The best global trading platforms
Choosing the right online broker is one of the hardest decisions you will make as an investor. With a long and growing list of options available, it can be difficult to find a broker that meets all your needs. Forbes Advisor spent six months testing 21 leading online brokers to determine the best of all.
In our test, Forbes Advisor compared more than 100 different features and variants for each online broker – from commissions and costs to customer service and investment offers – to determine which trading platforms are best for different types of users. We have delved into the assessment of the broad selection of instruments and trading features offered by each platform, and the details that have become more important
To choose an online broker now that the race is over to zero commission on stocks.
Best Brokerage Accounts and Online Trading Platforms
Compare the best online brokerages
Choosing a broker can be difficult due to the variety of options available. While competition has led many brokers to offer their services without fees for commonly traded assets, investors who evaluate these platforms will still find significant differences in usability, trading technology, account features, etc. Going through all of this can be a daunting task, so we've done a lot of work for you. We put these US-based brokers through a thorough review process that included hands-on research to identify the best trading platforms in the industry.
Best Brokerage Accounts and Online Trading Platforms:
Best overall: Fidelity Investments
Minimum Account: $0
Fees: 0 USD for stocks/ETF trades, 0 USD plus 0.65 USD/lot for options trading
Pros
low costs
Excellent trade executions
Powerful search and asset inspection devices
Rich educational offerings
Cons
No trading of futures, commodities or cryptocurrencies
Limited to residents of the United States and the main island
No news or data streaming on the web platform
High broker-assisted trading fees
Best Broker for Beginners: TD Ameritrade
Minimum Account : $0
Fees: Free stock trading commissions, ETFs and options contracts per part. $0.65 per options lot.
Pros
Intensive educational programs for novice investors
Well-designed web platform and mobile applications
A range of trading platforms and investment choices for all types of investors and traders
Cons
TD Ameritrade does not offer fractional shares
Account fees and fund fees are higher than competitors
Uninvested cash is not automatically transferred to the Money Market Fund
Minimum Account : $0
Fees: Free stock trading commissions, ETFs and options contracts per part. $0.65 per options lot.
Pros
Intensive educational programs for novice investors
Well-designed web platform and mobile applications
A range of trading platforms and investment choices for all types of investors and traders
Cons
TD Ameritrade does not offer fractional shares
Account fees and fund fees are higher than competitors
Uninvested cash is not automatically transferred to the Money Market Fund
Best Options Broker: TastyWorks
Minimum Account : $0
Fees: $0.00 for stock trading, $1.00 for opening options positions $0.00 for closing
Pros
Huge library of educational resources and content
Fully customizable trading experience with real-time price streaming capabilities on multiple platforms
Advanced tools uniquely designed for options trader
Cons
The platform can be confusing if you're new to trading options
Limited account facilities and investment options
Lacks features such as market news, research, and projectors
Minimum Account : $0
Fees: 0 USD for stocks/ETF trades, 0 USD plus 0.65 USD/lot for options trading
Pros
low costs
Excellent trade executions
Powerful search and asset inspection devices
Rich educational offerings
Cons
No trading of futures, commodities or cryptocurrencies
Limited to residents of the United States and the main island
No news or data streaming on the web platform
High broker-assisted trading fees
Minimum Account : $0
Fees: Maximum 0.005 USD per share for the Pro platform or 1% of the trade value, 0 USD for IBKR Lite
Pros
A wide range of offerings worldwide and across asset classes
Superior order execution
Excellent trading tools
Low margin interest rates
Cons
IBKR Smart Router Not Available for IBKR Lite Customers
Can be intimidating for less experienced and less active investors
No backtesting of custom trading algorithms or automated trading
Minimum Account : $0
Fees: Maximum 0.005 USD per share for the Pro platform or 1% of the trade value, 0 USD for IBKR Lite
Pros
Interactive Brokers are unmatched in market access and asset diversity
Trader Workstation (TWS) is a powerful tool with a high level of customization
Direct access to exchanges around the world allows 24-hour trading
Cons
International trading on IBKR works best through TWS, which can be intimidating for non-traders
The fee-based pricing structure of Interactive Brokers is tiered and can be confusing (although the fees are modest)
Minimum Account : $0
Fees: Free stock and ETF trading, $0.65 per options contract
Pros
ETF StreetSmart Edge Scanner
StreetSmart Edge platform is customizable and powerful
Schwab is an excellent broker in general that goes beyond the specific ETF functions
Cons
To get the best ETF examiner, investors need to work through StreetSmart Edge
Outside of ETFs, Schwab can be a bit expensive in options, and futures contracts are traded through a separate platform – something to consider if you intend to trade those assets
Best Online Brokers for June 2022
eToro's
Welcome Offer: Deposit $100 and Get $10 (US only)
Trade a variety of assets including stocks, ETFs, and cryptocurrencies
eToro offers trading tools to help both beginners and experts
via eToro's
Best Online Broker for Beginners
TD Ameritrade
Trading Commissions
0 USD
For stocks, ETFs, options
Minimum Account
0 USD
via TD Ameritrade's secure website
Pros
An outstanding range of educational materials.
Intuitive and easy-to-use trading platforms.
Reliable and knowledgeable customer service.
And cons
Do not offer partial stock trading.
Some fees are slightly higher than their peers.
Some areas of the client gate look outdated.
Why we chose it
TD Ameritrade is a versatile online broker that shines in many areas, from education and research to platform and technology. All this makes it the best choice for new investors who are learning things.
The platform's comprehensive educational resources include the TD Ameritrade Network free streaming video platform, in-person workshops, as well as well-prepared courses, articles, videos, and webcasts.
Rich educational resources
TD Ameritrade courses feature progress tracking and game items, bonus progress with points and badges. Topics include more advanced topics such as technical analysis, income investing, and options trading.
Due to the huge amount of educational resources available, it is useful for TD Ameritrade to provide the ability to filter the topic according to your level of knowledge (beginner, intermediate and advanced) and by media type (articles, videos, webcasts, courses or events).
TD Ameritrade also provides third-party news and research from Thomson Reuters, Dow Jones, and Credit Suisse. Customers can receive a dose of daily inspiration from the company's Market Java email. Sent before the market opens, it provides updates on pre-market conditions, major stock movements 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 has been sound in our tests, with reliable telephone support and a messaging and live chat center available around the clock, seven days a week.
It is always a good idea to test trading ideas first in a virtual environment. The PaperMoney trading simulator allows beginners to get wet without risking any real money. Users can test strategies using live market data across multiple markets.
Best Online Broker for Traders
InteractiveBrokers
Trading Commissions
0 USD
For stocks, ETFs, options
via the secure InteractiveBrokers website
Pros
Low commissions and fees.
Outstanding platform and technology.
An unparalleled range of products to trade.
And cons
Customer service is inconsistent.
Some may find the complexity of the platform intimidating.
The look and feel of the customer portal can be improved.
Why we chose it
Interactive Brokers has long been a favorite among active traders and investment professionals thanks to low commissions and fees, an impressive range of tradable products, and a powerful platform and tools.
Low fees, wide market access
Commissions and fees are sensitive issues for active traders. With $0 in commissions, the new standard among discount brokers, determining which players offer the best value is becoming more difficult. Interactive Brokers' commissions and fees are very low across the board, and one area where it continues to stand out is margin interest rates, where the company outperforms competitors by more than a few percentage points.
Access to global markets is another major strength of this broker. Whether you want to trade day stocks on the Hong Kong Stock Exchange or speculate on futures options on the Mexican derivatives exchange, Interactive Brokers makes it possible. A total of 135 markets in 33 countries are available for trading.
The Interactive Brokers' Trader Workstation (TWS) desktop platform provides second-tier market data, advanced charts, technical analysis tools, scanners, alerts, and Bloomberg TV streaming. Features that are popular among professional traders today are also available, such as "hotkeys".
Best Online Broker Mobile App
TD Ameritrade
Trading Commissions
0 USD
For stocks, ETFs, options
Best Online Broker for Options Trading
Tastyworks
Why we chose it
Created by options trading professionals, Tastyworks is featured in the platform's creative innovations. This user-focused broker combines low commissions, cutting-edge technology, and unique resources to help you come up with options trading ideas.
Tastyworks offers competitive pricing and fees, including commissions on stock options deals with a maximum of $10 per leg. It also offers commission-free trading in stocks and ETFs and has one of the lowest commission rates for futures contracts in our survey.
Easy options trading
The user experience of the Tastyworks platform is great on desktop and mobile devices. The trading platform offers amenities such as the Quick Rotate feature, which allows you to move your option position to the next expiry cycle with a simple right-click.
The feed tracking feature enables you to see trades made by a group of experienced traders, helping you keep ideas flowing. You can customize who you follow in your feed based on your interests. You can even follow the trading activity of founder Tom Sosnoff, who was a land-based trader at Chicago Board Options Exchange (CBOE) early in his career.
While testing the quality of customer service at Tastyworks, it was pleasantly surprised to receive responses from Nick Battista, better known as the co-host of the Bat vs. Bat show on the Tastytrade network.
Pros
Competitive commissions for active options traders.
Powerful educational resources.
Innovative technologies and tools.
And cons
A steep learning curve for new options traders.
It does not offer international markets or fractional stocks.
Do not offer paper trading.
Best Online Broker
Fidelity
Why we chose it
Fidelity is our selection of the best comprehensive online broker. It stands out as an excellent and well-rounded platform that is a great choice for active traders, long-term investors, or people who are new to investing.
Fidelity provides high-quality trade execution while maintaining minimal costs. It is characterized by being a broker that rarely offers commission-free stocks, ETFs, and trading options while not selling the flow of sell orders. On average, 85% of orders are executed at a better price than the best bid and bid at the national level (NBBO), with an average execution speed of 0.07 seconds.
In other brokers, the flow of sell orders helps to compensate for lost revenue by offering commission-free trades, but often leads to poor execution quality.
Low fees and great investment options
The fees are impressively low in Fidelity. For example, it is the only broker in our survey that does not charge outbound transfer fees – small details that indicate its overall approach.
Fidelity is a leader in the mutual fund industry, with 70 years of experience. Emphasizing its commitment to low value and costs, the Zero Expense Ratio Index Funds introduced in 2018. These funds have no minimum purchase and no fees for retail brokerage account holders.
An early adopter of new investment products, Fidelity provides fractional stock trading for more than 7,000 stocks and ETFs in the United States. Rival Charles Schwab only provides fractional shares for S&P 500 shares. Fidelity also excels in international stock trading, giving access to the markets of 25 countries.
The research offerings are wide, with reports from several independent providers, including Zacks and Argus. Tools such as the Fidelity stock scanner, the stock research dashboard, and the powerful Active Trader Pro platform help users identify attractive investment opportunities.
Pros
Very reliable execution quality.
Excellent research and tools.
Commissions and fees are generally low.
And cons
Do not offer futures trading.
Human-run customer service chat is not available around the clock, seven days a week.
A relatively high broker-assisted trading commission of $32.95.
Best Online Broker for Customer Service
Charles Schwab
Trading Commissions
0 USD
For stocks, ETFs, options
Minimum Account
0 USD
Why we chose it
Charles Schwab was a close contender for first place in many of our categories. In the end, her trusted and competent representatives earned her the first place in customer service.
The Charles Schwab website is easy to navigate, and support features are displayed in the front and center, rather than putting them away in a murky corner as is the case with many brokers.
Quick responses by competent specialists
In our tests, telephone inquiries were answered within minutes. Chat support for Schwab with a human factor responded almost immediately, a rare luxury. Representatives are knowledgeable and licensed professionals. They usually hold the 7 series; some hold multiple licenses.
In addition, for individuals who prefer an individual experience with a consultant, Schwab offers an extensive branch network throughout the United States.
Pros
Short waiting times for customer service over the phone.
Live chat is available 24/7.
More than 300 branch offices are available for personal support nationwide.
And cons
Unlike some other brokers, users have to navigate an automatic menu when contacting support.
Not all sections are available via the chat channel.
The message center is not optimized for general inquiries.
Methodology
For this survey, we spent six months on a thorough test of 21 of the leading online trading platforms in the US. We tested products side by side, across six main categories, evaluated more than 100 features and variants, and collected thousands of separate data points. The six categories we tested were commissions and fees, platform and technology, product offering suite, research and education, account security, and customer service.
The categories are weighted by their relative importance to the best broker overall, the best for beginners and the best for active traders. The test was led by an experienced market specialist with over 20 years of experience in the markets, both as a broker and a retail investor. We opened accounts with each of the 20 brokers in our survey to conduct a practical and rigorous test of their platform and services.
What should you look for when choosing an online broker?
When looking for an online broker, you should consider whether it matches your investment profile and meets your goals. Pay attention to the commissions and fees they charge, especially those related to investment products that you will use the most.
Carefully consider the platform and technology offered by the broker. Make sure the tools it offers fit your investment style. Do you need a simple and easy-to-use platform for some long-term investments, or are you looking for a platform that provides the tools to improve your chances of success in the fast-paced world of active trading?
A good broker is much more than just a place to execute trades. Find a broker who can help you decide and develop as an investor with high-quality research and educational materials. Also, consider how much customer support you feel comfortable accessing. Some brokers have live agents available around the clock, seven days a week by chat and phone while others offer email support only.
Finally, keep an eye out for promotions and bonuses – many prominent brokers offer account bonuses based on the size of your initial deposit. For large deposits it can range from hundreds to thousands of dollars.
How to choose a brokerage account?
When choosing an online broker, you need to consider your immediate needs as an investor or trader. If you are a beginner, you may need a broker that has great educational materials about the stock market and other financial markets. This is one of the main reasons why TD Ameritrade is our top choice for beginners. A number of brokers also allow paper trading before funding the account, giving you the opportunity to learn the platform, try out available assets, and test the trading experience without risking real capital.
What is an online brokerage account and how does it work?
A brokerage account is a financial account that is similar in function to accounts you have in a bank. Using a brokerage account, you deposit funds with an investment firm (brokerage). This is usually done by transferring from your existing bank account. Once funds are added to your brokerage account, you can run the funds using the brokerage trading platform to invest those funds in the market. The assets you buy with your money can be anything that brokerage has to offer, including stocks, bonds, ETFs, and even cryptocurrencies.
An online brokerage account will display your property (assets you have purchased) as well as your cash balance (purchasing power). If you invest in something that gains value, you can sell it and the profits will be credited to your online brokerage account. From there, you can make another trade or even transfer money to your regular bank account for use elsewhere. Some brokerage accounts allow you to earn interest on your uninvested funds.
How much money do you need to start investing?
There is no longer a real minimum to start investing in the financial markets. With so many brokers offering accounts with no minimum required and access to fractional shares, you can start investing with any amount of money. If you don't have a lot of money to invest, it will affect how you approach the market.
Although you can invest one dollar in partial shares of a particular stock, the best approach with limited capital is to use ETFs. Indices ETFs for tracking indices, for example, offer greater diversification of your dollar than a single company's stock because each stock (and partial share) of an ETF replicates an index made up of many companies in many different industries.
You could also consider using options to leverage your dollars through a directional market bet or a particular stock, but this is a strategy better tailored to risky capital – not the entire limited venture capital.
When investing in small amounts, consistency is the key to building wealth. If you can put a set amount of money on the market regularly – up to $10 a week – you'll be surprised at how quickly it grows. This consistency also helps mitigate market effects, as you will buy dips and highs as the market goes up and down.
Can you invest a small amount of money?
Many online brokers allow a small minimum deposit that can be a great alternative for those with limited funds. The minimum account (if any) is presented at the top of our reviews, as well as in our selection of the best platforms for different types of investors. If you are looking for more general guidelines on investing with limited capital, check out our article on smart investing with a small budget.
Do brokers offer mobile platforms?
Some online brokers have amazing mobile apps that provide almost all the features that their desktop counterparts provide. Options traders, for example, will find that the TastyWorks app is a simplified version of the TastyWorks desktop platform. TD Ameritrade clients can choose between the more powerful Thinkorswim mobile app aimed at traders or the standard TD Ameritrade app for less active investors, with each user's features adjusted for the intended user.
Can you lose money in a brokerage account?
Yes, you can. It is a fact for the market that no reward comes without risk. You can lose money when buying a bad investment, but you can also lose by buying a good investment at the wrong time. When it comes to financial markets, there are endless possibilities for earning and losing money.
Unless all the money in your brokerage account is in uninvested cash, there is a risk that you will lose money. However, another way to look at this, is that a brokerage account full of uninvested cash doesn't run the risk of making any money either. You can use strategies like asset allocation and diversification to reduce the risk of losing money, but you won't eliminate them completely without eliminating your chances of making a decent return.
Can I buy stocks without a broker?
Yes, you can actually buy stocks without an intermediary, but that's not a common approach these days. Some companies still offer direct share purchase plans that allow you to buy shares directly from the company. Companies manage these plans according to internal rules, and some are open only to company employees.
You need to contact the companies to find out if they offer a direct share purchase plan and what the terms and conditions are. These plans initially helped investors avoid brokerage fees, but the advent of fee-free online discount brokers removed this barrier, making the plan to buy shares fairly straightforward a remnant.
The difference between investing and trading
Another important thing to consider is the distinction between investing and trading . When people talk about investing, they generally mean buying assets to hold them for a long period of time. The goal of investing is to gradually build wealth and reach your retirement goals. Conversely, trading involves short-term strategies that increase returns on a short-term basis, such as daily or monthly. Trading is generally riskier than investing.
All these factors are worth considering before choosing an online broker. Do you want to trade or invest? Want a great mobile app to check your wallet wherever you are? What types of assets are you looking to invest in? Answering these questions is not always easy. For more support on how to choose a broker, you can check out our guide to choosing a broker.
Once you have decided on a broker, you can also check out our guide to opening a brokerage account.
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Frequently Asked Questions (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 traditional 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 companies have a minimum account balance ranging from several hundred to several thousand dollars. However, the best online brokers we have listed here allow users to open an account with no minimum balance required.
How can I open an online brokerage account?
To open an online brokerage account, all you have to do is visit the broker's website. Each company has its own account opening process, which can be completed entirely online – although you may need to upload certain documents, such as a driver's license photo. Once you create an account, you can fund your account by transferring money directly from your bank account via automated clearing house or wire transfer.
What type of online brokerage account should I choose?
The type 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-free account such as an Individual Retirement Account (IRA). However, if you invest the money you plan to use before retirement age, you can choose a taxable brokerage account. These accounts can still be used to invest in order to retire as well as the goals you wish to reach before then.
Do I have to open a cash or margin account?
If you are an experienced investor and want to actively trade in the markets, you might consider opening a margin account instead of a cash account. Margin accounts allow you to invest more than you actually deposit into your account using leverage or borrowed funds. If you trade with these funds, a process called margin trading, you can amplify any losses you incur. So if you're relatively new to investing and don't plan to monitor your account regularly, it's usually best to stick to a cash account.
What information will 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 company knows who you are and how much experience you're 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 investment experience
Investment Objectives
Risk tolerance
What is a paper trading account?
A paper trading account is a fictitious investment account that allows users to choose investments without risking any real money. The account tracks the market as a whole and allows users to see how their investments would have performed had they actually invested.
Final Verdict
In the end, choosing the best brokerage platform is all about who you are as an investor now and what kind of investor you aspire to be in the future. Once you've answered these basic questions, our ranking can help you narrow the field.
For example, if you're just starting out as an aspiring options trader, you might get a better service by reviewing our picks for options traders rather than looking at the general options best for beginners.
As you grow as an investor, you may also find that your goals and approach to the market have changed – perhaps you want a more robust platform with more assets and exchanges, or maybe you're looking to simplify things and take more passive actions approaching. The best thing about the high level of competition in brokerage is the number of brokers that have solutions that serve your needs, regardless of how these change over time.
