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All reviews are prepared by our staff. Opinions expressed are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including any rates, terms and fees associated with financial products, presented in the review is accurate as of the date of publication. SHARE: Tom Werner/Getty Images January 03, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Bankrate senior reporter James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more. Brian Beers is the managing editor for the Wealth team at Bankrate. He oversees editorial coverage of banking, investing, the economy and all things money. Kenneth Chavis IV is a senior wealth manager who provides comprehensive financial planning, investment management and tax planning services to business owners, equity compensated executives, engineers, medical doctors and entertainers. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our investing reporters and editors focus on the points consumers care about most — how to get started, the best brokers, types of investment accounts, how to choose investments and more — so you can feel confident when investing your money. Investing disclosure: The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. If you’re ready to invest and trying to find a brokerage account that works best for you, it’s important to have a comprehensive look at the top options — and that’s what Bankrate provides below. We’ve examined the largest brokers based on characteristics that matter to individual investors, including trading fees, account minimums, free research and many other features. We’ve , and here’s how they stack up on the most important aspects for 2022. What is an online brokerage account
An online brokerage account is a specialized financial account that allows you to invest in a number of different assets, including stocks, exchange-traded funds (ETFs), mutual funds, bonds, options and more. If you want access to these kinds of investments, a brokerage account is a must. And because it’s online, this kind of account allows you to access the market on your computer or mobile device without the help of a human advisor from a full-service brokerage. Comparing top online brokerages
As you’re looking for the best online broker, you’ll want to consider a number of aspects of each company: Cost: To find a low-cost broker, factor in not only trading commissions but other costs such as transfer fees and other account fees, too. Available securities: See if the broker allows you to trade what you want. Some brokers won’t offer bonds, mutual funds or options, for example. Account types: While every broker offers a basic individual taxable account, many don’t offer a joint account, an IRA or more unusual account types. Trading platform: Some brokers are set up for buy-and-hold investors, while others have a well-developed trading platform for active traders. Education: Many brokers offer a ton of educational materials if you’re looking to understand how to invest or use the broker to its best advantage. Research: Many brokers offer third-party research but some even offer their own proprietary research and reports to customers. Those are some of the most important factors when comparing top online brokerages, but your own individual needs will also drive what you find important in a broker. Best online brokers in 2022
Best overall
Schwab has been well-known for decades with its customer-first approach. Charles Schwab does it all well, from low fees to solid research to no account minimum – all at a reasonable trading commission. Beginners will like the zero commissions and thousands of no-transaction-fee funds, while more advanced traders will appreciate the highly customizable StreetSmart Edge trading platform. On top of all of this, the broker offers great customer support, educating you on how to invest and giving you a fast response. Buy-and-hold investors may be especially interested in Schwab for its low trading costs, low-fee funds and wide offering of retirement accounts. Best for: Overall experience, research, customer support Commission: $0 per stock or ETF trade; $0.65 per options contract Minimum: $0 Ally Invest is an excellent add-on for customers of Ally Bank who need a fully functioning broker that can execute all kinds of trades – stocks, ETFs, bonds, mutual funds and , if you’re into that. You’ll get the industry standard commission on stock and ETF trades, and you can get an industry-beating commission on options contracts, at just $0.50. While the broker doesn’t have any no-transaction-fee mutual funds, it does offer a low base price ($9.95) for such trades. Best for: Low trading commissions, Ally Bank customers, Commission: $0 per stock or ETF trade; $0.50 per options contract Minimum: $0 If you want access to all types of investing, then E-Trade can give you that, with access to stocks, bonds, options, ETFs, mutual funds and futures. You’ll also be able to buy more than 4,400 mutual funds with no transaction fee. You’ll get extensive customer support (think 24/7 access across email, phone and online chat), a high-quality mobile app in Power E-Trade and plenty of research and market commentary, if you’re looking for it. Best for: Active trading, robust trading platforms, no-transaction-fee mutual funds Commission: $0 per stock or ETF trade; $0.65 per options contract, with a discount to $0.50 for 30 or more trades per quarter Minimum: $0 With a reputation for being investor-friendly, Fidelity is a great overall pick for your next broker. Fidelity provides a wealth of research and is highly regarded for its snappy customer support, too. The broker offers commission-free trading on stocks and ETFs and throws in thousands of mutual funds without a transaction fee, too. The Boston-based broker is great about getting rid of unnecessary account fees even as it provides a top-quality experience. Fidelity’s deep research and educational resources make it a great choice for beginner investors, and you’ll find every retirement account you could want, making it an ideal place to invest for your golden years. Best for: Overall experience, beginning investors, customer support Commission: $0 per stock or ETF trade; $0.65 per options contract Minimum: $0 With its stripped-down trading interface, Interactive Brokers only looks like a no-frills broker. But this “broker to the pros” has put all its resources into creating a great experience for active traders. So it’s no surprise that it’s a top choice among advanced traders and those who value the finer points, such as swift trade execution. Volume-based discounts and a pro-level trading platform are enticing to many of these active traders. Interactive Brokers is an ideal choice for investors focused on keeping costs to a minimum. Active traders using the Pro platform will pay $1 minimum commissions (or a half-cent per share above 200 shares), while users in the Lite tier won’t pay commissions on stocks or ETFs. You’ll also have access to more than 7,000 no-fee mutual funds, tops in the industry, and you won’t have to worry about annoying account or transfer fees. Best for: Active trading, low-cost trading, margin trading Commission: $0 (Lite service) or $1 minimum per trade (Pro service), with volume discounts available; $0.65 per options contract Minimum: $0 Merrill Edge’s strongest suit is the research it offers clients, which comes from the broker’s extensive in-house team of analysts. The package includes detailed analyst reports for companies that it covers, and Merrill also offers good educational material for beginning investors. One of the best features is the broker’s integration with Bank of America, so you can move money quickly from bank to broker, and it all comes at a great price: free! Best for: Research, Bank of America customers, customer support Commission: $0 per stock or ETF trade; $0.65 per options contract Minimum: $0 TD Ameritrade is great if you want a broker that can go anywhere. Besides the usual stocks, bonds, ETFs and options, you’ll also get access to futures and forex. That’s on top of more than 3,700 mutual funds with no transaction fee. With free research and the high-powered thinkorswim trading platform available to investors, it’s a winner. And of course, this leading broker charges no commissions on stock and ETF trades. (Charles Schwab has purchased TD Ameritrade and the companies plan to have most accounts converted to Schwab between April and September 2023.) Best for: Trading platform and mobile app, wide range of securities, research and education Commission: $0 per stock or ETF trade; $0.65 per options contract Minimum: $0 Honorable mention
The brokers below also scored highly under Bankrate’s methodology and excel in a number of features that may appeal to certain investors. Firstrade
Firstrade offers investors commission-free trading in stocks, ETFs and options, which is rare. You’ll also have several different account-type options including a variety of IRAs and education savings accounts as well as a solid research offering. Their mobile app is highly rated and fairly advanced. You won’t struggle finding securities to trade at TradeStation, which allows users to buy and sell traditional assets like stocks and ETFs, as well as less common ones like futures and cryptocurrency. Plus, you can do it all through the broker’s sophisticated mobile app or desktop trading platforms. Known for its cost-leadership in the fund industry, Vanguard also offers commission-free trading in stocks and ETFs. You’ll also find more than 3,000 no-transaction fee mutual funds available. But its mobile app is basic and doesn’t match the performance of industry leaders. You’re also only able to reach customer service Monday through Friday over the phone. Webull is less well known than its rival Robinhood, but the trading app also allows customers to trade everything from stocks and ETFs to options and cryptocurrencies commission-free. While you’ll be able to reach customer service through the phone 24/7, the educational resources are severely lacking for an app that targets new investors, however. ZacksTrade
Zacks provides investors with an excellent research offering and a wide variety of account types. New investors may appreciate its offering of fractional shares, which can be a great way to get started investing with small amounts. You won’t be charged any of those annoying account fees that can eat into your returns at ZacksTrade, but unfortunately the broker doesn’t offer any no-transaction-fee funds. What to consider when choosing an online broker
If you’re just getting started, the world of investing can seem daunting. It’s good to start slowly and work your way into it. The good news for investors is that it’s never been easier or cheaper to trade with an online broker. As you’re looking for a broker, you’ll first want to consider your needs: Are you looking to trade short term or invest long term? Do you need a fully featured broker that gives you access to retirement accounts such as a or business accounts such as a ? Are you looking to invest regularly but not really follow the market closely? Do you want to invest in individual stocks or do you prefer funds? How much customer support do you need? Some brokers will fall straight out of contention, if you , for example, and the broker doesn’t offer it. What kind of brokerage account is right for you
After you’ve established your needs, you can begin to consider how each broker may meet those needs. Some brokers such as Interactive Brokers really cater to advanced traders, while others such as Charles Schwab and Fidelity Investments make it easy for beginners and long-term investors to start. And if you’re just looking to and don’t want some of the frills (such as retirement accounts), then you might also consider turning to Robinhood or . Finding the right broker starts with you identifying what your needs are and then matching up with a broker that closely meets them. Are online brokers safe
The Securities Investor Protection Corporation, or SIPC, protects the clients of brokers who are covered by the plan, including those listed above. Think of it as a kind of for brokers. That means it protects a customer’s assets, up to $500,000 in total with a $250,000 limit on cash, in the event that the broker fails. Some brokers such as Interactive Brokers take out even more insurance to reassure their customers that their assets are safe with the broker. But this insurance does not protect you from making a bad investment and losing money. You can buy a stock and it can decline in value, and its price may not rise again to what you paid. While FDIC-backed bank products are fully insured, market-based products can lose money. That said, a . What is the best online stock broker for beginners
Beginning investors should focus on brokers that are investor-friendly, offer a lot of education and research and have strong customer service. These factors are key to new investors learning the basics of long-term investing and how to navigate the market and the brokerage. , with Schwab, Interactive Brokers, E-Trade and TD Ameritrade also performing well. Fidelity’s low costs, research and educational materials, as well as its strong customer service offering makes it tough to beat for new investors. Brokers with strong customer support allow you to contact them and ask questions, sometimes at any hour of the day via phone or chat. They’ll also have educational sections on their site that walk you through how to trade on their platform, what to look for in an investment and more. Strong research is also helpful if you’re just getting started. If you’re looking to buy stock funds, , it’s helpful to have a broker who can screen for the best picks. If you’re looking to buy individual stocks (which can be riskier for new investors), you’ll want to look for a broker that provides research on the company and its future prospects. But even with those resources, you’ll still want to come to your own decision on how and why to invest. Bankrate has reviewed and offers its top picks. Bottom line
Selecting a broker requires you to think about your needs, because the deciding factor is not always about price. If you’re a , you’ll probably need something different than if you’re an active trader. While new investors might find choosing a broker to be daunting, you aren’t likely to go wrong with any of the names mentioned above. The , so don’t delay. Once you’ve found a broker, you can begin plotting your way to a more secure financial future. Learn more
SHARE: Bankrate senior reporter James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more. Brian Beers is the managing editor for the Wealth team at Bankrate. He oversees editorial coverage of banking, investing, the economy and all things money. Kenneth Chavis IV is a senior wealth manager who provides comprehensive financial planning, investment management and tax planning services to business owners, equity compensated executives, engineers, medical doctors and entertainers. Related Articles