Best Online Brokerages of January 2024 (2024)

Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.

A brokerage account is like a checking account for your investments. The difference, however, is that brokerage accounts act as both a safe place to hold your investments and a place to access the investment markets.

Here are the best online brokerages as picked by Insider's editors.

Best Online Brokers

Charles Schwab

Best online brokerage overall

Charles Schwab

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Insider’s Rating

4.88/5

Perks

Open and fund your account and get $101 from Schwab to split equally across the top five stocks in the S&P 500

Account Minimum

$0 ($5,000 for Schwab Intelligent Portfolios; $25,000 Schwab Intelligent Portfolios Premium)

Fees

0% ($0 Schwab Intelligent Portfolios; $30/month Schwab Intelligent Portfolios Premium)

Pros

  • No minimums; commission-free trading on stocks, ETFs, and options
  • Thousands of no-load mutual funds and 50+ Schwab-managed funds; fractional shares (Stock slices) available
  • Automated and advisor-managed accounts available
  • Multiple trading platforms; stock screeners and other trading tools

Cons

  • $5,000 minimum for automated Schwab Intelligent Portfolios is on the higher end
  • Schwab's no-load funds have a $100 minimum; some competitors offer lower minimums

Insider’s Take

Insider considers Charles Schwab to be the best online brokerage overall, as well as one of the best online brokerages for beginners. It's great for all types of investors — including active traders, passive investors, and retirement-focused individuals — in search of low costs and access to a variety of trading tools and platforms.

Charles Schwab Brokerage review

Product Details

  • App store rating: 4.8 iOS/3.8 Android
  • Consider it if: You want a wide range of account types, with easy-to-use apps and web interfaces
  • Awards: Investor's Business Daily recognized Charles Schwab as one of its Most Trusted Financial Companies for 2021.

Charles Schwab is a major discount brokerage and one of the largest investment management firms in the United States. Charles Schwab is one of the best brokers for trading commodity futures. It offers a wide range of brokerage accounts and products that meet the needs of virtually any investor.

In addition to offering competitive accounts with no minimum balance requirements and no recurring fees, Schwab is a leader in low-cost pricing for retail investors. In late 2019, Schwab was among the first of a big list of major brokerage firms to lower commissions on stock and ETF trades to zero.

Hands-on investors are best served by the basic Schwab self-directed brokerage account, which gives you access to a vast array of investment choices. If you want more help, you can sign up for a managed Schwab Intelligent Portfolios account, one of the best robo-advisors. This account also doesn't charge any fees.

Schwab also offers both fractional shares (with a $5 minimum) and its own family of mutual funds and ETFs. Trades of Schwab mutual funds require no commissions or trading fees inside a Schwab account. Plus, while Schwab doesn't offer cryptocurrencies, it provides several alternatives. These include crypto coin trusts, bitcoin futures, and cryptocurrency stocks.

The annual percentage yield (APY) for this online broker is 0.45% for balances of at least $0.01.

What to look out for:There are also high costs for phone and broker-assisted trades. While online trades are commission-free for stocks and ETFs, you'll pay $5 extra for automated phone trades and $25 extra for broker-assisted trades. Online option traders cost about $0.65 per contract.

Charles Schwab review

SoFi Invest

Best online brokerage for beginners

SoFi Invest

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On SoFi's website

Insider’s Rating

4.65/5

Perks

Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

Get up to $1,000 in stock when you fund a new account.

Account Minimum

$0 ($1 to start investing); $5 fractional shares; $2,000 for margin trading

Fees

0% for active trading and automated investing

Pros

  • No minimum to start investing
  • No account or trading fees, and low fees to own funds
  • Access to Certified Financial Planners at no additional charge
  • IPOs available
  • SoFi 1% IRA match

Cons

  • No tax-loss harvesting, an advanced investing technique where you sell a stock or mutual fund at a loss for a tax benefit
  • No option for stop-loss orders when actively investing. SoFi's active investing account only uses market orders
  • Currently only available to US residents

Insider’s Take

SoFi Invest us a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account.

SoFi Invest review

Product Details

  • Promotion: Get up to $1,000 in stock when you fund a new account.
  • App store rating: 4.8 iOS/4.1 Android
  • Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.

SoFi Invest doesn't have the same storied history as some online brokerages and traditional brokers in the United States, but it comes with innovative features and a technology-forward experience that make it an ideal investing app for newer investors. SoFi is featured in our guides for the best investment apps.

SoFi started as a student lender and grew to include banking, investing, insurance, and other financial products.It charges almost no fees for its investment accounts, which include self-directed investing and automated investing (managed portfolios) with no recurring fees and a very low $1 minimum to get started.

The self-directed "Active Investing" account has no fees to trade stocks and ETFs. You can buy fractional shares of stocks, which SoFi calls "Stock Bits." SoFi also has a few of its own exchange-traded funds that could be a fit for your portfolio. Plus, it now offers options for trading and IPOs.

SoFi is also great for retirement investing as it now offers a 1% IRA match on all eligible IRA contributions.

The online brokerage also offers an easy-to-navigate dashboard, collections of stocks and other investments to browse, and integrated links to education pages within the SoFi website and mobile app.

One SoFi login also gets you access to banking and lending services. Customers get free access to SoFi Relay, a personal finance data aggregator comparable to a lightweight version of Empower Personal Dashboard™. Customers also get free access to career coaching and financial planning sessions.

What to look out for: SoFi doesn't offer mutual funds. Also, look out for the fees on SoFi ETFs. While two of them have no expense ratio for the first year, the long-run cost is above many other ETFs.

SoFi's account selection is also fairly limited compared to larger brokers that offer any type of retirement or business investment account under the sun.

SoFi Invest review

Fidelity

Best online brokerage for retirement savings

Fidelity Investments

Insider’s Rating

4.86/5

Perks

Fidelity Investments offers a wide range of investing products, including fractional shares.

Account Minimum

$0 ($25,000 Fidelity Personalized Planning & Advice)

Fees

0% ($0, $3/month, or 0.35% for robo-advisor)

Pros

  • No account minimum or account fees
  • No commissions for stock, ETF, and options trades; fractional shares available
  • Thousands of no-transaction-fee mutual funds and fee-free mutual funds
  • Several research tools and trading platforms available

Cons

  • Fidelity Go accounts cost more for investors with higher account balances
  • Representative-assisted trades are slightly more expensive than other brokerages

Insider’s Take

Fidelity is one of the best online brokerages for beginners and retirement savings. It has great features for all types of investors and traders.

Fidelity Brokerage review

Product Details

  • Promotion: None at this time
  • App store rating: 4.8 iOS/4.3 Android
  • Awards: Morningstar named the Fidelity HSA as the best HSA provider in 2019, 2020, and 2021.
  • Consider it if: You're focused on long-term investing and retirement.

Fidelity offers just about anything a typical investor might want from a brokerage. That includes multiple account types (including the Fidelity Youth account for minors), a long list of available investments, and competitive pricing with industry leaders for low-cost investments. It has more than 200 locations nationwide.

The basic brokerage account at Fidelity has no minimum balances or recurring fees. It offers commission-free stock and ETF trades with fractional shares available. With an account at Fidelity, you can invest in stocks, ETFs, options, mutual funds, bonds, CDs, and precious metals. Fidelity offers international investing in 25 foreign markets and foreign currency exchange between 16 different currencies.

Fidelity also shines when it comes to retirement investing. The app gives you access to tools like retirement calculators and just about any tax-advantaged retirement plan you could want with the same list of investments as regular taxable brokerage accounts.

If you're big on passively investing in funds, the brokerage's selection of low-cost ETFs and mutual funds might also impress you. Not only does it offer zero-expense ratio Fidelity Flex mutual funds, but it also uses these same funds for its robo-advisors, Fidelity Go. Fidelity Go now has unlimited one-on-one coaching calls.

Fidelity can be a great choice for most investment needs, but it's an especially strong choice for investors with a long-term retirement focus. The combination of low fees and a focus on helping investors reach a successful retirement helped make it the top choice for retirement brokerage accounts.

What to look out for: Fidelity gives you a lot for free, but mutual funds outside of the no-fee list cost up to $49.95 each, not including added fees for phone or broker-assisted trades. Phone trades cost an extra $12.95 per trade and assisted trades cost an extra $32.95 each. In addition, Fidelity charges higher margin rates than many competitors.

Fidelity review

TD Ameritrade

Best online brokerage for experienced investors

TD Ameritrade

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Insider’s Rating

4.83/5

Perks

TD Ameritrade offers a large range of investment options, including stocks, bonds, ETFs, mutual funds, futures, bitcoin futures, and more.

Account Minimum

$0 ($5,000 or $25,000 for managed accounts through Schwab)

Fees

0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract

Pros

  • Free commissions on stock, ETF, and option trades
  • No minimum requirement to get started with brokerage account
  • Large investment selection
  • Research and educational resources available

Cons

  • No fractional shares
  • Robo-advice and managed portfolios are more expensive
  • No cryptocurrencies

Insider’s Take

TD Ameritrade is great for active traders interested in using multiple trading platforms. As one of the best online brokerages, TD Ameritrade offers secure storage for investments and other assets.

TD Ameritrade review

Product Details

  • Promotion: None at this time.
  • App store rating: 4.5 iOS/3.6 Android
  • Consider it if: You want multiple apps for different trading experiences and goals

TD Ameritrade is a large discount brokerage that's great for both new and expert investors. Beginners will enjoy the simple online platform at TD Ameritrade's website. Experienced investors will want to take advantage of the advanced trading platform, called thinkorswim, and other expert resources TD Ameritrade makes available.

Like other large discount brokerage firms, TD Ameritrade gives you access to just about any kind of brokerage account you could want. It offers a list of tradeable assets bigger than most peers, though, which is another draw for experienced investors. In addition to commonly available investments like stocks, bonds, options, mutual funds, and ETFs, TD Ameritrade offers less common investments, including futures, foreign exchange, and cryptocurrency.

The importance of a powerful trading platform grows with your investment expertise. TD Ameritrade's thinkorswim gives you a professional-style trading platform with advanced charting and advanced order types. An embedded CNBC TV widget is a nice perk that keeps your trading strategy in sync with the markets. It's nearly Wall Street quality and comes included with TD Ameritrade accounts.

Serious options and active traders will appreciate free access to Nasdaq Level I and Level II quotes, and real-time quotes for OPRA, AMEX, and NYSE. Professional clients have to pay for access to advanced quotes.

Its managed portfolios — Essential Portfolios, Selective Portfolios, and Personalized Portfolios — are no longer available to new clients. But due to the Schwab acquisition, TD Ameritrade clients now have access both to Schwab's two automated portfolios and its other managed accounts.

The first automated account, Schwab Intelligent Portfolios, includes a $5,000 account minimum, but it charges no advisory fees to invest your money into a diversified blend of ETFs. The second option — Schwab Intelligent Portfolios Premium — has a $25,000 minimum, and it charges a $300 one-time fee and a $30 monthly fee.

What to look out for: There's an important footnote for TD Ameritrade. The company was acquired by Charles Schwab on October 6, 2020. TD Ameritrade has said on its website that it will continue to conduct business as usual, while combining many components of its business with Schwab. TD Ameritrade also no longer offers any of its managed accounts to new clients.

Schwab's StreetSmart Pro and StreetSmart Edge are fine for most investors, but serious traders could prefer thinkorswim. There's always a risk when opening an account with a company being acquired, but Schwab is still a good home for most investing and trading needs.

TD Ameritrade has a high $49.95 fee when you buy no-load mutual funds off of the no-transaction fee list.

TD Ameritrade review

Interactive Brokers

Best online brokerage for active traders

Interactive Brokers

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Insider’s Rating

4.6/5

Perks

Interactive Brokers provides trading access to more than 150 markets in 33 countries around the world, allowing you to invest in stocks, options, mutual funds, ETFs, cryptocurrencies, futures, bonds, fractional shares, and more.

Account Minimum

$0 ($100 Interactive Advisors automated accounts)

Fees

$0 for IBKR Lite; $0 IBKR Pro (per-share commissions apply)

Pros

  • Low commissions and fees
  • International trading opportunities
  • Competitive trading platforms and tools
  • Several account types available
  • Thousands of no-transaction-fee mutual funds
  • Cryptocurrency investing available for bitcoin, bitcoin cash, ethereum, and litecoin

Cons

  • Less active traders pay more for IBKR Pro
  • Website can be tricky to navigate

Insider’s Take

Interactive Brokers is one of the best online brokerages for advanced, active investors who trade securities frequently and value access to market analysis and trading platforms.

Interactive Brokers brokerage review

Product Details

  • Promotion: None at this time.

Interactive Brokers is a top choice for active traders who trade at higher volumes and want access to tools optimized for their needs. Typical investors may not care about the difference of a few seconds when entering and executing a trade. Very active traders, however, care about milliseconds.

Interactive Brokers has multiple pricing options depending on your level of trading activity and your personal trading needs. The basic account, IBKR Lite, gives you commission-free stock and ETF trades and competitive fees for most other trades. Most investors would want this type of account. But active traders could be willing to pay more for additional features.

IBKR Pro accounts use tiered or fixed pricing models. This means you won't get completely commission-free trades as you do with IBKR Lite. Pro accounts have additional access to market data. They also get access to the IBKR Web Trader platform and IBKR APIs for automated trading. Algorithmic trading, also known as algos, is included with Pro accounts.

With IBKR Pro, you don't have tools similar to what professional traders use — you have the exact same tools. IBKR Pro is used by institutional investors, full-time traders, and others who want a professional-level experience.

Under the fixed-rate pricing plan, fees start at .005 cents per share with a $1 minimum per trade for US stocks and ETFs (some ETFs have no transaction fees). Tiered pricing is best for traders with very large order sizes. Prices are per-share with discounts starting over 300,000 shares.

With very competitive pricing and an experience tailored to active traders, IBKR Lite could be a good place to test the waters before upgrading to IBKR Pro for the most advanced experience. Plus, the brokerage also recently launched a new app, IMPACT, that focuses solely on helping investors find companies that align with their values (this is commonly known as socially responsible investing).

Finally, if you're interested in investing in cryptocurrencies, Interactive Brokers offers several. These include bitcoin, ether, bitcoin cash, and litecoin. Commissions for these assets range from 0.12-0.18%.

What to look out for: Not all accounts and trades are free. Make sure to choose the right account level for your investment goals and experience.

Interactive Brokers review

Public

Best online brokerage for mobile use

Public Investing

Best Online Brokerages of January 2024 (6)

Insider’s Rating

4.14/5

Perks

Public offers a $0 minimum requirement and allows you to filter its investment selection to see the securities that best align with your preferences

Account Minimum

$0

Fees

0% stocks and ETFs; Crypto: 1% or 2% markup; Alternative assets: 2.5% per transaction; Public Premium: $10/month

Pros

  • No minimums and commission-free trading on stocks and ETFs
  • Cryptocurrency trading available for more than 25 coins and tokens; alternative assets available
  • Offers fractional share investing for as little as $1; Premium plan includes advanced market data and insights
  • Several community features that allow you to share insights and receive insights from other users; educational resources like live audio events also available

Cons

  • No mutual funds, bonds, or options
  • Not the best platform for day traders; it doesn't allow day trading of stocks

Insider’s Take

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.

Public review

Product Details

  • App store rating: 4.7 iOS/4.3 Android
  • Consider it if: You value portfolio diversification and want a social component to your investing experience.

Public is an investment app that uses a mobile-first experience. The result is a mobile investment experience that's somewhat unique but still easy to navigate for both beginner and experienced investors.

As the name suggests, trades at Public allow you to connect with other investors on the app. You can follow others and chat about investment ideas. 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.

Another useful feature for newer investors is the ability to view various themes. These group stocks by industry or other major categories to help you zero in on companies that make sense for your investment strategy.

Public uses a commission-free pricing model. Most users won't pay any fees at all. It also offers fractional shares. These two features make Public great for people who are new to investing and want to start with a small amount of money. Fractional shares as Public online brokerage are called "slices." The broker supports more than 2,800 stocks and ETFs for fractional share investing.

Plus, Public recently launched cryptocurrency trading, so you can now invest in a handful of digital assets including bitcoin, ether, and dogecoin. You'll typically pay a markup of 1% or 2% for each transaction. It also now offers trading for alternative assets like art, collectibles, and NFTs. Public charges a 2.5% fee of each of those transactions.

What to look out for: Only a limited set of investments are available. You can invest in stocks and ETFs with Public, but not the full investment landscape. Public offers access to most US publicly traded stocks and ETFs, but not the entire market.

Public has a somewhat basic trading platform that may not be suitable for expert investors and very active traders.

Public review

Stockpile

Best online brokerage for kids and teens

Stockpile

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Insider’s Rating

3.79/5

Perks

Stockpile offers brokerage and custodial accounts with no recurring fees, no minimums, and no gift card fees.

Account Minimum

$0

Fees

$4.95 monthly subscription fee

Pros

  • No minimums and no gift card/funding fees
  • 1,000+ stocks and ETFs
  • Can fund account with bank transfer or stock gift cards
  • Fractional shares available

Cons

  • Investment selection limited to stocks, ETFs, and crypto

Insider’s Take

Stockpile is a newer and smaller brokerage than some others on this list, but it's perfect for kids

Product Details

  • App store rating: 4.7 iOS/4.3 Android
  • Consider it if: You want to invest with kids or teens

Stockpile is a newer and smaller brokerage than some others on this list, but it's perfect for kids. Stockpile offers brokerage and custodial accounts with no recurring fees, no minimums, and no gift card fees. Trades are also free, and fractional shares are available starting with a $5 investment. The online brokers has a $4.95 monthly subscription fee.

You can invest in stocks, ETFs, index funds, and fractional shares with Stockpile. Stockpile also recently launched cryptocurrency trading.

Stockpile is great for kids and teens for a few reasons. The simple and easy-to-navigate platform shows kids the logos and companies they are familiar with in their portfolios. You can fund the account through a bank account or with stock gift cards. Because fractional shares are supported for the 1,000+ stocks and ETFs on the platform, gifts and trades can be made in round dollar amounts.

Parents or other family members can get gift cards redeemable for stock in Stockpile accounts. Plus, you'll pay no fees to buy an e-gift, redeem a gift card, or switch to another stock.

Parents and kids will enjoy the built-in education resources. Stockpile's "mini-lessons" teach stock market basics that prepare anyone for a more successful future in the stock market.

What to look out for:Users only have access to the most popular stocks and ETFs, but many stocks are not included and other types of investments (such as mutual funds) are not supported.

Best Online Brokerage Frequently Asked Questions (FAQs)

What are brokerage accounts?

Brokerage accounts are a type of account used for investments. With a brokerage account open and funded, you can buy and sell stocks, bonds, funds, and other investments.

How do brokerage accounts work?

Brokerage accounts are best managed online. Using your online broker's website or mobile app, you can transfer funds, enter trade orders, monitor your positions, research current and future investments, and just about anything else you need to do in a brokerage account.

How much should a brokerage account cost?

In most cases, modern brokerage accounts are free to open and keep. There should be no recurring fees or minimum charges if you're looking for the best online brokerage account for most investors. There should also be few or no commissions for stock, ETF, and options trades. Some fees for phone or broker-assisted trades are common, as are commissions for some mutual funds and other investments.

What do I need to open an online brokerage account?

Before opening an account, brokers will request to see your personal information to comply with current laws and regulations. You'll need information, such as your name, address, telephone number, Social Security number, annual income, and more.

What is a paper trading account?

Paper trading is provided by many online brokers as a way to minimize risk. With a paper trading account, you can practice buying and selling investment assets before applying your strategy to your live account. Beginners can benefit from paper accounts since these accounts are usually free and have no risk.

What is payment for order flow?

Payment for order flow is the money a brokerage orinvestment appreceives when they pay an outside firm to execute the investment buy or sell orders you gave them. This procedure gives the market maker firm the power to carry out your trades.

Many discount brokers and commission-free investment apps utilize PFOF to earn additional compensation, but it doesn't affect your investment choices or account safety. If you're an active trader or day trader who regularly invests inoptions, PFOF might impact the final costs of your trades since the third-party firms do have some control over the speed of your order's execution.

In short, the effect of PFOF on most ordinary investors is limited. Still, if you're not in love with the idea of your transactions being farmed out, you may want to consider other brokerages — such asFidelity, andInteractive Brokers— that don't use this compensation arrangement at all.

What to Look for When Choosing an Online Broker

The best online brokerages offer portfolio diversification, great customer support, low fees, and account flexibility. Depending on the online brokerage account, you can trade a variety of investment options, including stocks, bonds, ETFs, mutual funds, crypto, and commodities.

Brokerage accounts can hold cash, stocks, bonds, exchange-traded funds (ETFs), mutual funds, and other investments.For most investors, a long-term, passive investment strategy is ideal. Many experts suggest building a diverse portfolio of low-cost index funds over picking individual stocks and riskier active trading tools.

Newer investors may be overwhelmed by advanced trading strategies and market charting features. The best online brokerages for beginners have strong customer support, easy trading tools, educational resources, staking rewards, and low fees and minimums.

Everyone's investment goals and preferences are unique, so there is no perfect brokerage for everyone. To choose the best online brokerage, start by looking at your own investment style and what you want from a brokerage. Whether that's cutting-edge active trading tools or a long list of no-transaction-fee mutual funds, there's a good online brokerage for everyone.

Once you understand what you need, look at costs, platforms, investment account types, and available investments to lock in the decision on what's best for you.

How to Buy Stocks with an Online Broker

You can buy and sell individual stocks through an online broker with most stock trading platforms and investment apps. Once you set up an online brokerage account with a platform that offers stock trading, you can deposit funds into your account via bank or wire transfer. You also have the option to link your brokerage account and bank account directly.

Make sure that before opening an account with an online broker you familiarize yourself with what the platform offers. Not all online brokers allow you to pick and choose individual stocks. Robo-advisors, for example, often only invest in ETFs that are automatically selected based on your preferences and the platform's investing algorithm.

You'll also want to research the stock you're interested in by considering the company's history and market trends. Consult with a financial advisor for professional insight and guidance on investments. Once you've decided where you want to invest your money, you can place an online order and select several shares.

How Online Brokerage Accounts Work

Online brokerage accounts are taxable investment accounts similar to a bank account but for your investable assets. Rather than stepping into a brick-and-mortar building to open a brokerage account and start trading, you can open an online brokerage account to easily access the market from your phone or computer.

Online brokerage accounts are still licensed firms in which a broker is responsible for executing a client's orders. Robo-advisors are one of the more popular types of online brokers for beginners and passive investors.

Just like traditional brokerages, online brokerages offer retirement accounts, custodial accounts, education savings accounts, joint accounts, and socially responsible investing portfolios. Online brokers may charge commissions, management fees, and balance requirements.

When you make a trade through an online broker, you'll receive transaction notices and monthly statements. Your brokerage account may be insured by the Securities Investor Protection Corporation (SIPC), but you'll want to check out your broker's policy first.

Other Online Brokerages we Considered

  • E*TRADE: Etrade is the original online brokerage. The online brokerage offers a good experience for active traders with competitive pricing. Etrade was recently acquired by Wall Street powerhouse Morgan Stanley. It is a large discount brokerage that supports most investment types and a wide range of accounts. For experienced investors, Etrade is a good choice for its platforms and range of investments, but the trading experience is not quite as good as thinkorswim at TD Ameritrade.
  • Webull: WeBull is a newer online brokerage that uses a no-commissions model. It uses a high-tech web platform ideal for more active traders. WeBull offers personal and retirement accounts and a more limited set of investment options. The online brokerage is a top choice for free brokerage accounts. However, it doesn't offer the full range of available investments and can be tricky to navigate for beginner investors.
  • TradeStation: TradeStation was a close runner-up for the best brokerage for active traders, but its pricing isn't quite as good as the winner. The online brokerage gives traders access to a set of powerful tools on par with what's used by professional and institutional traders.
  • Ally Invest: Ally Invest is a very low-cost brokerage that pairs well with Ally's best-in-class checking and savings accounts. The online brokerage is a great platform for beginner stock and ETF traders. It has trading platforms that are fairly straightforward but don't offer the same depth of features as some of the best platforms for active trading.
  • Merrill Edge: Merrill Edge gets its name from legendary brokerage Merrill Lynch. Now a division of Bank of America, it's best for loyal Bank of America customers with high combined balances across Bank of America accounts, which include Merrill Edge. While the online brokerage is great for loyal customers, its pricing and features are less exciting for those with smaller balances.
  • Vanguard: Vanguard is known for pioneering the low-cost index fund industry. It also offers brokerage and managed portfolio products (e.g., Vanguard Digital Advisor and Vanguard Personal Advisor Services). This online brokerage is best for people who want to primarily invest in the Vanguard family of mutual funds.
  • Robinhood Investing: Robinhood is the original no-commission brokerage. The online brokerage currently offers stocks, ETFs, cryptocurrencies, and options with a mobile-first platform. Robinhood is a great choice for no-fee trading.
  • tastytrade: Previously called tastyworks, tastytrade is an online brokerage that offers commission-free trades for stocks and ETFs. But this platform is more focused on trading options and futures.

Why You Should Trust Us: Our Expert Panel For The Best Online Brokerage

We consulted financial advisors, investing experts, and our own wealth-building reporter to inform our choices for the best online brokerages.

Best Online Brokerages of January 2024 (8)

Insider

We interviewed the following investing experts to see what they had to say about online brokerages:

What are the advantages or disadvantages of opening a brokerage account?

Brian Fry, CFP:

A taxable brokerage account offers the flexibility to have funds available when needed and without a tax penalty. They offer transparency and freedom when considering costs and investment options.

Depending on a household's financial situation, other account types may add more value and/or tax-efficiency. For example, if qualified, HSAs provide tax-deductions, tax-free growth, and tax-free distributions if used for qualified medical expenses; retirement accounts may provide tax deductions, tax-deferred or tax-free investment growth, and potentially tax-free distributions.

Education accounts may provide tax deductions and/or tax-free distributions if used for qualified educational expenses.

Charlotte Geletka, CFP, CRPC:

The advantages include access to stock exchanges to buy almost endless options of investments. This is where you can purchase stocks, bonds, ETFs, mutual funds, options and almost the entire inventory of the open markets.

The multitude of options can also be a disadvantage. Most retirement plans offer a curated list of choices which have been well vetted by consultants and investment experts. When you go into a brokerage account it is daunting to know where to start. The recent rise of social media blogs surrounding investing may increase the interest but be cautious about investing as any investment comes with risk.

Kaysian Gordon, MBA, CFP, CDFA, CPA:

The advantage of opening a brokerage account is — if you're interested in investing in stocks or bonds, or mutual funds or ETFs, as examples, a brokerage is a great way to do it.

Savings accounts or checking accounts just do not have those features. So the disadvantage is [that] you have to be aware of what you're looking for. Lots of different brokerage accounts will provide you with different things, so it's a matter of specifically what it is that's important to you.

Who should consider opening a brokerage account?

Brian Fry, CFP:

A taxable brokerage account can be a good fit for anyone and everyone. Before saving in a taxable brokerage account, it's important to consider where saving adds the most value to your unique financial situation. Make sure to have an adequate emergency fund.

Charlotte Geletka, CFP, CRPC:

Once you have set up an emergency fund, and started funding a retirement account then you might consider opening a brokerage account as a place to invest after-tax dollars.

Most often, the account you have set up in a brokerage will be a flexible investment.This is great because you have use of the money for various purposes, and you are not tied to specific withdrawal requirements the same way you would be in a retirement or college 529 account.

Kaysian Gordon, MBA, CFP, CDFA, CPA:

When you're looking to start the process of investing after you have saved the amount that you need for your emergency funds — and typically that's three to six months— you should start looking to invest other personal cash. Make it a point to contribute as frequently as you can, because that's how wealth is built over time.

Is there any other advice you'd offer someone who's considering opening a brokerage account?

Brian Fry, CFP:

Before saving with a taxable account, consider the order of where you should save first to best accomplish your financial goals. Are you comfortable taking responsibility in making investment decisions? How are you going to rebalance? How are you going to take emotion out of investing? If you can check all the boxes, taxable accounts can be a good vehicle.

Charlotte Geletka, CFP, CRPC:

There is a difference between trading and investing. Trading is exchanging [which is] usually short-term in nature. Investing involves time and is long-term in nature.

Kaysian Gordon, MBA, CFP, CDFA, CPA:

Do your research because that's very important. Think about the things that are important to you. Do a comparison of the different names that you hear and see what the benefits are of one company over another before making a decision.

Nothing will have everything that you need, but go with the brokerage account that has the best of what you need.

Methodology: How We Rated The Best Online Brokers

In evaluating the best online brokerage accounts available today, we rate investing products on a wide range of criteria. The most important factors for Personal Finance Insider rates and reviews products are pricing, account types, investment availability, platforms, and overall customer experience. Investing platforms are given a rating between 0 and 5.

Most brokerage accounts on this list have no minimum balance and no recurring monthly fees. After a major shift in pricing in 2019, most brokerage firms on this list also offer commission-free trades for stocks and ETFs. They also removed base fees for options trades, but still charge per-contract fees in most cases.

Top brokerage firms offer different platforms for different investment needs. Some are best for beginners and others are ideal for more advanced investors. Platforms were evaluated with a focus on how they serve in each category.

Eric Rosenberg

Freelance Writer

Eric Rosenberg is a finance, travel, and technology writer in Ventura, California. He is a former bank manager and corporate finance and accounting professional who left his day job in 2016 to take his online side hustle full-time. He has in-depth experience writing about banking, credit cards, investing, and other financial topics, and is an avid travel hacker. When away from the keyboard, Eric enjoys exploring the world, flying small airplanes, discovering new craft beers, and spending time with his wife and little girls. You can connect with him at Personal Profitabilityor EricRosenberg.com.

Rickie Houston

Senior Wealth-Building Reporter

Rickie Houston was a senior wealth-building reporter for Business Insider, tasked with covering brokerage products, investment apps, online advisor services, cryptocurrency exchanges, and other wealth-building financial products. Before Insider, Rickie worked as a personal finance writer at SmartAsset, focusing on retirement, investing, taxes, and banking topics. He's contributed to stories published in the Boston Globe, and his work has also been featured in Yahoo News. He graduated from Boston University, where he contributed as a staff writer and sports editor for Boston University News Service.

Elias Shaya

Jr Compliance Associate

Elias Shaya is a junior compliance associate on the Personal Finance Insider team based in New York City. Personal Finance Insider is Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that readers already know and love. The compliance team's mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up to date and accurate. He joined Insider in February 2022 as a fellow on the compliance team. Elias has a Bachelor of Science in International Business from the CUNY College of Staten Island. Prior to joining Insider, he volunteered at the New York Presbyterian Hospital, where he worked with the biomedical engineering department. In his spare time, Elias enjoys exploring new restaurants, traveling to visit his family in Lebanon, and spending time with friends.

Tessa Campbell

Junior Investing Reporter

Tessa Campbell is a Junior Investing Reporter for Personal Finance Insider. She reports on investing-related topics like cryptocurrency, the stock market, and retirement savings accounts. She originally joined the PFI team as a Personal Finance Reviews Fellow in 2022. Her love of books, research, crochet, and coffee enriches her day-to-day life.

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