options. Note, you need to change your core cash position to one of these funds -- it is not automatic. These funds are not FDIC insured but I think they're pretty darn safe -- but if you want extra peace of mind, park your cash instead in an FDIC-insured high-yield savings account."
-Brendan Byrnes, Managing Director of Motley Fool Money, a Motley Fool service
Why is Fidelity one of our best stock trading platforms? Fidelity has been around for decades and its reputation precedes it. Known for being the gold standard in the brokerage industry, Fidelity has millions of customers and a reliability that's undeniable.
It lets you trade many assets: stocks, ETFs, mutual funds, options, and cryptocurrency. Fidelity meets the industry standard of $0 stock and ETF commissions, but really shines with over 3,300 no-transaction-fee mutual funds, which is only the standard for a handful of brokers on this list.
Fidelity also offers more independent research than pretty much any other discount broker. Plus, it has a good amount of educational resources and offers fractional share trading. All these are important for beginner investors, who get all the good stuff in one place.
Between fees, features, and reputation, Fidelity checks all the boxes. Check out Fidelity especially if you're a beginning investor and need to learn and grow in experience on one platform.
What it looks like:
Merrill Edge® Self-Directed sports low overall fees, strong research offerings, and fantastic customer support. It's a solid option for all investors, and especially attractive for Bank of America customers.
$0 for online stock and ETF trades
$0
"It's been more than seven years that I've been on the Merrill Edge platform. I chose it because Merrill was early to the game in terms of $0-commission equity investing (for Bank of America customers). I stay with it because the platform has offered everything I need for long-term investing, without extra noise or distractions. I also like how easily it integrates with my other Bank of America banking products."
-Matt Koppenheffer, General Manager here at Motley Fool Money
Why is Merrill Edge® Self-Directed one of our best online brokers? Merrill Edge is owned by Bank of America, which means investing in Merrill Edge gives you access to the popular Bank of America Preferred Rewards program. Plus, you can visit the many national branches of Bank of America for in-person customer support.
If you have at least $20,000 in your BoA accounts and Merrill Investment accounts combined, you can participate in the Bank of America Preferred Rewards program. It gets you rate and fee discounts for most of the bank's products (plus bonus credit card rewards!). Preferred Rewards has three tiers, and a bigger balance means better perks.
If you're a Bank of America customer, you could earn more interest and save money on other financial products with a Merrill Edge account. Check it out for bank-exclusive rewards.
What it looks like:
Charles Schwab pioneered the low-cost brokerage model decades ago, and that legacy continues with its lineup of no-commission-fee offerings. The robust lineup of account types, investment vehicles, and high quality app round out the stacked feature set.
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
$0
"I opened my Charles Schwab account as a brand-new investor who knew almost nothing about investing, and I've learned a lot through the educational resources available. While the website isn't the most modern, it's easy to use. I've spent a good amount of time using their customer service support as well as a Schwab Financial Consultant and both have been tremendously helpful. I like both the active trading experience but have also enjoyed using the robo-investing option, Schwab Intelligent Portfolios."
-Brooklyn Welch, SEO Content Strategist here at Motley Fool Money, a Motley Fool service
Why is Charles Schwab one of our best trading platforms? Schwab offers one of the largest marketplaces for low-cost ETF and index investing, including its own line of branded ETFs that rival the lowest cost options we've come across. These rival the likes of Vanguard and Fidelity.
Schwab offers a lot more than a trading platform. You can open other accounts types, such as the Charles Schwab High Yield Investor Checking account, CDs, and credit cards. For help opening or managing your Schwab accounts, you can visit one of over 300 branches.
Check out Schwab to invest in low-cost funds and use banking products under one umbrella.
What it looks like:
Vanguard is one of the best brokerages for passive investors who want to buy low-cost index fund ETFs. It also offers thousands of no-transaction-fee mutual funds, and excellent zero-commission options for buying stocks online, with no account minimums for brokerage accounts. Vanguard tries to keep its costs and expense ratios low so investors (like you) can keep more of your returns.
$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million)
$0
"The thing I like the most about Vanguard is the brokerage's willingness to provide help and guidance. I'm not an expert when it comes to brokerages and investment accounts, and I know a lot of people are just like me. It's easy to get a knowledgeable person on the phone at Vanguard, and they walk me through every question I have. They score highly in my book for their ability to help novice investors like me who want to learn more. Also, I'm very sensitive to fees and pay zero whenever possible. Vanguard has given me all the fee-free options I've needed."
-Kimberly Rotter, Writer here at Motley Fool Money, a Motley Fool service
Why is Vanguard one of our best online brokers? Vanguard is a retirement-focused broker that's highly regarded among investors with a long-term investment philosophy.
In fact, the whole platform is optimized for buy-and-hold investors. Unlike many other brokerages on this list, Vanguard doesn't offer real-time streaming news or advanced charting tools that active investors prioritize. For investors who align with Vanguard's strategy, it's a simple and easy-to-use platform.
Where Vanguard really shines is in its mutual funds. Its own suite of Vanguard mutual funds offer some of the lowest expense ratios on the market, plus it offers thousands of no-transaction-fee funds from other firms.
The trading platform is one of the best places to invest passively. Check out Vanguard to invest at affordable prices over the long term.
What it looks like:
Here are a few things you might want to consider when comparing trading platforms:
One of the fastest ways to narrow down your options is to decide (1) what account type to open and (2) what investment types you'll need ahead of time. Many investors don't need bells and whistles, which can raise prices. But if you need it, you need it, and that's important.
Opening an online brokerage account is usually quick and straightforward.
You can get started investing by opening a brokerage account, depositing money via the trading platform, and using your deposit to buy and sell stocks. Most online brokers let you open an account for free. Some require a deposit upon opening, and you can use this deposit to trade.
You can learn about stocks from brokers that offer educational articles and videos, or you can download financial literacy apps. The latter tend to offer bite-sized lessons on money. It's an easy way to learn without taking classes in-person. Plus, it's structured.
Online brokers typically let you buy stocks and ETFs. Beyond that, choices vary.
What you can buy:
Some brokers let you trade alternative investments, a catch-all category for niche categories. Investments under this umbrella might include music royalties and venture funds open to non-accredited investors.
You can start trading with as little as $1. Most brokers on this list will let you open an account without depositing any money. To buy a stock, you'll need at least $1. Brokerages that offer fractional shares let you buy pieces of stocks for $1 or $5, minimum.
If your broker only offers full shares, you'll need enough deposited to buy your desired stock at full price. Stock prices range widely, from under $1 to over $1,000 per share.
Yes, your online broker is safe from collapse. If your brokerage firm is a member of the Securities Investor Protection Corporation (SIPC), then cash and securities in your account are protected from loss due to broker failure, up to $500,000 ($250,000 for cash).
The SIPC doesn't cover risks like unauthorized trading activity, but most of the best brokerage accounts have fraud protection that covers you if your account is hacked. The trick is letting your brokerage know ASAP.
Your money is not insured against investments losing value. Losing money to stock values going down is a risk inherent to stock trading. Day trading is especially risky.
An online broker helps you buy and sell stocks. Typically, you do this through the broker's online trading platform.
You can think of an online stock broker as a direct line to stock exchanges. In exchange for a tiny commission on every trade, the broker sends your orders on to stock exchanges and market makers. These market makers do the heavy lifting of matching your buy orders with someone who wants to sell, or vice versa.
Your online broker tracks what stocks you own and at what prices you trade them. Mostly, this is done through discount brokers.
Online brokerages are discount brokers. They aren't in the business of giving you advice or suggesting stock picks. Instead, discount brokers focus on the very basic service of helping you buy or sell a stock (or other type of investment) from the convenience of your own home.
Discount brokers, or online brokers, are popular because they're more affordable than full-service brokers.
Brokerage firms we label "full-service brokers" are more closely related to the stock brokers of the olden days. Full-service brokers employ human brokers who help you trade, choose mutual funds, or create a retirement plan.
Full-service brokers are costly, since people are more expensive than computers. A popular full-service broker charges at least $75 to place a stock trade, and that can jump to as high as $500 or more to buy a large amount of stock.
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Most online brokers don't charge commissions for online stock trades. However, there may be commissions for other types of investments like mutual funds and options, and brokers have their own fee schedules for various other services. The best pick for you depends on what services and investments you anticipate using the most.
Thanks to zero-commission online stock trading and many brokerage firms offering fractional shares, it's easier than ever to diversify your investments. If your goal is to create a diverse portfolio of individual stocks without a large upfront capital commitment, be sure the broker you choose has both of these features.
Yes. If your account is with a brokerage firm that is a member of the Securities Investor Protection Corporation (SIPC), cash and securities in your account are protected from loss due to broker failure, up to $500,000 ($250,000 for cash). However, your money is not insured against losses that result from declines in value of the investments in your account.
This depends on your goals. If you simply want the best platform to buy and sell stocks, a standard (taxable) brokerage account could be the best choice for you. If you want to save for retirement and/or reduce your taxes, a retirement account like a traditional or Roth IRA might be better. There are other specialized brokerage account types as well, and you can usually find a list of the types offered on your broker's website.
There's no broker that is inherently safer than all the rest, but there are some important things to look for. First, make sure your broker is covered by SIPC protection, which insures the cash and securities in your account in the event of a broker's failure. Second, make sure your broker has a fraud protection guarantee, which will make you whole in the event that someone hacks into your account and makes unauthorized trades or withdrawals.
Irena Vodenska, Ph.D., CFA
Professor of Finance, Director, Finance Programs, Administrative Sciences Department, Metropolitan College, Affiliate Faculty Global Development Policy Center
What advice do you have for a first-time investor?
First-time investors could be very different, so a single piece of advice is probably not appropriate for all of them. If we assume that the first-time investor is a young professional, for example, in their first job right after school, they have a long investing horizon in front of them. Hence, they could be more aggressive in selecting a portfolio, mainly comprising domestic (U.S.), or even international equity. These young investors are in their savings part of the investment horizon and do not require short-term liquidity so that they can afford riskier investments, at least with a portion of their portfolio. Another consideration is the level of the risk-averseness for these first-time investors. Even if they have a long-term investing horizon and low liquidity requirements, first-time investors may opt for safer investments if they are very risk-averse. In that case, instead of equity (stocks), fixed income securities (bonds) will be more appropriate.
What is a common misconception about investing?
Investing is an individual choice. One of the common misconceptions about investing is that investments always have positive returns, i.e., if you invest, you will earn money at all times. This belief might be true on average, measured as a cumulative return over many years. However, the performance of an investment portfolio could be volatile, i.e., experiencing both negative and positive returns periodically. Another misconception about investing is that anyone who invests in financial markets will become rich quickly. While this might happen, it is not the norm but rather an exception. A third misconception could be that investing is trading, which is not the case. One can think of trading as short or very short-term investing; however, investing, per se, implies a long or a very long-term holding of the purchased securities, accompanied by a low-frequency rebalancing of the portfolio.
How can investors feel more confident when choosing a brokerage?
Excellent question. Investors should consider very carefully whom they will be choosing to trust with their investment decisions. There is a distinction between a brokerage and an investment advisory firm. Brokers engage in the business of effecting transactions in securities for the account of others, for which they receive compensation. When brokers recommend securities to their clients, they must ensure that the investment is "suitable" for the client. On the other hand, investment advisors advise others about investing in securities and receive compensation for the advice. When investment advisers recommend an investment to their clients, the investment needs to be in "the best interest" of the client. These differences are essential and create two different standards of conduct: 1) Suitability for brokers and, 2) Fiduciary ("best interest of the customer") for investment advisers. Investors should know the difference, and before entrusting their investments to securities professionals, they should ask whether they are a "fiduciary"? Investors can be confident if the answer is "Yes, I am a fiduciary."
Reena Aggarwal, Ph.D.
Director, Center for Financial Markets and Policy at Georgetown University
What advice do you have for a first-time investor?
One should start investing as early as possible, even if it is with a small amount of money. The magic of compounding is real and in the long run even this small amount can grow into a large amount. You should consider how much risk you are willing to take, and risk-taking also depends on the stage of your life cycle. Generally, young investors can afford to take more risk than retired people who are counting on their savings during retirement.
What is a common misconception about investing?
A common misconception is that I can beat the market and make a quick buck. It is rare for anyone to beat the market on a consistent basis. Markets don't always keep going up; you should consider the implications of both bull and bear markets on your portfolio. It is a good idea not to put all your eggs in one basket and instead have a diversified portfolio.
What are some investing trends that new investors should be aware of?
Retail investors have become more active participants in the financial markets, particularly during COVID. There has been a lot of interest around platforms for retail investors, allocation of IPOs, and popularity of products such as special purpose acquisition companies (SPACs) and crypto products. It is important to do your due diligence before investing in any asset. Regulatory agencies such as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) provide useful alerts and bulletins that are worth checking.
Brokerages we evaluated for consideration on this page: Acorns, Ally Invest, Axos Self-Directed Trading, Betterment, Cash App Investing, Charles Schwab, Delphia, Domain Money, Ellevest, Empower, eToro Brokerage, E*TRADE Core Portfolios, E*TRADE, Fidelity, Fidelity Cash Management, Fidelity Go®, Firstrade, FOREX.com, Interactive Brokers, J.P. Morgan Self-Directed Investing, M1 Finance, Magnifi, Marcus Invest, Merrill Edge® Self-Directed, Moomoo, NinjaTrader, Personal Capital, Plynk, Prosperi Academy, Public, Robinhood, Rocket Dollar, Schwab Intelligent Portfolios, SoFi Active Investing, SoFi Automated Investing, Stash, Stockpile, Tastytrade, Titan, Tornado App, TradeStation, Tradier, Vanguard, Vanguard Digital Advisor®, Wealthfront, Webull, Zacks Trade.
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SoFi IRA disclosure:
Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.
E*TRADE services are available just to U.S. residents.
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi does not accept cryptocurrencies and has limitations on some mutual funds and OTC stocks. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
Vanguard disclosures
Visit vanguard.com to obtain a prospectus or, if available, a summary prospectus, for Vanguard and non-Vanguard funds offered through Vanguard Brokerage Services. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.
Options are a leveraged investment and are not suitable for every investor. Options involve risk, including the possibility that you could lose more money than you invest. Before buying or selling options, you must receive a copy of Characteristics and Risks of Standardized Options issued by OCC. A copy of this booklet is available at theocc.com. It may also be obtained from your broker, any exchange on which options are traded, or by contacting OCC at 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (888-678-4667 or 888-OPTIONS). The booklet contains information on options issued by OCC. It is intended for educational purposes. No statement in the booklet should be construed as a recommendation to buy or sell a security or to provide investment advice. For further assistance, please call The Options Industry Council (OIC) helpline at 888-OPTIONS or visit optionseducation.org for more information. The OIC can provide you with balanced options education and tools to assist you with your options questions and trading.
Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. All ETFs are subject to management fees and expenses; refer to each ETF's prospectus for more information. Account service fees may also apply. All ETF sales are subject to a securities transaction fee. See the HYPERLINK "https://investor.vanguard.com/investing/transaction-fees-commissions/etfs" Vanguard Brokerage Services commission and fee schedules for full details.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds
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