The 10 Best Online Brokers for Stock Trading in 2020

The expansion in technology has just ushered in a new era when it comes to the investment world, which involves the ability to trade from home, often with zero commission, and in real-time. But if you’re looking to trade stock, then you’ll first need an online broker.

The broker you choose should be offering a reasonable investment minimum, robust access to the customer service, high-quality trading tools, and without hidden account fees. Unfortunately, given a plethora of online brokers available for stock trading, your selection process won’t be a walk in the park.

Luckily, this article is going to make everything easy for you as we review the top best online brokers to help you make the right decision to help manage your investments.

Top 10 Stock Brokers for US Market

  1. Fidelity – Best for investment research
  2. TD Ameritrade – Best for beginners
  3. Charles Schwab – Best for customer service
  4. Robinhood – Excellent for digital user experience
  5. E-Trade – The best web platform
  6. Merrill Edge – Best for rewards
  7. Interactive Brokers – Best for investing internationally
  8. TradeStation – Best platform technology
  9. Merrill Edge
  10. Zacks Trade

 

Fidelity

fidelity-investment-logo

Fidelity US stockbroker founded in 1946. It is regulated by top-tier regulators called the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Fidelity has made its reputation as the best in offering research as well as tools for customer planning, and as a result, they have garnered a lot of customer trust. The broker is simply a low-cost broker that offers $0 stock as well as ETF trades and has over $2 trillion in the client assets.

Moreover, fidelity has an easy-to-use mobile app as well as comprehensive retirement services. The broker has $0 minimum deposit, $0 per trade, and an excellent order execution quality. Furthermore, fidelity is the only one to offer 12 third-party research reports for folk’s equities.

Pros

  • Best for beginner traders
  • Excellent trade execution and accuracy
  • Advanced options such as Active Trader Pro
  • Detailed research as well as intelligence for ETF
Fidelity main features
Country of regulation USA
💰 Trading fees class Low
💰 Inactivity fee charged No
💰 Withdrawal fee amount $0
💰 Minimum deposit $0
🕖 Time to open an account 1-3 days
💳 Deposit with credit card Not available
👛 Depositing with electronic wallet Available

TD Ameritrade

TD-Ameritrade-logo

TD Ameritrade was founded in 1978 and it is one of the biggest US-based stockbrokers. It is regulated by top-tier regulators like the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA) and the Commodity Futures Trading Commission (CFTC).

If you’re a beginner, then you don’t have to worry as the TD Ameritrade online broker is the one for you. They provide the ultimate package, which includes $0 trades, market research, education, mobile apps, fantastic trading platforms, and customer service.

They also offer full-service as well as discount options. Whether you’re an active trader or looking to build just a nest egg passively, the broker provides an exchange online whereby you can trade as well as test the trades on several platforms.

TD Ameritrade main features
🗺️ Country of regulation USA
💰 Trading fees class Low
💰 Inactivity fee charged No
💰 Withdrawal fee amount $0
💰 Minimum deposit $0
🕖 Time to open an account 1-3 days
🎮 Demo account provided Yes

Pros

  • No commission fees on ETF trades or stock
  • Broader research options as well as several news feeds
  • Education courses helping any investor to get more comfortable
  • Additional support through WeChat, Messenger, Twitter and more

Charles Schwab

charles-schwab-logo

Charles Schwab was founded in 1971 and it is a US discount broker listed on the New York Stock Exchange.

It is regulated by several top-tier financial authorities, such as the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and the Financial Conduct Authority (FCA).

With lots of trading tools and no-account minimum, the Charles Schwab broker is among the best with full-service options. The broker doesn’t charge any stock, ETF, or any options trading commission fees in the USA.

Also, it has an excellent trading platform with a modern feel as excellent trader tools. Moreover, it has an array of educational materials by far in the industry. Furthermore, the entire learning centre is gamified, as you can track your progress.

Customers are provided with access to the broker’s TV Network data to access the accounts from Apple Chat, Twitter, Alexa and Facebook.

Charles Schwab main features
🗺️ Country of regulation USA, UK, Hong Kong, Singapore
💰 Trading fees class Low
💰 Inactivity fee charged No
💰 Withdrawal fee amount $0
💰 Minimum deposit $0
🕖 Time to open an account 1 day
🎮 Demo account provided No
🛍️ Products offered Stock, ETF, Fund, Bond, Options, Futures

Pros

  • Best for beginners and overall
  • Has a Robo-advisor option
  • Zero trading fees
  • Zero minimum account balance

Robinhood

robinhood-logo

Robinhood is a US zero-fee discount broker established in 2013. The company is regulated by top-tier financial authorities, such as the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA

As much as Robinhood is a newcomer, the brokerage has already made a splash thanks to its commission-free trading. In fact, the brokerage offers something unique that none of the other brokers does: free stock trades that are unlimited and forever.

The Robinhood mobile app is easy to use with a more accessible language. They have an independent clearing system for settling as well as clearing transactions.

They also offer free trading for options as well as cryptocurrency. The company already claims over 6 million customers, with several of them being millennials.

Robinhood main features
🗺️ Country of regulation USA
💰 Trading fees class Low
💰 Inactivity fee charged No
💰 Withdrawal fee amount $0
💰 Minimum deposit $0
🕖 Time to open an account 1 day
🎮 Demo account provided No
🛍️ Products offered Stock, ETF, Options, Crypto

Pros

  • Zero commission per trade
  • Zero account minimum
  • Best for both stocks, ETFs, and cryptocurrencies
  • Excellent customer support

E-Trade

etrade-logo

E-Trade is a US-based stockbroker founded in 1982. It is regulated by top-tier regulators like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

E-Trade is considered safe because it has a long track record, is listed on a stock exchange, has a banking background, discloses its financials and is regulated by top-tier, US regulators.

E-trade is a brokerage with the most advanced online trading tools and is the oldest. They offer a broader online platform for trading as well as market analysis. Moreover, their education tools are the best to help you get even better at investing.

The broker charges $0 for the stock trades, and its Power E*TRADE platform is excellent for options trading. Moreover, it has two excellent mobile apps.

E-Trade main features and highlights
🗺️ Country of regulation USA
💰 Trading fees class Low
💰 Inactivity fee charged No
💰 Withdrawal fee amount $0
💰 Minimum deposit $500
🕖 Time to open an account >3 days
🎮 Demo account provided No
🛍️ Products offered Stock, ETF, Fund, Bond, Options, Futures

Pros

  • Zero commission fees for both stocks and ETF trades
  • Streaming strategy options available
  • E*Trades’ mobile futures for traders for higher gains
  • Performance risk tools for testing your whole portfolio or a single asset

Merrill Edge

Merrill-logo

Merrill Edge are the go-to broker for new investors, with their Preferred Rewards Program, Guided Investing, award winning research and learning opportunities, and first class support team

Merrill Edge broker provides excellent research, universal account support, customer service as well as customer rewards. Also, it offers unlimited free commission for stocks or ETF trades every month to the investors, regardless of their account balance.

Another good thing with Merrill Edge is the fact that you don’t have to be a customer of the Bank of America to open an account.

The broker also offers excellent environmental, social, and governance research. Furthermore, it provides fund story, stock story, as well as Portfolio story making market research educational as well as insightful.

Pros

  • Great customer service
  • Excellent ESG
  • Preferred rewards
  • Zero minimum deposit
  • Zero commission per trade

Interactive Brokers

Interactive-Brokers-logo

Interactive Brokers was founded in 1978 and is one of the biggest US-based brokers. The broker is regulated by several financial authorities globally, including top-tier ones like the UK’s Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC).

Interactive brokers are the best for those traders that are active and want high-caliber investment platforms. The platform features a lot of tools as well as experienced advisors making it the best option to go for.

Moreover, if you’re a trader that likes to trade on margin, then the interactive brokers are the one for you as they have the cheapest rates.

They lead with low-cost trading for professionals with an excellent Trader Workstation platform that offers excellent tools as well as an extensive selection of tradable securities.

Interactive Brokers main features
🗺️ Country of regulation UK, USA, India, Australia, Canada, Japan, Hong Kong
💰 Trading fees class Low
💰 Inactivity fee charged Yes
💰 Withdrawal fee amount $0
💰 Minimum deposit $0
🕖 Time to open an account 1-3 days
💳 Deposit with credit card Not available
👛 Depositing with electronic wallet Not available
💱 Number of base currencies supported 19
🎮 Demo account provided Yes
🛍️ Products offered Stock, ETF, Forex, Fund, Bond, Options, Futures, CFD, Crypto, Warrants, Structured Products, Indices, Metals

Pros

  • They have global access
  • Excellent for day trading
  • Fantastic for professional traders
  • Zero minimum deposit

TradeStation

trade-station-logo

Tradestation is a US stockbroker founded in 1982. It is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Clients are eligible for up to $500,000 (cash up to $250,000) investor protection per account.

TradeStation is the best platform technology with a free commission of stocks, ETFs, and options trades. It offers one of the top desktop platforms and seeks for traders looking for high-customizable trading tools.

Its mobile app and web-based platform offer $0 stock trades and are best for novice casual investors.

Tradestation main features
🗺️ Country of regulation USA
💰 Trading fees class Low
💰 Inactivity fee charged Yes
💰 Withdrawal fee amount $35
💰 Minimum deposit $500
🕖 Time to open an account 1 day
💳 Deposit with credit card Not available
👛 Depositing with electronic wallet Not available
💱 Number of base currencies supported 9
🎮 Demo account provided Yes
🛍️ Products offered Stock, ETF, Fund, Bond, Options, Futures

Pros

  • Excellent mobile app\great trading platform
  • Zero minimum deposit

Ally Invest

ally-invest-logo

Ally Invest is a US stockbroker regulated by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA). Its parent company, Ally Financial Inc. dates to 1911 as the former company, General Motors Acceptance Corporation (GMAC) was founded then. Ally Financial Inc. is listed on the New York Stock Exchange and has a banking subsidiary, called Ally Bank.

Ally Invest main features
🗺️ Country of regulation USA
💰 Trading fees class Low
💰 Inactivity fee charged No
💰 Withdrawal fee amount $0
💰 Minimum deposit $0
🕖 Time to open an account 1-3 days
🎮 Demo account provided No
🛍️ Products offered Stock, ETF, Fund, Bond, Options

Yes, a single brokerage is not the right fit for everyone. But, every brokerage service is designed in a way that it attracts a specific type of client. There are three main reasons why we think Ally Invest

genuinely stands out from the pack. The reasons we believe so are as follow:

  • $0 trades
  • Fee-free bill and debit card pay
  • In-person customer care service

Zacks Trade

zacks-trade-logo

zacks trade offers free stock, ETF, mutual fund, and options trading. The non-trading fees are also low. The research is high-quality and covers a lot of tools, including trading ideas and detailed fundamental data. There are good quality educational tools, from educational videos to webinars.

Zacks is among the most affordable USA brokers available today, especially for trading penny shares and options.

But if you wish to trade the mutual funds, it might not be a good fit for you. Why? I hear you ask — because in that case, you’d need to pay at least $12.55 for each trade. 

Zacks Trade main features
🗺️ Country of regulation USA
💰 Trading fees class Low
💰 Inactivity fee charged No
💰 Withdrawal fee amount $0
💰 Minimum deposit $0
🕖 Time to open an account 1-3 days
🎮 Demo account provided No
🛍️ Products offered Stock, ETF, Fund, Bond, Options

Tips When Choosing the Best Broker – The Buying Guide

The number of brokers is overwhelming, and that’s why you need to be at the top of your game to ensure you only choose the best broker for stock trading. Therefore, first, ensure you consider the trade commissions. Look for those offering flat-fee trades.

Also, consider the customer support – at some point, you may need to ask answers, and the broker with the best customer support is the one that can help instantly.

The trading tools should also be a factor to consider. A variety of grate trading tools will make your trading even more straightforward.

Furthermore, you should consider some other factors such as the account minimums, market research, retirement accounts, investment options, and the speed of order execution.

Conclusion

The first step to becoming successful in stock trading depends on the type of online broker you choose. You don’t want to go wrong just from the start; therefore, ensure that you choose the best broker that suits your needs and then watch yourself grow in your investment.

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