11 Best Online Brokers for Stock Trading of October 2022 - NerdWallet Advertiser disclosure
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In our analysis, these online brokers stood out as the best for stock trading due to their low fees, strong trading platforms and tools and quality customer support. Kevin Voigt Oct 3, 2022 Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Most investors trade stocks through an online broker. To help you find the best fit for you, we've evaluated brokerage firms and investment companies on the services that matter most to different types of stock traders. For active traders, we've included below online brokers with low or no commissions and robust mobile trading platforms and desktop trading capabilities. For people venturing into investing for the first time, we've included the best online brokers for educational resources (including webinars, video tutorials and in-person seminars) and on-call chat or phone support. On these measures, the brokerage firms below earned their place on our list of the best online brokers for stock trading. Read on to see our picks, alongside links to our investing experts' in-depth reviews on each broker. Most investors trade stocks through an online broker. To help you find the best fit for you, we've evaluated brokerage firms and investment companies on the services that matter most to different types of stock traders. For active traders, we've included below online brokers with low or no commissions and robust mobile trading platforms and desktop trading capabilities. For people venturing into investing for the first time, we've included the best online brokers for educational resources (including webinars, video tutorials and in-person seminars) and on-call chat or phone support. On these measures, the brokerage firms below earned their place on our list of the best online brokers for stock trading. Read on to see our picks, alongside links to our investing experts' in-depth reviews on each broker. Best Online Brokers for Stock Trading
BrokerNerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.FeesAccount minimumPromotionLearn more FidelityLearn more on Fidelity's website 5.0/5$0per trade for online U.S. stocks and ETFs$0Get $100when you open a new, eligible Fidelity account with $50 or more. Use code FIDELITY100. Limited time offer. Terms apply.Learn more on Fidelity's website Interactive Brokers IBKR LiteLearn more on Interactive Brokers' website 5.0/5$0per trade$0Noneno promotion available at this timeLearn more on Interactive Brokers' website WebullLearn more on Webull's website 4.9/5$0per trade$0Get up to 12 free stocks (valued up to $30,600)when you open and fund an account with Webull. Promotion ends 10/31/2022.Learn more on Webull's website Merrill EdgeLearn more on Merrill Edge's website 4.5/5$0per trade$0Up to $600when you invest in a new Merrill Edge Self-Directed account.Learn more on Merrill Edge's website TD AmeritradeLearn more on TD Ameritrade's website 5.0/5$0per trade$0Noneno promotion available at this timeLearn more on TD Ameritrade's websiteView More Fidelity
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.5.0/5Learn more on Fidelity's website Fees $0 per trade for online U.S. stocks and ETFs Account minimum $0 Promotion Get $100 when you open a new, eligible Fidelity account with $50 or more. Use code FIDELITY100. Limited time offer. Terms apply.Our Take Pros Commission-free stock, ETF and options trades. Large selection of research providers. Strong customer service. Expense-ratio-free index funds. Highly rated mobile app. Cons Relatively high broker-assisted trade fee. Why We Like It Fidelity offers $0 trading commissions, a selection of more than 3,700 no-transaction-fee mutual funds and top-notch research tools and trading platform. Its zero-fee index funds and strong customer service reputation are just icing on the cake. Interactive Brokers IBKR Lite
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.5.0/5Learn more on Interactive Brokers' website Fees $0 per trade Account minimum $0 Promotion None no promotion available at this timeOur Take Pros Large investment selection. Strong research and tools. Over 17,000 no-transaction-fee mutual funds. NerdWallet users who sign up for IBKR Pro get a 0.25 percentage point discount on margin rates. Cons Website is difficult to navigate. Why We Like It Interactive Brokers' IBKR Lite is a strong option for frequent traders: The broker offers international trade capabilities, no stock-trading commission and a quality trading platform. Webull
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.4.9/5Learn more on Webull's website Fees $0 per trade Account minimum $0 Promotion Get up to 12 free stocks (valued up to $30,600) when you open and fund an account with Webull. Promotion ends 10/31/2022.Our Take Pros Low costs. Easy-to-use platform. Advanced tools. Access to cryptocurrency. Cons No mutual funds. Thin educational support. Why We Like It Webull will appeal to the mobile-first generation of casual investors with its slick interface for desktop and mobile apps, but the brokerage also delivers an impressive array of tools for active traders. However, its relatively weak educational content may leave true beginners in the lurch, and it lacks access to a few common asset classes. Merrill Edge
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.4.5/5Learn more on Merrill Edge's website Fees $0 per trade Account minimum $0 Promotion Up to $600 when you invest in a new Merrill Edge Self-Directed account.Our Take Pros Robust third-party research. Integrated with Bank of America. Cons Advanced traders may find fewer securities on offer. Why We Like ItMerrill Edge offers high-quality customer service, robust research and low fees. Customers of parent company Bank of America will love the seamless, thoughtful integration, with a single login to access both accounts. TD Ameritrade
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.5.0/5Learn more on TD Ameritrade's website Fees $0 per trade Account minimum $0 Promotion None no promotion available at this timeOur Take Pros Commission-free stock and ETF trades. Free research. High-quality trading platforms. No account minimum. Good customer support. Large investment selection. Cons No fractional shares. Why We Like It TD Ameritrade meets the needs of both active traders and beginner investors with quality trading platforms; $0 commissions on online stock and ETF trades; and a large selection of mutual funds. E*TRADE
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.5.0/5Learn more on E*TRADE's website Fees $0 per trade Account minimum $0 Promotion Get up to $600 or more when you open and fund an E*TRADE accountOur Take Pros Easy-to-use tools. Large investment selection. Excellent customer support. Advanced mobile app. Commission-free stock, options and ETF trades. Cons Website can be difficult to navigate. Why We Like It E*TRADE has long been one of the most popular online brokers. The company's $0 commissions and strong trading platforms appeal to active traders, while beginner investors benefit from a large library of educational resources. Ally Invest
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.4.5/5Learn more on Ally Invest's website Fees $0 per trade (on eligible US securities) Account minimum $0 Promotion None no promotion available at this timeOur Take Pros Commission-free trades on eligible U.S. stocks, options and ETFs. No account minimum. Strong web-based platform. Robust research and tools. Cons No no-transaction-fee mutual funds. No branches. Why We Like It Ally Invest’s robust trading platform and lineup of free research, charting, data and analytical tools make it a good choice for active traders. But it’s also appropriate for beginning investors who will appreciate that there is no account minimum and no annual fees. TradeStation
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.4.5/5Learn more on TradeStation's website Fees $0 per trade Account minimum $500 Promotion Get an extra $150 cash credit with a minimum deposit of $500. Offer Code: NERDAGCU.Our Take Pros High-quality trading platforms. Comprehensive research. Commission-free stock, ETF and options trades. Advanced tools. Active trader community. Cons Free trading on advanced platform requires TS Select. No transaction-fee-free mutual funds. Plans and pricing can be confusing. Why We Like It TradeStation is a strong choice for active stock, options and futures investors who rely on the broker’s high-octane trading platform, reams of research and sophisticated analytical tools. Trades of up to 10,000 shares are commission-free. Zacks Trade
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.3.6/5Learn more on Zacks Trade's website Fees $0.01 per share Account minimum $2,500 Promotion None no promotion available at this timeOur Take Pros Ample research offerings. Robust trading platform. Access to international exchanges. Cons Trails competitors on commissions. High account minimum. Why We Like It Zacks Trade is an online brokerage firm committed to active traders and investors, offering penny-per-share trades and a robust trading platform. Unusual in the world of discount brokers, Zacks offers free broker-assisted trades, so if you're at all likely to seek help making a trade, Zacks could be a good choice. Want to compare more options? Here are our other top picks:FirstradeCharles Schwab Last updated on October 3, 2022 You may also like these
People often identify opening a savings account as their next money move. SoFi Checking and Savings
5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.APY2.50% SoFi members with direct deposit can earn up to 2.50% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts (including Vaults). Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. Rates of 2.50% APY (with direct deposit) and 1.20% APY (without direct deposit) are current as of 09/30/2022. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheetWith $0 min. balance for APY Bonus$300 Earn up to $300 with direct deposit. Terms apply.Learn more at SoFi, Member FDIC LendingClub High-Yield Savings
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.APY3.12% With $0 min. balance for APYLearn more at LendingClub Bank, Member FDIC Discover Bank Online Savings
5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.APY2.35% Annual Percentage Yield (APY) is accurate as of 10/20/2022With $0 min. balance for APY Bonus$200 To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online, in the Discover App or by phone. Enter Offer Code NW922 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted to account within 30 days of account open date. Maximum bonus eligibility is $200. What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded, or affinity accounts provided by Discover. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 30 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/15/2022, 11:59 PM ET. Offer may be modified or withdrawn without notice.Requirements to qualifyLearn more at Discover Bank, Member FDIC Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity. We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star. For more details about the categories considered when rating brokers and our process, read our full methodology. To recap our selections... NerdWallet' s Best Online Brokers for Stock Trading of October 2022
FidelityInteractive Brokers IBKR LiteWebullMerrill EdgeTD AmeritradeE*TRADEAlly InvestTradeStationZacks TradeFirstradeCharles Schwab Frequently asked questions
How much money do I need to start? Not much. Note that many of the brokers above have no account minimums for both taxable brokerage accounts and IRAs. Once you open an account, all it takes to get started is enough money to cover the cost of a single share of a stock and the trading commission, if charged. (See “How to Buy Stocks” for step-by-step instructions on placing that first trade.)Should I just choose the cheapest broker? Trading costs definitely matter to active and high-volume traders, but many brokers now offer commission-free trades of stocks and ETFs. Other factors — access to a range of investments or training tools — may be more valuable than saving a few bucks when you purchase shares.How can I diversify with little money? One easy way is to invest in exchange-traded funds. ETFs are essentially mutual funds that are bought and sold just like individual stocks on a stock market exchange. Like mutual funds, each ETF contains a basket of stocks (sometimes hundreds) that adhere to particular criteria (e.g., shares of companies that are part of a stock market index like the S&P 500). Unlike mutual funds, which can have high investment minimums, investors can purchase as little as one share of an ETF at a time.Is my money insured? Your money is indeed insured, but only against the unlikely event a brokerage firm or investment company goes under. A broker’s SIPC coverage (Securities Investor Protection Corporation) doesn't cover any loss in value of your investments.What type of brokerage account should I choose? Your account choices boil down to a taxable brokerage account versus tax-favored retirement account, such as an IRA. Our guide to brokerage accounts goes into more detail about what’s involved in setting up a taxable account. Opening an IRA involves choosing which type, such as a Roth IRA, traditional IRA or SEP IRA. If you're new to this, we’ve got you covered in our guide to IRAs.How quickly can I start trading? After you’ve opened the account, you’ll need to initiate a deposit or funds transfer to the brokerage firm, which can take anywhere from a few days to a week. Once that is complete, it’s off to the investing races! And by that we mean taking a thoughtful and disciplined approach to investing your money for the long-term.How do I decide whether a brokerage firm is right for me? Some key criteria to consider when evaluating any investment company are how much money you have, what type of assets you intend to buy, your trading style and technical needs, how frequently you plan to transact and how much service you need. Our post about how to choose the best broker for you can help you sort through the features brokerage firms offer and rank your priorities. About the author
Kevin Voigt
Kevin Voigt is a former investing writer for NerdWallet. He has covered financial issues for more than 20 years, including for The Wall Street Journal and CNN.com. Read moreEmailLinkedIn