Whether you’re a seasoned investor or just starting out, an online broker is your gateway to buying and selling stocks, ETFs, and other investments. But with so many options available, choosing the right online broker can be a challenge.
To help you get started, we’ve compiled a list of the best online brokers that cater to the needs of everyday investors. These brokers offer $0 stock and ETF trading, thousands of no-transaction-fee mutual funds, low-cost futures and options trades, robust trading platforms, comprehensive investment management tools, and reliable customer support.
Best Brokerage Accounts for Online Trading Compared in 2024
Let’s take a look at the best brokerage accounts for online trading in 2024.
Our Recommendations for the Best Online Brokers
Best for High APY on Uninvested Cash: Robinhood Gold
If you’re a fan of Robinhood and want to take your investing to the next level, consider Robinhood Gold. With a suite of premium tools and features, including lower margin rates, Level II market data from Nasdaq, and professional research from Morningstar, Robinhood Gold offers a comprehensive investment experience. Existing customers also earn 5.00% interest on their uninvested cash, making it competitive with some of the best high-yield savings accounts.
Best for Active Traders: TradeStation
TradeStation is widely recognized as one of the top platforms for active, technical traders. It offers $0 stock and ETF trades, $0.60/contract options trades, and $1.50/contract futures trades. The TradeStation platform boasts exceptional charting capabilities, fully customizable workspaces, over 120 technical indicators, extensive historical data, and multiple order entry interfaces. It also allows you to design, backtest, optimize, and automate your own trading strategies.
Best for Beginners: J.P. Morgan Self-Directed Investing
J.P. Morgan Self-Directed Investing is an excellent option for beginners who are interested in learning how to buy and sell stocks, ETFs, options, bonds, and mutual funds. It offers $0 stock, ETF, and mutual fund trades, as well as $0.65/contract options trades. The user-friendly trading platform, coupled with seamless integration with other Chase products such as bank accounts and credit cards, makes J.P. Morgan Self-Directed Investing particularly attractive to existing Chase customers.
Best for Options Rebates: Public
Public stands out with its unique lineup of assets, including stocks, Treasuries, ETFs, crypto, art and collectibles, and music royalties. Unlike many brokers, Public doesn’t participate in payment for order flow (PFOF), which means your orders are routed directly to the exchanges for optimal execution. This feature allows Public to execute orders at the best possible price, ensuring a seamless trading experience.
Best for Alternative Assets: Yieldstreet
Yieldstreet offers an excellent selection of alternative assets, including private market offerings focused on artwork, crypto, real estate, private equity, and venture capital. With a well-designed platform, it’s easy to research investments, make informed decisions, and track your results. All investments undergo a rigorous four-step due diligence process, and the company’s investor relations team is always available to answer any questions you may have.
Best for Low Costs: Ally Invest
Ally Invest is the top choice for low costs, offering $0 stock, ETF, and mutual fund trades, $1 bond trades, and a low $0.50 per contract options trades for self-directed traders. Additionally, you can quickly transfer money from your brokerage account to an Ally savings account to earn a higher rate of return on uninvested cash. Ally also provides robo portfolios for hands-off investors, with zero advisory, rebalancing, and annual fees.
Best for Low-Cost Options Trading: SoFi Invest
SoFi Invest is a budget-friendly choice for frequent options traders, as it has eliminated per-contract options fees. The user-friendly options-trading platform offers an educational content hub and an in-app trading guide to help beginners learn more about options trading. SoFi Invest also provides one-click access to helpful metrics like breakeven percentage, maximum profit and loss, and more.
Best for Stock Rewards: Stash
Stash allows you to choose how you want to invest. Whether you’re a self-directed DIY investor or prefer automated investing, Stash has you covered. With monthly plans starting at just $3, you’ll gain access to a personal brokerage account, a retirement account, and Smart Portfolio—a robo-advisor that builds a diversified portfolio based on your risk profile. Additionally, Stash offers a unique Stock-Back debit card that earns you up to 1% back in stock every time you use the card.
Best for a Simple Interface: Plynk
Plynk offers a brokerage account for investing in stocks and funds, as well as a crypto account for trading cryptocurrencies. With $0 fees for stock, ETF, and mutual fund trades, Plynk makes investing affordable and accessible. The intuitive and user-friendly Plynk mobile app provides straightforward tips and how-tos to help you grow your investing knowledge.
Best for Overall Trading: Fidelity Investments
Fidelity Investments consistently tops “best of” lists for its comprehensive range of offerings. With $0 stock and ETF trades, $0.65/contract options trades, $0 Fidelity mutual fund trades, and a wide selection of no-transaction-fee mutual funds, Fidelity provides something for everyone. Beginners will find all the tools they need within the web platform, while more advanced traders can delve into Fidelity’s Active Trader Pro platform for more advanced features.
Best for Mutual-Fund Investors: Axos Self-Directed Trading
Axos Self-Directed Trading is our top choice for mutual-fund investors. It offers commission-free stock and ETF trades and access to over 10,000 no-transaction-fee mutual funds. While Axos has limited research and education offerings compared to other brokers, you can access stock market research and analysis through TipRanks with an Axos Elite account for $10 per month. The Elite account also provides lower options fees, access to margin trading, real-time market data, and extended market hours.
Best for Mobile Trading: E*TRADE
ETRADE was the first U.S. broker to offer online trading for retail investors and has since become part of Morgan Stanley. ETRADE offers $0 stock and ETF trades, $0.65/contract options trades, $1.50/contract futures trades, and a wide selection of no-transaction-fee mutual funds. The platform caters to investors of all skill levels, with the ETRADE Web platform being ideal for beginners and the Power ETRADE platform designed for more advanced trading. The highly rated E*TRADE Mobile app is feature-rich and user-friendly.
Best for ETF Research: Charles Schwab
Charles Schwab, the pioneer of the discount brokerage business, offers $0 stock and ETF trades, $0.65/contract options trades, $2.25/contract futures trades, and $0 OneSource mutual fund trades. The platform boasts a vast collection of over 2,000 third-party commission-free ETFs, covering a broad range of asset classes. Its ETF screeners are considered best-in-class, making it an excellent choice for investors interested in ETF research.
Best for Investor Education: TD Ameritrade
TD Ameritrade is a popular choice among beginners thanks to its extensive research and educational tools. It offers $0 stock and ETF trades, $0.65/contract options trades, $2.25/contract futures trades, and access to over 3,600 no-transaction-fee mutual funds. TD Ameritrade hosts hundreds of webinars, virtual workshops, and in-person events each year, covering a wide range of topics from stock investing basics to advanced options strategies.
Our Methodology
We rate brokers on a scale of one to five stars across several important categories:
- Investment selection – the variety of investment products offered.
- Fees and commissions – the average investor’s trading costs, margin rates, and account fees.
- Trading technology – the quality of the online and mobile trading platforms.
- Research amenities – technical and fundamental tools to make informed investment decisions.
- Customer support – the ease and availability of contacting live help.
The highest-rated brokers offer a wide range of investment offerings, low fees, robust trading platforms, comprehensive research tools, and excellent customer support. On the other hand, brokers with limited product offerings, higher costs, basic trading technology, few research tools, and poor customer support receive lower scores.
How to Pick the Best Online Broker for You
Choosing the best online broker for you depends on several factors. Start by considering the investments you want to trade, such as stocks, bonds, or futures. Then, evaluate the factors that are most important to you, including commissions and fees, pricing and execution, trading platform features, education and research tools, and promotions and bonuses. Ultimately, the best trading platform for you will align with your investment preferences, trading style, and performance goals.
Alternatives to Online Brokers
While online brokers are ideal for self-directed traders, you may prefer other options if you lack the time, experience, or interest to manage your investments.
Robo Advisors
Robo-advisors, also known as automated investing services, offer a low-cost, hands-off approach to investment management. These software platforms use algorithms to build and manage investment portfolios based on your goals, time horizon, and risk tolerance. M1 Finance is a unique platform that combines the best aspects of both a brokerage firm and a robo-advisor. It allows you to invest in a wide array of options while automating your investment journey, all for free.
Financial Advisors
Financial advisors provide personalized assistance with various financial matters, including investments, retirement planning, estate planning, and budgeting. They offer advice and guidance tailored to your needs and can help you achieve your overall financial goals. WiserAdvisor is an innovative online platform that connects individuals with expert financial advisors, making it easy to find the ideal professional for your specific needs.
Frequently Asked Questions (FAQs)
Are online brokers safe?
Online brokers are generally safe as long as they are members of the Securities Investor Protection Corporation (SIPC). The SIPC protects your securities and cash in your brokerage account up to $500,000. However, it’s important to note that online brokers do not protect against market losses or guarantees of investment performance.
Can you transfer stocks between brokers?
Yes, you can transfer stocks between brokers using the Automated Customer Account Transfer Service (ACATS). The process involves filling out a transfer initiation form with your new broker and providing the required information.
How do online trading platforms work?
Online trading platforms provide a user interface for executing trades, monitoring positions, and managing your account. They offer real-time quotes, advanced charting, research tools, news feeds, and other features to help you make informed investment decisions.
How quickly can you start trading?
The account opening process for online brokers is typically straightforward. Once your account is approved and funded, you can start trading immediately. The timeframe for account setup can vary, ranging from a few hours to up to a week, depending on the broker and any additional requirements.
Investing in stocks and other financial instruments involves risk, and it’s important to conduct thorough research and seek professional advice before making any investment decisions.
