If you’re starting to invest or looking for a new brokerage account, checking out Bankrates list of the best online brokers is a great place to begin. The best ones offer low commissions, strong trading platforms, plenty of research and education as well as helpful customer support – all the features to help you succeed as an investor. Bankrate logo
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Heres an explanation for . Bankrate logo
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our investing reporters and editors focus on the points consumers care about most — how to get started, the best brokers, types of investment accounts, how to choose investments and more — so you can feel confident when investing your money.
The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal. Bankrate logo
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU — the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo
Picking the right broker is kinda like choosing a good partner – you need someone reliable who won’t charge you too much and who actually understands what you want. I’ve been investing for years now, and lemme tell you, not all brokers are created equal!
Whether you’re just dipping your toes into the investing waters or you’re looking to switch from a broker that’s been disappointing you, this guide will help you figure out exactly what makes a good broker in 2025 We’ll look at everything from fees (cause nobody likes those!) to platforms and customer service
Why Choosing the Right Broker Actually Matters
Before we dive into the specifics, let’s talk about why your choice of broker is so important. A good broker doesn’t just execute trades – they provide the foundation for your entire investing experience
The right broker can:
- Save you hundreds or even thousands in fees and commissions
- Provide educational resources that help you become a better investor
- Offer powerful tools to analyze investments
- Execute your trades quickly and at the best prices
- Keep your money safe and secure
On the flip side, the wrong broker might charge hidden fees, offer terrible customer support, or provide clunky platforms that make trading a nightmare. Trust me, I’ve experienced the frustration firsthand!
Key Features of a Good Broker in 2025
1. Low or No Commission Fees
Gone are the days when you had to pay $7-$10 per trade! Most top brokers now offer:
- $0 commissions on stocks and ETFs – This has become the standard at firms like Fidelity, Charles Schwab, and Robinhood
- Options contract fees – These typically range from $0 to $0.65 per contract (Public actually offers free options trading AND pays rebates!)
- No-transaction-fee mutual funds – The best brokers offer thousands of these
One thing I’ve noticed is that while most brokers advertise “$0 commissions,” they might still charge fees in other areas. Always read the fine print!
2. User-Friendly Platforms
A good trading platform should be:
- Intuitive – You shouldn’t need a PhD to figure out how to place a trade
- Reliable – Nothing’s worse than your platform crashing during market volatility
- Feature-rich – Offering charts, screeners, and research tools
- Mobile-friendly – Because we all want to check our investments on the go
Fidelity and Charles Schwab consistently get high marks for their platforms. If you’re more advanced, Interactive Brokers offers highly customizable platforms that active traders love.
3. Strong Research and Educational Resources
I can’t stress this enough – good brokers invest in helping you become a smarter investor! Look for:
- Educational articles and videos – E*TRADE excels here with their webinar program
- Stock research – Merrill Edge offers extensive in-house analyst reports
- Screeners – Tools to help you filter investments based on criteria you care about
- Paper trading – To practice strategies without risking real money
As someone who started investing without much knowledge, I found these resources invaluable. E*TRADE and Fidelity particularly shine in this department.
4. Account Minimums and Accessibility
Nobody wants to be told “sorry, you’re too poor to invest with us.” Thankfully, most good brokers have eliminated or significantly lowered their account minimums:
- $0 minimum – Most top brokers including Fidelity, Schwab, and Ally Invest
- Fractional shares – Allowing you to buy portions of expensive stocks with as little as $1-$5
- Easy account opening – Online process that takes minutes, not days
Fractional shares are a game-changer for beginners. I remember wanting to buy Amazon when it was $3,000+ per share but not having enough money. With fractional shares, that’s no longer a problem!
5. Customer Service and Support
When things go wrong (and they sometimes do), you need responsive customer support:
- Multiple contact methods – Phone, chat, email, and even branch visits
- Extended hours – Some brokers like Charles Schwab offer 24/7 phone support
- Fast response times – Nobody wants to wait on hold for an hour
- Knowledgeable representatives – Who can actually solve your problems
I once had an issue with a trade that didn’t execute properly. The difference between a broker who fixed it immediately and one who would’ve made me jump through hoops would have cost me real money!
6. Account Types and Investment Options
A good broker should offer a variety of account types:
- Individual taxable accounts – For general investing
- Joint accounts – For couples or partners
- IRAs (Traditional, Roth, SEP) – For retirement savings
- Custodial accounts – For investing on behalf of minors
And a wide range of investment options:
- Stocks and ETFs – The basics that every broker offers
- Mutual funds – With low or no transaction fees
- Bonds – Government, municipal, and corporate
- Options – For more advanced strategies
- Cryptocurrencies – Increasingly offered by brokers like Robinhood and Webull
Some specialized brokers might not offer everything. For example, Webull doesn’t offer mutual funds, while SoFi doesn’t have the best interest rates on cash.
7. Interest Rates on Uninvested Cash
This is something people often overlook! When you have cash sitting in your account (maybe from dividends or waiting to be invested), some brokers pay you interest on that money.
The difference can be significant – some brokers pay 4% or more, while others pay nothing. In today’s higher interest rate environment, this is definitely something to consider!
8. Account Security
Your broker should take security seriously with:
- SIPC coverage – Protecting up to $500,000 in securities and $250,000 in cash
- Two-factor authentication – Adding an extra layer of security
- Encryption – Keeping your data safe
- Fraud monitoring – Watching for suspicious activity
This isn’t the most exciting feature, but it’s absolutely crucial. Your life savings deserves maximum protection!
Best Brokers of 2025 (Based on Our Research)
After reviewing the most popular brokers, here are our top picks for different investor needs:
Best Overall Brokers
- Fidelity – Excellent all-around broker with great research, low fees, and outstanding customer service
- Charles Schwab – Strong research, customer support, and a wide range of investment options
- Interactive Brokers – Perfect for advanced traders who want powerful tools and extensive investment options
Best for Beginners
- Fidelity – User-friendly with excellent educational resources
- Robinhood – Simple, streamlined interface ideal for first-time investors
- SoFi Active Investing – Great if you already use SoFi for banking or loans
Best for Active Traders
- Interactive Brokers – Sophisticated tools and low-cost trading
- E*TRADE – Robust platforms with volume discounts on options
- Webull – Commission-free trading with advanced charting capabilities
Best for Options Traders
- Public – No commission on options plus rebates (very unique!)
- Tastyworks – Only charges commission on the buy side of options trades
- Webull – $0 options contract fees
Best for Retirement Accounts
- Fidelity – Extensive retirement account lineup with great planning tools
- Webull – Offers an impressive match on IRA transfers and contributions
- Charles Schwab – Excellent retirement planning resources
Red Flags to Watch Out For
Not all brokers are worth your time or money. Here are some warning signs that should make you think twice:
- Hidden fees – Account maintenance, inactivity, or research fees
- Poor execution quality – Getting you bad prices on trades
- Clunky platforms – Making it difficult to place trades or analyze investments
- Limited investment options – Not offering the investments you want
- Bad customer reviews – Consistently poor feedback from users
- Pushy sales tactics – Trying to sell you products you don’t need
I once used a broker (who shall remain nameless) that had such a terrible mobile app that it would crash every time I tried to place a trade during market volatility – exactly when I needed it most! Needless to say, I switched pretty quickly.
How to Open a Brokerage Account
Once you’ve chosen a broker, opening an account is usually pretty straightforward:
- Gather your information – Social Security number, bank account details, employment info
- Complete the online application – Usually takes 10-15 minutes
- Fund your account – Transfer money from your bank
- Start investing – Many brokers allow you to begin trading immediately, even before deposits clear
Most brokers have made this process super simple. In many cases, you can be up and running in less than an hour!
Switching Brokers: Easier Than You Think
If you’re not happy with your current broker, switching is actually pretty simple:
- Open an account at your new broker
- Initiate an ACAT transfer – This moves your investments without having to sell them
- Wait for the transfer to complete – Usually takes 5-7 days
The new broker will usually handle most of the process for you. Some even offer promotions to cover transfer fees from your old broker!
My Personal Experience with Brokers
I’ve used several brokers over the years, and my experience has taught me that what matters most depends on your investing style.
When I was first starting out, I valued educational resources and an easy-to-use platform above all else. As I became more experienced, I started caring more about advanced tools and lower costs for specific types of trades.
One thing that really surprised me was how much the quality of customer service matters. You don’t think about it until something goes wrong – then it suddenly becomes the most important feature!
Final Thoughts: What Makes a Truly Good Broker in 2025
A good broker in 2025 isn’t just about low fees (although that’s important). It’s about providing a complete package that supports your investing journey:
- Competitive costs – Not just headline commission rates but all-in costs
- User-friendly technology – Both desktop and mobile
- Helpful resources – To help you make better investment decisions
- Responsive support – There when you need them
- Security – Protecting your financial future
Remember that the “best” broker depends on YOUR specific needs. A day trader needs different features than someone saving for retirement in 20 years.
Take the time to consider what matters most to you, and don’t be afraid to open accounts with multiple brokers to compare them firsthand. Many investors actually maintain accounts at different brokers for different purposes.
The good news is that with the fierce competition among brokers today, investors have never had it better. Zero-commission trading, powerful platforms, and excellent research are now widely available.
So what’s stopping you? With so many great options available, there’s never been a better time to start investing or to upgrade to a broker that truly meets your needs.
Have you had great (or terrible) experiences with particular brokers? I’d love to hear about them in the comments below!
How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
All reviews are prepared by our staff. Opinions expressed are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including any rates, terms and fees associated with financial products, presented in the review is accurate as of the date of publication.
If you’re starting to invest or looking for a new brokerage account, checking out Bankrates list of the best online brokers is a great place to begin. The best ones offer low commissions, strong trading platforms, plenty of research and education as well as helpful customer support – all the features to help you succeed as an investor. Bankrate logo
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Heres an explanation for . Bankrate logo
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our investing reporters and editors focus on the points consumers care about most — how to get started, the best brokers, types of investment accounts, how to choose investments and more — so you can feel confident when investing your money.
The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal. Bankrate logo
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU — the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
Best online brokers for 2025
- With its investor-friendly reputation, wealth of free research and tools, snappy customer support and extensive retirement account lineup, Fidelity is an excellent choice if youre looking for a broker that does it all. On top of commission-free trading on stocks, ETFs and thousands of no-transaction-fee mutual funds, cost-conscious investors dont have to worry about the Boston-based broker hitting you with a bunch of unnecessary account fees. And its $0 account minimum and fractional share purchase program mean you can get started investing for as little as $1. Fidelity’s deep research and educational resources make it a great choice for beginner investors. With its investor-friendly reputation, wealth of free research and tools, snappy customer support and extensive retirement account lineup, Fidelity is an excellent choice if youre looking for a broker that does it all. On top of commission-free trading on stocks, ETFs and thousands of no-transaction-fee mutual funds, cost-conscious investors dont have to worry about the Boston-based broker hitting you with a bunch of unnecessary account fees. And its $0 account minimum and fractional share purchase program mean you can get started investing for as little as $1. Fidelity’s deep research and educational resources make it a great choice for beginner investors.
- Overall experience, beginning investors, customer support Overall experience, beginning investors, customer support
- $0 per stock or ETF trade; 65 cents per options contract $0 per stock or ETF trade; 65 cents per options contract
- Charles Schwab does it all well, from low fees to solid research to no account minimum — all at a reasonable trading commission. Beginners will like the zero commissions and thousands of no-transaction-fee funds, while more advanced traders will appreciate the highly customizable thinkorswim platform brought over from the brokers TD Ameritrade acquisition. Schwab is also well known for its customer-first approach, emphasizing investor education and backing it up with fast-response customer support. Buy-and-hold investors may be especially interested in Schwab for its low trading costs, low-fee funds and a wide offering of retirement accounts. Charles Schwab does it all well, from low fees to solid research to no account minimum — all at a reasonable trading commission. Beginners will like the zero commissions and thousands of no-transaction-fee funds, while more advanced traders will appreciate the highly customizable thinkorswim platform brought over from the brokers TD Ameritrade acquisition. Schwab is also well known for its customer-first approach, emphasizing investor education and backing it up with fast-response customer support. Buy-and-hold investors may be especially interested in Schwab for its low trading costs, low-fee funds and a wide offering of retirement accounts.
- Overall experience, research, customer support Overall experience, research, customer support
- $0 per stock or ETF trade; 65 cents per options contract $0 per stock or ETF trade; 65 cents per options contract
- Ally Invest is an excellent add-on for customers of Ally Bank who need a fully functioning broker that can execute all kinds of trades — stocks, ETFs, bonds, mutual funds and even forex for more advanced traders. Like most online brokers, Ally charges no commission for stock and ETF trades. The standout feature here is Allys industry-beating commission on options contracts, at just 50 cents. The broker also charges no trading fees on more than 17,000 mutual funds, though other fund expenses may apply, depending on the fund. Ally Invest is an excellent add-on for customers of Ally Bank who need a fully functioning broker that can execute all kinds of trades — stocks, ETFs, bonds, mutual funds and even forex for more advanced traders. Like most online brokers, Ally charges no commission for stock and ETF trades. The standout feature here is Allys industry-beating commission on options contracts, at just 50 cents. The broker also charges no trading fees on more than 17,000 mutual funds, though other fund expenses may apply, depending on the fund.
- Low trading commissions, Ally Bank customers Low trading commissions, Ally Bank customers
- $0 per stock or ETF trade; 50 cents per options contract $0 per stock or ETF trade; 50 cents per options contract
- E-Trade deserves a place on your brokerage account shopping list, especially if youre a more active trader. The broker offers multiple, highly rated trading platforms with access to plenty of research and market commentary. With E-Trades advanced tools, you can manage a range of assets, including stocks, bonds, options, ETFs, mutual funds, futures and more than 5,000 mutual funds with no transaction fee. Customer support is also there when you need it (think 24/7 access across email, phone and online chat). E-Trade deserves a place on your brokerage account shopping list, especially if youre a more active trader. The broker offers multiple, highly rated trading platforms with access to plenty of research and market commentary. With E-Trades advanced tools, you can manage a range of assets, including stocks, bonds, options, ETFs, mutual funds, futures and more than 5,000 mutual funds with no transaction fee. Customer support is also there when you need it (think 24/7 access across email, phone and online chat).
- Active trading, robust trading platforms, no-transaction-fee mutual funds Active trading, robust trading platforms, no-transaction-fee mutual funds
- $0 per stock or ETF trade; 65 cents per options contract, with a discount to 50 cents for 30 or more trades per quarter $0 per stock or ETF trade; 65 cents per options contract, with a discount to 50 cents for 30 or more trades per quarter
- Firstrade offers investors commission-free trading in stocks, ETFs and options, the latter of which is still a rarity among brokers. You’ll also have several different account-type options, including a variety of IRAs and education savings accounts as well as a solid research offering. Firstrade’s mobile app is highly rated and offers advanced features. In addition to those strong positives, Firstrade offers a wide range of mutual funds without a trading fee, more than 11,000, but the funds themselves may still charge sales commissions. With as little as $5, you can purchase fractional shares of stock, a feature that opens the door to owning a slice of high-priced companies without having to make a sizable upfront investment. Firstrade offers investors commission-free trading in stocks, ETFs and options, the latter of which is still a rarity among brokers. You’ll also have several different account-type options, including a variety of IRAs and education savings accounts as well as a solid research offering. Firstrade’s mobile app is highly rated and offers advanced features. In addition to those strong positives, Firstrade offers a wide range of mutual funds without a trading fee, more than 11,000, but the funds themselves may still charge sales commissions. With as little as $5, you can purchase fractional shares of stock, a feature that opens the door to owning a slice of high-priced companies without having to make a sizable upfront investment.
- Options traders, research, mobile app Options traders, research, mobile app
- $0 per stock or ETF trade; $0 per options contract $0 per stock or ETF trade; $0 per options contract
- With its stripped-down trading interface, Interactive Brokers only looks like a no-frills broker. But this “broker to the pros” has put all its resources into creating a great experience for active traders. So it’s no surprise that it’s a top choice among advanced traders and those who value the finer points, such as swift trade execution. Volume-based discounts and a pro-level trading platform are enticing to many of these active traders. Interactive Brokers is an ideal choice for investors focused on keeping costs to a minimum. Active traders using the Pro platform will pay $1 minimum commission (or a half-cent per share above 200 shares), while users in the Lite tier won’t pay commission on stocks or ETFs. You’ll also have access to more than 20,000 mutual funds without a transaction fee (the industrys largest roster), and you won’t have to worry about annoying account or transfer fees. With its stripped-down trading interface, Interactive Brokers only looks like a no-frills broker. But this “broker to the pros” has put all its resources into creating a great experience for active traders. So it’s no surprise that it’s a top choice among advanced traders and those who value the finer points, such as swift trade execution. Volume-based discounts and a pro-level trading platform are enticing to many of these active traders. Interactive Brokers is an ideal choice for investors focused on keeping costs to a minimum. Active traders using the Pro platform will pay $1 minimum commission (or a half-cent per share above 200 shares), while users in the Lite tier won’t pay commission on stocks or ETFs. You’ll also have access to more than 20,000 mutual funds without a transaction fee (the industrys largest roster), and you won’t have to worry about annoying account or transfer fees.
- Active trading, tradable securities, low-cost margin trading Active trading, tradable securities, low-cost margin trading
- $0 (Lite service) or $1 minimum per trade (Pro service), with volume discounts available; 65 cents per options contract $0 (Lite service) or $1 minimum per trade (Pro service), with volume discounts available; 65 cents per options contract
- Merrill Edge’s strongest suit is the research it offers clients, which comes from the broker’s extensive in-house team of analysts. The package includes detailed analyst reports for the companies that it covers, as well as research from outside services and ongoing market commentary and other economic data. If youre a Bank of America customer already, take a closer look at Merrill Edge. One of the best features is the broker’s integration with Bank of America, so you can track your financial life from a single dashboard, move money quickly from bank to broker and, depending on your brokerage balance, qualify for a credit card rewards boost. Plus, it all comes at a great price: free! Merrill Edge’s strongest suit is the research it offers clients, which comes from the broker’s extensive in-house team of analysts. The package includes detailed analyst reports for the companies that it covers, as well as research from outside services and ongoing market commentary and other economic data. If youre a Bank of America customer already, take a closer look at Merrill Edge. One of the best features is the broker’s integration with Bank of America, so you can track your financial life from a single dashboard, move money quickly from bank to broker and, depending on your brokerage balance, qualify for a credit card rewards boost. Plus, it all comes at a great price: free!
- Research, Bank of America customers, customer support Research, Bank of America customers, customer support
- $0 per stock or ETF trade; 65 cents per options contract $0 per stock or ETF trade; 65 cents per options contract
- Webull may be lesser known than its rival Robinhood, but the trading app also allows customers to trade everything from stocks and ETFs to options and cryptocurrencies commission-free. One plus in Webulls favor is that you’ll be able to reach customer service through the phone 24/7. Webull offers attractive charting as part of the mobile experience. Each stock has a comprehensive page with links to news and other third-party content, and you can see what other traders are saying about it, too. You’ll get instant funding of your account as well as the ability to purchase fractional shares. Although the app targets new investors, we found the educational resources severely lacking. Webull may be lesser known than its rival Robinhood, but the trading app also allows customers to trade everything from stocks and ETFs to options and cryptocurrencies commission-free. One plus in Webulls favor is that you’ll be able to reach customer service through the phone 24/7. Webull offers attractive charting as part of the mobile experience. Each stock has a comprehensive page with links to news and other third-party content, and you can see what other traders are saying about it, too. You’ll get instant funding of your account as well as the ability to purchase fractional shares. Although the app targets new investors, we found the educational resources severely lacking.
- Commission-free trading, cryptocurrency trading, mobile trading Commission-free trading, cryptocurrency trading, mobile trading
- $0 per stock or ETF trade; $0 per options contract $0 per stock or ETF trade; $0 per options contract
We’ve examined the best brokers based on characteristics that matter to individual investors, including trading fees, account minimums, free research and many other features. We’ve evaluated each broker on their pros and cons, and here’s how they stack up on the most important aspects.
- Bankrate evaluates brokers based on a number of factors including:
- Cost (commissions, account fees, etc.)
- Account types
- Investment offerings
- Research and education
- Customer support
Bankrate evaluates brokers based on a number of factors including:
- Cost (commissions, account fees, etc.)
- Account types
- Investment offerings
- Research and education
- Customer support
The brokers below also scored highly on the criteria we use to evaluate and rate providers.
- Dont let the unconventional name fool you. Tastytrade is firmly committed to providing an attractive environment for traders. Options traders in particular should take heed: Tastytrade charges a commission on only the buy side of an options trade, and it caps the total commission to $10 on any options leg, making for attractive pricing if you’re making higher-volume trades. You’ll also be able to trade cryptocurrency as well as stocks, ETFs and futures, but not mutual funds. Dont let the unconventional name fool you. Tastytrade is firmly committed to providing an attractive environment for traders. Options traders in particular should take heed: Tastytrade charges a commission on only the buy side of an options trade, and it caps the total commission to $10 on any options leg, making for attractive pricing if you’re making higher-volume trades. You’ll also be able to trade cryptocurrency as well as stocks, ETFs and futures, but not mutual funds.
- Robinhood brings an attractive and smooth mobile app to the trading game, allowing you to buy stocks, ETFs, options and cryptocurrency with no out-of-pocket commission. You’ll also get to buy fractional shares, and Robinhood Gold members can earn an attractive interest rate on their cash balances here. Plus, Robinhood offers IRAs (and often provides a match on account contributions) and a new automated portfolio management service. Robinhood brings an attractive and smooth mobile app to the trading game, allowing you to buy stocks, ETFs, options and cryptocurrency with no out-of-pocket commission. You’ll also get to buy fractional shares, and Robinhood Gold members can earn an attractive interest rate on their cash balances here. Plus, Robinhood offers IRAs (and often provides a match on account contributions) and a new automated portfolio management service.
- Moomoo is a newer entrant to the brokerage world, but it’s been aggressive about attracting customers with good prices. It offers the usual no-commission trading on stocks and ETFs, but ups the game with no-cost options trading, too. Moomoo also offers low margin rates, making it an interesting place for traders looking for this feature. Moomoo is a newer entrant to the brokerage world, but it’s been aggressive about attracting customers with good prices. It offers the usual no-commission trading on stocks and ETFs, but ups the game with no-cost options trading, too. Moomoo also offers low margin rates, making it an interesting place for traders looking for this feature.
- SoFi Active Investing does a lot right for newer investors, including no commissions on stocks, ETFs and options. SoFi’s fractional share plan allows clients to purchase partial shares of stock and reinvest any dividends in them, too, helping get all your money working for you. The brokerage account is a solid add-on option if you’re already working with the company another way, perhaps with a loan or bank account. SoFi Active Investing does a lot right for newer investors, including no commissions on stocks, ETFs and options. SoFi’s fractional share plan allows clients to purchase partial shares of stock and reinvest any dividends in them, too, helping get all your money working for you. The brokerage account is a solid add-on option if you’re already working with the company another way, perhaps with a loan or bank account.
How To Choose The Best Brokerage Account For Beginners
FAQ
How do you know if a broker is good?
Use FINRA’s BrokerCheck and the SEC’s IAPD to verify a broker’s registration and background. Verify brokerage firm membership with the SIPC to ensure investor protection. Regularly check investment statements for discrepancies and unexpected changes.
How do I choose a good broker?
- Regulation. Regulation is the most important consideration for any beginner when choosing a broker. …
- Trading Platform. …
- Trading Conditions. …
- Tools and Resources. …
- Payment Methods. …
- Customer Support.
How much does a good broker cost?
| Brokerage fee | Typical cost |
|---|---|
| Annual fees | $50 to $75 per year |
| Inactivity fees | May be assessed on a monthly, quarterly or yearly basis, totaling $50 to $200 a year or more |
| Research and data subscriptions | $1 to $30 per month |
| Trading platform fees | $50 to more than $200 per month |
Who is the best broker to use?
- Best Overall: Fidelity.
- Best for Low Costs: Fidelity.
- Best for Beginners: Charles Schwab.
- Best for Advanced Traders: Interactive Brokers.
- Best for ETFs: Fidelity.
- Best for Options Trading: tastytrade.
- Best for International Trading: Interactive Brokers.