Whether you’re new to investing or a seasoned pro, choosing the right online broker is crucial. You want a platform that offers $0 stock and ETF trading, a wide selection of no-transaction-fee mutual funds, low-cost futures and options trading, robust trading platforms, comprehensive investment research tools, and reliable customer support. With so many options available, it can be overwhelming to find the perfect fit.
But don’t worry, we’ve got you covered. We’ve narrowed down the best online brokers for everyday investors in January 2024. Here’s a breakdown of our top picks:
Best for Beginners: J.P. Morgan Self-Directed Investing
J.P. Morgan Self-Directed Investing is an excellent option for beginners looking to learn the ropes of investing. They offer $0 stock and ETF trades, $0.65/contract options trades, and $0 mutual fund trades. Their user-friendly trading platform integrates seamlessly with other Chase products, making it convenient for existing Chase customers. Plus, if you open and fund an account with qualifying new money, you can get up to $700 as a promotion. It’s a great way to jumpstart your investment journey.
Best for Active Traders: TradeStation
TradeStation is a top choice for active, technical traders. They offer $0 stock and ETF trades, $0.60/contract options trades, and $1.50/contract futures trades. Their trading platform is highly robust, featuring exceptional charting, customizable workspaces, extensive historical data, and multiple order entry interfaces. Whether you’re a beginner or a seasoned trader, TradeStation has the tools you need to optimize your trading strategies.
Best for High APY on Uninvested Cash: Robinhood Gold
If you’re looking to maximize the returns on your uninvested cash, consider Robinhood Gold. For $0 commissions (other fees may apply), you’ll gain access to premium tools and features, including lower margin rates, Level II market data from Nasdaq, and professional research from Morningstar. With Robinhood Gold, you can also earn 5.00% APY on your uninvested cash (1.5% without Gold), with no cap and the freedom to withdraw anytime. It’s like having a high-yield savings account integrated into your brokerage account.
Best for Overall Trading: Fidelity Investments
Fidelity Investments consistently ranks at the top for its comprehensive offerings. They offer $0 stock and ETF trades, $0.65/contract options trades, $0 Fidelity mutual fund trades, and a wide selection of 3,300+ no-transaction-fee mutual funds. Fidelity’s web platform caters to beginners and buy-and-hold investors, while their Active Trader Pro platform is ideal for advanced traders. With Fidelity, you’ll have all the tools and research you need to make informed investment decisions.
Best for Mobile Trading: E*TRADE
ETRADE was the first online broker to offer trading for retail investors and continues to be a leader in the industry. They offer $0 stock and ETF trades, $0.65/contract options trades, $1.50/contract futures trades, and access to 6,500+ no-transaction-fee mutual funds. ETRADE provides a range of trading platforms to suit investors of all skill levels, from beginners to advanced traders. Their highly rated mobile app is feature-rich and user-friendly, making it easy to trade on the go.
Best for Investor Education: TD Ameritrade
If you value education and research tools, TD Ameritrade is the perfect fit for you. They offer $0 stock and ETF trades, $0.65/contract options trades, $2.25/contract futures trades, and access to 3,600+ no-transaction-fee mutual funds. TD Ameritrade is known for its extensive library of content and hosts numerous webinars, workshops, and in-person events throughout the year. Whether you’re a beginner or an advanced investor, TD Ameritrade has the resources to help you grow your knowledge.
Best for ETF Research: Charles Schwab
For investors interested in ETFs, Charles Schwab is the go-to choice. They offer $0 stock and ETF trades, $0.65/contract options trades, $2.25/contract futures trades, and access to a wide range of no-transaction-fee mutual funds. Schwab provides over 2,000 third-party, commission-free ETFs, covering various asset classes. Their ETF screeners are best-in-class, making it easy to find the right ETFs for your investment strategy.
Best for Low Costs: Ally Invest
If low costs are a priority for you, Ally Invest is an excellent option. They offer $0 stock, ETF, and mutual fund trades, $1 bond trades, and $0.50/contract options trades. In addition, Ally Invest allows you to move your brokerage account cash into an Ally savings account, where you can earn a much higher rate than most brokers offer on uninvested cash (currently 4.25% APY). Ally Invest also provides robo portfolios for hands-off investors, with zero advisory, rebalancing, and annual fees.
Best for Low-Cost Options Trading: SoFi Invest
For frequent options traders seeking low-cost options trading, SoFi Invest is the perfect choice. They offer $0 stock and ETF trades, $0/contract options trades, and a competitive 1.25% crypto fee. SoFi Invest’s options trading platform is user-friendly and provides educational content and in-app trading guidance for beginners. With helpful metrics like breakeven percentage and maximum profit and loss, SoFi Invest makes options trading accessible to all.
Best for Stock Rewards: Stash
Stash offers a unique approach to investing, allowing you to choose between self-directed investing or automated investing with their robo-advisor, Smart Portfolio. Monthly plans cost $3 or $9, with no add-on transaction fees. With Stash, you’ll have access to a personal brokerage account, a retirement account, and the Stock-Back debit card that earns up to 1% back in stock every time you use the card. It’s a fun and innovative way to invest in the stock market.
Best for Simple Interface: Plynk Invest
Plynk Invest offers a user-friendly interface for both stock and crypto trading. They have $0 fees for stock, ETF, and mutual fund trades, a 0.50% crypto fee, and a $10 sign-up bonus. Plynk’s mobile app is intuitive and easy to navigate, making it effortless to grow your investing knowledge. Whether you’re a beginner or an experienced investor, Plynk Invest has everything you need to start investing with confidence.
Our methodology for rating brokers includes investment selection, fees and commissions, trading technology, research amenities, and customer support. The brokers that received the highest ratings excel in all of these areas, offering a full range of investment options, low fees, advanced trading platforms, comprehensive research tools, and exceptional customer support.
When selecting an online broker, consider the investments you want to trade, such as stocks, bonds, futures, or crypto. Look for a fee structure that aligns with your trading style, and ensure that the platform provides the necessary tools and features to enhance your trading performance. The best online broker for you will offer the investments you desire, competitive fees, and the tools you need to succeed.
Keep in mind that online brokers aren’t the only option available. If you prefer a hands-off approach to investing, robo-advisors and financial advisors provide alternative solutions. Robo-advisors use algorithms to manage your investments based on your preferences, while financial advisors offer personalized guidance tailored to your financial goals.
Remember, investing involves risks, and it’s important to do your own research and consult with a financial professional before making any investment decisions.
*Note: This article is focused on the Personal Finances Blog brand. For more financial advice and insights, visit Personal Finances Blog.