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The Best Online Brokers of April 2024
BEST ONLINE BROKER FOR TRADERS
Interactive Brokers
4.4
Our ratings take into account the range of fees, features and tools offered by each online broker platform. Ratings are determined solely by our editorial team.
Trading Commissions
$0
for stocks, ETFs, options (plus $0.15 to $0.65/options contract fee)
Cash Account Minimum
$0
Via InteractiveBrokers' Secure Website
$0
for stocks, ETFs, options (plus $0.15 to $0.65/options contract fee)
$0
Editor's Take
Interactive Brokers is a long-time favorite among active traders and investing professionals thanks to its rock-bottom commissions and fees, staggering range of tradable products and powerful platform and tools.
Access to global markets is another major strength at this broker. You can trade in 150 markets in 200 countries.
Pros & Cons
- Low commissions and fees
- Outstanding platform and technology
- Unrivaled range of products to trade
- Inconsistent customer service.
- Some may find the complexity of the platform intimidating.
- Look and feel of the client portal could be improved.
Details
Interactive Brokers offers $0 commission trades on U.S. listed stocks and ETFs to U.S. traders, like almost all rivals. Interactive Brokers’ charges are competitive across the board, and one area where it continues to stand out is in margin interest rates, where the firm undercuts key rivals by more than a few percentage points each.
Further, Active traders and pros are bound to enjoy Interactive Brokers’ Trader Workstation (TWS) desktop platform, which offers Level II market data, advanced charting, technical analysis tools, scanners, alerts and Bloomberg TV streaming. Popular features among professional day traders, such as “hot keys,” are also available.
Interactive Brokers’ Trader Workstation (TWS) desktop platform offers Level II market data, advanced charting, technical analysis tools, scanners, alerts and Bloomberg TV streaming. Popular features among professional day traders, such as “hot keys,” are also available.
Promotions
In its Refer a Friend program, Interactive Brokers will pay you $200 for each person you refer to the broker who opens an individual or joint account. The newcomer must keep a balance of at least $10,000 for one year. Also, your new-client friend will receive $1 in IBKR stock for every $100 of value they add to their account. The reward can go as high as $1,000 in IBKR stock. The average balance must be maintained for at least one year.
BEST ONLINE BROKER FOR BEGINNERS AND BEST FOR MOBILE APP USERS
TD Ameritrade
4.4
Our ratings take into account the range of fees, features and tools offered by each online broker platform. Ratings are determined solely by our editorial team.
Trading Commissions
$0
for stocks, ETFs, options (plus $0.65/options contract fee)
Cash Account Minimum
$0
Learn More
Read Our Full Review
$0
for stocks, ETFs, options (plus $0.65/options contract fee)
$0
Editor's Take
Since this list was compiled, TD Ameritrade has been incorporated into Charles Schwab.
TD Ameritrade is our choice as the best online broker for beginners. TD Ameritrade shines in many areas, from education and research to its platform and technology. Beginners can benefit from the platform’s courses that feature progress tracking and gamified elements, rewarding progress with points and badges. Also, TD Ameritrade lets you filter its subject matter according to your level of knowledge (beginner, intermediate and advanced).
TD Ameritrade also wins our nod for best broker for mobile app users. TD Ameritrade’s well-designed app makes it easy to find your way around the numerous features. Plus, TD Ameritrade users now also get access to new parent Charles Schwab’s thinkorswim trading platform.
Pros & Cons
For Beginners
- Outstanding range of educational materials.
- Intuitive, easy-to-use trading platforms.
- Reliable, knowledgeable customer service.
For Mobile App Users
- Highly intuitive mobile app user experience.
- Multiple products may be traded on the app.
- App features advanced tools and extensive resources.
For Beginners
- Does not offer fractional share trading.
- Some fees are slightly higher than peers.
- Some areas of the client portal feel dated.
For Mobile App Users
- Live chat support via mobile is not 24/7.
- You can only trade U.S. markets.
- Mutual fund trades are not possible via mobile.
Details
Beginners can filter educational subjects by their level of knowledge. They can also divvy them up by the type of media (articles, videos, webcasts, courses or events). TD Ameritrade also offers a tool that lets beginners and others test ideas before risking real money. The paperMoney trading simulator allows investors to try out strategies with live market data across multiple markets.
Also, TD Ameritrade provides news and third-party research from Thomson Reuters, Dow Jones and Credit Suisse. Clients can receive wake-me-up inspirations from the firm’s Market Java email. Sent out before the market opens, it provides updates on pre-market conditions, major stock moves and analyst insights.
A mobile app user can chat live with a trading specialist and even share their screen without leaving the app. News and insights via live streaming video are available via mobile. The app even has chat rooms built into it, so you can talk trading with your peers.
Promotions
N.A.
BEST ONLINE BROKER FOR EVERYDAY INVESTORS
Fidelity Investments
4.4
Our ratings take into account the range of fees, features and tools offered by each online broker platform. Ratings are determined solely by our editorial team.
Trading Commissions
$0
for stocks, ETFs, options (plus $0.65/options contract fee)
Cash Account Minimum
$0
Learn More
Read Our Full Review
$0
for stocks, ETFs, options (plus $0.65/options contract fee)
$0
Editor's Take
Fidelity is our pick for best overall online broker. It stands out as an excellent, well-rounded platform that’s a great choice for active traders, long-term investors or people who are new to investing.
Fidelity provides high-quality trade execution while keeping costs minimal. It has the rare distinction of being a broker that offers commission-free stock, ETF and option trading—although it does charge a 65-cent fee per options contract—while not selling order flow. An average of 85% of orders are executed at a better price than the National Best Bid and Offer—or NBBO—with an average execution speed of 0.07 seconds.
At other brokers, selling order flow helps make up for $0 trade commissions, but often results in compromised execution quality.
Pros & Cons
- Highly reliable execution quality.
- Excellent research and tools.
- Low commissions and fees overall.
- Does not offer futures trading.
- Human operated chat for customer service is not available 24/7.
- Relatively high broker-assisted trade commission of $32.95.
Details
Fees are impressively low at Fidelity. For example, it is the only broker in our survey that does not charge an outgoing wire fee. Further, it introduced zero expense ratio index funds in 2018. These funds have no minimum purchase thresholds and no fees for retail brokerage account holders.
Fidelity’s roots extend back to 1930. Today’s fund behemoth dates from 1946, giving Fidelity nearly 80 years of experience. An early adopter of new investing products, Fidelity provides fractional share trading for over 7,000 U.S. stocks and ETFs. Rival Charles Schwab only provides fractional shares for S&P 500 stocks. Also, Fidelity offers access to markets in 25 countries.
Fidelity offers research reports from multiple independent providers, including Zacks and Argus. Tools such as the Fidelity stock screener, stock research dashboard and the robust Active Trader Pro platform help users identify attractive investment opportunities.
Promotions
N.A.
BEST ONLINE BROKER FOR CUSTOMER SERVICE
Charles Schwab
4.3
Our ratings take into account the range of fees, features and tools offered by each online broker platform. Ratings are determined solely by our editorial team.
Trading Commissions
$0
for stocks, ETFs, options (plus $0.65/options contract fee)
Cash Account Minimum
$0
Learn More
Read Our Full Review
$0
for stocks, ETFs, options (plus $0.65/options contract fee)
$0
Editor's Take
Charles Schwab was a close contender for first place in several of our categories. Ultimately, its reliable and competent representatives earned it the top spot for customer service.
Among all of the brokers we tested, the Charles Schwab platform offers the best combination of easy-to-navigate website plus support features that are displayed front and center. Many rivals tuck away support features in an obscure corner.
Pros & Cons
- Short wait times for phone customer service.
- Live chat is available 24/7.
- Over 300 branch offices are available for in-person support nationwide.
- Unlike some other brokers, users must navigate an automated menu when calling support.
- Not all departments are available via the chat channel.
- Message center is not optimized for general inquiries.
Details
In our tests, phone inquiries were resolved within minutes. Schwab’s chat support with a human operator answered almost immediately, a rare luxury. Representatives are knowledgeable, licensed professionals. They typically hold a Series 7 license; some hold multiple licenses.
In addition, for investors who prefer an ongoing relationship—perhaps in person—with the same consultant, Schwab offers an extensive branch network across the United States.
Promotions
The Schwab Starter Kit offers you $101 for opening and funding your account. You can allocate the $101 equally among fractional shares in the five largest market capitalization stocks of the S&P 500 Index. You also get educational resources and tools to help you learn how to invest—like an Investing 101 college course, get it?
Also, when you become a new Schwab client because a friend referred you, you can get a reward of up to $1,000.
Even if you’re already a client, you can earn a cash bonus of up to $2,500 for making a qualifying net deposit of cash or securities.
BEST ONLINE BROKER FOR OPTIONS TRADING
Tastytrade
3.9
Our ratings take into account the range of fees, features and tools offered by each online broker platform. Ratings are determined solely by our editorial team.
Trading Commissions
$0
for stocks, ETFs, options (plus $1.00/options contract fee)
Cash Account Minimum
$0
Via Tastytrade's Website
$0
for stocks, ETFs, options (plus $1.00/options contract fee)
$0
Editor's Take
Tastytrade (formerly known as Tastyworks) was created by options trading professionals, and it shows in the creative innovations in the platform. This user-centric broker combines low commissions, cutting-edge technology and unique resources to help you come up with options trading ideas.
Tastytrade offers competitive pricing and fees, including commissions on equity option trades that are capped at $10 per leg. It also offers commission-free trading in stocks and ETFs and one of the lowest commission rates for futures in our survey.
Pros & Cons
- Competitive commissions for active options traders.
- Strong educational resources.
- Innovative technology and tools.
- Potentially steep learning curve for new options traders.
- Does not offer international markets.
- Does not offer paper trading.
Details
The user experience of the Tastytrade platform is superb on desktop and mobile devices. The trading platform offers conveniences such as the quick roll feature, which allows you to roll your option position into the next expiration cycle with a simple right click.
The Follow Feed feature enables you to see the trades taken by a group of experienced traders, helping you to keep ideas flowing. Based on your interests, you can tailor who you follow in the feed. You can even follow the trading activity of founder Tom Sosnoff, who was a floor trader at the Chicago Board Options Exchange (CBOE) early in his career.
Promotions
Tastytrade offers a cash bonus of $50 to $5,000 for opening an account worth at least $2,000 depending on the size of the initial balance. You also can earn $250 for every qualified referral you make.
Summary: Best Online Brokerage
| Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | BEST FOR | Trading Commissions | Cash Account Minimum | Learn More CTA text | Learn more CTA below text | LEARN MORE |
|---|---|---|---|---|---|---|---|---|---|
| Interactive Brokers |  | 4.4 |  | Best Online Broker For Traders | $0 for stocks, ETFs, options (plus $0.15 to $0.65/options contract fee) | $0 | Open Account | Via InteractiveBrokers' Secure Website | |
| TD Ameritrade |  | 4.4 | | Best Online Broker For Beginners And Best For Mobile App Users | $0 for stocks, ETFs, options (plus $0.65/options contract fee) | $0 | Learn More | Read Our Full Review | |
| Fidelity Investments |  | 4.4 | | Best Online Broker For Everyday Investors | $0 for stocks, ETFs, options (plus $0.65/options contract fee) | $0 | Learn More | Read Our Full Review | |
| Charles Schwab |  | 4.3 | | Best Online Broker For Customer Service | $0 for stocks, ETFs, options (plus $0.65/options contract fee) | $0 | Learn More | Read Our Full Review | |
| Tastytrade |  | 3.9 |  | Best Online Broker For Options Trading | $0 for stocks, ETFs, options (plus $1.00/options contract fee) | $0 | Open Account | Via Tastytrade's Website |
Methodology
For this survey we spent six months thoroughly testing 21 of the leading U.S. online broker platforms. We tested the products side by side, across six major categories, assessed over 100 features and variables, and collected thousands of separate data points. The six categories we tested were:
- Commissions and fees
- Platform and technology
- Range of product offerings
- Research and education
- Account security
- Customer service
Categories were weighted by their relative importance for the best online broker overall, best for beginners and best for active traders. For example, commissions and fees counted for 20% of each broker’s score.
Testing was led by a seasoned market professional with over 20 years of experience in the markets, both as a broker and a retail investor. We opened accounts at each of the 20 brokers in our survey to perform hands-on, granular testing of their platform and services.
To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates investing products.
What Is an Online Broker?
Online brokers enable investors to buy and sell stocks, bonds, and funds. Unlike traditional brokers, online brokers facilitate transactions through user-friendly trading platforms on the internet. These platforms provide a range of features, including easy-to-use trading tools, comprehensive research and analysis capabilities and reliable customer support.
Using the internet allows online brokers to cut costs, facilitate trading at any time and from anywhere, and make investing accessible to a broader audience than traditional brokers.
If you prefer to actively manage your own investment portfolio, an online brokerage account is essential.
Related report: What is an Online Brokerage Account?
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How Does an Online Brokerage Work?
Online brokers are a gateway to the stock market, enabling you to buy and sell securities in your investment portfolio.
Opening an account grants you entry to a trading platform equipped with diverse investment tools. Online brokerage platforms differ, ranging from minimalist interfaces for basic trades to intricate platforms tailored for professionals.
Brokers transmit your orders to markets and either hold your assets as custodians or route them to reliable custodians. They collaborate with market makers to match buyers and sellers, and oversee settlements involving the exchange of cash for securities.
How To Pick the Best Online Broker
When searching for the best online broker, it’s crucial to:
- Assess their compatibility with your investing profile and objectives. Pay close attention to the commissions and fees associated with the investment products you’ll be utilizing frequently.
- Evaluate the broker’s platform and technology carefully. Ensure that their tools align with your investing style. Are you in need of a simple, user-friendly platform for long-term investments, or do you require robust tools to maximize your success in fast-paced active trading?
- Ensure the broker provides valuable assistance in decision-making and investor development through high-quality research and educational resources. Additionally, consider the level of customer support you prefer. Some brokers offer 24/7 live support via chat and phone, while others provide assistance solely through email.
- Look for promotions and bonuses. Many top brokers offer account bonuses based on the size of your initial deposit. For substantial deposits, these bonuses can range from hundreds to thousands of dollars.
There are two questions any investor needs to ask as they shop for the best online broker. First, what services do I want? Second, what will it cost? In this day and age, most online brokerages charge nothing—no commission—for stock trades. So if you’re only trading stock and ETFs, you have your pick of the litter. You can go with anybody. But most folks need some other services. So choose a broker on the basis of those other services you need.
– Andy Kapyrin, partner and investment leader, Corient
How To Buy Stocks Online With an Online Broker
To buy stocks online with a broker, follow these steps:
- Open an online brokerage account. After consulting with our list of the best online brokers, choose a platform and visit the broker’s website. You will be required to provide sensitive personal information like your Social Security number, total net worth, job title, annual income and other financial details.
- Fund your account. Once your account is approved, deposit funds in your account via a bank or wire transfer, or by linking your bank account to your brokerage account.
- Familiarize yourself with the platform. Explore your broker’s online trading platform. Get acquainted with its features, such as stock research tools, charting capabilities and order types. Many brokers provide educational resources and tutorials to help you navigate their platform effectively.
- Research and select stocks. Conduct thorough research on the stocks you’re interested in. Consider factors like company fundamentals, industry trends and analyst recommendations to help you make informed investment decisions.
- Place an order online. Locate the trading or order section, enter the stock symbol of the company you wish to buy, select the number of shares and choose the order type (market order, limit order or other).
- Monitor your stock investments. Once your order is executed, you become a shareholder of the company. Keep an eye on your investments and stay informed about market developments that may affect your stock holdings.
Remember that investing in stocks involves risk, and it’s essential to diversify your portfolio and consider your risk tolerance before making any investment decisions. If you are new to investing, it can be helpful to consult with a financial advisor before buying stocks online.
Getting Started
Once you’re ready to open an online brokerage account, remember that securities regulators require brokerages—whether they are full-service or online brokers—to know their clients. To open an account, then, you’ll need to provide information so the broker knows who you are and how much experience you have investing.
In addition to your name, date of birth, mailing address and Social Security number, you may need to provide:
- Annual income and net worth
- Years of investing experience
- Investment objectives
- Risk tolerance
How Can I Buy Stocks Online Without a Broker?
You can buy stocks without a broker by using a dividend reinvestment plan, by investing in a direct stock purchase plan or by using a trading app on your smartphone. While those options make it possible to buy stocks online without a broker, on their own they are not effective ways to build a diversified portfolio of investments that is right for long-term investing.
Recap: Best Brokerage Accounts of 2024
- Interactive Brokers: Best Online Broker for Traders
- TD Ameritrade: Best Online Broker for Beginners and Best for Mobile App Users
- Fidelity Investments: Best Online Broker for Everyday Investors
- Charles Schwab: Best Online Broker for Customer Service
- Tastytrade: Best Online Broker for Options Trading
Online Brokerage FAQs
Are online brokers safe?
Many online brokers are insured by the Securities Investor Protection Corporation—often referred to simply as the SIPC—which protects investors if a brokerage fails. Many brokers also carry additional private insurance for the same purpose. Neither coverage protects you from market losses.
With a full-service brokerage, you typically get a wide range of services and a one-on-one relationship with a stockbroker—maybe also a financial advisor. They can help you cope with market meltdowns. They also can custom-tailor your financial plan, including individual investments, to your individual needs and goals. So can educational resources at an online broker. But full-service brokerage costs customarily are much higher, meaning that an online broker is cost-wise safer if you’re willing to do a lot of your own research and planning.
Impulse trading, especially amid market volatility, is a key risk for do-it-yourself investors who trade through an online broker. But you can defend yourself by taking advantage of an online broker’s educational resources and research tools, then maintaining your discipline.
How much money do I need to open an online brokerage account?
“The answer is: very little,” says David Blaylock, CFP and director of advice and regulatory compliance at Origin. “Online trading platforms have made it easy to get started with a minimal amount of capital. The ability to invest in ETFs and partial shares has opened up the marketplace to new investors.”
In addition, many investors can find lower account minimums at an online trading platform than at a traditional or full-service brokerage, Blaylock says. A willingness to do your own research and place your own trades can also help you cut costs, he says.
What kind of online brokerage account should I choose?
What kind of online brokerage account you should open depends on your financial goals. For example, if your goal is to save for retirement, you should consider a tax-advantaged account like an individual retirement account (IRA). However, if you’re investing money that you plan to use before retirement age, then you might opt for a taxable brokerage account. These accounts can still be used to invest for retirement as well as goals you’d like to reach before then.
Should I open a cash account or a margin account?
If you’re an experienced investor and you want to actively trade the markets, you might consider opening a margin account instead of a cash account. Margin accounts let you invest more than you actually deposit into your account by using leverage, or borrowed money. If you trade using this money, a process called margin trading, you can magnify any losses you incur. You can lose more money than you actually deposit—and be obligated to pay it. So if you’re relatively new to investing and don’t plan to monitor your account regularly, it’s typically best to stick with a cash account.
What is a paper trading account?
A paper trading account is a mock investment account that allows users to pick investments without risking any real money. The account tracks the overall market and lets users see how their investments would have performed had they actually invested.
Next Up in Investing
- Buying on Margin: What Is a Margin Account?
- Cash Account vs Margin Account: Which Do I Need?
- What Is A Registered Investment Advisor (RIA)?
- How To Invest With a Robo-Advisor
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
