Over the long term, the stock market is one of the best places to invest your money.
The majority of investors now purchase and sell equities using online stock brokers. And the competition among the leading online stock brokers has never been fiercer.
If you’re ready to start investing, we’re here to help. To help you get started, our team of experts has compiled a list of the best trading platforms and what you should look for.
Related: Is Trading Stocks Gambling?
Top 5 Best Online Stock Brokers
We go down the top five online stock brokers as picked by readers, as well as other noteworthy mentions, particularly for certain use cases.
We also mention any current bonus incentives from these firms. If you haven’t already switched to a good online stock broker, now is the moment:
1. Fidelity
This year, Fidelity was selected as the best brokerage and stock trading app. They provide a large number of commission-free funds, cheap fees, and various account kinds. Even if you do not invest in a commission-free fund, the fees for stocks, ETFs, and options trades are zero.
Furthermore, many individuals are familiar with Fidelity because they are one of the two major 401(k) plan administrators, along with Vanguard. As a result, Fidelity is our best online broker for retirement.
In addition, unlike Vanguard, Fidelity maintains offices all across the country. While practically everything can be done online, having the ability to readily travel to an office might be useful from time to time.
2. Vanguard
Vanguard came second this year, down one position from last, and it makes sense for a number of reasons. Vanguard is the low-cost index fund leader, and investing directly with Vanguard may allow you to avoid commissions and fees on mutual fund purchases.
However, Vanguard’s web platform and app faced significant issues even though the re-designed app is modern and easy to use. Furthermore, Vanguard provides a broad range of account options, including IRAs, Solo 401ks, 529 plans, and HSAs.
The main disadvantage of Vanguard is that they aren’t as good for things other than their own. Also, if you look into the specifics of some of their products, such as their Solo 401k, you’ll notice that it’s not necessarily the most solid choice available.
3. TD Ameritrade
TD Ameritrade is another firm that frequently ranks first. The TD Ameritrade app, which we rated as one of the top free investment apps, is one of our favorites. Furthermore, their Thinkorswim software is excellent for traders.
We’re curious how Schwab will manage the acquisition of TD Ameritrade, which was finalized last year. However, no big changes are currently taking place.
TD Ameritrade is also on board with commission-free trading, charging no fees on stock, option, and ETF trades.
4. Charles Schwab
Schwab has risen through the ranks in recent years, achieving fourth place this year on our list of the best online stock brokers.
What people like about Schwab is their amazing trading platform which is commission-free mixed with a decent banking product, which most of the others below don’t provide apart from Fidelity.
Furthermore, their mutual funds have no purchase minimums, allowing you to construct an extraordinarily low-cost portfolio at Schwab by selecting popular funds such as the Schwab Total Stock Market Index (SWTSX). In addition, most items now have no account minimums.
5. E*TRADE
After a few years of missing the cut, E*TRADE made its way back onto our list. E*Trade has worked hard to compete with the other providers on our list, reducing commissions and upgrading its interface.
However, we believe they still trail below the organizations mentioned above in terms of usability, and their customer service is inadequate; they even eliminated online chat last year for many features.
They certainly have a devoted fan base, and it will be fascinating to watch how J.P. Morgan is in charge of them now that they have joined the company.
Related: What is the Best Way to Earn Money In the Stock Market?
Best Online Stock Brokers Frequently Asked Questions
Which online stock trader is best?
- TD Ameritrade
- Interactive Brokers
- TD Ameritrade
Which broker is best for beginners?
- Fidelity Investments.
- Charles Schwab.
- TD Ameritrade.
What is the most trusted stock broker?
Charles Schwab
Who is the No 1 broker?
Zerodha
How do I choose a stock broker?
- Examine the commissions on the investments you’ll utilize the most.
- Look for brokers who have a proven track record of dependability.
- Keep an eye out for account minimums.
- Keep an eye out for account fees.
Should you put all of your money with a single broker?
Nothing prevents you from merging investing accounts under one reputable brokerage business in order to save fees, get additional benefits, and manage your investment plan more easily.
How do beginners buy stocks?
Put money in an online investment account.
Do I need a broker to buy stock?
No, you don’t need a living, advice-giving, fee-charging broker.
Which broker is better than Robinhood?
Fidelity is more cost-efficient than Robinhood.
Which app is the No 1 for trading?
Zerodha Kite
