For those starting to invest or seeking a new brokerage account, exploring the top online brokers is a smart first step. The best online brokers provide low commissions, robust trading platforms, extensive research and educational resources, as well as responsive customer support – all the tools necessary for investor success.
Best online brokers in 2024
We have carefully analyzed the best brokers based on criteria that are important to individual investors, such as trading fees, account minimums, free research, and other features. We have assessed each broker’s strengths and weaknesses, and here is how they compare on key aspects:
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- Cost: We considered trading commissions and other costs like transfer fees and account fees to find a low-cost broker.
- Available securities: We evaluated the range of tradable securities offered by each broker.
- Account types: We looked at the variety of account types available at each brokerage, including individual, joint, and retirement accounts.
- Trading platform: Some brokers cater to buy-and-hold investors, while others offer advanced trading platforms for active traders.
- Education: Many brokers provide educational materials for investors looking to learn more about investing and maximizing the broker’s features.
- Research: Some brokers offer third-party research, while others have their own proprietary research and reports for clients.
- Customer support: We assessed the accessibility and quality of customer support provided by each broker.
Interactive Brokers: Best overall
Interactive Brokers stands out as a top choice for active traders, offering a streamlined trading interface and excellent trade execution. With volume-based discounts and a professional-level trading platform, it is favored by advanced traders.
Active traders using the Pro platform benefit from a $1 minimum commission per trade, while those on the Lite tier enjoy commission-free trading on stocks and ETFs. Interactive Brokers also offers access to over 18,000 no-fee mutual funds, making it a cost-effective option for investors.
- Best for: Active trading, tradable securities, margin trading
- Commission: $0 (Lite service) or $1 minimum per trade (Pro service), with volume discounts available; $0.65 per options contract
- Minimum: $0
Charles Schwab
Charles Schwab is known for its customer-centric approach, offering low fees, extensive research, and no account minimum. Beginners appreciate the zero commissions and vast selection of no-transaction-fee funds, while advanced traders benefit from the customizable StreetSmart Edge platform and thinkorswim platform.
Schwab’s customer support, educational resources, and low trading costs make it a compelling choice for buy-and-hold investors and those seeking a wide range of retirement accounts.
- Best for: Overall experience, research, customer support
- Commission: $0 per stock or ETF trade; $0.65 per options contract
- Minimum: $0
Ally Invest
Ally Invest is a great option for customers of Ally Bank who require a full-service broker for various trades, including stocks, ETFs, bonds, mutual funds, and forex. With competitive commission rates and no fees on over 17,000 mutual funds, Ally Invest caters to a wide range of investors.
- Best for: Low trading commissions, Ally Bank customers
- Commission: $0 per stock or ETF trade; $0.50 per options contract
- Minimum: $0
E-Trade
E-Trade offers comprehensive investment options, allowing users to trade stocks, bonds, options, ETFs, mutual funds, and futures. With access to over 6,000 no-transaction-fee mutual funds and robust customer support, E-Trade is a popular choice for active traders.
- Best for: Active trading, robust trading platforms, no-transaction-fee mutual funds
- Commission: $0 per stock or ETF trade; $0.65 per options contract, with discounts for frequent traders
- Minimum: $0
Fidelity Investments
Fidelity is known for its investor-friendly approach, offering commission-free trading on stocks and ETFs, along with a wide selection of no-transaction-fee mutual funds. With a focus on research and customer support, Fidelity is a top choice for beginner investors and those planning for retirement.
- Best for: Overall experience, beginning investors, customer support
- Commission: $0 per stock or ETF trade; $0.65 per options contract
- Minimum: $0
Firstrade
Firstrade provides commission-free trading on stocks, ETFs, and options, as well as a variety of account types and a strong research offering. With a wide selection of no-transaction-fee mutual funds, Firstrade is a popular choice for investors.
- Best for: Commission-free trading, variety of account types
- Commission: $0 per stock or ETF trade; $0.50 per options contract
- Minimum: $0
In December 2023, the broker introduced the option to buy fractional shares of stock, making it appealing to newer investors.
### Best online brokers
#### Merrill Edge
Merrill Edge stands out for its extensive research offerings, provided by its in-house team of analysts. It also offers educational resources for beginners. Integration with Bank of America allows for quick money transfers between accounts, all at no cost.
– **Best for:** Research, Bank of America customers, customer support
– **Commission:** $0 per stock or ETF trade; $0.65 per options contract
– **Minimum:** $0
#### Webull
Webull, while less known than Robinhood, offers commission-free trading on stocks, ETFs, options, and cryptocurrencies. Customer service is available 24/7 via phone, but educational resources for new investors are lacking. The platform provides robust charting tools and instant funding, as well as the ability to purchase fractional shares.
– **Best for:** Commission-free trading, cryptocurrency trading, mobile trading
– **Commission:** $0 per stock or ETF trade; $0 per options contract
– **Minimum:** $0
### Honorable mention
Tastytrade, Robinhood, TradeStation, Vanguard, and SoFi Active Investing are also highly rated and cater to specific investor needs.
Consider your requirements when choosing an online broker, such as your trading style, need for retirement accounts, preference for individual stocks or funds, and level of customer support. Ensure the broker is covered by the Securities Investor Protection Corporation for asset protection. Remember, while insurance safeguards your assets, it does not eliminate the risk of financial loss due to investment decisions. Investing in the stock market comes with risks, as the value of a stock can decline and may never rise back to its original price. Unlike FDIC-backed bank products, market-based investments are not fully insured and can result in losses. However, a long-term investment in a diversified portfolio of stocks can yield positive returns over time.
When it comes to choosing an online stock broker for beginners, it is important to prioritize factors such as user-friendly platforms, educational resources, and strong customer support. In the 2024 Bankrate Awards, Fidelity was recognized as the top broker for beginners, followed by Schwab, Interactive Brokers, E-Trade, and Merrill Edge. Fidelity stands out for its low costs, research tools, educational materials, and excellent customer service.
Brokers with robust customer support can assist beginners in navigating the market and understanding the basics of investing. They offer educational resources on trading strategies, investment analysis, and more. Additionally, access to research on stock funds and individual stocks can be beneficial for making informed investment decisions.
Ultimately, the choice of a broker should align with your investment goals and trading preferences. Whether you are a passive ETF investor or an active trader, selecting a broker that meets your specific needs is crucial. While the process of choosing a broker may seem overwhelming for new investors, the key is to take the first step and start investing towards a secure financial future.
Remember, the journey of investing begins with finding the right broker for you. With the right resources and support in place, you can embark on your investment journey with confidence and clarity.