Selecting a stock broker is one of the most important decisions you’ll make as an investor. Every trader has a different investment style of stock trading and options trading that can help determine which broker may be the best fit.
Here at HMB, we have compiled a list of Best Stock Brokers For Trading Stocks to introduce online trading and feature unique factors, whether it be research, great customer service, or a highly rated trade platform, that are most useful to stock traders. So let’s dive in below and learn more about the best online brokers for stock trading.
| PROMOTIONAL LINK | OFFER | REVIEW |
| J.P. Morgan Self-Directed Investing | Up to $700 Cash | Review |
| TradeStation | $3500 Cash | Review |
| M1 Finance | Up to $2,000 Cash & free trades | Review |
| WeBull | 12 Free Stocks & free trades | Review |
| SoFi Invest | $25 Bonus and free trades | Review |
Best Online Brokerages for Trading
| Broker: | Sign Up Offer | Best For | Commissions | Review |
|---|---|---|---|---|
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$0 Commisions | Overall Top Pick | $0 | TD Ameritrade Review |
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N/A | Low Cost | $0 | Ally Invest Review |
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$2500 Bonus | Markets Selection | $0 | E*Trade Review |
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Free Trades | Free trading | $0 | Robinhood Review |
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500 Free Trades | Beginners | $0 | Charles Schwab Review |
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500 Free Trades | Research | $0 | Fidelity Review |
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$600 Bonus | Research | $6.95 | Merrill Edge Review |
Common Questions About Online Brokerage Accounts
How do I determine if a broker is right for me?
Some key criteria to consider are how much money you have, what type of assets you intend to buy, how frequently you plan to transact and how much service you need. Our breakdown below will help you make a sound decision on the best broker to consider depending on your individual investing needs.
Do I have enough money to get started investing?
You don’t need much money to get started. Many of the brokers below have no account minimums. One easy way build a diversified portfolio for little money is to invest in exchange-traded funds. ETFs are essentially bite-sized mutual funds that trade like stocks:
Like a mutual fund, ETFs contain a basket of similar assets (e.g., stocks in the S&P 500 index or shares of companies that operate in the technology sector). But instead of having to qualify for a mutual fund investment minimum, investors can buy and sell individual shares of ETFs just like individual stocks.
Is the money in brokerage accounts insured?
Fund’s held in a brokerage account are backed by the Securities Investor Protection Corporation (SIPC) as long as the broker firm is a current member of the SIPC. However, as with any type of insurance, there are always specifics that apply under different circumstances. SIPC was created under the Securities Investor Protection Act as a non-profit membership corporation.
They oversee the liquidation of member broker-dealers that close when the broker-dealer is bankrupt or in financial trouble, and customer assets are missing. In a liquidation under the Securities Investor Protection Act, SIPC and the court-appointed Trustee work to return customers’ securities and cash as quickly as possible. Within limits, SIPC expedites the return of missing customer property by protecting each customer up to $500,000 for securities and cash (including a $250,000 limit for cash only). To learn more, please visit SIPC.org.
Are there different kinds of accounts?
Most brokerage firms offer variety of accounts such as: retirement accounts, taxable accounts and custodial accounts. Depending on the type of account you want to open, there may be additional fees or charges associated.
Most brokerages allow investors to invest in standard securities, such as stocks, bonds and funds, but not all brokerages allow investors to invest in more complex or riskier investments, such as penny stocks, foreign currencies or options. If you want to invest in these types of securities, then you should be looking for a brokerage that offers these investments at a reasonable cost.
What paperwork do I need to open a stock trading account?
There will be paperwork to complete when you decide to open an account, which will include a new account application. The application form will require you to provide some information about yourself and will ask you to make certain decisions about your account.
Brokers will use this information for several purposes, including learning about you and your financial needs and meeting certain regulatory obligations. It is crucial to answer the questions on the application accurately. Make sure to read the application and the accompanying agreements thoroughly and ask questions about anything you don’t understand. Below are the typical things you’ll need to open an account:
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Foreign tax ID, passport, or visa number (if you’re not a citizen or permanent resident of the U.S.)
- Employer’s name and address
Now we have covered and answered some of the frequent questions above, let’s go through the key points below and figure out which brokerage is best for your needs.
Overall Best Online Brokerage Picks
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| Trade Commission: $0 | Trade Commission: $0 |
| Account Minimum: $0 | Account Minimum: $0 |
| Sign-Up Bonus: N/A | Sign-Up Bonus: N/A |
Ally Invest (formerly TradeKing) offers robust trading platform, lineup of free research, charting, data and analytical tools which puts it in line with some of its more well-known competitors. They offer wide variety of investment products built with the do-it-yourself investor in mind.
Not only that, you’ll get great rates, security you can trust and a smart, simple online banking experience on all your devices. With a TD Ameritrade account, you can gain access to the trading tools, guidance, and resources that can get you the best start for retirement. Trading with TD Ameritrade gives you access to an array of investment products. Both brokerages are top choices to consider and will fit the needs of most investors.
Best Low-Cost/Discount Brokers
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| Trade Commission: $0 | Trade Commission: $0 |
| Account Minimum: $0 | Account Minimum: $0 |
| Sign-Up Bonus: N/A | Sign-Up Bonus: Free Stock |
Ally Invest is among the industry’s lowest trading fees with no account opening minimum and no hidden fees. They offer wide selection of resources to help investors of all experience levels make the most of their investments, including advanced charting tools and numerous calculators.
On the other hand, Robinhood is a free-trading app that’s ideal for investors who are willing to give up a full-service online trading platform in exchange for the ability to buy a wide selection of stocks and ETFs without paying commissions or fees. They offer real-time market data but little in the way of research or tools. So of you don’t have a need for quality platforms, educational resources, research or investment options, then Robinhood may fit your trading needs.
Best Online Brokers For Beginners
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| Trade Commission: $0 | Trade Commission: $0 |
| Account Minimum: $0 | Account Minimum: $1,000 |
| Sign-Up Bonus: N/A | Sign-Up Bonus: 500 Free Trades |
TD Ameritrade offers fantastic platforms, research, mobile apps, education, and customer service support. On the other hand, Charles Schwab offers innovative tools, premium insights, robust education, and dedicated specialists.
Both of these brokers have enhanced database full of step-by-step educational material that uses professionally delivered audio and video. And neither will charge account maintenance or inactivity fees, thus making them good choices for new investors looking to get started!
Best Online Brokers For Research
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| Trade Commission: $0 | Trade Commission: $6.95 |
| Account Minimum: $2,500 | Account Minimum: $0 |
| Sign-Up Bonus: 500 Free Trades For 2 years | Sign-Up Bonus: $600 cash bonus |
Above are two of the best brokers with professional research tools which will help to analyze stocks and markets with data from financial records, company assets, economic reports, market share etc. They both provide excellent research capabilities for your stock analysis needs.
Fidelity is one of the best in the business and has research from more than 20 providers like Recognia, Ned Davis, S&P Capital IQ and McLean Capital Management. Alternatively, Merrill Edge (Bank of America corporation), has research from it’s own BofA Merrill Lynch Global Research as well as well-known providers like Morningstar, Lipper, S&P Capital IQ and Recognia.
Best Brokers For Investment Market Selection
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| Trade Commission: $0 | Trade Commission: $0 |
| Account Minimum: $0 | Account Minimum: $500 |
| Sign-Up Bonus: N/A | Sign-Up Bonus: $2,500 cash bonus + Free trades |
Depending on your goals and the account type you select, you can incorporate a number of different investment products to help you reach your goals, diversify your portfolio, and mitigate risk. With both TD Ameritrade and E*Trade, you’ll be able to trade all markets: Stocks, Forex, Futures, & Mutual Funds.
Similar to TD Ameritrade, E*Trade offers web, desktop, and mobile platforms for investors and active traders. For active traders, we find TD Ameritrade’s ThinkorSwim to be more favorable, thus making it our overall top pick and in this category.
Best Stock Brokers Detailed Comparison
| Broker Review: | Promotion | Commissions | Account Minimum | Tradable Securities |
|---|---|---|---|---|
| TD Ameritrade | $0 Commissions | Stocks & ETFs $0/trade online |
$0 | Stocks Bonds Mutual funds ETFs Futures Forex |
| Ally invest | N/A | Stocks & ETFs $0/trade online Options $0 + $0.50/contract |
$0 | Stocks Bonds Mutual funds ETFs Options Futures Forex |
| E*Trade | $2500 Bonus | Stocks & ETFs $0/trade online Options $0 + $0.50-$0.65/contract |
$500 | Stock Options Mutual Funds FOREX Futures |
| Robinhood | Free Trade | Free | $0 | Stock ETFs |
| Charles Schwab | 500 Free Trades | Stocks & ETFs $0/trade online Options $4.95 + $0.65/contract |
$1,000 | Stocks Bonds Mutual funds ETFs Options Futures |
| Fidelity | 500 Free Trades | Stocks & ETFs $0/trade online Options $0 + $0.65/contract |
$2,500 | Stocks Bonds Mutual funds ETFs Options Forex |
| Merrill Edge | $600 Bonus | Stocks & ETFs $0/trade online Options $0 + $0.75/contract |
$0 | Stocks Bonds Mutual funds ETFs Options |
Bottom Line
We hope you find this article useful in terms of helping you decide the Best Stock Brokers For Trading Stocks. We hoped the various categories covered above will help you find a suitable stock broker to meet your individual needs and help you build a diversified portfolio.
Whether if you are starting out, looking into trading options and futures, seeking access to in-depth investing research, or if you are a cost-conscious frequent trader. If there’s something we missed or if you’d like us to cover a new category, feel free to leave us a comment. If you are looking for other great offers, stop by our Brokerage Bonuses page to see our complete listing!
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