Skip to main content

Best online stock trading brokers 2020: Online platforms worth investing in

Checking the stock exchange with an online stock trading app open
(Image credit: Getty / Witthaya Prasongsin / EyeEm)

Using the best online stock trading brokers is a must, whether you're a novice investor or a trader with far more experience under your belt. Finding an online stock trading platform with good pricing can save you money both from the off and going forward, freeing up more funds to invest. Meanwhile, selecting stock trading brokers with a good reputation means you can trade knowing that the advice and support that many investors will require at some stage - particularly when first starting out - is readily at hand. 

With ever rising numbers choosing to take their investment decisions into their own hands, the best online stock trading brokers are willing to compete fiercely for their attention. This means that most online stock trading platforms have no minimum investment requirements should you want to open an account. While the majority offer commission-free trading too, charges will certainly be levied elsewhere, making it essential to check the pricing fine print of any investment option under consideration. 

Thankfully, our shortlist of the best online stock trading platforms takes all of these things into account and more, including the range of trading options and features, pricing structures, and the reputation of brokers among active customers. And to help investors hone in on the stock trading brokers that are best-suited to them, we have split our selections into various categories, such as the best trading platform for beginners, the best for investment experts, the best for personal service and support, and so on. 

While investing is probably the smartest way to make the most of your money, particularly if you're looking to invest for the long term, doing so with one of the best online stock trading brokers is a must in order to give yourself the best chance of success. However, regardless of the level of guidance, advice and support on offer, it should always be remembered that stock trading comes with an inherent risk to your money. There are no guarantees that your investments will grow, and the chance of losing money is always very real. For this reason, we would always advise starting off with low investments in the first instance, and building up gradually when you're more confident in your understanding of the market and the risks involved. 

Finally, if you're interested in learning about currency trading, and finding a platform through which to trade, our guide to the best forex brokers is an excellent place to start.


1. TD Ameritrade: Best for the beginner

TD Ameritrade review

(Image credit: TD Ameritrade )

TD Ameritrade

TD Ameritrade is the online stock trading platform that’s great for beginners and experienced traders alike.

Account minimum amount: None | Commission fee: None | Account fees: Transfer fee may apply | Investment products: Stocks, bonds, options, exchange-traded funds, mutual funds, Futures, Forex, Margin trading, cryptocurrency trading, managed portfolios, cash management, bonds and fixed income, annuities, IPOs, dividend reinvestment, collateral lending

No commission charges
Lots of free extras 
Excellent reputation and portfolio
High broker trade fee

TD Ameritrade has an abundance of features, plenty of cutting edge technology and research, and is constantly innovating and creating new tools. As a standalone stock trading platform, TD Ameritrade is also an excellent place for beginners to cut their investment teeth, thanks to the proliferation of research, guidance, tutorials, platforms and services that it has to offer. 

While the platform has commission-free trading and free extras, it should be noted that the charge for the use of a broker will add to your costs. Assuming you take this into account, the platform can happily be enjoyed by traders of any level and expertise. However, it is perhaps the casual traders and novices who stand to gain most from TD Ameritrade, particularly in respect of the usability and accessibility that the platform has to offer. 

2. E*Trade: Best for stability and reliability

E*Trade Review

(Image credit: E*Trade)

E*Trade

E*Trade is a longstanding online stock trading platform that you can trust.

Account minimum amount: None | Commission fee: None | Account fees: Transfer fees may apply | Investment products: Stocks, Options, ETFs, Mutual Funds, Futures, Bonds and CDs and IRAs, managed portfolios, retirement portfolios, small business, bank and brokerage

No commission charges
Extensive investment portfolio
Excellent mobile app
Beginners may struggle

E*Trade is a reliable online stock trading choice for investors who don’t like to take chances and would prefer to work with an established broker. Having been in the stock trading business for over 40 years, E*Trade certainly has the experience required to satisfy such requirements, and enjoys a excellent reputation to boot. 

Its longevity has also allowed for the development of intelligent and relevant tools and services for its users. Wider ranges of investment options might be available elsewhere, but E*Trade is an expert in what it offers and willing to share this knowledge with newer and older investors alike via its highly informative and educational support material. The platforms and mobile applications are excellent too, all providing an excellent basis from which to help you get the most from your portfolio and develop investment and trading skills. 

3. Merrill Edge: Best for personal support

Merrill Edge Review

(Image credit: Merrill Edge)

Merrill Edge

Merrill Edge is a trusted stock trading solution with a reputation for providing excellent support.

Account minimum amount: None | Commission fee: None | Account fees: A variety of different fees apply to different options and use cases | Investment products: Stocks, ETFs, Mutual Funds, Fixed Income and Bonds, Options, Margin, BofAML US 1 List, managed portfolios

Superb research
Integration with Bank of America
Great investment tools and services
Some hidden fees

Merrill Edge’s relationship with the Bank of America is something of a double-edged sword. On the one hand, there's the potential for a less-than-straightforward pricing structure and perhaps fewer investment options than you could find elsewhere. But on the other hand, you get the comfort of knowing you're dealing with a steady and reliable provider, and perhaps most importantly, can access a level of personal support that only the largest financial institutions, with countless outlets across the US, can provide. 

What is also in Merrill Edge's favor is a phenomenal research and knowledge center, perfect for those new to investing to learn the basics and get started, but also beholden of enough information to interest advanced investors and help them develop their strategies further. The user reviews of current investors are far above average for a stock trading broker too, suggesting you won't be disappointed in the service that you receive. 

4. Fidelity Investments: Best for family and future planning

Fidelity Investments Review

(Image credit: Fidelity Investments)

Fidelity Investments

Fidelity Investments offers a complete stock trading option for investors of all kind.

Account minimum amount: None | Commission fee: None | Account fees: Some fees may apply | Investment products: Mutual Funds, Retirement & IRA, trading, stocks, fixed income, bonds & CDs, ETFs, options, sector investing, savings

No commission charges
Lots of research and information
Good customer service
Website is a little dated

Fidelity Investments stands out as a family-friendly, future-focused stock trading platform designed to help people better plan for what might lay ahead. To this end, Fidelity offers some diverse stock options and portfolios that can be used by people of all trading skill level to improve their finances and investments. 

Better looking websites may be available elsewhere, but few can rival the wealth of digital offerings, research, tools and services that Fidelity have designed to make your life easier and your investments more efficient. Regular nationwide recognition for its customer service certainly shouldn't be overlooked either, making Fidelity a great broker to consider if you want to work with a company that can help customize your investments in line with your future plans. 

5. TradeStation: Best for expert investors

TradeStation Review

(Image credit: TradeStation)

TradeStation

TradeStation offers portfolio depth for more experienced traders.

Account minimum amount: $2000 on TS Select account, zero on other accounts | Commission fee: None | Account fees: Some fees may apply dependent on account | Investment products: Stocks, ETFs, Options, Futures, Futures Options, Crypto, IPOs, Mutual Funds, Bonds

Well-designed platforms and tools
Advanced tools and services
Maybe not for beginners
Pricing not always clear

TradeStation is a solid and dependable online stock trading platform with a rich history that spans more than 30 years. Nowhere is this better reflected than in its services and offerings, and the sophisticated approach that it takes to investing and trading. For this reason, TradeStation is a great choice for the more sophisticated investor, who more-than-likely knows what they are doing, but are perhaps on the look out for the next trading edge. 

Unsurprisingly, the advanced tools and services are excellent, and there's an almost unrivaled knowledge hub from which to learn more about the techniques required to become the savviest of investors. The customer reviews are great and there's understandably an array of investment options on offer too. Given the tendency to cater more towards the expert trader, novices might find the website a little too much to cope with if you're just getting started. However, for the more experienced investor, there's everything you would hope for and probably more besides. 

6. Zacks Trade: Best for personalization 

Zacks Trade Review

(Image credit: Zacks Trade)

Zacks Trade

Zacks trade is the perfect stock trading platform for making investments your own.

Account minimum amount: $2500 | Commission fee: Dependent on trade and option | Account fees: Some fees may apply dependent on account, no inactivity or maintenance fees | Investment products: Stocks, ETFs, Options, Mutual Funds, Corporate bonds, Government Bonds

Intelligent trading platform
International trading available
Well-designed website and interface
Fees are high 

Zacks Trade offers all the stock trading investment options that any experienced investor is likely to require. The platforms are feature-rich, the research functions are in-depth and the investment tools are highly advanced, but perhaps what stands out most - particularly when considered against its rivals - is the option of free broker-assisted trading. The need to pay a minimum account fee and a number of smaller fees provides some balance, but it is a service that will undoubtedly appeal to some. 

Elsewhere, Zacks Trade is renowned for good customer service – you can call during office hours or make use of the support center to manage your account seamlessly. That said, it is probably still a better option if you know what you're doing investment wise, but want the choice and tools capable of taking you to the next trading level. 

7. Interactive Brokers: Best for investment options

Interactive Brokers Review

(Image credit: Interactive Brokers)

Interactive Brokers

Interactive Brokers offers advanced trading tools ideal for experienced investors.

Account minimum amount: None on both IBKR Pro and Lite | Commission fee: Dependent on account and location | Account fees: Monthly activity fee if you drop below a certain threshold on Pro | Investment products: Stocks, Options, Futures, Forex, Metals, Bonds, ETFs, Mutual Funds, EFPs, Hedge Funds, Robo Portfolios

Lots of investment product variety
Lots of research
Advanced tools and support
Fee for low trading volume

Interactive Brokers offers some of the most advanced stock trading tools and investment products on the market but has plenty to offer the novice investor too. As well as being one of the few brokers to offer fractional shares, there's the Robo Portfolios option if you're happy to entrust your stock selections to an algorithm, and the Probability Lab, aimed at helping those with a less than mathematical mind.  

Traders of all levels will benefit from the technology, tools, and investment variety, while there are almost 50 educational courses on offer, should you want to further your knowledge. In terms of cost, Interactive Brokers is one of the most competitive online stock trading brokers around, and there's a trial option allowing you to check out the platform options for free. 

What is an online stock trading broker?

A stock broker is a person or company that has the license to buy and sell stocks through the market exchanges. While stock trading was previously difficult for those short of time to have in-depth discussions with brokers or the money to pay for the associated investment costs, online stock trading has made investing the most accessible it has ever been and more affordable too. When choosing a stock broker, there are generally two choices:

A full service stock broker
These are the more traditional stock brokers that have physical offices. They offer a range of services beyond the ability to trade stocks on the exchange, such as retirement planning help, tax tips, and guidance on what stock to buy and sell.

An online stock broker
Online stock brokers provide the opportunity for a discounted experience of trading stocks on the market exchange. While online brokers don't usually offer the wide range of services typically available from traditional broker firms, the best online stock brokers might offer greater access to investment research and tools, and also educative material to help develop stock trading understanding and techniques. 

How to buy stock online

Online stock trading companies make trading stock a very simple process. The first step is to set up an online brokerage account on the platform or website you are going to use to trade stocks. After your account has been set up, you trade stock by placing the stock’s ticker code into the platform. A ticker code is a one to five digits in length and is used to identify stocks. Most online stock traders will allow you to trade stock in two methods:

Market order
This type of stock order is immediate, and placed at the current market value. If you choose to buy ten shares, you’ll exchange shares with someone selling shares in the company. This type of stock exchange is filled quickly, and usually at an extra cost. 

Limit order
A limit order allows you to place a set amount on the trade of shares, so they’ll only be exchanged at the price you’ve set. These are ideal ways to buy stocks that are not often traded. It is also an easy way for a casual investor to manage their profile, as you can set the exchange as you would like and leave it untouched until it is filled.

Online stock broker platforms for beginners

When first learning how to buy and sell stocks on the market, it is usually best to look for a platform that will support beginners. A low commission price is essential for people just learning to exchange goods. Also look for a trader with a low minimum investment amount. This way, if you discover exchanging stocks is not the investment method for you, you can stop easily with minimum losses. 

Practicing before trading for real is also a good idea, so find a stock trading broker that has a virtual stock simulator, allowing you to experience the ins and outs of trading without putting your money at risk. A wealth of educational material online is also a good indication that the stock broker is willing to support beginners and help you grow as an investor. 

How to start online stock trading

Many novice stock traders worry they have neither the time, money or expertise to start investing. Don’t worry, there are many ways to invest that require only very basic knowledge and a relatively small amount of money. If you have $500, here are some ways to invest your money:

ETFs
Exchange traded funds, or ETFs, are mutual or index funds that are traded like stocks. They have some benefits over direct investing in a mutual or index fund. For example, you only pay capital gains taxes if you trade your ETF shares. ETFs tend to have a solid rate of return, rather than the volatility of an individual stock. Many brokers also offer commission-free ETFs, so you don’t pay anything to buy the shares.

Mutual funds
If you feel like taking more risk, buying into an actively managed index fund can give you a chance at higher returns. You can buy into some mutual funds with $500 or less. Keep in mind that you pay commissions and fees, so you may be better off with a passively managed fund, which has lower fees.

Robo-advisors
Robo-advisors are automatic investment programs that use algorithms to trade a portfolio based on your risk tolerance and investment goals - effectively, they are a hands-off way to manage your assets. Most robo-advisors don’t have minimum investments, but for those that do, $500 is enough to start an account. Most online stock trading brokers have their own robo-advisor offerings.

How do robo-advisors work?

A robo advisor will ask you a set of questions about your income, risk tolerance, and investment goals. Based on your answers, the robo-advisor uses an algorithm to suggest investments, create a diversified portfolio and manage it. Some of these automated stock trading platforms also rebalance your portfolio and use tax harvesting to lower your liability to the IRS. 

Why use a robo-investor? 

The advantages of a robo investor include: 

Low Fee Stock Trading
The automated approach allows for a more competitive cost as all the work is done by software. 

Conflict Free
While they shouldn't, human stock brokers may feel pressured to sell a specific product to clients, maybe if they have certain financial deals in place with certain companies. A robo-investor will never act in it’s own best interest over yours. 

Lower Minimum Investment
The minimum investment needed for a robo-investor is as low as $500. This means it is a lower commitment to invest than conventional financial advisors. 

Always Available
Robo-investors are always there when you need them, and you don’t have to wait on line listening to hold music to get the help you need.

What to look for in an online stock trading platform

There are a number of official and professional regulations that an online stock broker will belong to if they are to be considered safe and trustworthy. These include the Securities Investor Protection Corporation (SIPC) and the Financial Industry Regulatory Authority, with confirmation of membership normally easily found on any stock trading brokers website. If a broker is offering additional services such as a checking or savings accounts they should also be fully covered by the Federal Deposit Insurance Corporation (FDIC)