Best Online Brokers and Trading Platforms for October 2024

The best online brokerage platforms provide strong customer support, robust research and analytical tools, a wide range of assets, numerous account types, and more—all with a transparent fee structure and limited gamification tactics regardless of the investment amount.

After hundreds of hours of comprehensive research, data analysis, and live broker platform demos, Fidelity Investments is our best overall online brokerage platform for investors due to its low fees, expansive product offering, wide-ranging full-service features, and so much more. Fidelity is just one of 26 online brokers that we evaluated based on 89 criteria, including available assets, account services, user experience, and additional features.

Best Online Brokerage Accounts and Trading Platforms of 2024

Best Overall: Fidelity
Best for Low Costs: Fidelity
Best for Beginners: Charles Schwab
Best for Advanced Traders: Interactive Brokers
Best for ETFs: Fidelity
Best for Options Trading: tastytrade
Best for International Trading: Interactive Brokers
Best for Mobile Investing & Trading: E*TRADE
Best for Social Cryptocurrency Trading: eToro
Best for Risk Management: Interactive Brokers
Best for Cash Management: Fidelity
Best for Generating Stock Trading Ideas: Interactive Brokers
Best for Algorithmic Trading: Interactive Brokers
Best for Alternative Investments: Public

Fidelity Investments: Best Overall, Best for ETFs, Best for Low Costs, Best for Cash Management

4.8

Open an Account

Account Minimum: $0
Fees: $0 for stock/ETF trades, $0 plus $0.65/contract for options trades

Read full review

Open an Account

Why We Chose It

Best Overall

When it comes to bringing critical full-service brokerage features, sophisticated tools, and low fees to a wide range of traders and investors, all across continually enhanced platforms, Fidelity reigns supreme for the third consecutive year.

Best for ETFs

Fidelity is our best broker for ETFs because of its rich exchange-trade fund (ETF)-focused educational content and research tools, expansive ETF offering, and fractional ETF trading. Fidelity is a repeat winner in this category, after earning the top spot from Charles Schwab in 2023.

Best for Low Costs

Fidelity has long been an industry leader when it comes to lower fees, and its transparent and compelling fee schedule is the reason why—for the third year running—it wins for low costs.

Best for Cash Management

Finding the best brokerage account for cash management is not just about earning the highest interest rate possible. It’s also about seamless integration with critical, no-fee banking features and industry-leading insurance. In these areas, Fidelity’s cash management offering is unmatched, and it comes with solid passive earnings power on uninvested cash, along with reimbursable access to a global network of ATMs.

Pros & Cons

Pros

No payment for order flow (PFOF) makes for excellent order execution
Strong portfolio analysis and account features
Superior trading platforms for all types of investors
Top-tier educational content, screening tools, and research capabilities
FDIC insurance up to $5 million on uninvested cash

Cons

Only three digital coins available for trading
Minimum balance required for some index trading
Multiple platforms may be required to access all tools

Overview

In an industry full of innovative companies competing for the attention of an incredibly diverse universe of traders and investors, Fidelity delivers the most well-rounded product offering to suit the needs of nearly every investor. Headquartered in Boston, Fidelity’s storied history began with its founding in 1946. With $5.5 trillion in discretionary assets as of June 30, 2024, the company ranks among the top brokerage firms in terms of assets under management.

Investopedia began evaluating online brokerages in 2019, and Fidelity has shown a commitment to improving its financial products and services ever since. Improvements in financial advisor support, bond liquidity analysis, and the new Fidelity Youth app were the highlights of our 2024 product demonstration with the company. In fact, of the 38.7 million brokerage accounts that Fidelity services, 43% of those accounts were opened by investors 18 to 35 years of age. But the improvements didn't stop there. Fidelity now also has a comprehensive cash management product that is jam-packed with banking features.

Fidelity has long been an industry leader when it comes to lowering fees, and it has a stellar reputation as a broker with a huge customer service network, including 210 customer centers, supporting its low-cost, high-value offering. Investors looking for an online broker that keeps costs low, all while delivering some of the most powerful tools in the industry and resisting the common industry practice of collecting PFOF, will be hard-pressed to find a better broker than Fidelity.

ACTUAL USER EXPERIENCE

"I moved all of our family’s investment accounts to Fidelity in 2021 for one simple, but valuable, reason: It’s the only brokerage firm that offers every single account type we have, allowing me to house all of our investments under the same roof. We have a lot of different account types—from various retirement and taxable accounts, to an inherited IRA, to 529s and custodial accounts, and even an investable HSA. Before consolidating to Fidelity, I had to log into multiple places to check on our various investments. Now, except for a new workplace 401(k), I have one login that shows me everything on a single screen. And when I need customer support, Fidelity advisors can also view things as a whole. Moving to Fidelity has added a lot of ease and efficiency to my financial life." - Sabrina Karl, Staff Writer for Investopedia

Editor's Note

In addition to our review of Fidelity's online brokerage platform, we've also reviewed the company's robo-advisor service, Fidelity Go.

Charles Schwab: Best for Beginners

4.7

Open an Account

Account Minimum: $0
Fees: $0 for stock/ETF trades, $0.65 per contract for options

Read full review

Open an Account

Why We Chose It

Best for Beginners

Even before TD Ameritrade’s educational content was incorporated into its ecosystem, Charles Schwab—which acquired TD Ameritrade in 2020—was known as one of the best platforms for new traders and investors. With the integration now complete, Schwab has taken over top ranks in this category, a position previously held by TD Ameritrade for the past two years. Schwab now houses the most comprehensive library of evergreen learning materials, along with seemingly endless coaching programs and regularly scheduled live training events, making it the best for beginner investors.

Research Insights

“If you’re a beginner trader, a user-friendly broker platform will be key. It should be easy to navigate and understand, like using a familiar app. Don’t forget about learning! Look for a broker that offers educational resources to help you understand the market and make informed decisions. Many brokers now offer commission-free trades on stocks and ETFs, so be sure to factor that in as you compare costs. Consider fractional shares too! They allow you to invest in smaller portions of expensive stocks or funds, a great way to get started without a huge initial investment.” -Amrut Deshmukh, Investopedia Research Analyst

Pros & Cons

Pros

Industry-leading educational content
Multiple user-friendly platforms
Superb ETF research and scanners
Over 400 branches in 45 states
Access to the highly regarded thinkorswim® platform

Cons

Relatively high margin rates
Low interest earned on uninvested cash
Lacks fractional ETF trading
No direct investments in cryptocurrencies

Overview

After Chuck Schwab and his partners formed First Commander Corporation in April 1971, they later changed the company’s name to Charles Schwab & Co., Inc. in 1973. Charles Schwab has experienced continuous growth over the years and, in October 2020, completed its acquisition of TD Ameritrade, with full client integration expected to wrap up in May 2024. Not only does Schwab provide the right mix of usability, tools, education, and research to cater to its diverse customer base, but it does so across multiple top-tier platforms. As of August 2024, Schwab’s total client assets stood at $9.74 trillion.

With Schwab’s integration of TD Ameritrade nearly complete, the powerful combination of Schwab’s exceptional lineup of products and services and TD Ameritrade’s powerful capabilities for traders has boosted the company even closer to the top of our comprehensive rating model. One of the most anticipated additions to Schwab's lineup occurred on April 11, 2024, with the company announcing that futures and forex trading, along with a new Portfolio Margin feature, have been made available on its thinkorswim platform.Prospective customers should note, however, that crypto spot trading still isn’t available, but spot Bitcoin and Ethereum ETFs are offered.

Editor's Note

In addition to our review of Charles Schwab’s online brokerage platform, we also reviewed the company's robo-advisor service, Schwab Intelligent Portfolios.

Interactive Brokers: Best for Advanced Traders, Best for International Trading, Best for Algorithmic Trading, Best for Risk Management, Best for Generating Stock Trading Ideas

4.7

Open an Account

Account Minimum: $0.00
Fees: $0.00 commissions for equities/ETFs available on IBKR’s TWS Lite, or low costs scaled by volume for active traders that want access to advanced functionality such as order routing. $0.65 per contract for options on TWS Lite; that is also the base rate for TWS Pro users, with scaled rates based on volume. $0.85 per contract for futures, also scales with volume for TWS Pro users. 0.12%-0.18% on cryptocurrency trades depending on volume with a minimum $1.75 fee per trade.

Read full review

Open an Account

Why We Chose It

Best for Advanced Traders

Interactive Brokers’ lineup of advanced analytical tools, trading technology, and breadth of assets is, quite frankly, awe-inspiring. Ongoing enhancements to legacy platforms like the masterfully constructed Trader Workstation (TWS) and the February 2024 addition of the next-generation IBKR desktop offer just a small glimpse into how Interactive Brokers equips advanced traders to capitalize on fundamental dislocations and pricing inefficiencies better than any other platform we reviewed. This is the third straight year Interactive Brokers has earned this award.

Research Insights

“For intraday and advanced traders, speed is everything. Look for a broker with fast execution speeds to ensure your trades go through quickly. In-depth market research is also crucial, so tools and data analysis are important features to consider. Advanced features like algorithmic trading and order routing control can be helpful for active traders looking to automate strategies or optimize order fulfillment. But remember, even the most advanced tools won’t guarantee success—reliability and low costs remain essential for all traders.” -Amrut Deshmukh, Investopedia Research Analyst

Best for International Trading

Simply put, not one of the 26 online brokerage companies we reviewed comes close to offering the scope of global research capabilities, international trading and support access, and currency-based funding variety that Interactive Brokers offers. That's why, for the third straight year, the company is our top broker for international traders.

Best for Algorithmic Trading

As trading technology continues to advance, so too does the interest in algorithmic trading. Advanced traders will find a powerful lineup of algorithmic trading features in Interactive Brokers’ pre-built algos, a laundry list of API languages, available algorithmic paper trading accounts, and so much more.

Best for Risk Management

With its powerful rebalancing features, robust portfolio and risk analysis tools, nearly boundless opportunities for asset diversification, and available access to licensed brokers, investors will be hard-pressed to find a better platform for managing portfolio risk than Interactive Brokers.

Best for Generating Stock Trading Ideas

For professional and retail traders looking for investing and trading ideas across the vast universe of equities, over short-, intermediate-, and long-term time horizons, Interactive Brokers brings together leading industry research vendors, proprietary search tools, and the industry’s largest universe of investable stocks to provide a nearly endless source of ideas that suit every investing and trading strategy.

Pros & Cons

Pros

Increasing availability of beginner-friendly platforms
Superior order execution
Industry-best selection of contingent orders
Unparalleled range of investable foreign and domestic assets
Powerful and highly customizable professional-level functionality

Cons

IBKR's SmartRouting not available to IBKR Lite clients
TWS can be difficult to learn
No in-platform backtesting
Often confusing tiered pricing

Overview

Founded under the name T.P. & Co. in 1978 by its current chairman, Thomas Peterffy, the company pioneered the use of computers in trading. Eventually, Interactive Brokers Inc. was incorporated as a U.S. broker-dealer in 1993, and the company has since developed into one of the industry’s most complete online brokerage platforms. Interactive Brokers (IBKR) offers astonishing access to 150 markets in 34 countries and support for its services in 200 countries and territories, all with funding and trading capabilities in up to 27 currencies. Simply put, this is the broadest global coverage in the industry.As of September 2024, IBKR held just over $515B in client assets.

One of the first adopters of technology to the financial markets, both algorithmic and active traders have long regarded the company highly for its advanced trading features, highly customizable tools, low margin rates, and alpha-generating capabilities. Investopedia's team of industry experts is constantly delighted by IBKR’s innovative enhancements that just make so much sense from a purist’s perspective. IBKR’s latest product innovation is IBKR Desktop, a next-generation platform that combines a simple user interface with many of the company’s powerful trading solutions. It features innovations like Option Lattice, a graphical options chain display highlighting potential outliers in key metrics, and MultiSort, which enables users to sort data using multiple factors simultaneously.

This idea of simplicity is really where things have been getting interesting for Interactive Brokers, as the company has committed to making its platforms more accessible to beginners. With notable touches like the expansion of educational content across several platforms, including its entry-level IBKR Lite platform; available fractional investing; and the innovative and helpful Options Wizard tool offered on its user-friendly Global Trader mobile app (as well as other platforms), Interactive Brokers is quickly gaining ground on the industry’s top all-around brokerage platforms.

Editor's Note:

In addition to our review of Interactive Brokers' online brokerage platform, we've also reviewed the company's robo-advisor service, Interactive Advisors.

tastytrade: Best Broker for Options

4.5

Open an Account

Account Minimum: $0
Fees & Commissions: $0 stock trades, $1 to open options trades (capped at $10 per leg), $0 to close

Read full review

Open an Account

Why We Chose It

Best for Options Trading

For the third year in a row, we chose tastytrade as the best options trading platform because of its options pricing structure, which includes options pricing caps that make it the lowest-cost brokerage for high-volume, high-frequency option traders. In addition, tastytrade optimizes tools and content to suit the needs of its options-focused client base.

Pros & Cons

Pros

Capped commission structure for options
Highly regarded tools for analyzing and monitoring options trades
Fantastic options-specific content and educational material
Fully customizable trading experience
Follow Feed feature allows users to follow trades of tastytrade's TV celebrities

Cons

No on-platform paper trading support
Few investing and retirement resources
Lacks some key investment choices like mutual funds

Overview

Ask any options trader and they are likely to tell you that this form of derivative trading is complex and difficult to master. But with the right guidance, the many options strategies that are available to use can become powerful weapons that allow both traders and investors to benefit from key factors like time decay and leverage. Created by the same people who developed TD Ameritrade’s highly regarded thinkorswim platform, tastytrade maintains its stance as the best broker for options because of its intuitive delivery of an industry-best mix of comprehensive options-focused tools and content.

Launched as tastyworks in 2017 and headquartered in Chicago, tastytrade delivers very competitive fees for options trading, including standout features like commission caps for large lot sizes, as well as the absence of any trade commissions when closing positions. Fortunately for tastytrade users, these low commissions come with a platform that continues to undergo enhancements which complement its already powerful delivery of options analytics, platform workflow, trade execution, and valuable digital content.

E*TRADE: Best for Mobile Investing & Trading

4.5

Open an Account

Account Minimum: $0
Fees: No commission for stock, ETF, and mutual fund trades. Options are $0.50-$0.65 per contract, depending on trading volume.

Read full review

Open an Account

Why We Chose It

Best for Mobile Investing & Trading

A pioneer in both mobile and online trading, E*TRADE has mastered the art of developing a mobile experience with the right mix of intuitive navigation, robust portfolio and risk management capabilities, deep research, easy-to-digest education, and complex trading tools to cater to investors and traders of all levels. Ongoing enhancements to E*TRADE's mobile capabilities over the past couple of years have caused it to solidify its position as our best mobile trading and investing platform for the first time ever.

Pros & Cons

Pros

Excellent range of tools and resources
Pre-built and automated portfolio options
Educational content library
Top mobile apps for traders and investors of all levels

Cons

Lacks international exchange trading
No direct crypto investing
Fractional shares only available through a robo-advisor portfolio or dividend reinvestment plan (DRIP)

Overview

Since its founding in 1982, E*TRADE has been at the forefront of embracing innovation that makes for one of the best customer experiences in the industry. Following Morgan Stanley’s acquisition of E*TRADE in 2020, the company has only continued to advance its capabilities by integrating many of Morgan Stanley’s highly regarded research materials, thought leadership insights, and large pool of financial advisors.

As one of the largest online brokers in the country, E*TRADE brings an expansive list of investment choices and trading tools to its customer base of 8.2 million households via its website, desktop, and two mobile platforms. E*TRADE’s already vast educational catalog has only grown with the Morgan Stanley integration, complementing the intuitive site design in a way that lets new investors enter the market with confidence. For more experienced investors, the ability to do deep analysis has never been greater than now, when proprietary Morgan Stanley research joins highly regarded third-party research and consensus ratings. While E*TRADE only offers these more advanced traders exposure to cryptocurrencies via Spot Bitcoin & Ethereum ETFs and related stocks, traders have access to a wide array of analysis tools, charting functionality, and trading technology to make the most informed decisions in this and many other asset classes.

Editor's note

In addition to our review of E*TRADE’s online brokerage platform, we also reviewed the company's robo-advisor service, E*TRADE Core Portfolios.

eToro: Best for Social Cryptocurrency Trading

4.1

Open an Account

Account Minimum: $50-$200 minimum deposit for most regions, $200 minimum per trader for copy trading features, $500 minimum investment for Portfolio
Fees: 1% crypto trading fee plus market spread; no-fee stock, ETF, and options trading ($1-$2 per trade fee in select few countries), plus market spread; 2% crypto asset transfer fee

Read full review

Open an Account

Why We Chose It

Best for Social Cryptocurrency Trading

In addition to being a user-friendly, multi-asset brokerage platform, eToro shines for its unique social investing feature that enables users to copy other traders’ trades, or receive exclusive perks for sharing their own trading strategies.

What You Need to Know

On September 12, 2024, the Security and Exchange Commission (SEC) announced that eToro is ceasing trading for nearly all crypto assets. The announcement comes after eToro reached a settlement with the SEC for charges that the trading platform operated an unregistered brokerage and clearing agency related to its crypto dealings. eToro has also agreed to pay $1.5 million to settle with the SEC, in addition to limiting its cryptocurrency offering to just Bitcoin, Bitcoin Cash, and Ether for U.S. consumers. U.S. customers holding cryptocurrency no longer offered by eToro will be able to sell their cryptocurrency for up to 180 days.

Pros & Cons

Pros

Established platform available in over 70+ countries
Relatively large selection of tradable crypto assets
Innovative and easy-to-use social trading experience

Cons

Only available in 47 states
Very limited account types
General lack of advanced trading tools, features, and research
No margin trading in the U.S.
Options trading only offered to U.S. and U.K. residents via a separate app

Overview

Originally developed with a focus on forex trading in 2007, eToro eventually transformed and in 2010 created one of the first social trading experiences, called OpenBook. Since then, the company has enhanced this means of enabling users to learn from and copy other seasoned traders across popular asset classes like stocks, ETFs, futures, and crypto. Currently, eToro is only available in 47 U.S. states, but its 25 million-plus users can also find support in more than 70+ countries around the world.

eToro recently upgraded its charting capability with the addition of Tradingview’s Pro charts, but the platform still lacks many of the tools, calculators, and detailed order types beyond basic market and limit orders that most sophisticated investors would find necessary to carry out advanced trading techniques. eToro provides real-time pricing information for 3 cryptocurrencies, over 3,000 stocks, and more than 270 ETFs, including spot Bitcoin and Ethereum ETFs, covering the most important assets and securities. eToro’s crypto wallet is a separate omnibus wallet with its own address. Users can’t bring in their existing crypto, but they can buy and store it with eToro’s wallet. Additionally, there is no staking available in eToro wallet.

While eToro recently added options trading to its asset mix, this functionality is currently offered to U.S. customers via a separate app. However, during our live demonstration with eToro we learned that options trading is currently being piloted in the U.K. and will soon be made available on the main app.

Public: Best for Alternative Investments

3.9

Open an Account

Account Minimum: $0
Fees: $0 stocks and ETFs; fees of at least $0.49 and up to 1.25% of the order amount apply for crypto trading; Public Premium: $8/month, free with $50K+ account balance

Read full review

Open an Account

Why We Chose It

Best for Alternative Investments

Public offers an easy-to-use platform with social networking features, fractional investment capabilities, and a creative selection of alternative investment options. In addition to stock, option, ETF, and cryptocurrency trading, Public provides a platform for purchasing Treasury bills and alternative investments, like rare sneakers, trading cards, royalties, and more.

While Public is our best brokerage for alternative investments and offers a novel mix of alternative investments, it’s important to know that many of these investments are highly illiquid and speculative. That means it may be difficult to buy and sell assets with ease.

Pros & Cons

Pros

Available fractional share investing
A social media element that connects investors
Easy-to-use mobile app
No payment for order flow on stocks and ETFs
High interest earned on uninvested cash

Cons

Very limited account types
Illiquid and expensive alternative investments
Basic educational material
Limited features
One-leg options strategies only

Overview

Established in 2019 by Jannick Malling and Leif Abraham, Public offers mobile and web browser-based trading best suited for investors interested in a unique set of alternative assets. The New York-headquartered company is a regulated broker-dealer, with Securities Investor Protection Corporation (SIPC) protection in each account up to $500,000.

Public was developed to help lower the barrier to entry for those who shy away from investing due to a lack of financial literacy, as well as those who lack the means to acquire positions in many expensive financial products. The company has certainly succeeded on this front with its clean and simple user experience; commission trading of stocks, ETFs, and options; $0 account minimum; fractional investing; and social networking element.

However, the platform is not without its faults. To begin with, many of the alternative investments offered on the platform are highly illiquid and speculative, and come with high transaction costs. Next, Public does not engage in payment for order flow (PFOF), but it charges an assortment of fees for things like inactivity and instant withdrawals. Investors may also be turned off by the fact that Public requires users to manually opt out of tipping on each transaction, which the company calls “a more transparent, more aligned way to make money” than PFOF. Lastly, Public currently only offers access to individual brokerage accounts.

The Bottom Line

Through our exhaustive research, we found that Fidelity not only outshines the competition when it comes to ETF investing, low costs, and cash management features, but it is also the best online brokerage platform overall. While International Brokers’ ongoing evolution into a more beginner-friendly platform is driving it closer to parity with the industry’s top all-around brokerage platforms, it remains a top choice for advanced trading techniques and risk management, as well as international trading.

For traders planning to make options the main strategy they use to reach their investment goals, tastytrade’s platform and market content are hard to beat. Charles Schwab’s integration of TD Ameritrade's educational programs and trading personalities has produced an unparalleled body of actionable learning materials and live training content for beginners.

E*TRADE’s long history of enhancing the user experience continues to shine through with its fantastic mobile apps, while eToro and Public bring social trading and networking to the next level as part of their top-rated crypto and alternative offerings.

Compare the Best Online Brokers

Broker	Star Rating	Minimum Deposit	Stock Trading Fee	Per Contract Options Fee	Max Option Legs	Number of No-Load Mutual Funds	Fractional Share Trading of Stocks	New Spot Bitcoin & Ethereum ETFs
Fidelity Investments	4.8	$0.00	$0.00	$0.65	4	3396	Yes	Yes
Charles Schwab	4.7	$0.00	$0.00	$0.65	4	14,900	Yes	Yes
Interactive Brokers	4.7	$0.00	$0.00	$0.65	6	19,000+	Yes	Yes
tastytrade	4.5	$0.00	$0.00	$1.00/Open Only	4	0	Yes	Only Spot Bitcoin ETF
E*TRADE	4.5	$0.00	$0.00	$0.65	4	6,310	Yes	Yes
eToro	4.1	Varies	$0.00	$0.65	2	N/A	Yes	Yes
Public	3.9	$0.00	$0.00	$0.02-$0.05	1	N/A	Yes	Only Spot Bitcoin ETF

Despite the sharp increase in volatility that rocked the U.S. equity market from mid July through Early August, Investopedia's latest Reader Survey shows that most individual investors remain somewhat optimistic about their portfolios.

Why You Should Trust Us

Investopedia collected 89 criteria that are critical to investors, from 26 online brokerage companies. We used this data to review each brokerage platform for fees, usability, research amenities, and other key features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their investing needs. Investopedia launched in 1999, and has been helping readers find the best online brokerage accounts since 2019.

How to Choose a Brokerage Account

Investors choosing an online broker will find a wide range of options, each with varying product offerings, cost structures, and features. The best broker for you will ultimately depend on your individual goals, priorities, and preferences. Some investors may require advanced platforms with access to niche markets and exotic instruments, while others happily settle for a simple, user-friendly mobile app and cost-effective pricing. Whatever your objectives, here are some key factors to consider when choosing an online broker.

Commissions and fees

The commissions and fees your broker charges directly impact your bottom line, and can be a major factor to consider, especially for active traders. Nowadays, with rare exceptions, online brokers offer commission-free stock, ETF, and mutual funds trading, but still charge for options trades. In addition, brokers also generally charge for trading more advanced instruments, like futures, and more exotic asset classes, like cryptocurrencies.

Available assets and instruments

The breadth of assets and instruments available to trade determines how flexible your investment portfolio or trading strategies can be. Most online brokers offer trading in stocks, ETFs, and options. A sizable number also provides access to futures and mutual funds. A small, but steadily growing group allows clients to trade cryptocurrencies.

Additionally, some brokers now offer fractional shares, which allow investors to buy a portion of high-priced stocks. This feature can be especially helpful for those with smaller accounts, as it makes expensive stocks more accessible. Access to a specific asset class can be a deciding factor when choosing an online broker.

Your own investing or trading style

Different brokers cater to different trading styles. Whether you manage a long-term stock portfolio, trade complex options strategies, or actively scalp intraday, make sure the platforms and features offered by your broker complement your style and facilitate your trades.

User experience

A well-designed, intuitive platform can make trading easier and more enjoyable for traders of all levels, but especially for beginners. In recent years, many online brokers have invested significant time and money into making the user experience as seamless as possible. Advanced platforms, although improving, may still come with a learning curve due to the amount of instruments and the complexity of tools on offer.

Research tools

Research tools help investors make better trade decisions. Among others, this may include access to market data, analyst ratings, charting tools, and latest financial reports. Brokers with robust research capabilities may provide traders an edge by offering quicker access to essential market data.

Educational content

For beginners and experienced investors alike, educational resources are a way to continue improving their knowledge and strategies. A broker offering tutorials, webinars, and in-depth guides can help users stay informed and grow their trading expertise.

Other key features

Other considerations may include account minimums and benefits, supported order types, customer support accessibility, and premium account offerings. Brokers with zero account minimums are more accessible to new investors, while traders with large account balances may benefit from earning interest on unused cash.

Active traders will value a broker’s support of complex order types, and those who trade international markets or cryptocurrencies will appreciate the ability to get customer support 24/7. More recently, some brokers also began offering premium accounts - providing additional services or offering better pricing, usually in exchange for a monthly fee. Such accounts may be beneficial to certain investors.

What Is the Difference Between a Full-Service Broker and an Online Broker?

This report identifies the best online brokers and trading platforms. It is natural to ask, “How do these brokers and platforms differ from full-service brokers?” One key difference is that online brokers cater to do-it-yourself (DIY) investors. In contrast, full-service brokers aim to relieve you of as much heavy financial lifting as possible by shifting it to their own advisors or affiliated experts.

While online brokers harp on their low costs–not just for trades but also low minimums to open accounts and low costs for access to research, tools, and services–full-service brokers boast of the wide range of their offerings. Those include everything from personal financial planning to insurance, estate planning, retirement planning, accounting services, tax advice, and more.

Still, the boundary between the two categories of brokers is more and more blurry. Online brokers increasingly offer more services, while full-service brokers increasingly cut costs. In fact, many investors would be hard pressed to explain why some online brokers–especially the larger ones–should not be thought of as full-service firms.

Certified financial planner Michael Donnelly, who is account director of corporate relations at the CFP Board of Standards, said, “The financial services landscape has dramatically changed over the past 30 years. Firms that once served specific clients now compete to keep pace with broader client needs and lower-cost competitors. [Full]-service and online brokers have had to expand their offerings and cut costs to stay competitive. As a result, investors benefit from more similar and competitively priced products across the financial planning ecosystem.”

Frequently Asked Questions

What Is an Online Brokerage Account and How Does it Work?

A brokerage account is a type of account similar in function to the accounts you have with a bank. With a brokerage account, you deposit funds with an investment firm (the brokerage). This is usually done by a transfer from your existing bank account. Once funds are added to your brokerage account, you can put the money to work using the brokerage's trading platform to invest those funds in the market. The assets you buy with your cash can be anything offered by that brokerage, including stocks, bonds, ETFs, and even cryptocurrency.

Your online brokerage account will display your holdings (the assets you've purchased) as well as your cash balance (your buying power). If you invest in something that gains in value, you can sell it and the profits will be deposited in your online brokerage account. From there, you can place another trade or even transfer the funds out to your regular bank account to use elsewhere. Some brokerage accounts even allow you to earn interest on your uninvested cash.

How Much Money Do you Need to Open a Brokerage Account?

There is no longer a real minimum to start investing in the financial markets. With many brokers offering margin accounts with access to fractional shares and no required minimums, you can open and fund an account with any amount of money. If you don't have a lot of money to invest, however, it will influence how you approach the market. Although you could invest $1 in fractional shares of a specific stock, the better approach with limited capital is to use ETFs. Index tracking ETFs, for example, offer greater diversification for your dollar than a single company stock because every share (and fractional share) of the ETF replicates an index made up of many companies in many different industries. You could also consider using options to leverage your dollars with a directional bet on the market or a specific stock, but this is a strategy best reserved for risk capital—not the whole of your limited investment capital.

When investing with small sums, consistency is the key to building wealth. If you can regularly put a set amount of money into the market—even $10 a week—you will be surprised at how quickly it begins to grow. This consistency also helps to smooth market effects, as you will be buying dips and peaks as the market goes up and down.

Can You Invest With a Small Amount of Money?

Many online brokers allow for small minimum deposits which can be a great alternative for those with limited funds. Account minimums (if any) are displayed at the top of our reviews, as well as in our selection of the best platforms for different types of investors. If you are looking for more general guidance on investing with limited capital, check out our article on smart investing on a small budget.

Do Brokers Offer Mobile Platforms?

Some online brokers have powerful mobile apps delivering nearly all the features that their desktop counterparts do. For example, E*TRADE's app, which we picked as our best app for mobile investing and trading, offers two mobile platforms that are streamlined versions of the company's powerful desktop platform.

Can You Lose Money in a Brokerage Account?

Yes, you can. It is a reality of the market that no reward comes without risk. You can lose money buying a bad investment, but you can also lose by buying a good investment at the wrong time. Investment decisions should be guided by extensive research and careful consideration of your risk tolerance. When it comes to the financial markets, there are endless possibilities for making and losing money. Unless all the funds in your brokerage account are sitting in uninvested cash (brokerage cash accounts are afforded up to $250,000 of protection by Securities Investor Protection Corporation insurance), there is a risk you will lose money.

Another way of looking at that, however, is that a brokerage account sitting full of uninvested cash isn't at risk of making any money either. You can use strategies like asset allocation and diversification to reduce the risk of you losing money, but you will never fully eliminate it without also eliminating your chances of making a decent return.

Can I Buy Stocks Without a Broker?

Yes, you can actually buy and sell stocks without a broker, but it is not a common approach these days. Some companies still offer direct stock purchase plans that allow you to buy shares directly from the company. Companies administer these plans according to internal rules, and some are only open to company employees. You need to contact companies to find out whether they offer a direct stock purchase plan and what the terms and conditions are. These plans initially helped investors avoid brokerage fees, but the rise of online discount brokers with zero fees has removed this barrier, making the direct stock purchase plan somewhat of a relic.

What Is the Difference Between Investing and Trading?

An important thing to consider is the distinction between investing and trading. When people talk about investing they generally mean buying assets to hold long-term. The goal of investing is to gradually build wealth and reach your retirement goals. Conversely, trading involves short-term strategies that maximize returns on a short-term basis, such as daily or monthly. Trading is generally considered riskier than investing.

All these factors are worth considering before choosing an online broker. Do you want to trade or invest? Do you want a great mobile app to check your portfolio wherever you are? What types of assets are you looking to invest in? Answering these questions is not always easy. For more support on how to choose a broker, you can check out our guide to choosing a stock broker. Once you've made a decision on a broker, you can refer to our guide to opening a brokerage account.

Investopedia's latest Reader Survey shows that, despite concerns about the election, inflation, and extended valuations, individual stocks remain survey respondents' the top investment choice if they had an extra $10,000 to spend.

Companies We Reviewed

We researched and reviewed 26 online brokers and trading platforms to find the best companies you see in the list above. Below is the full list of companies we researched along with links to individual company reviews to help you learn more before making a decision:

Ally Invest, Charles Schwab, ChoiceTrade, E*TRADE, eOption, eToro, Fidelity, Interactive Brokers, J.P. Morgan SDI, Lightspeed, Lime Financial, Merrill Edge, Public, Robinhood, SoFi Invest, SogoTrade, T. Rowe Price, tastytrade, TradeStation, TradeZero, Vanguard, Webull, Wellstrade

How to Pick a Broker That's Right for You

How We Picked the Best Online Brokers and Trading Platforms

Providing readers with unbiased, comprehensive reviews of online brokers and trading platforms is a top priority for Investopedia. We combined our industry research, subject matter expertise, and investor survey data to guide the research and weightings for our 2024 online broker awards. To collect the data, we sent a digital survey with 110 questions to each of the 26 companies we included in our rubric. Additionally, our team of researchers verified the survey responses and collected any missing data points through online research and conversations with each company directly. The data collection process spanned from Feb. 19 to March 19, 2024.

We then developed a proprietary model that scored each company to rate its performance across 11 major categories and 89 criteria to find the best online brokers and trading platforms. The score for each company’s overall star rating is a weighted average of the criteria in the following categories:

Additionally, during our 2024 research, many of the companies we reviewed gave us live demonstrations of their platforms and services via video conferencing methods and also granted our team of expert writers and editors access to live accounts so they could perform hands-on testing.

Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of the top online brokers and trading platforms.

Learn more about how we review online brokers.

Guide to Online Brokers and Trading Platforms

Learn more about online brokers and trading platforms: