The Best Online Brokers of June 2023
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Best Online Broker for Beginners
TD Ameritrade
Via TD Ameritrade's Secure Website
Trading Commissions
$0
for stocks, ETFs, options
Account Minimum
$0
Why We Picked It
TD Ameritrade is a highly versatile online broker that shines in many areas, from education and research to its platform and technology. All of this make it to be the best choice for new investors who are learning the ropes.
The platform’s extensive educational resources include the free TD Ameritrade Network streaming video platform, in-person workshops, plus well-crafted online courses, articles, videos and webcasts.
Rich Educational Resources
TD Ameritrade’s courses feature progress tracking and gamified elements, rewarding progress with points and badges. Topics include more advanced subject matter like technical analysis, income investing and options trading.
Given the vast quantity of educational resources that are available, it’s helpful that TD Ameritrade provides the ability to filter the subject matter according to your level of knowledge (beginner, intermediate and advanced) and by the type of media (articles, videos, webcasts, courses or events).
TD Ameritrade also provides news and third-party research from Thomson Reuters, Dow Jones and Credit Suisse. Clients can receive a dose of daily inspiration from the firm’s Market Java email. Sent out before the market opens, it provides updates on pre-market conditions, major stock moves and analyst insights.
Novice investors inevitably have questions beyond the scope of FAQs and chatbot capabilities. To help answer these queries, TD Ameritrade offers customer service that was sound in our tests, with reliable phone support, a message center and live chat available 24/7.
It is always a good idea to first test trading ideas in a virtual environment. The paperMoney trading simulator allows beginners to get their feet wet without risking any real money. Users can test strategies with live market data across multiple markets.
Pros & Cons
- Outstanding range of educational materials.
- Intuitive, easy-to-use trading platforms.
- Reliable, knowledgeable customer service.
- Does not offer fractional share trading.
- Some fees are slightly higher than peers.
- Some areas of the client portal feel dated.
Best Online Broker for Traders
Interactive Brokers
4.4
Our ratings take into account the range of fees, features and tools offered by each online broker platform. Ratings are determined solely by our editorial team.
Trading Commissions
$0
for stocks, ETFs, options
Via InteractiveBrokers' Secure Website
Trading Commissions
$0
for stocks, ETFs, options
Why We Picked It
Interactive Brokers is a long-time favorite among active traders and investing professionals thanks to its rock-bottom commissions and fees, staggering range of tradable products, and powerful platform and tools.
Low Fees, Extensive Market Access
Commissions and fees are sensitive issues for active traders. With $0 commissions the new norm among discount brokers, identifying the players that offer the best value is more challenging. Interactive Brokers’ commissions and fees are very low across the board, and one area where it continues to stand out is in margin interest rates, where the firm undercuts rivals by more than a few percentage points.
Access to global markets is another key strength at this broker. Whether you want to day trade equities on the Hong Kong stock exchange or speculate in futures options on the Mexican Derivatives Exchange, Interactive Brokers makes it possible. A total of 135 markets in 33 countries are available for trading.
Interactive Brokers’ Trader Workstation (TWS) desktop platform offers Level II market data, advanced charting, technical analysis tools, scanners, alerts and Bloomberg TV streaming. Popular features among professional day traders, such as “hot keys,” are also available.
Pros & Cons
- Low commissions and fees.
- Outstanding platform and technology.
- Unrivaled range of products to trade.
- Inconsistent customer service.
- Some may find the complexity of the platform intimidating.
- Look and feel of the client portal could be improved.
Best Online Broker Mobile App
TD Ameritrade
Via TD Ameritrade's Secure Website
Trading Commissions
$0
for stocks, ETFs, options
Account Minimum
$0
Why We Picked It
Besides offering the best trading platform for beginners, TD Ameritrade’s thinkorswim mobile app is outstanding. All of the strengths of this online broker’s educational and research offerings, products and technology carry over to it, though the more basic TD Ameritrade app is also available, which may appeal to beginners.
The thinkorswim mobile app allows you to trade stocks, options, futures and forex. All of your settings and preferences from the thinkorswim desktop platform can be accessed on the mobile app. This means your chart drawings and market scans can be synced up to any mobile device.
Extensive Features on Mobile
The well-designed app makes it easy to find your way around the numerous features. Customer support is literally close at hand via mobile. You can chat live with a trading specialist and even share your screen without leaving the app.
News and insights via live streaming video from the TD Ameritrade Network and CNBC are available via mobile. The app even has chat rooms built into it, so you can talk trading with your peers.
Mobile traders can take advantage of advanced order types such as trailing stops and OCOs (One Cancels Other). Risk-free paper trading is also possible on mobile using the virtual paperMoney account.
Pros & Cons
- Highly intuitive mobile app user experience.
- Multiple products may be traded on the app.
- App features advanced tools and extensive resources.
- Live chat support via mobile is not 24/7.
- You can only trade U.S. markets.
- Mutual fund trades are not possible via mobile.
Best Online Broker for Options Trading
Tastytrade
3.9
Our ratings take into account the range of fees, features and tools offered by each online broker platform. Ratings are determined solely by our editorial team.
Trading Commissions
$0
for stocks, ETFs, options
Account Minimum
$0
Trading Commissions
$0
for stocks, ETFs, options
Account Minimum
$0
Why We Picked It
Tastytrade (formerly known as Tastyworks) was created by options trading professionals, and it shows in the creative innovations in the platform. This user-centric broker combines low commissions, cutting-edge technology and unique resources to help you come up with options trading ideas.
Tastytrade offers competitive pricing and fees, including commissions on equity option trades that are capped at $10 per leg. It also offers commission-free trading in stocks and ETFs and one of the lowest commission rates for futures in our survey.
Options Trading Made Easy
The user experience of the Tastytrade platform is superb on desktop and mobile devices. The trading platform offers conveniences such as the quick roll feature, which allows you to roll your option position into the next expiration cycle with a simple right click.
The Follow Feed feature enables you to see the trades taken by a group of experienced traders, helping you to keep ideas flowing. You can tailor who you follow in the feed based on your interests. You can even follow the trading activity of founder Tom Sosnoff, who was a floor trader at the Chicago Board Options Exchange (CBOE) early in his career.
While testing the quality of customer service at Tastytrade, it was a pleasant surprise to receive replies from Nick Battista, better known as the co-host of the Bat vs. Bat show on the Tastytrade network.
Pros & Cons
- Competitive commissions for active options traders.
- Strong educational resources.
- Innovative technology and tools.
- Potentially steep learning curve for new options traders.
- Does not offer international markets.
- Does not offer paper trading.
Best Online Broker
Fidelity Investments
4.4
Our ratings take into account the range of fees, features and tools offered by each online broker platform. Ratings are determined solely by our editorial team.
Trading Commissions
$0
for stocks, ETFs, options
Account Minimum
$0
Trading Commissions
$0
for stocks, ETFs, options
Account Minimum
$0
Why We Picked It
Fidelity is our pick for best overall online broker. It stands out as an excellent, well-rounded platform that’s a great choice for active traders, long-term investors or people who are new to investing.
Fidelity provides high-quality trade execution while keeping costs minimal. It has the rare distinction of being a broker that offers commission-free stock, ETF and option trading while not selling order flow. An average of 85% of orders are executed at a better price than the National Best Bid and Offer (NBBO), with an average execution speed of 0.07 seconds.
At other brokers, selling order flow helps compensate for revenue lost by offering commission free trades but often results in compromised execution quality.
Low Fees, Great Investing Options
Fees are impressively low at Fidelity. For example, it is the only broker in our survey that does not charge an outgoing wire fee—a small detail indicative of its overall approach.
Fidelity is an established leader in the mutual funds industry, with 70 years of experience. Underscoring its commitment to value and low costs, it introduced zero expense ratio index fundsin 2018. These funds have no minimum purchase thresholds and no fees for retail brokerage account holders.
An early adopter of new investing products, Fidelity provides fractional share trading for over 7,000 U.S. stocks and ETFs. Rival Charles Schwab only provides fractional shares for S&P 500 stocks. Fidelity also distinguishes itself in the area of international stock trading, offering access to the markets of 25 countries.
Research offerings are broad, with reports from multiple independent providers, including Zacks and Argus. Tools such as the Fidelity stock screener, stock research dashboard and the robust Active Trader Pro platform help users identify attractive investment opportunities.
Pros & Cons
- Highly reliable execution quality.
- Excellent research and tools.
- Low commissions and fees overall.
- Does not offer futures trading.
- Human operated chat for customer service is not available 24/7.
- Relatively high broker-assisted trade commission of $32.95.
Best Online Broker for Customer Service
Charles Schwab
4.3
Our ratings take into account the range of fees, features and tools offered by each online broker platform. Ratings are determined solely by our editorial team.
Trading Commissions
$0
for stocks, ETFs, options
Account Minimum
$0
Trading Commissions
$0
for stocks, ETFs, options
Account Minimum
$0
Why We Picked It
Charles Schwab was a close contender for first place in several of our categories. Ultimately, its reliable and competent representatives earned it the top spot for customer service.
The Charles Schwab website is easy to navigate, and support features are displayed front and center, rather than tucked away in an obscure corner as is the case with many brokers.
Rapid Responses by Competent Professionals
In our tests, phone inquiries were resolved within minutes. Schwab’s chat support with a human operator answered almost immediately, a rare luxury. Representatives are knowledgeable, licensed professionals. They typically hold a Series 7; some hold multiple licenses.
In addition, for individuals who prefer the one-on-one experience with a consultant, Schwab offers an extensive branch network across the United States.
Pros & Cons
- Short wait times for phone customer service.
- Live chat is available 24/7.
- Over 300 branch offices are available for in-person support nationwide.
- Unlike some other brokers, users must navigate an automated menu when calling support.
- Not all departments are available via the chat channel.
- Message center is not optimized for general inquiries.
Methodology
For this survey we spent six months thoroughly testing 21 of the leading U.S. online broker platforms. We tested the products side by side, across six major categories, assessed over 100 features and variables, and collected thousands of separate data points. The six categories we tested were commissions and fees, platform and technology, range of product offerings, research and education, account security and customer service.
Categories were weighted by their relative importance for the best online broker overall, best for beginners and best for active traders. Testing was led by a seasoned market professional with over 20 years of experience in the markets, both as a broker and a retail investor. We opened accounts at each of the 20 brokers in our survey to perform hands-on, granular testing of their platform and services.
To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates investing products.
What Is an Online Broker?
Online brokers are essential tools for investors to buy and sell stocks, bonds, and funds. Unlike traditional brokers, online brokers facilitate transactions through user-friendly trading platforms, eliminating the need for face-to-face interactions. These platforms provide a range of features, including easy-to-use trading tools, comprehensive research and analysis capabilities, and reliable customer support.
The popularity of online brokers stems from their convenience, cost-effectiveness, and accessibility. Investors can trade at any time and from anywhere using online brokers. Moreover, these brokers offer lower commission fees and account minimums compared to traditional brokers, making investing more accessible to a broader audience.
Furthermore, online brokers provide valuable educational resources that empower investors to make well-informed decisions. These resources encompass market analysis, financial news updates, and training articles that assist in researching and selecting investments aligned with individual financial goals and risk tolerance.
How to Pick the Best Online Broker
When searching for the best online broker, it’s crucial to assess their compatibility with your investing profile and objectives. Pay close attention to the commissions and fees associated with the investment products you’ll be utilizing frequently.
Evaluate the broker’s platform and technology carefully. Ensure that their tools align with your investing style. Are you in need of a simple, user-friendly platform for long-term investments, or do you require robust tools to maximize your success in fast-paced active trading?
A reputable broker goes beyond trade execution, providing valuable assistance in decision-making and investor development through high-quality research and educational resources. Additionally, consider the level of customer support you prefer. Some brokers offer 24/7 live support via chat and phone, while others provide assistance solely through email.
Lastly, be on the lookout for promotions and bonuses. Many top brokers offer account bonuses based on the size of your initial deposit. For substantial deposits, these bonuses can range from hundreds to thousands of dollars.
Online Brokerage FAQs
What is an online brokerage account?
An online brokerage account is a portfolio of cash and securities on an online trading platform. Investors can use online brokers instead of conventional financial advisors to buy and sell stocks, bonds, mutual funds, ETFs, options and other assets.
How much money do I need to open an online brokerage account?
Some online brokerage firms have account minimums that range from several hundred to several thousand dollars. However, the top online brokers that we’ve listed here allow users to open an account with no minimum balance required.
How do I open an online brokerage account?
To open an online brokerage account, all you have to do is visit a broker’s website. Each firm has its own account opening process, which can be completed completely online—though you may need to upload certain documents, such as a photo of a driver’s license. Once you create an account, you can fund your account by transferring money directly from your bank account via an ACH or wire transfer.
What kind of online brokerage account should I choose?
What kind of online brokerage account you should open depends on your financial goals. For example, if your goal is to save for retirement, you should consider a tax-advantaged account like an individual retirement account (IRA). However, if you’re investing money that you plan to use before retirement age, then you might opt for a taxable brokerage account. These accounts can still be used to invest for retirement as well as goals you’d like to reach before then.
Should I open a cash account or a margin account?
If you’re an experienced investor and you want to actively trade the markets, you might consider opening a margin account instead of a cash account. Margin accounts let you invest more than you actually deposit into your account by using leverage, or borrowed money. If you trade using this money, a process called margin trading, you may magnify any losses you incur. So if you’re relatively new to investing and don’t plan to monitor your account regularly, it’s typically best to stick with a cash account.
What info do I need to open an online brokerage account?
Securities regulators require all brokerage firms to know their clients—even online brokers. To open an account, then, you’ll need to provide information so the firm knows who you are and how much experience you have investing.
In addition to your name, date of birth, mailing address and Social Security number, you may need to provide:
- Annual income and net worth
- Years of investing experience
- Investment objectives
- Risk tolerance
What is a paper trading account?
A paper trading account is a mock investment account that allows users to pick investments without risking any real money. The account tracks the overall market and lets users see how their investments would have performed had they actually invested.