Choosing a trading platform is one of the biggest decisions you can make as an investor, but figuring out the best online brokers for stock trading on isn’t easy — particularly for beginners.
The world of stock trading has evolved over the last few years with more and more players coming to the market.
Slashed fees and zero-commission trading have also made the online trading world a lot more competitive.
Because it is one of the most important decisions an investor can make, let’s take a quick look at the best online brokers for stock trading, in no particular order.
Best Online Brokers for Stock Trading
1. E-Trade
Minimum Deposit: $0
Stock Trade Fee: $0
Options Trade Fee: $0.65
Commission-Free ETFs: all
One of the first online brokers to hit the market was E-Trade.
Founded in 1982, it started as a basic online platform for investors to execute trades. Since then, it has grown to include the ability to trade stocks, options, futures, exchange-traded funds, mutual funds and bonds.
Like other online brokers, E-Trade Financial Corp. (Nasdaq: ETFC) provides a full range of tools to help traders navigate the difficult waters of investing. These tools include technical analysis and studies to help you understand potential trends in the market.
It also comes with a robust mobile app that lets users stay connected to their accounts on the go.
E-Trade was recently purchased by banking powerhouse Morgan Stanley (NYSE: MS), which means the platform should only get better.
That’s why E-Trade is one of the best online brokers for stock trading.
2. TD Ameritrade
Minimum Deposit: $0
Stock Trade Fee: $0
Options Trade Fee: $0.65
Commission-Free ETFs: all
Powered by its own thinkorswim trading platform, TD Ameritrade — a subsidiary of TD Ameritrade Holding Corp. (Nasdaq: AMTD), provides one of the best opportunities for beginning investors.
One of the biggest benefits of the TD Ameritrade platform is its educational component, which includes videos and other tutorials. Users also get access to the TD Ameritrade TV network.
But the strongest component of this online broker is its thinkorswim platform that allows traders to do their own stock analysis and even test their strategies before putting them in place. You can also sign up for an account with virtual money to practice your trading strategies.
In addition to a mobile app, investors using the TD Ameritrade platform can also access their accounts from Twitter, Apple Chat, Facebook and Alexa.
Its adaption of technology and its thinkorswim platform make TD Ameritrade one of the best online brokers for stock trading.
3. Fidelity Investments
Minimum Deposit: $0
Stock Trade Fee: $0
Options Trade Fee: $0.65
Commission-Free ETFs: all
One of the biggest advantages of using Fidelity as an online broker is its research.
The platform boasts more than 4,500 stock reports from more than 20 independent third-party research firms. That gives traders the ability to do a deep dive into a particular stock at any time.
Its research also includes stock-screening strategies from independent experts, so you can research stocks, ETFs and even options.
Fidelity Investments Inc. also provides real-time alerts through its desktop and mobile platforms that include when a particular stock reaches a new high or low, crosses a particular technical level or experiences a spike in its trading volume.
It’s Active Trader Pro® dashboard also allows investors to define entry and exit strategies, monitor price movements of a particular stock and to see potential risk and reward with any equity.
But Fidelity’s expansive research available to users makes it one of the best online brokers for stock trading.
4. Charles Schwab
Minimum Deposit: $0
Stock Trade Fee: $0
Options Trade Fee: $0.65
Commission-Free ETFs: all
A big player in the investment game is Charles Schwab Corp. (NYSE: SCHW). It started in 1973 and has grown to have more than $3 trillion in total client assets.
The anchor of Charles Schwab is its use of the StreetSmart Edge platform. Investors have the option of using a web-based or desktop version of the software.
StreetSmart Edge includes a risk-management feature to help investors monitor and take action on open orders and positions. It also has advanced stock charting, momentum indicators and research available.
Investors can also customize the layout of their stock screen and link tool windows. That allows for multiple tools to be used for the same security without starting from scratch each time.
Another area Charles Schwab shines is with its retirement services. It offers both robo and human advisers to clients.
Those are just some of the many reasons why Charles Schwab is one of the best online brokers for stock trading.
5. Interactive Brokers
Minimum Deposit: $0
Stock Trade Fee: $0
Options Trade Fee: Tiered commissions from $0.25 to $0.65 per contract
Commission-Free ETFs: all
Interactive Brokers Group Inc. (Nasdaq: IBKR) offers a strong online trading platform that sports a global reach.
With Interactive Brokers, traders can invest in 125 markets across 31 countries and in 23 different currencies.
The IB Trader Workstation (TWS) is downloadable and allows you to create attached orders, add multiple watch lists and comes with real-time streaming news and information for your selected stocks, currencies or ETFs.
TWS also includes multiple analysis tools and technical research provided by Interactive Brokers.
There are also no hidden execution costs as the Interactive Brokers Pro account does not accept payment for order execution.
Because it has access to global markets, Interactive Brokers is one of the best online brokers for stock trading.
6. Robinhood
Minimum Deposit: $0
Stock Trade Fee: $0
Options Trade Fee: $0
Commission-Free ETFs: all
The first player in the zero-commission game was Robinhood, which has been hugely popular with millenial an younger traders.
In terms of being easy to use, Robinhood Markets Inc. is one of the best bets. Its desktop and mobile app is simple to navigate and just as easy to execute trades.
However, Robinhood does not provide much in the way of research tools — unless you sign up for the pay service called Robinhood Gold — and it is pretty barebones when it comes to user experience.
But a lot of beginning or hobby investors don’t require the bells and whistles that other platforms have. Making a trade is as simple as picking the stock, determining how many shares (or fractional shares) and pressing a button.
The biggest selling point for Robinhood is its ease of use and its mobile app, which makes it one of the best online brokers for stock trading.
7. TradeStation
Minimum Deposit: $0
Stock Trade Fee: $0
Options Trade Fee: $0.50
Commission-Free ETFs: all
Another immersive trading platform comes from TradeStation.
Through TradeStation 10, investors have access to a multitude of trading apps and features. The platform also allows you to develop your own customized indicators and trading strategies using a very simple programming language.
Another benefit of TradeStation Group Inc. is the ability to back-test, optimize and fully automate your trade strategies across any stock or future before you even make a trade.
TradeStation 10 also has access to apps that can make buying and selling even more efficient.
If you still aren’t confident about your strategy, you can simulate demo trades to help gain more confidence in what you are doing — without risking any money.
All of the above-mentioned brokers provide an array of features that can be used by beginners and seasoned investors alike.
The key is to do some research (which you just did by reading this article) to determine which is best for you. If you are looking for simplicity, a platform with a ton of options may bog you down. Conversely, if you want advanced information and technical analysis, a simple platform likely won’t help you.
So do your homework to determine the best option for your trading style and ability.
In the meantime, you can use our list of the best online brokers for stock trading to help in your search.
