A brokerage account is your gateway to buying and selling securities, including stocks, bonds, exchange-traded funds and mutual funds, as well as financial derivatives like options and futures. When considering the right brokerage account for stock trading, investors should consider the features and attributes they need in an account based on experience level and desires such as minimization of fees. Read on for the best brokerage accounts for buying and selling stocks with a thorough comparison of investment choices, fees and research tools to make your selection of a brokerage account easy.
The Importance Of Choosing The Right Brokerage Account
It’s important to choose the right brokerage account for your unique circ*mstance as different brokerage accounts can charge varying fees, offer a range of available investments and provide differing levels of ease of use. It’s also vital to choose a secure and reliable brokerage account that is protected by the SIPC against loss of cash and securities if a brokerage firm experiences trouble.
When considering the right brokerage account to open, you should consider: your investment needs now and in the future; what tools and resources you need to be successful; how much you wish to minimize fees; whether you’ll be using your brokerage account on your phone, desktop or a mix; and which investment options you wish to utilize.
Criteria For Selecting The Best Brokerage Accounts
The methodology for evaluating brokerage accounts for this article is based on trading fees, account minimums, investment choices available and ease of use. Brokerage accounts were selected based on requiring no account minimum, charging minimal trading fees, including for options, and offering investment options, including at least stocks, ETFs and options. Some selected brokerage accounts don’t offer either fractional shares or mutual funds.
Brokerage accounts are also scored in this article by ease of use. Ease of use is determined by consistency of mobile and desktop experience and offering of features across platforms, quality and quantity of research tools, customer support, access to investments and educational resources.
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Top 7 Best Brokerage Accounts for Stock Trading In 2024
1. Fidelity Investments
Business Overview
- Trading Fees: $0 for stocks, ETFs, options (plus $0.65/options contract fee)
- Investment Options: Stocks, ETFs, mutual funds, options, fractional shares
- Research Tools Available: Stock screening, news & analysis, articles
- Customer Support Options: Phone, chat
Through Fidelity Investments, you can trade stocks, ETFs, options and fractional shares, as well as invest in mutual funds. Fidelity offers thorough access to investment research tools, including stock screening tools, stock trading recommendations and market commentary.
Why Fidelity Is A Top Choice
Fidelity Investments is a top choice for investors seeking a brokerage account because of low fees, no account minimum and advanced research tools for seasoned investors. Fidelity scores 5/5 for ease of use in a direct comparison of brokerage accounts because of its intuitive user interface across desktop and mobile apps, extensive access to research tools, excellent customer support through phone and chat, and educational resources, including tutorials and articles.
2. Charles Schwab
Business Overview
- Trading Fees: $0 for stocks, ETFs, options (plus $0.65/options contract fee)
- Investment Options: Stocks, ETFs, mutual funds, options, fractional shares
- Research Tools Available: Stock screening, equity ratings, news & analysis, articles
- Customer Support Options: Phone, chat
Charles Schwab offers no-commission stock trading as well as access to invest in ETFs, options, fractional shares and mutual funds, including the best index funds in 2024.
Like Fidelity, Charles Schwab is a leader in providing research tools to regular investors, including equity ratings, stock charts and Schwab Stock Lists, which make it easy to find potential stock investments based on expert research.
Why Charles Schwab Is A Top Choice
Charles Schwab is a top pick for this list because of its wide-access to equity investments, accessible 24/7 customer support and research tools. Schwab scored 5/5 in ease of use for a consistent app and desktop experience, feature-rich mobile app, customer support and variety of educational resources including guides, podcasts and webinars.
3. E*Trade
Business Overview
- Trading Fees: $0 for stocks, ETFs, options (plus $0.65/options contract fee)
- Investment Options: Stocks, ETFs, mutual funds, options
- Research Tools Available: Stock screening, equity ratings, news & analysis
- Customer Support Options: Phone, chat
E*Trade is a brokerage firm offering commission-free trading for stocks and ETFs as well as low contract fees for options trading. E*Trade offers extensive research tools including stock screening, equity ratings and expert stock analysis to investors.
Why E*Trade Is A Top Choice
E*Trade is featured in this list because of its intuitive app and web experience, research tools, and educational resources including articles. E*Trade scored slightly lower for ease of use by not offering fractional shares trading.
4. Merrill Edge Self-Directed
Business Overview
- Trading Fees: $0 for stocks, ETFs, options (plus $0.65/options contract fee)
- Investment Options: Stocks, ETFs, mutual funds, options
- Research Tools Available: Stock screening, equity ratings, news & analysis
- Customer Support Options: Phone, chat
Merrill Edge Self-Directed is a leading brokerage account choice that offers low-fee access to stocks, ETFs, options and mutual funds. Merrill Edge offers robust research tools, including interactive charts, equity ratings and news about the equity markets.
Why Merrill Edge Self-Directed Is A Top Choice
Merrill Edge Self-Directed is a top choice for this list due to its extensive research tools and customer support options through phone and chat. Merrill Edge scored slightly lower for ease of use with 4/5 because of its lack of fractional shares trading.
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5. Interactive Brokers IBKR Lite
Business Overview
- Trading Fees: $0 for stocks, ETFs, options (plus $0.15 to $0.65 options contract fees)
- Investment Options: Stocks, ETFs, mutual funds, options, fractional shares
- Research Tools Available: News and analysis, analyst ratings, Interactive Analytics
- Customer Support Options: Phone, chat, email
Interactive Brokers IBKR Lite is a brokerage account that offers the ability for investors to trade stocks, ETFs, and options with no or low fees. IBKR Lite also charges no account minimum and provides news and analysis to investors, including Interactive Brokers own IB Market Signals.
Why Interactive Brokers IBKR Lite Is A Top Choice
IBKR is a top option for stock trading because of its low fees including for options contract fees. IBKR also offers extensive equity investments including mutual funds and fractional shares. IBKR Lite scored lower for ease of use by offering fewer research tools than competitors like Fidelity and Charles Schwab.
6. Robinhood
Business Overview
- Trading Fees: $0 for stocks, etfs, and options
- Investment Options: Stocks, ETFs, options, fractional shares
- Research Tools Available: News & analysis, analyst ratings, articles, screeners
- Customer Support Options: Phone, chat
Robinhood is a stock trading and investing app that offers investors the ability to trade stocks, ETFs, fractional shares and options without commission fees. Robinhood offers investors guides, news, and stock screeners to research and trade stocks, including the best stocks in 2024.
Why Robinhood Is A Top Choice
Robinhood is one of the best brokerage accounts for stock trading because of its lack of commission trading fees and easy-to-use mobile app. Robinhood scored 3/5 for ease of use because it offers less research tools than other major brokerage accounts. If you subscribe to Robinhood Gold for $5 you can access more research from Morningstar and Nasdaq.
7. J.P. Morgan Self-Directed Investing
Business Overview
- Trading Fees: $0 for stocks, ETFs, options (plus $0.65/options contract fee)
- Investment Options: Stocks, ETFs, mutual funds, options
- Research Tools Available: News & analysis, articles, webinars, financial calculators
- Customer Support Options: Phone
J.P. Morgan Self-Directed Investing offers individuals the ability to invest directly in stocks, ETFs, mutual funds and options. This brokerage account can be used to research stocks, execute trades and monitor portfolios supported by research tools, including webinars and stock research analysis.
Why J.P. Morgan Self-Directed Investing Is A Top Choice
J.P. Morgan Self-Directed Investing is a top choice for this list due to its low-fee investment choices and its news, analysis and webinar offerings for stock research. J.P. Morgan scored lower for ease-of-use due to offering customer support only by phone and not offering fractional shares to trade.
Bottom Line
In this article you’ve learned the best brokerage accounts for stock trading based on factors like limited fees, investment options, research tools and educational resources. Several standout brokerage firms were highlighted, including Fidelity Investments, Charles Schwab and E*Trade. This information should help you select an ideal brokerage account for your investment needs and objectives based on your preferences.
Frequently Asked Questions (FAQs)
Can you open multiple brokerage accounts?
Yes, you can open multiple brokerage accounts. Using multiple brokerage accounts can give you access to more features and resources that might be unique to different brokerage companies as well as additional SIPC loss protection.
Do brokerage accounts charge trading fees?
Yes, some brokerage accounts charge trading fees but it is increasingly common for brokerage accounts to offer commission-free trading. Other fees may still apply for these accounts like inactivity fees.
Can you transfer an existing brokerage account to a new broker?
Yes, you can transfer an existing brokerage account to a new broker. This process is usually initiated by filling out an account transfer form with the new broker with relevant details about your existing brokerage account.
Are there risks associated with online trading?
Yes, there are risks associated with online trading including the risk of your stock or security purchase decreasing in value due to the market fluctuating or a stock underperforming based on newly-revealed information like poor quarterly performance.
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The brain trust at Forbes has run the numbers, conducted the research, and done the analysis to come up with some of the best places for you to make money in 2024. Download Forbes' most popular report, 12 Stocks To Buy Now.
