9 Best Online Trading Platforms In November 2024

The broker added the ability to purchase fractional shares of stock in December 2023, so that feature may appeal difference between brokerage fee and commission to newer investors. We analyzed 18 leading brokerage firms to determine the best online brokerage platforms in 2024. Our assessments are based on each firm’s advisory services, educational tools, trading costs, customer service and more. Investopedia collected 89 criteria that are critical to investors, from 26 online brokerage companies. We used this data to review each brokerage platform for fees, usability, research amenities, and other key features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their investing needs.

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

Some brokers let you trade alternative investments, a catch-all category for niche categories. Investments under this umbrella might include music royalties and venture funds open to non-accredited investors. Vanguard is a retirement-focused broker that’s highly regarded among investors with a https://www.xcritical.com/ long-term investment philosophy. While the interface isn’t as clean or modern as that of other brokers, it gets the job done. Interactive Brokers is also a great choice for options investors, traders, and those trading on margin.

How We Picked the Best Online Brokers and Trading Platforms

Ally doesn’t charge commissions for stock or ETF trades and its commission on options trading is slightly below the industry standard. There is no longer a real minimum to start investing in the financial markets. With many brokers offering margin accounts with access to fractional shares and no required minimums, you can open and fund an account with any amount of money. If you don’t have a lot of money to invest, however, it will influence how you approach the market. Although you could invest $1 in fractional shares of a specific stock, the better approach with limited capital is to use ETFs. You could also consider using options to leverage your dollars with a directional bet on the market or a specific stock, but this is a strategy best reserved for risk capital—not the whole of your limited investment capital.

Best for uninvested funds: Vanguard

Pamela de la Fuente leads NerdWallet’s consumer credit and debt team. Her team covers credit scores, credit reports, identity protection and ways to avoid, manage and eliminate debt. Previously, she led taxes and retirement coverage at NerdWallet. It used to be possible to write them off as miscellaneous itemized deductions, but miscellaneous itemized deductions have been suspended since the Tax Cuts and Jobs Act came into effect in 2018. U.S. residents who open a new IBKR Pro account will receive a 0.25% rate reduction on margin loans.

Stockpile is a top investment platform for kids to learn how to save and invest in their future. Stockpile offers brokerage and custodial accounts with no recurring fees, minimums, or gift card fees. Invest in fractional shares for $1 and even trade popular cryptocurrencies. A brokerage account is a type of account similar in function to the accounts you have with a bank.

We do not include the universe of companies or financial offers that may be available to you. We are an independent, advertising-supported comparison service. With its stripped-down trading interface, Interactive Brokers only looks like a no-frills broker. But this “broker to the pros” has put all its resources into creating a great experience for active traders.

Many financial advisors are fee-only, which typically means they charge a percentage of assets under management, a flat or hourly fee, or a retainer. Others charge a percentage of assets under management and earn a commission from the sale of specific investments. Even a small brokerage fee will add up over time; a few investment fees together can significantly reduce your portfolio’s return. If your portfolio was up 6% for the year but you paid 1.5% in fees and expenses, your return is actually only 4.5%.

Another consideration is the level of the risk-averseness for these first-time investors. Even if they have a long-term investing horizon and low liquidity requirements, first-time investors may opt for safer investments if they are very risk-averse. In that case, instead of equity (stocks), fixed income securities (bonds) will be more appropriate. At Motley Fool Money, brokerages are rated on a scale of one to five stars.

Blueprint is an independent, advertising-supported comparison service focused on helping readers make smarter decisions. We receive compensation from the companies that advertise on Blueprint which may impact how and where products appear on this site. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Blueprint. Blueprint does not include all companies, products or offers that may be available to you within the market.

• You can trade stocks, invest for retirement, and open bank accounts without paying fees.
• Most casual stock traders won’t notice differences in execution quality between brokers, as they tend to be relatively minor, especially if you’re placing few trades.
• Every stock-trading platform review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of investing products.
• But it takes zero commissions one step further with no commissions on crypto trades.
• NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
• Fidelity has been around for decades and its reputation precedes it.

For more details about the categories considered when rating brokers and our process, read our full methodology. More than 50 years of combined experience writing about finance and investing. She is a thought leader in content diversity, equity, inclusion and belonging, and finds ways to make every piece of content conversational and accessible to all.

With any trading platform, there are no guarantees you’ll earn a certain rate of return or current investment options will always be available. To determine the best approach for your specific investment goals, speaking with a reputable fiduciary investment advisor is recommended. With Schwab Stock Slices, Charles Schwab allows investors to buy fractional shares («slices») from up to 30 S&P 500 companies all at once, for as little as $5 each. Bankrate follows a stricteditorial policy, so you can trust that our content is honest and accurate.

Interactive Brokers charges $0 commissions on stock and ETF trades, the industry standard, but where it really shines is its margin rates, which are lower than most competitors we’ve reviewed. This makes the trading platform an excellent choice for margin traders. Like many of the best trading platforms, Webull lets you trade fractional shares. Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions.

But if all you need is a no-frills investment account, then trimmed-down apps or relatively new brokerage firms are likely fine for you. NerdWallet’s comprehensive review process evaluates and rates the largest U.S. brokerage firms by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which one will best meet your needs. The expense ratio on an actively managed mutual fund might be 1% or more; on an index fund, it could be less than 0.25%.

Many have commissions for options and cryptocurrencies, and most have mutual fund commissions for funds that aren’t on a no-transaction-fee (NTF) list. Morgan Self-Directed Investing one of our best trading platforms? Morgan apart is its no-transaction-fee mutual fund offerings.