Investors should know the best online stock brokers to trade with. The following top stock brokers offer investors the most value for their portfolios. Some online stock brokers are known for their award winning customer service while others are known for inexpensive stock trades or powerful trading tools. This guide will highlight some of the best stock brokers available today with tips and advice for selecting a new broker.
1. TD Ameritrade
TD Ameritrade was ranked #1 Online Broker 2012 – 2015 by StockBrokers.com* even with its $9.99 stock trades. Its platforms thinkorswim (ranked “#1 Desktop Platform” 2016) and Trade Architect are loaded with tools and features. Add to that TD Ameritrade’s education, robust research, mobile apps, etc and what you pay for is what you get. Read more…
TD Ameritrade Offer: Trade free for 60 days + Get up to $600
2. E*TRADE
E*TRADE shines for its mobile apps and all-around offering. E*TRADE was rated #1 for Mobile Trading in the StockBrokers.com 2016 Review* and provides customers research tools similar to TD Ameritrade and Scottrade. Like TD Ameritrade, E*TRADE charges $9.99 per trade but offsets high cost with a positive customer experience. Read More…
E*TRADE Offer: Trade Free for 60 Days & Get Up to $600
3. OptionsHouse
OptionsHouse is the perfect marriage of discounted trade commissions fantastic options trading tools. OptionsHouse has been rated #1 for Options Trading the past five years and #1 for Commissions & Fees. OptionsHouse offers $4.95 flat fee stock trades alongside options trades for $4.95 + $.50 per contract. Read More…
OptionsHouse Offer: Trade Free for 60 Days.
4. Merrill Edge
Merrill Edge offers investors industry leading customer service and research. The broker is a fantastic value for current Bank of America clients thanks to account linking and the Preferred Rewards program which investors can use to qualify for free online equity and ETF trades each month. Regular stock trades are just $6.95. Read More…
Merrill Edge Offer: Get up to 300 $0 online trades for 90 days + up to $600 when you invest. Other fees may apply.
5. TradeKing
TradeKing offers investors competitive $4.95 stock trades, quality customer service, and research tools that are better than its discount broker peers. TradeKing merged with Zecco in 2012, acquired MB Trading in 2015, and continues to expand its reach with new tools like TradeKing LIVE, the broker’s mobile friendly trading platform. Read More…
TradeKing Offer: Trade commission free up to $1,000.
6. Scottrade
Scottrade has over 500 local branch offices which is the largest network out of any of the online brokers. Known for its customer service, Scottrade has been awarded #1 Overall Client Experience the past five years. Regular stock trades are $7 each which is less than competitors TD Ameritrade and E*TRADE but more than OptionsHouse and TradeKing. Read More…
Scottrade Offer: $2,000 in Cash Bonus and 50 Free Trades.
Comparing Stock Brokers
When choosing your online broker, here are some great tips to remember to help you decide:
1. Narrow down a list of what is most important to you – Just like when shopping for a new home, making a focus list of wants will help you separate choices to ultimately make a decision. For an investor that travels often for example, mobile trading will be more important than the cost of placing trades.
2. Choose a broker with high acclaim and that is well known – Larger, established online brokers almost always offer more features, trade tools, better customer service, etc. Multiple brokers have millions of clients and these are the ones that almost always deliver a high quality experience for clients.
3. Be aware of miscellaneous fees – Be conscious of what fees the broker is charging. I do not recommend any smaller niche brokers on this site specifically for this reason. There are usually many hidden fees that are only found by digging through the broker website.
Best Stock Brokers
Having the best stock broker to serve individual needs is very important for any investor. For example, cheap trades most often come at the expense of less research tools and a more simplified trade platform. Consider these 12 key factors to help compare all stock brokers and ultimately find the best broker to suite your needs.
1. Trade Commissions
What does it cost to buy shares of stock? Does the fee change based on the type of order or size of order? To keep it simple, look for brokers that offer flat-fee trades, ie charging a flat rate regardless of the type, price of the stock, or size of the order.
2. Customer Service
When picking up the phone or emailing a broker, is a well trained customer service representative ready to assist? How any investor is treated as a client is more important to some than others. But, even for those that don’t rely on customer support that often, to know that they have award winning service there when they need it is comforting.
3. Trading Tools
Trading successfully is a lot easier when investors have great tools at their disposal. A top stock broker should offer access to a wide variety of trade tools to help make the most of each and every trade. From real-time streaming quotes to last sale tickers, quality stock scanners, mobile trading apps, and level II quotes to name a few. Strong tools are essential for active investors.
4. Account Minimums
Some brokers allow you to open an account with no minimum deposit while others may require several thousand dollars. Also know that some brokers require higher minimums to gain access to premium platforms, functionality, and personalized support.
5. Other Fees
Fees beyond trade commissions include inactivity fees (not common in 2016 but several brokers do still have them), transfer fees, and yearly IRA fees for having a retirement account. While over time most brokers have evolved to exclude many predatory fees, it’s still important to do your due diligence. Just like a bank account, stock brokers also make a portion of their profits off miscellaneous fees.
6. Market Research
A good online broker will provide a variety of free market research tools. The rule of thumb here is simple: the more you pay per trade, the better the market research (both fundamental and technical) provided.
7. Investment Options
A online stock broker should offer access to not only trading stocks, but also a strong selection of no load mutual funds, ETFs, and complex options. Nearly all of the large brokers offer commission free ETFs as well. Other unique investment offerings to look for could include direct market routing, conditional orders, futures trading and forex trading.
8. Retirement Accounts
Funding a IRA, Roth IRA, or other retirement account with no annual fees is an extra perk many online brokers offer. There is no reason why you should pay an annual fee to have an retirement account. If managing your own portfolio is not of interest, all of the large full-service brokers offer optional advisory services as well. Once again, the experience at larger established brokers is going to be superior to smaller brokers.
9. Banking
Larger online brokers offer banking and other financial services. This goes beyond money market accounts and CDs. Checking accounts, mortgages, debit cards, credit cards, and the like can also be offered. The leader in this space is, hands down, Merrill Edge.
10. Account Security
Because of the web today, all online brokers invest heavily into account security. Security questions, SSL websites, and the like are used by most brokers. Just like shopping online and choosing a trustworthy website to purchase from, the best bet is to choose a well-known, established broker for your portfolio. At the least, make sure they are members of FINRA and SIPC.
11. Speed & Order Execution
For the active trader, execution speed and fill price are very important. I won’t get too in depth here but I have tested many of these brokers and there can be noticeable differences in trade execution times and quality. For the majority of investors, saving a penny per share on a 100 shares order isn’t the end of the world, but for active traders it is something to look into. To understand Order Execution, read this guide.
12. International Trading
For investors in the United States this is not a problem but for investors living outside the US, when comparing brokers it is important to make sure they offer service in your country. Here’s a good list of international brokers to start with.
Questions & Help Choosing a Broker
If you need help deciding which broker to choose or have a broker specific question please feel free to email me and I will be happy to help.
To view star ratings, summaries, screenshots, and more for these brokers, see our stock broker comparison tool.
Also, if you feel this guide was helpful for you please share it on Facebook, Twitter, Google+, or email it to a friend. This took many dozens of hours to put together so I appreciate your support!
This guide was written by , Trader at Reink Media Group, LLC and was last updated on 2016-09-19.
* – The StockBrokers.com 2016 broker review included 13 brokers assessed within ten primary categories: Commissions & Fees, Customer Service, Platforms & Tools, Research, Ease-of-Use, Offering of Investments, Education, Mobile Trading, Order Execution, and Banking.
TD Ameritrade, Inc. and Reink Media Group are separate, unaffiliated companies and are not responsible for each other’s services and products.