Look for a broker that offers premium research and data for https://www.xcritical.com/ free. Fidelity and Merrill Edge both score high on this in NerdWallet’s ratings. Motley Fool Money is a Motley Fool service that rates and reviews essential products for your everyday money matters.

Can Brokerage Fees Vary Depending on Trading Volume?

They aren't in the business of giving you advice or suggesting stock picks. Instead, discount brokers focus difference between brokerage fee and commission on the very basic service of helping you buy or sell a stock (or other type of investment) from the convenience of your own home. Opening an online brokerage account is usually quick and straightforward. Fidelity also offers more independent research than pretty much any other discount broker.

E*TRADE: Best for Mobile Investing & Trading

That's why, for the third straight year, the company is our top broker for international traders. Headquartered in Boston, Fidelity’s storied history began with its founding in 1946. With $5.8 trillion in discretionary assets as of Nov. 15, 2024, the company ranks among the top brokerage firms in terms of assets under management. To choose the investing app that works for you , compare fees, required minimums, investment options, ease of use and customer service.

Chart to compare discount online brokerage companies accounts on pricing, investment products, trading tools, beginner

Trading fees for online discount brokers range anywhere from $4.95 to $20, but most are between $7 and $10. This rate is subject to change since discount brokers are consistently lowering their fees in order to attract more customers and gain market share. A well-designed, intuitive platform can make trading easier and more enjoyable for traders of all levels, but especially for beginners.

After you’ve opened the brokerage account, you’ll need to initiate a deposit or fund transfer to the brokerage firm, which typically takes just a few days — though certain circumstances may mean it takes longer. For example, if you're transferring investments from another brokerage account rather than moving around cash, that may extend the timeframe. The difference between a full-service broker and an online broker comes down to the level of service and how much you want to pay for that service.

That cost may or may not be passed on to you, in the form of a higher expense ratio (more on this next). To be sure, finding a broker that meets your needs and is a great fit for the types of investments and trading behavior you use is more important than finding the cheapest option. But with that in mind, the best way to keep brokerage fees to a minimum is to shop around. Our top brokers list is a good place to start, and once you've narrowed down the list to two or three that best meet your needs, compare their pricing.

SoFi’s fractional share plan allows clients to purchase partial shares of stock and reinvest any dividends in them, too, helping get all your money working for you. The brokerage account is a solid add-on option if you’re already working with the company another way, perhaps with a loan or bank account. Firstrade offers investors commission-free trading in stocks, ETFs and options, the latter of which is still a rarity among brokers. 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. Firstrade’s mobile app is highly rated and offers advanced features.

The content created by our editorial staff is objective, factual, and not influenced by our advertisers. 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. The Securities Investor Protection Corporation, or SIPC, protects the clients of brokers who are covered by the plan, including those listed above. 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.

• She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column.
• Webull offers a robo-advisor, called Smart Advisor, for the less adventurous.
• Plus, it has a good amount of educational resources and offers fractional share trading.
• Bankrate.com is an independent, advertising-supported publisher and comparison service.
• Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee.
• The investing information provided on this page is for educational purposes only.

In these areas, Fidelity’s cash management offering is unmatched, and it comes with solid passive earnings power on uninvested cash, along with reimbursable access to a global network of ATMs. Vanguard is aimed at investors who want to hold funds long-term, so it doesn't have many tools for active or short-term traders. It offers investment advice through the Vanguard Digital Advisor robo-advisor and Vanguard Personal Advisor Services. Morgan ended its automatic investing platform and converted accounts to Self-Directed Investing.

Regulatory agencies such as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) provide useful alerts and bulletins that are worth checking. One of the common misconceptions about investing is that investments always have positive returns, i.e., if you invest, you will earn money at all times. This belief might be true on average, measured as a cumulative return over many years. However, the performance of an investment portfolio could be volatile, i.e., experiencing both negative and positive returns periodically.

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. SoFi Active Investing does a lot right for newer investors, including no commissions on stocks, ETFs and options.

As the name suggests, trades at Public allow you to connect with other investors on the platform. You can even join a group chat for live interaction with other investors. In some ways, it's like a built-in social network for investors. Here are the best online brokerages as picked by Business Insider's editors in 2024. Public is best for active traders who want to invest in stocks, ETFs, and cryptocurrencies while utilizing the expertise and insights of other Public.com members. Most investors don’t bother reading Securities and Exchange Commission (SEC) filings, but SEC filings are available to the public, and the information within them is like taking an open book test.

The most well-known type of brokerage fee is a trading commission, but there are several other types of fees charged by brokers for various investment services (more on these below). Why is SoFi Active Investing one of our best online stock brokers? You can trade stocks, invest for retirement, and open bank accounts without paying fees. For example, opening a SoFi Active Investing account may get you lower APRs on personal loans. The DRS allows you to bypass brokerage fees but has some limitations.

That’s a big difference, so you should pay careful attention to expense ratios when selecting your funds, and opt for low-cost index funds and ETFs when available. Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for Motley Fool Money and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award.

The simple and easy-to-navigate platform shows kids the logos and companies they are familiar with in their investment portfolios. You can fund the account through a bank account or with stock gift cards. SoFi Invest is a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account. The calculation of brokerage fees depends on several factors, including the type of asset being traded, the size of the trade, and the brokerage firm's fee structure. Even before TD Ameritrade’s educational content was incorporated into its ecosystem, Charles Schwab—which acquired TD Ameritrade in 2020—was known as one of the best platforms for new traders and investors.