I may or may not receive a compensation from some or all of the products I write about. This may influence which products I write about and where and how the product appears on my website. However, this does not influence my evaluations. My opinions are my own.
If you would like to trade stocks, you will need to have an online broker.
What is an online broker?
By definition, an online broker is one which facilitates buying and selling of a security over an electronic network. The transaction is usually effected through the broker’s proprietary trading platforms.
When you are looking for a broker, you should look the brokers that offer a reasonable investment minimum, high-quality trading tools, easy access to customer service and no hidden account fees. On these standards, these 7 online brokerage firms below earned their place on my list of the best online brokers for stock trading.
I evaluated brokerage firms and investment companies on the services that matter most to different types of investors. For instance, for active traders, I’ve noted online brokers with low or no commissions and easy mobile trading platforms. For people venturing into investing for the first time, I’ve included the best online brokers.
Read more below to see my picks for the best brokers, alongside links to these brokers website or mobile apps.
Click here to 0pen a Webull account and get a free stock
Webull is a stock brokerage firm offering zero commission stock trades on both mobile and desktop. They’re currently the biggest threat to Robinhood when it comes to acquiring millennial users with free services.
Webull started out as a research firm and have only recently branched out into the brokerage industry. This puts them way ahead Robinhood in the way of research and analytics, Robinhood’s weakest link.
Pros
- Free commissions
- No account or software fees
- Best platform for a commission-free brokerage
- Offers margin without a subscription (unlike Robinhood with their Gold membership)
- Allows short selling
Cons
- Doesn’t offer Advance options trading (but will soon)
- Requires membership for some advanced features
Commissions & Fees
- $0
Account Minimum
- $0
Click here to open a Robinhood account and get a free stock
Robinhood App has gained the attention of part-time traders and investors for it’s “Free Trades” commission structure. It’s sure does sound appealing! Anyone who has been in the market understands commissions are an expensive part of the business. Robinhood states on their website “Our mission is to democratize access to the financial markets”.
Pros
No account minimum.
Streamlined interface.
Cryptocurrency trading.
Cons
No retirement accounts.
No mutual funds or bonds.
Limited customer support.
Commissions & Fees
- $0
Account Minimum
- $0
Click here to open a Tradestation account
TradeStation is an excellent broker that provides industry-leading trading technology accompanied with exceptional customer service and commission structures. I highly recommend this broker whether your an active trader or passive investor.
Pros
High-quality trading platforms.
Comprehensive research.
Commission-free stock, ETF and options trades.
Advanced tools.
Active trader community.
Cons
Free trading on advanced platform requires TS Select.
No transaction-fee-free mutual funds.
Plans and pricing can be confusing.
Commissions & Fees
- TradeStation has recently updated their commission structure and is now based on whether you trade on the TS Select (desktop) or TS GO (mobile) platforms. Equity trades are commission free regardless of the platform you use and there is no base commission on options or futures contracts.
- However, for TS Select clients there is still a $0.60/contract fee for options and $1.50/contract fee for futures. With TS GO per contract fees are slightly lower with options costing $0.50 per contract and futures costing $0.85 per contract.
Account Minimum
- $0
Click here to open a TD Ameritrade account
TD Ameritrade is now commission FREE. This is huge for investors and day traders alike. What I really like about Ameritrade is their sophisticated platform, Think or Swim, as well as their excellent customer service and sophisticated tools.
Multiple Accounts
On TD Ameritrade under capitalized traders, can open multiple accounts to skirt the PDT rule, without worrying about commissions.
Pros
Commission-free stock, ETF and options trades.
Free research.
High-quality trading platforms.
No account minimum.
Good customer support.
Large investment selection.
Cons
Costly broker-assisted trades.
- There is one big drawback to TD Ameritrade and other zero-commission brokers. They don’t offer you direct market access. In other words, when you send an order through your TD Ameritrade account, it doesn’t get sent directly to an exchange to get executed. TD Ameritrade acts as your ‘middleman’ and routes the trade to whichever is most profitable for them.
Commissions & Fees
- $0
Account Minimum
- $0
Click here to open an E*Trade account
E*TRADE has long been one of the most popular online brokers. The company’s $0 commissions and strong trading platforms appeal to active traders, while beginner investors benefit from a large library of educational resources.
Pros
Easy-to-use tools.
Large investment selection.
Excellent customer support.
Access to extensive research.
Advanced mobile app.
Commission-free stock, options and ETF trades.
Cons
- Website can be difficult to navigate.
Commissions & Fees
- $0
Account Minimum
- $0
Click here to open a First Trade account
In addition to free stock and options trading, Firstrade charges no commission for mutual funds, a deal no other broker matches. Options traders will appreciate that the broker charges no contract fee, also a rarity among brokers.
Pros
Commission-free stock, ETF and options trades.
$0 contract fee on options trades.
All mutual funds are commission-free.
Chinese language options.
Cons
No 24/7 customer support.
Commissions & Fees
- $0
Account Minimum
- $0
Click here to open an Interactive Broker account
Interactive Brokers attracts active traders with low per-share pricing, an advanced trading platform, a large selection of tradable securities — including foreign stocks — and ridiculously low margin rates. Its new offering, IBKR Lite, offers commission-free trades of stocks and ETFs.
Pros
Large investment selection.
Strong research and tools.
Over 4,300 no-transaction-fee mutual funds.
NerdWallet users who sign up for IBKR Pro get a 0.25 percentage point discount on margin rates.
Cons
Website is difficult to navigate.
Inactivity fees on IBKR Pro.
Commissions & Fees
- $0
Account Minimum
- $0