If you’re beginning to invest or seeking a new brokerage account, exploring the top online brokers is an excellent starting point. The best online brokers provide low commissions, robust trading platforms, extensive research and educational resources, and responsive customer support — essential features to support your success as an investor.

We’ve analyzed the top brokers based on criteria crucial to individual investors, such as trading fees, account minimums, free research, and other key features. Each broker has been assessed for its strengths and weaknesses, providing a comprehensive comparison on the most critical aspects.

Interactive Brokers offers a streamlined trading interface that may appear basic, but it’s tailored for serious traders. Known as the “broker to the pros,” it prioritizes a high-quality experience for active traders, emphasizing swift trade execution and advanced features. This focus makes it a top choice among experienced traders who value efficient trading capabilities.

Cost-conscious investors will find Interactive Brokers appealing due to its competitive pricing. The Pro platform charges a minimal commission of $1 per trade (or a half-cent per share for trades above 200 shares), with volume-based discounts available. Alternatively, the Lite tier offers commission-free trading on stocks and ETFs. The platform also provides access to over 19,000 no-fee mutual funds, the largest selection in the industry, without additional account or transfer fees.

  • Best for: Active trading, diverse tradable securities, margin trading
  • Commission: $0 (Lite service) or $1 minimum per trade (Pro service), with volume discounts; $0.65 per options contract
  • Minimum: $0

Schwab has built a strong reputation over decades for its customer-centric approach. Offering competitive pricing, robust research tools, and no account minimums, Charles Schwab caters well to both novice and experienced investors alike. Beginners benefit from zero commissions on trades and access to thousands of no-transaction-fee funds, while advanced traders appreciate the highly customizable StreetSmart Edge platform and the thinkorswim platform inherited from TD Ameritrade.

In addition to its comprehensive trading platforms, Schwab provides excellent customer support, offering educational resources and prompt assistance. Buy-and-hold investors find Schwab particularly attractive for its low trading costs, affordable funds, and extensive range of retirement account options.

  • Best for: Overall user experience, research tools, customer service
  • Commission: $0 per stock or ETF trade; $0.65 per options contract
  • Minimum: $0

Ally Invest is an ideal choice for Ally Bank customers seeking a comprehensive brokerage service that covers a wide range of investment options, including stocks, ETFs, bonds, mutual funds, and forex trading. The platform offers competitive industry-standard commissions on stock and ETF trades, and particularly attractive rates on options contracts at just $0.50 each.

Ally Invest also stands out for its extensive selection of over 17,000 no-transaction-fee mutual funds, although investors should be aware of potential other fund expenses depending on their chosen funds.

  • Best for: Low trading commissions, Ally Bank customers
  • Commission: $0 per stock or ETF trade; $0.50 per options contract
  • Minimum: $0

If you’re seeking comprehensive access to various investment options, E-Trade offers a wide range including stocks, bonds, options, ETFs, mutual funds, and futures. The platform provides access to over 6,000 mutual funds without transaction fees.

E-Trade excels in customer support with 24/7 availability via email, phone, and online chat. It features a robust mobile app, Power E-Trade, and provides extensive research and market commentary for investors seeking informed decisions.

  • 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 a discount to $0.50 for 30 or more trades per quarter
  • Minimum: $0

Fidelity stands out as an investor-friendly choice for your brokerage needs. Renowned for its extensive research and responsive customer support, Fidelity offers commission-free trading on stocks and ETFs, along with a vast selection of mutual funds without transaction fees.

Based in Boston, Fidelity is committed to eliminating unnecessary account fees while delivering a high-quality experience. Its robust research and educational resources make it particularly appealing for beginner investors. Moreover, Fidelity offers a comprehensive range of retirement accounts, making it an ideal platform for planning your future investments.

  • Best for: Overall experience, beginner investors, customer support
  • Commission: $0 per stock or ETF trade; $0.65 per options contract
  • Minimum: $0

Firstrade is a standout option for investors looking for commission-free trading in stocks, ETFs, and options—a feature still uncommon among brokers. It offers a variety of account types, including IRAs and education savings accounts, along with robust research tools. Firstrade’s highly-rated mobile app includes advanced features for convenient trading on the go.

In addition to these strengths, Firstrade provides access to a wide selection of over 11,000 no-transaction-fee mutual funds. However, note that some funds may still charge sales commissions. The broker also introduced the ability to purchase fractional shares of stock in December 2023, catering to newer investors seeking more flexible investment options.

  • Best for: Options traders, research capabilities, mobile app
  • Commission: $0 per stock or ETF trade; $0 per options contract
  • Minimum: $0

Merrill Edge excels in providing robust research resources, backed by its extensive team of in-house analysts. Clients benefit from detailed analyst reports covering a wide range of companies, complemented by valuable educational materials tailored for novice investors.

A standout feature is Merrill Edge’s seamless integration with Bank of America, facilitating quick and easy transfers of funds between bank and brokerage accounts—all at no cost.

  • Best for: Research capabilities, Bank of America customers, customer support
  • Commission: $0 per stock or ETF trade; $0.65 per options contract
  • Minimum: $0

Webull, while less prominent than Robinhood, provides a commission-free trading platform for stocks, ETFs, options, and cryptocurrencies. It offers 24/7 phone customer service but lacks robust educational resources, especially for new investors.

Webull features advanced charting tools within its mobile app, enhancing the trading experience. Each stock’s detailed page includes links to news and third-party content, alongside community insights. Instant funding and fractional share purchases further streamline account management.

  • Best for: Commission-free trading, cryptocurrency trading, mobile trading
  • Commission: $0 per stock or ETF trade; $0 per options contract
  • Minimum: $0

Here are additional brokers highly rated under Bankrate’s methodology, excelling in various features that may cater to specific investor needs.

Tastytrade, despite its unconventional name for a brokerage, is dedicated to offering a compelling environment for traders, particularly options traders. It imposes commissions only on the buy side of options trades and caps total commissions at $10 per options leg, which is advantageous for higher-volume trading. In addition to stocks, ETFs, and futures, Tastytrade supports cryptocurrency trading but does not facilitate trading in mutual funds.

Robinhood offers a sleek and user-friendly mobile app for trading stocks, ETFs, options, and cryptocurrency without charging commissions upfront. You can also purchase fractional shares and earn competitive interest rates on your cash balances. Recently, Robinhood introduced the option to open an IRA and offers a match on contributions, adding to its appeal for investors looking to save for retirement.

At TradeStation, you’ll find a wide range of securities available for trading, including traditional assets such as stocks and ETFs, along with less common options like futures. Their sophisticated mobile app and desktop trading platforms make it convenient to engage in all types of trading activities.

Vanguard, renowned for its cost-effective approach in the fund industry, provides commission-free trading for stocks and ETFs. They also offer access to over 3,000 no-transaction-fee mutual funds. However, their basic mobile app falls short of industry leaders in performance, and customer service via phone is available only Monday through Friday.

SoFi Active Investing caters well to newer investors by offering commission-free trading on stocks, ETFs, and options, although it doesn’t support mutual funds. SoFi’s fractional share investing enables clients to buy partial shares and reinvest dividends, maximizing investment potential. It serves as a solid complement to existing relationships with the company, such as loans or bank accounts.

An online brokerage account is a specialized financial tool that enables you to invest in a variety of assets such as stocks, exchange-traded funds (ETFs), mutual funds, bonds, and options. This type of account provides direct access to the market through a computer or mobile device, bypassing the need for a human advisor typically associated with full-service brokerages.

If you’re new to investing, navigating the investment landscape can initially appear overwhelming. It’s advisable to start gradually and build your confidence over time. The good news is that trading through online brokers has never been easier or more cost-effective. As you explore different brokers, consider your specific needs:

  • Are you focused on short-term trading or long-term investing?
  • Do you require a comprehensive broker that provides access to retirement accounts like a Roth IRA or business accounts such as a SEP IRA?
  • Are you interested in making regular investments without closely monitoring the market?
  • Are you inclined towards investing in individual stocks or do you prefer funds?
  • How much customer support do you anticipate needing?

Certain brokers may not meet your criteria outright; for instance, if you need a Roth IRA and a broker doesn’t offer it, it might not be suitable for your needs.

Once you’ve identified your requirements, you can evaluate how each broker aligns with them. Brokers like Interactive Brokers are tailored for advanced traders, whereas Charles Schwab and Fidelity Investments cater to beginners and long-term investors.

Alternatively, if you prefer trading solely via a mobile app without additional features, platforms like Robinhood or Webull may be suitable choices.

Choosing the right broker begins with understanding your needs and finding a broker that best fits those requirements.

The Securities Investor Protection Corporation (SIPC) safeguards the clients of participating brokers, including those mentioned earlier, akin to how the FDIC protects bank deposits. It covers a client’s assets up to $500,000 total, with a $250,000 cap on cash, in case of broker insolvency. Some brokers, like Interactive Brokers, go further by obtaining additional insurance to enhance customer confidence in asset security.

However, SIPC protection does not shield against investment losses due to market fluctuations. Stocks can depreciate in value, potentially not recovering to their purchase price. Unlike FDIC-insured bank products, market-based investments carry inherent risks. Nonetheless, a diversified portfolio of stocks held long-term can yield strong returns over time.

Beginning investors should prioritize brokers that are user-friendly, provide extensive educational resources and research tools, and offer robust customer service. These aspects are crucial for newcomers learning the fundamentals of long-term investing and navigating the complexities of brokerage platforms.

Fidelity emerged as our top choice for beginners, closely followed by Schwab, Interactive Brokers, E-Trade, and Merrill Edge. Fidelity stands out due to its competitive pricing, comprehensive research materials, educational resources, and strong customer support, making it a formidable option for novice investors.

Brokers with responsive customer support enable investors to seek guidance and assistance via phone or chat, often available around the clock. They also feature educational sections that guide users through platform navigation, investment strategies, and more.

Access to reliable research is equally important, especially when selecting stock funds like ETFs or mutual funds. A broker with robust screening tools can assist in identifying suitable investments. For those considering individual stocks, which can carry higher risks for beginners, comprehensive company research provided by the broker is invaluable for assessing potential investments. Ultimately, investors should use these resources to inform their decisions while developing their own investment approach and rationale.

Choosing the right broker hinges on understanding your specific needs, as it’s not solely about cost. Whether you’re a long-term ETF investor or an active trader, your requirements will vary accordingly.

For new investors, the array of broker options might seem overwhelming, but any of the mentioned names are solid choices. The crucial step is taking that initial leap into investing, so don’t hesitate. Once you’ve selected a broker that aligns with your goals, you can start paving the path toward a more stable financial future.