Choosing the right online broker for you is crucial.
How to compare online brokers for stock trading
Since most brokers offer fee-free trades and low or no account minimums, check out Our Take to understand why we recommend these brokers and find out which one aligns with the features you desire.
Fidelity Market Alpha rating: 5.0/5
Fees:
- $0 per trade for online U.S. stocks and ETFs Account minimum:
- $0 Promotion:
- None (no promotion available at this time)
Learn More www.fidelity.com
Advantages:
- No commissions for trading stocks, ETFs, and options.
- Extensive array of research providers.
- Excellent customer support.
- Index funds without expense ratios.
- Highly-rated mobile application.
- Competitive interest rates for uninvested funds.
Disadvantages:
- Broker-assisted trade fee is relatively high.
WHY WE LIKE IT:
Fidelity stands out with its commission-free trading, offering over 3,300 mutual funds with no transaction fees, along with exceptional research resources and a robust trading platform. Its zero-fee index funds and stellar customer service further enhance its appeal.
J.P. Morgan Self-Directed Investing Market Alpha rating: 4.1/5
Fees:
- $0 per trade Account minimum:
- $0 Promotion:
- Get up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money.
OUR TAKE
Advantages:
- User-friendly interface.
- No commissions charged.
- Seamless integration with all Chase accounts.
- No minimum balance requirement.
Disadvantages:
- Limited tools and research resources.
- Portfolio Builder tool necessitates a $2,500 balance.
- Unimpressive interest rate on idle funds.
WHY WE LIKE IT:
J.P. Morgan Self-Directed Investing presents a straightforward investment platform ideal for novices aiming to grasp investment transactions. However, seasoned investors may find its asset selection, tools, and research offerings lacking. INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Interactive Brokers IBKR Pro Market Alpha rating: 5.0/5
Fees:
- $0.005 per share; as low as $0.0005 with volume discounts Account minimum:
- $0 Promotion:
- Exclusive! US resident opens a new IBKR Pro individual or joint account receives 0.25% rate reduction on margin loans. Tiers apply.
LEARN MORE https://www.interactivebrokers.com
OUR TAKE::
Advantages:
- Pricing based on per-share.
- Discounts offered for volume.
- Diverse range of investment options.
- Comprehensive suite of tools tailored for active traders.
- Robust trading platform.
- NerdWallet users who opt for IBKR Pro receive a 0.25% discount on the initial $100,000 of a margin loan.
Disadvantages:
- Pricing complexities associated with certain investments.
WHY WE LIKE IT:
Interactive Brokers appeals to active traders with its per-share pricing model, advanced trading platform, extensive range of tradable assets – including international stocks – and remarkably competitive margin rates.
Charles Schwab Market Alpha rating: 4.9/5 Charles Schwab
Fees:
- $0 per online equity trade Account minimum:
- $0 Promotion:
- None (no promotion available at this time)
LEARN MORE https://www.schwab.com/
OUR TAKE
Advantages:
- Four trading platforms with no minimum or fees.
- Above-average mobile app.
- Extensive research.
- Large fund selection.
- Commission-free stock, options, and ETF trades.
Disadvantages:
- Low interest rate on uninvested cash.
Why We Like It:
Charles Schwab has earned its strong reputation: The broker offers high-quality customer service, four free trading platforms, a wide selection of no-transaction-fee mutual funds, and $0 commissions for stocks, ETFs, and options.
Robinhood Market Alpha rating: 4.3/5 Robinhood
Fees:
- $0 per trade Account minimum:
- $0 Promotion:
- 1 Free Stock after linking your bank account (stock value range $5.00-$200)
LEARN MORE https://www.robinhood.com
OUR TAKE
Advantages:
- No account minimum.
- Streamlined interface.
- Cryptocurrency trading.
- IRA with 1% match.
- High interest rate on uninvested cash.
Disadvantages:
- No mutual funds or individual bonds.
- Limited customer support.
Why We Like It: Robinhood provides free stock, options, ETF, and cryptocurrency trades, and its account minimum is $0, too. Mutual funds and bonds aren’t offered, and only taxable investment accounts are available. Still, if you’re looking to limit costs or trade crypto, Robinhood is a solid choice.
E*TRADE Market Alpha rating: 4.4/5
Fees:
- $0 per trade. Other fees apply. Account minimum:
- $0 Promotion:
- Get up to $1,000 when you open and fund an E*TRADE account
LEARN MORE https://us.etrade.com
OUR TAKE
Advantages:
- Intuitive tools for ease of use.
- Outstanding customer service.
- Advanced mobile application.
- No commissions charged for trading stocks, options, mutual funds, and ETFs.
Disadvantages:
- Website navigation can pose challenges.
- Unimpressive interest rate on idle funds.
WHY WE LIKE IT
E*TRADE has maintained its status as a leading online broker for quite some time. Its elimination of commissions and robust trading platforms cater to active traders, while novice investors gain from a vast array of educational materials.
Factors to consider when choosing an online broker
Before you start investing, you’ll want to choose a broker that fits your budget and level of investing knowledge, and also has the investment options that are best for you. universal image alt
The cost:
While most brokers these days don’t charge a commission, they may still charge account fees. Make sure you find out any fees associated with the account. universal image alt
Account Minimums:
Some brokers have a required minimum account balance. Make sure any minimum balance is within your budget. universal image alt
Promotional offers:
Some online brokers have promotional offers when you open an account, including free shares or stocks.