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Online Stock Brokers: Compare and Review

You've done the research, you know what companies you want to invest in, and you know what kind of investment strategy you're capable of. Now the question is: how to make it happen? Which stockbroker is right for you? Should you immediately sign up with the one with the lowest fee or is there something else you should consider? We'll help you compare and decide.


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How to Choose a Stock Broker

Are you tired of earning just pennies on your savings every month? Are you looking for another way to build wealth? Do you want to invest in the stock market but don't know where to start?

Join the club. There are a lot of beginner investors out there who want a lot more out of their hard-earned cash than the measly 0.25% interest rate they're likely to find with their bank account. But to invest wisely in the stock market, they can't do it alone. They need a broker.

Finding the right one is similar to picking a stock or mutual fund — you wouldn't pull the trigger without doing your homework first. If you're ready to start comparing brokers, CreditDonkey got the skinny on how to choose one.

CreditDonkey Top Rated Online Brokers

ForOnline Broker
BeginnersE-Trade
DiscountAlly Invest
ResearchTD Ameritrade
Mutual FundsFidelity

How to Compare Online Stock Brokers
How to Compare Online Stock Brokers © CreditDonkey

Below you'll find our complete list of the top online stock brokers. You can skip below to compare online brokers for yourself and you don't need to give up any personal information to do it.

Not ready to compare just yet? Read on to see what you'll need to think about before you open a stock brokerage account.

Why You Need a Stock Brokerage Account

Stashing your money in a savings account is a good way to keep it safe, but you're not going to get rich that way. At best, you might be able to scrape up just 0.25% interest at a brick-and-mortar bank. You might get an APY as high as 1% at an online bank, but that's still peanuts compared to what you could get by investing wisely in the stock market.

Dipping your toes into the market for the first time can be a little scary (there are definitely risks involved along with the potential for rewards), and that's why it's so important to have the right broker in your corner. You need one that can help you move forward, not one that will force you backward under a pile of fees and hard-to-navigate information.

Is Investing in Stocks Worth It? 3 Reasons to Invest in Stocks

© CreditDonkey

If you're on the fence about whether to play the market or not, take a look at what you stand to gain. There are three specific advantages to investing in stocks:

  • You're likely to get higher returns: Compared to a savings account, the returns that can go along with investing in stocks are astronomically higher. Historically, stocks have averaged an annual return of 10% over the last century. When you're looking at the long-term picture, stocks have, hands-down, the most potential for growth. (Short-term investing is riskier and less predicable.)

  • Time is on your side: If you've paid any attention to recent history at all, you know that the stock market is like a rollercoaster. Over time, you'll see some astonishing highs followed by gut-wrenching lows, but there are always some evening-out points. You'll need to be able to stomach the dips as well as plan for investing when the market is low, so you can set yourself up for a boost in earnings when stocks start to climb once again.

  • Stocks offer diversity: Individual stocks are just one part of a solid investment portfolio. Smart investors mix things up so they're better able to ride out the low times and can increase their odds of making good choices. With so many different stocks trading on the market, you can pick and choose which ones fit your comfort level and your overall investing style.

Weighing Rewards vs. Risk

© CreditDonkey

No discussion of investing in stocks would be complete with touching on the risks that go along with them. It's more fun to focus on the returns, but you can't afford to overlook the potential dangers.

  • The market could crash: As the history books show, the market can, and does, crash from time to time. There's nothing wrong with hoping for the best, but you also need to be prepared for the worst. You need to ask yourself how comfortable you are taking on the risks that go along with a volatile market. Impulsive investors who freak out at the first sign of a downturn are less likely to make as much money as those who can withstand the bad times.

  • You could lose money: Even if the market doesn't take a dive, returns aren't guaranteed. You could put thousands of dollars into a particular stock that's soaring one day, only to see it plummet the next. Again, you have to decide whether it's worth it to put your cash on the line for a payoff that may or may not come.

  • Inflation could eat into your returns: Inflation is a sneaky investment killer that you don't want to forget about. As of June 2015, the inflation rate was 0.1%, according to the Bureau of Labor Statistics. That's fairly low, but if it were to shoot up to nearly 3% (like it did during the peak of the recession), that could take a big bite out of your annual returns.

The bottom line?

There are a lot of unknowns involved when you're investing in stocks and it's not right for everyone.

If the thought of losing money or having to recover after a market crash leaves you feeling queasy, you might be better off playing it safe with bonds or certificates of deposit instead. These investments generally carry less risk, but there is a trade-off since they don't generate the same kind of returns as stocks.

On the other hand, if you're at ease with the idea of managing your own portfolio and you have a relatively high risk tolerance, then an online stock brokerage account may be the natural next step for you.

How Much Does It Cost? Understanding Brokerage Fees

Any time you buy or sell a stock, you're going to pay a commission fee. These fees are regulated by the Securities and Exchange Commission, but it's up to individual brokers to decide how much to charge. In general, the fee will depend on the kind of service the broker is providing. Lower fees typically mean fewer services.

Aside from the commission or trade fee, there are several other costs to keep in mind. If you're buying a mutual fund, for example, there's usually an upfront sales charge in addition to the trade fee. Your broker may also charge an annual account maintenance fee, inactivity fees if you go a certain amount of time without making a trade, minimum balance fees and fees for transferring assets between accounts.

Ally Invest

Get Up to $3,000

Expires 12/31/2021

The minimum qualifying deposit to receive a cash bonus is $10,000. Accounts will be reviewed 60 days after account opening to determine the total qualifying deposit. Corresponding cash bonus will be credited to the account within 10 business days. Once the bonus is credited to the account, the bonus and qualifying deposit (minus any trading losses) is not available for withdrawal for 300 days. If the qualifying deposit is withdrawn, the bonus may be revoked.

Deposit or TransferCash Bonus
$10,000 - $24,999$100
$25,000 - $99,999$250
$100,000 - $249,999$300
$250,000 - $499,999$600
$500,000 - $999,999$1,200
$1,000,000 - $1,999,999$2,000
$2,000,000+$3,000

While fees should be one of your top considerations, don't let it be the only one. We'll explain below.

Full-Service vs. Discount Brokers

Not all brokers are created equally. One of the things you need to be clear on before you choose one is what kind you actually need. They come in two basic flavors: full-service and discount, and there are some key differences between the two.

A full-service broker tends to offer more in terms of the kinds of financial products you can invest in and the level of advice they provide. For example, you may be able to buy stocks and an insurance policy through a full-service broker or get expert insight on a specific investment. Full-service brokers are typically paid on a percentage basis, which means the more you trade, the more they make, and their overall fees are generally higher.

Discount brokers, on the other hand, come with a much smaller price tag because they lack all the extra bells and whistles. You'll still be able to make trades but you're not going to get the same level of research or advice that you would with a full-service broker. Discount brokerages charge a flat trading fee, and they're the much less expensive option of the two.

What to Consider When Picking a Broker

© CreditDonkey

Now that you know what categories brokers fall into, the next step is comparing the details.

It's easy to make a mistake when choosing an online stock broker. A wrong click here and you'll end up blowing your life savings.

You have a few factors you need to consider carefully when choosing a broker:

  • Cost: One of the most important things to look at when choosing a broker is what you'll pay in fees. The typical service charge for making a trade with a discount broker ranges from $0 to $6.95, while the fee can go as high as $200 per trade at a full-service brokerage. If you're going to be making a lot of trades, minimizing those fees is essential. But don't let it be the only factor.

  • Research and tools: Some brokers cater to certain people over others. The majority of us fall into the buy-and-hold category, placing a high value on access to the latest research and investing tools above the need for cheap trades. Are you super active or pretty passive with your investments? Do the bells and whistles matter to you or could you go without them?

    Even seasoned investors need a little guidance every now and then, and it's particularly important if you're a novice. When comparing brokers, pay attention to the kinds of resources and investing tools that are available. You should also factor in what kind of customer support each broker provides in case you run into a problem or have a question.

  • Choice of investment options: You may be looking to just open an IRA and see how you do before dabbling in other investments. But leave open the possibility that you'll want to expand and see whether your IRA broker can help you out when you're ready. Most brokers will give you access to stocks, but will you want to branch out and get into bonds or riskier investments like options and penny stocks?

Tip: You can't swim without getting in the water, but when you're talking about your hard earned money, we know it can be terrifying to dip that first toe in. Brokers like TD Ameritrade offer virtual trading platforms where you can make mock trades using virtual cash.

Identify Your Investing Style

The stock broker you choose should reflect your short- and long-term goals. Figuring out which kind of investor you are can guide you towards the appropriate brokerage.

  • You plan to trade frequently. If you are not just going to leave your account dormant for months at a time, look to minimize trade fees.

  • You're an active trader. When making multiple stock trades is the order of the day, keeping the cost as low as possible is a top priority. That means going with a brokerage that charges rock-bottom trade fees. Ally Invest fits the bill, with $0 commission on U.S. stocks.

  • You're investing for the long haul. If you're the kind of investor who likes to buy a stock and hold on to it, trade fees may be less important than having access to a variety of research tools. With E-Trade, for example, you'll have a much larger pool of informational resources to draw from, including webinars, podcasts, and video tutorials.

  • You're new to investing. If you're a newbie, just getting started with investing, it's easy to get overwhelmed, especially if you're not familiar with how stock trading works. And you'll want tools that are easy to use and have access to good customer service. If you want to keep things simple, using a brokerage like E-Trade can put you on the right track without making investing harder or more expensive than it has to be.

Final Word

Choosing the right stock broker is not a decision you should make lightly. Weigh the services and benefits against the fees involved and the likelihood you'll make full use of what the broker is offering. Map out your goals and figure out whether the broker you're eyeing can help you get there. Do you understand their terms and offerings? Will they make investing easier or more difficult for you? Will they help you stay informed to make the right decisions going forward, and can you easily track the decisions you've made in the past? Can you find what you need on their website, or do you get lost?

A good broker should provide the tools you need and can use to make smart investing decisions at a reasonable cost.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

TD Ameritrade has not influenced the content of CreditDonkey. CreditDonkey may earn compensation for accounts opened at TD Ameritrade.


Compare Stock Trading

Ally Invest

  • Stock Trading: $0 per trade
  • Options Trading: $0 base + $0.50 per contract
  • Minimum Deposit: $0
Pros:
  • Low commission for stock trades
  • No account minimums
  • Ally platform
Cons:
  • No physical locations

Our Review: StarStarStarStarStarEmpty Star (4.4) Ally Invest offers free trades for stocks and ETFs. But is it good? Find out how it compares to other online brokers... Read full review

Get Up to $3,000

TD Ameritrade

  • Stock Trading: $0 commission for online stock, ETF, and option trades
  • Options Trading: $0.65 per contract
  • Minimum Deposit: $0
Pros:
  • Easy to Use
  • Thinkorswim Platform
  • Customer Service
Cons:
  • Trade Fees

Our Review: StarStarStarStarStarEmpty Star (4.2) TD Ameritrade fees are higher than competitors, but is it worth it? We say yes and here's why. We analyze and compare it for you in our in-depth review... Read full review

Commission-Free Trading - Online Stock, ETF and Option Trades

M1 Finance

  • Stock Trading: $0
  • Options Trading: No
  • Minimum Deposit: $100
Pros:
  • Choose your own investments
  • Can invest in individual stocks
  • No account fees
Cons:
  • No research
  • No human advisors
  • Can only trade once a day

Our Review: StarStarStarStarEmpty StarEmpty Star (3.9) M1 Finance lets you invest in stocks and ETFs without fees. But is it safe? Find out the pros and cons, and if it's legit... Read full review

New Customers: Deposit $1,000 and Get $30

Stash

  • Stock Trading: $0
  • Options Trading: No
  • Minimum Deposit: $0
Pros:
  • $1 to invest
  • Guidance to beginners
  • Automatically invest extra funds
Cons:
  • Fees are high for small balances
  • High ETF expense ratio
  • Limited research

Our Review: StarStarStarStarEmpty StarEmpty Star (3.8) Can Stash help make you money? Find out if the investing app is legit and how it compares to apps like Acorns and Robinhood... Read full review

Sign Up and Get $5

Public.com

  • Stock Trading: $0
  • Options Trading: No
  • Minimum Deposit: $0
Pros:
  • Commission-free social trading
  • Offers fractional shares
Cons:
  • Limited investment options
  • No access to financial advisors

Our Review: StarStarStarHalf StarEmpty Star (3.5) Do you wish your investment portfolio could reflect the things you care about - like green energy or wellness? Public does just that, commission-free... Read full review

Get a Free Slice of Stock

Charles Schwab

  • Stock Trading: $0 commission on U.S. stocks and ETFs
  • Options Trading: $0 + $0.65 per contract
  • Minimum Deposit: $0
Pros:
  • Vast selection of commission-free ETFs and mutual funds
  • 2 platforms (one for beginners and one for advanced traders)
  • 24/7 customer service including online chat
Cons:
  • Commission costs on mutual funds outside of the commission-free funds
  • Robo-advisor option requires a minimum investment of $5,000

Our Review: StarStarStarStarStarEmpty Star (4.2) Charles Schwab is one of the oldest names in the world of investing. With low fees, no account minimums, and robust research tools, it's a good brokerage for all levels of investors... Read full review

$0 Commissions on Online Stock, ETF, and Options Trades

E*TRADE

  • Stock Trading: $0 per trade
  • Options Trading:
    • $0 per trade + $0.65 per contract
    • $0 per trade + $0.50 per contract if you make 30+ trades a quarter
  • Minimum Deposit: $500 for brokerage accounts; No account minimum for retirement accounts
Pros:
  • Expansive set of resources and tools
  • Easy to use website
  • Industry leader
Cons:
  • Trade fees

Our Review: StarStarStarStarStarEmpty Star (4.2) E*TRADE is a highly well-known name, but does that mean it is better than its competitors? Read our in-depth review and see how it compares... Read full review

Learn more about E*TRADE

eToro

  • Stock Trading: $0
Pros:
  • Copy actions of top traders
  • No commissions (only charges a spread)
  • Virtual practice account
Cons:
  • Only supports 24 coins in US
  • Slow customer service response time

Our Review: StarStarStarStarEmpty StarEmpty Star (3.8) eToro is a cryptocurrency trading platform known for its popular CopyTrading feature. Find out if it's worth the fees and how it compares to other platforms... Read full review

Trade Popular Cryptocurrencies

Fidelity

  • Stock Trading: $0 per trade
  • Options Trading: $0 per online trade, plus $0.65 per contract
  • Minimum Deposit: $0
Pros:
  • Research reports
  • Beginner-friendly tools
  • Mobile app
Cons:
  • Restricted platform

Our Review: StarStarStarStarStarEmpty Star (4.4) Thinking of opening a brokerage account with Fidelity? There are many reasons to love Fidelity and a few reasons to think about going elsewhere... Read full review

Commission-Free Trading - Online Stock, ETF and Option Trades

Merrill Edge

  • Stock Trading: $0 per trade
  • Options Trading: $0 + $0.65 per contract
  • Minimum Deposit: $0

Robinhood

  • Stock Trading: $0
  • Options Trading: $0
  • Minimum Deposit: $0
Pros:
  • Commission-free trades
  • No minimum
  • Extended trading hours
Cons:
  • No IRAs
  • Limited research
  • No mutual funds & bonds

Our Review: StarStarStarStarEmpty StarEmpty Star (3.8) Robinhood lets you trade stocks commission-free and has no account minimums. Is it safe? Are there hidden fees? Read on for the pros and cons... Read full review

Get a Free Stock (worth between $2.50 and $225)

Vanguard

  • Stock Trading: $0
  • Options Trading: $0 + $1-per-contract fee. Discounts available if you have more than $1 million assets invested in Vanguard ETFs and mutual funds
  • Minimum Deposit: $0
Pros:
  • Large selection of mutual funds and commission-free ETFs
  • Broker assistance is available at no additional cost
  • Easy to use
Cons:
  • Commission structure penalizes frequent traders
  • Customer service wait times
  • Commission costs on non-Vanguard investment options

Our Review: StarStarStarStarEmpty StarEmpty Star (3.9) Vanguard Brokerage may be a full-service broker, but typically long-term investors preferring ETFs and mutual funds see the greatest return on their investment with them... Read full review

Webull

  • Stock Trading: $0
  • Options Trading: $0
  • Minimum Deposit: $0
Pros:
  • No trade fees
  • Advanced research tools
  • Extended trading hours
Cons:
  • No fractional shares
  • Not beginner friendly

Our Review: StarStarStarStarStarEmpty Star (4.2) Webull offers $0 trades for stocks, ETFs, options, and cryptocurrencies. But it's not perfect. Find out if Webull fits your investing needs... Read full review

Get Started

Bitstamp

  • Stock Trading: No
  • Options Trading: No

Bitstamp is a cryptocurrency exchange with options for both retail and institutional traders. But is it the right platform for you? Keep reading to find out... Read full review

Buy and Sell Crypto

Bittrex

  • Stock Trading: No
  • Options Trading: No

Trade Crypto

Coinbase

  • Stock Trading: No
  • Options Trading: No
Pros:
  • Simple interface for beginners
  • Over 60 supported coins
  • Earn cryptos by learning
  • Coinbase Pro platform has lower fees
Cons:
  • Expensive and complex trading fee structure
  • Only email support

Our Review: StarStarStarStarEmpty StarEmpty Star (3.9) Coinbase is a digital currency exchange where you can buy and sell cryptocurrency. Find out if it's safe, and how it compares to other crypto exchanges... Read full review

Earn $5 in bitcoin for getting started on Coinbase

Hodlnaut

  • Stock Trading: No
  • Options Trading: No

Hodlnaut lets you earn compound interest on your crypto, but is it safe and legit? Read on to find out... Read full review

Referral Program - Earn More Than 1,000 USDC + 10% Commission

Interactive Brokers

  • Stock Trading: Fixed pricing: $0.0005 - $0.0035 per share (min $0.35 per order, max 1.0% of trade value). Tiered pricing: Starts at $0.0035 per share for less than 300,000 shares (min $0.35 per order, max 1% of trade value)
  • Options Trading: $.15-$.70 per contract ($1 minimum per order)
  • Minimum Deposit: $10,000 for individual accounts; $5,000 for IRAs; $3,000 for clients 25 and under
Pros:
  • Large number of investments, including options, futures, and forex
  • Customize trading platform
  • Tools and opportunities for research
Cons:
  • $10,000 minimum to open an account.
  • Platform can be too much for a beginner to understand
  • Inactivity fees if you don't meet the trade commission requirements.

Our Review: StarStarStarStarStarEmpty Star (4.3) Do you have $10,000 and plenty of trading knowledge? Interactive Brokers may provide you with a solid trading platform. With their competitive fees and robust trading options, they are a common choice for the experienced trader... Read full review

Paybis

  • Stock Trading: No
  • Options Trading: No
Pros:
  • Simple Interface
  • Quick Credit and Debit Purchase ability
  • Quality Customer Support
Cons:
  • Relatively high fees
  • No extra features

Our Review: StarStarStarStarStarEmpty Star (4.3) Paybis is a cryptocurrency exchange offering the ability to instantly buy Bitcoin with a credit or debit card. But is it worth the price?... Read full review

Buy Bitcoin with Credit Card or Debit Card

ZacksTrade

  • Stock Trading: Greater than $1 per share: $0.01 per share, $1 minimum; Less than $1 per share: 1% of Trade Value, $1 minimum
  • Options Trading: $1 for First Contract + $0.75 per additional
  • Minimum Deposit: $2,500

Acorns

  • Stock Trading: Part of service fee. No add-on trading fees.
  • Options Trading: No
  • Minimum Deposit: $0
Pros:
  • No minimum investment
  • Invest with spare change
  • Cash-back program
Cons:
  • Fees are high for small balances
  • No tax benefits
  • Limited investment options

Our Review: StarStarStarStarStarEmpty Star (4.1) Acorns automatically invests your spare change. But can it help make you money? Find out if this app is safe and legit... Read full review

$10 Sign-Up Bonus


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About CreditDonkey
CreditDonkey is a personal finance comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

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CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

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