Online brokerage platforms offer significant advantages for investors, whether you’re just starting out or have years of experience. The best online brokers provide minimal fees, a wide range of investment options, and advanced trading tools. Many also offer educational resources to help you make informed investment decisions.

If you’re new to investing and wondering where to begin, we’ve compiled a list of the top 10 online brokers to consider, along with key criteria to help you choose the right one for your needs.

Our Methodology

We evaluated numerous online brokerage accounts based on fees, investment options, account minimums, customer service, and additional features to determine the best platforms available.

Best Online Brokers for Stock Trading in 2024

With so many online brokers available, choosing the right one can be overwhelming. Your ideal brokerage will depend on your financial goals and preferences. Here are ten reputable online brokers to consider:

1. Fidelity – Best Overall Value

Fees: Commission-free trading for online U.S. stocks, ETFs, and options.

Account Minimum: None.

Promotion: $50 reward when you open a Fidelity Youth account for your teen.

Why We Chose It: Fidelity stands out for its straightforward platform, extensive financial services, low fees, and excellent customer support, making it an exceptional value for investors.

2. Robinhood – Best All-in-One Platform

Fees: $0 commission fees on stocks, options, ETFs, and cryptocurrencies.

Account Minimum: No minimum requirements.

Promotion: Earn one free stock after linking your bank account.

Why We Chose It: Robinhood pioneered commission-free trading and remains a staple in the investment community. With a generous 4.50% annual percentage yield (APY) on uninvested cash for Robinhood Gold members, and a unique 1% IRA match, it offers a comprehensive platform for investors.

3. SoFi Active Investing – Best for Beginners

Fees: Commission-free trading with no advisory fees.

Account Minimum: Zero minimum balance requirements.

Promotion: Receive between $5 and $1,000 when you open and fund a new account within 30 days.

Why We Chose It: SoFi Active Investing provides new investors with the essential tools to get started, including free financial counseling and a variety of financial products, all with commission-free trading.

4. E*TRADE – Best Mobile App

Fees: $0 commissions for online U.S. stocks, ETFs, mutual funds, and options.

Account Minimum: No minimum requirements.

Promotion: Currently, no promotions available.

Why We Chose It: E*TRADE offers one of the highest-rated mobile trading apps, delivering real-time market insights and extensive research, suitable for investors at all experience levels.

5. Tastytrade – Best for High-Volume Traders

Fees: Commission-free trading on stocks and ETFs.

Account Minimum: No minimum requirements.

Promotion: Earn a cash bonus when you open and fund a new account with more than $5,000.

Why We Chose It: Specializing in options trading, Tastytrade offers transparent pricing and superior trading technology, making it ideal for high-volume investors.

6. Ally Invest – Best Low-Cost Option

Fees: $0 commissions for U.S. stocks, ETFs, and options.

Account Minimum: No minimum balance requirements.

Promotion: No current promotions.

Why We Chose It: Ally Invest is a cost-effective broker suitable for traders of all levels. Existing Ally Bank customers can manage all finances within one user-friendly platform.

7. Vanguard – Best for Long-Term Investing

Fees: $0 commissions on stocks, ETFs, and mutual funds.

Account Minimum: Varies by account type; many mutual funds require a $3,000 minimum, but ETFs can be opened for as little as $1.

Promotion: No current promotions.

Why We Chose It: Vanguard is renowned for its low costs and extensive investment options, making it the preferred choice for long-term investors. Its mutual fund expense ratios are significantly lower than industry averages.

8. Charles Schwab – Best Customer Service

Fees: No commissions for online stocks, ETFs, and options.

Account Minimum: No minimum balance requirements.

Promotion: Earn between $100 and $1,000 by signing up with a referral code, depending on your account balance.

Why We Chose It: Charles Schwab offers extensive customer support through phone, online, and over 300 branch locations. With a wide variety of investment funds and commission-free trading, it excels in customer service.

9. Merrill Edge – Best Sign-Up Bonus

Fees: $0 commissions on stocks, ETFs, and options through Merrill Edge Self-Directed.

Account Minimum: No minimum balance required for Self-Directed accounts.

Promotion: Receive up to $600 when you open a new Merrill Edge Self-Directed account.

Why We Chose It: Merrill Edge offers a substantial sign-up bonus, extensive third-party research, and access to over 2,000 Bank of America locations, alongside commission-free trading.

10. Interactive Brokers – Best for Advanced Investors

Fees: $0 commissions on stocks and ETFs.

Account Minimum: No minimum balance requirements for individual accounts.

Promotion: No current promotions.

Why We Chose It: Interactive Brokers provides powerful trading technology, low margin rates, and a vast array of investment assets, making it ideal for experienced investors seeking advanced tools.

Understanding Online Brokerage Accounts

An online brokerage account allows you to buy and sell investments such as stocks, bonds, mutual funds, and ETFs. You start by creating and funding your account, then selecting your preferred investments. Platforms like Fidelity, Vanguard, and Robinhood are examples of online brokers that have made investing more accessible and cost-effective.

How Online Brokerage Accounts Work

These accounts enable you to build your financial portfolio by:

• Buying and trading stocks
• Investing in government or corporate bonds
• Opening retirement accounts with tax advantages
• Accessing investment research, tools, and strategies

You can deposit funds into your brokerage account similarly to a checking account. Once funded, you can purchase investments, monitor their performance, and sell them at any time. There are no limits on the number of brokerage accounts you can have or the amount you can invest.

Minimum Investment Requirements

Most online brokers allow you to open an account for free, earning money when you start trading. Some may require a minimum investment ranging from $100 to $1,000 or more. It’s important to compare minimum deposit requirements, especially if you have limited funds to invest. Also, consider trading fees, account maintenance fees, and the variety of investment options offered.

Types of Brokerage Accounts

When opening a brokerage account, you can choose from several types:

Individual Brokerage Account

An individual account has a single owner who has full control over investment decisions and is responsible for any tax obligations related to investment gains.

Joint Brokerage Account

A joint account is shared by two or more individuals, often spouses or family members. Ownership structures can vary:

• Joint Tenants with Right of Survivorship (JTWROS): Equal ownership; upon death, one owner’s share passes to the other.
• Joint Tenants in Common (JTIC): Ownership shares pass to the estate upon death.
• Community Property: Available to married couples in certain states; assets are split 50/50, with shares passing to the estate upon death.

Cash Account

In a cash account, you pay the full amount for investments purchased. Short selling and buying on margin are not allowed. It’s important to maintain sufficient cash in the account to avoid violating federal regulations.

Margin Account

A margin account allows you to borrow money from the brokerage to purchase investments, using your portfolio as collateral. While it enables short selling, it comes with significant risks, including potential immediate demands for additional cash or the forced sale of your investments without prior notice.

Benefits of Using an Online Broker

Online brokers offer several advantages:

• Convenience: Easy access to investment platforms with user-friendly interfaces.
• Low Fees: Competitive pricing with commission-free trading options.
• Low Account Minimums: Many platforms have no minimum deposit requirements.
• User-Friendly Platforms: Tools and resources to help manage your portfolio.
• Diverse Investment Options: Access to a wide range of assets.
• Security: Advanced security measures to protect your investments.
• Control: Greater autonomy over your investment decisions.
• Educational Resources: Materials to enhance your investment knowledge.

Choosing the Right Online Broker

Consider the following factors when selecting an online broker:

Investment Options

Ensure the broker offers a variety of investment products, such as stocks, ETFs, mutual funds, bonds, and possibly cryptocurrencies or forex trading.

Reliability

Research the broker’s reputation, financial stability, and customer reviews to ensure reliability.

Pricing and Fees

Look for transparent fee structures and be aware of any hidden costs, such as transfer fees or inactivity fees.

Customer Service

Accessible and responsive customer support is crucial, especially if you encounter issues or have questions.

Additional Features

Consider any extra benefits, such as sign-up bonuses, IRA matches, fractional shares, or advanced trading tools.

Online Brokers vs. Traditional Brokers

Online brokers provide a platform for self-directed investing, offering lower fees and greater control but requiring you to manage your investments. Traditional brokers offer personalized support and may provide investment advice, but often at higher costs and with less flexibility.

Conclusion

For most investors, online brokerage accounts offer the necessary tools and resources to build and manage a diversified portfolio. By carefully evaluating your options and considering your investment goals, you can choose a broker that aligns with your needs and helps you achieve your financial objectives.