Charles Schwab is a juggernaut among financial services firms. Across all its various arms—its brokerage business, banking, wealth management, investment products, consulting, and more—it has amassed more than $6 trillion under management.
One of the pillars of this financial institution is, of course, its Schwab brokerage offering. More than 34 million people invest through Charles Schwab—including via the TD Ameritrade platform, where customers are currently being merged into Schwab—making it one of the most popular investment platforms on the planet.
It should be! Schwab brokerage accounts provide access to a wide array of investment products, boast numerous features, and allow you to invest in thousands of stocks, exchange-traded funds (ETFs), and mutual funds without paying a cent in commissions.
Yet, many more millions of people don’t invest with Schwab. And it’s not for no reason. For as good an all-around offering as its brokerage platform is, it’s not necessarily the best venue for every type of investor.
Today, we’re going to explore some of the most popular Charles Schwab alternatives. We’ll talk about what Schwab does well as an investment platform (and where it falls short), and explain when and why other alternative brokerages and investing apps might make more sense.
Best Charles Schwab Alternatives—Top Picks
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Best for Active Investors and Options Traders
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Best for Beginner Stock Traders
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Self-Directed + Robo-Advisor Broker
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4.5
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4.5
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4.4
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Commission-free equity trading.
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Commission-free trading. Robinhood Gold: Free 30-day trial, then $5/mo.
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Commission-free equity trading.
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About Charles Schwab
Charles Schwab is a U.S.-based brokerage and banking company founded in 1971 as a traditional brokerage company and then as a discount brokerage service in 1974. It is headquartered in San Francisco, California, and operates primarily throughout the United States, but also has international operations. The firm is the largest publicly traded investment services firm with more than $6 trillion in assets.
Schwab offers a wide range of financial services, such as investment advice and management, trading services, financial planning, banking services, workplace and individual retirement plans, annuities, and more.
Of course, today, we’re focused on Schwab’s investing app experience.
Schwab caters to beginners and experts alike, providing them with the ability to trade stocks, exchange-traded funds (ETFs), mutual funds, bonds and other fixed-income products, options, money market funds, and futures. The software itself offers up features such as real-time quotes and charting, the Idea Hub (a trade-idea generator), options chains, fundamental research, and more.
It also offers StreetSmart Edge, a trading platform suitable for day traders. StreetSmart Edge provides traders with screeners and watchlists, customizable layouts, the All-in-One Trade Ticket, and the interactive Trade & Probability calculator, among other features.
Like with other brokers’ mobile apps, the Schwab app isn’t as full-featured as the desktop app or browser versions—but it’s no slouch, either. Regular investors get the basic trading, research, and news functions they need, while traders enjoy features such as multi-leg options orders and interactive charts. And if you need just a quick glance at the market, raise your wrist—the Schwab app is integrated with Apple Watch, too.
Why You Might Consider Charles Schwab Alternatives
Given all those pros of Schwab brokerage accounts, why would an investor look elsewhere?
Schwab doesn’t have much in the way of direct weaknesses. One glaring shortcoming, to some, is the inability to trade cryptocurrencies directly—Schwab only allows you to buy through thematic or coin-based ETFs, or, if you have a futures account, crypto futures. Also, its Schwab Bank Investor Savings account doesn’t offer nearly the income potential as most high-yield savings accounts—but you can still get competitive yield by investing unused cash in Schwab’s money market funds.
Other reasons why people might not invest in Schwab? Several free investing apps offer similar quality. Some investors are attracted by generous offers of free stocks and other sign-up bonuses. And in some cases, Schwab simply isn’t the right fit.
While an excellent all-around app, Schwab doesn’t necessarily hit all the right notes for certain types of investors. More advanced traders and day traders, for instance, might be better served with other platforms—same goes for beginners, and as mentioned before, for crypto investors, too.
Below, we review several Charles Schwab alternatives that might make sense depending on what kind of investor you are. They might be better overall platforms in some cases—in other cases, they might not, but they might better serve a specific type of investor.
Best Charles Schwab Competitors
1. E*Trade (Ideal Schwab Alternative for Intermediate Investors + Traders)
- Available: Click “Open Account” below
- Best for: Intermediate investors
- Platforms: Web, mobile app (Apple iOS, Android)
E*Trade has long been seen as a leading stock trading app for retail investors, and it’s one of Schwab’s top competitors. It allows you to invest in a wide array of assets, and it provides educational resources that will help you with investment research, portfolio analysis, and building a diversified set of holdings.
E*Trade, like most of the best stock investing apps, offers zero-commission stock, ETF, and options trading (though options still incur a 50- to 65-cent contract fee). It also has a leg up on some platforms by offering $0 commissions on mutual fund, Treasury, and new-issue bond trading. Investors also have access to futures, micro futures, and futures options, among other investment types.
If you use E*Trade, you’ll do so via one of two platforms—both of which are free, and both of which have web and mobile versions:
Power E*Trade
Power E*Trade is designated for more intermediate-to-advanced traders. Features include:
- Advanced charting that includes intraday and historical options; more than 100 studies; over 100 drawing tools; and the ability to automatically identify technical patterns
- Snapshot Analysis, which lays out risk-reward probabilities in your options trading
- Powerful stock and trade scanner; use preset filters or customize as you wish
- Paper trading to test out strategies without putting your money at risk
- Ability to design exit strategies
Like with the Power E*Trade web platform, the Power E*Trade app is a more powerful version of its basic counterpart. This app allows you to use preset scans, work with interactive charts, place complex options trades, and more.
E*Trade
The “basic” E*Trade web platform might be more suitable for beginning-to-intermediate traders and investors, but that doesn’t mean it’s short on features.
E*Trade’s main web platform includes everything you need to keep up to date on your portfolio, including real-time quotes, charts, market commentary, and stock news. The latter includes free access to Bloomberg TV, Thomson Reuters, and TipRanks research. Meanwhile, you’ll have ample research tools at your disposal, including stock, mutual fund, bond, and ETF screeners; trade optimizers; backtesters; and more.
Other considerations
E*Trade also touts its educational resources, which includes articles, videos, and classes, as well as monthly webinars and live events. While we wish the educational content were a bit easier to sort through, it’s a high-quality collection that will benefit investors who want to learn along the way.
Want to keep it simple? E*Trade also offers an automated investing platform, called Core Portfolios, where you can let E*Trade manage as little as $500. Answer a few questions about yourself, your goals, and your risk tolerance, then E*Trade will provide you with a suggested portfolio that you can either accept or personalize more before putting it to work. From there, E*Trade will automatically invest funds for you and manage the portfolio. Fees are 0.30% annually, or $30 on every $10,000 invested.
Read our review to learn more, or visit E*Trade and sign up by clicking “Open Account” below.
- E*Trade is one of the best online and mobile trading platforms among discount brokers, offering a full range of investments (including professionally managed accounts). It allows you to invest in stocks, ETFs, mutual funds, options, bonds, futures, micro futures, and futures options.
- $0 commission trading for online U.S.-listed stocks, ETFs, options, mutual funds, Treasuries, and new-issue bonds. (Options have a 65¢ contract fee, or 50¢ at certain volume thresholds.)
- Opening an account is easy and only takes a couple of minutes.
- Bonus: Get between $50 and $6,000* when you open and fund a new brokerage account using promo code "OFFER24."
- Excellent selection of available investments
- Commission-free mutual funds and Treasuries
- Automated portfolio builders and prebuilt mutual fund and ETF portfolios
- Separate apps for power users and casual users
- Limited availability of fractional shares (only in DRIP plans or robo-created portfolio)
- No direct cryptocurrency trading
Related: 10 Best Stock Advisor Websites & Services to Seize Alpha
2. Robinhood (Ideal Schwab Alternative for Beginner Traders)
- Available: Sign up here
- Best for: Beginner traders
- Platforms: Web, mobile app (Apple iOS, Android)
Robinhood is another outstanding Schwab alternative for beginner traders.
Robinhood is a pioneer of commission-free trading, jumping into the investing public’s consciousness in 2013 when it rolled out commission-free stock and ETF trades. It remains a standout option for cost-minded investors thanks to its continued $0 commissions on stocks, ETFs, and options, as well as for its fractional trading, which allows people to invest with as little as $1.
It also boasts an intuitive interface, a gamified experience that keeps younger investors involved, and excellent educational tools. And it’s super-easy to open an account.
That said, Robinhood has also added a boatload of other features to suit a wider range of experience levels. Advanced Charts, for instance, provides simple and customizable charts with a variety of technical features. Robinhood’s Options Strategy Builder simplifies the options-trading process by helping you build a strategy based on what you expect your target stock or ETF will do in the future. Robinhood also offers 24/7 commission-free cryptocurrency trading with Robinhood Crypto (though you’ll still have to pay a spread), allows extended-hours trading, and lets users earn interest through stock lending.
Robinhood now also offers individual retirement accounts (IRAs) and Roth IRAs via Robinhood Retirement. Functionally, it comes up short compared to many other IRA providers because of its investment options. It offers just stocks and ETFs; like with its brokerage account, mutual funds aren’t available. Options aren’t currently available, though Robinhood has explicitly stated that options will be made available soon.
However, Robinhood Retirement still stands out from the pack because it’s one of the only IRA provider that offers matching funds. If you open up an IRA with Robinhood Retirement, Robinhood will match 1% of any IRA transfers, 401(k) rollovers, and annual contributions to your account—and 3% if you pay for the Robinhood Gold service ($5 per month)—typically almost immediately after you make your contribution. Better still: Any matches made on annual contributions don’t count toward your contribution limit.
(Friendly message from your Young and the Invested tax expert: The reason the IRA match doesn’t count toward your annual IRA contribution limit is because Robinhood treats it as interest income in your IRA.)
You can choose your IRA investments yourself, but Robinhood’s Portfolio Builder can also provide you with a custom recommended portfolio made up of five to eight ETFs.
Sign up for a Robinhood brokerage account or Robinhood retirement account today.
- Robinhood is a pioneer in the investing app world, offering commission-free trades on stocks, ETFs, options, and cryptocurrency, as well as one of the deepest libraries of investing educational content.
- Investing for retirement? Robinhood will match 1% of any IRA transfers or 401(k) rollovers, as well as any annual contributions*, made to your Robinhood Retirement account—and you can get a 3% match on any new contributions if you subscribe to Robinhood Gold.
- Want more advanced trading tools? Download Robinhoold Legend—a desktop trading platform with real-time data, customizable layouts, deeper asset analysis, and more—for free.
- Robinhood Gold also includes Level II market data provided by Nasdaq, higher interest rates on uninvested brokerage cash, lower margin trading rates, bigger Instant Deposits, and access to the Robinhood Gold Card (a 3% cash-back Visa credit card).
- Special offer 1: Sign up for Robinhood, link a bank account, and fund your account with at least $10, and receive a randomly selected cash amount between $5 and $200 to put toward certain fractional shares.
- Special offer 2: Earn 1% on any transfers from an external brokerage account to a Robinhood joint or individual investing account (2% if the margin balance is at least $10,000). Offer ends Oct. 27, 2024.
- Special offer 3: Robinhood Gold subscribers earn a 3% match on IRA transfers. Offer ends Oct. 27, 2024.
- Very good selection of available investments in brokerage accounts
- 1% match on rollovers, IRA transfers, and new contributions to IRAs and Roth IRAs (3% new-contribution match with Robinhood Gold)
- Automated recommended portfolios
- Intuitive interface
- Extensive educational library
- No mutual funds in brokerage or IRAs
- No robo-advisor functionality
Related: 10 Best Stock Picking Services, Subscriptions, Advisors & Sites
3. NinjaTrader (Best for Futures Trading and Free Paper Futures Trading for Beginners)
- Available: Sign up here
- Best for: Active traders specializing in day trading futures and forex (and other assets through third party brokers)
- Platforms: Desktop app (Windows), web, and mobile app (iOS and Android)
NinjaTrader is one of the oldest and best known trading platforms on the market.
Specializing in technical analysis tools, real-time analysis, and a clean, fully customizable charting experience, NinjaTrader allows you to employ a fully automated trading strategy through its own brokerage service for futures, options on futures, and forex trading. And while that might seem like a limited set of assets (especially for being mentioned as a stock trading app and platform), NinjaTrader’s other core strengths are its ability to integrate with other brokers like IBKR, Schwab (TDAmeritrade), and others for an add-on fee and its NinjaTrader Ecosystem.
This community of vendors and plugins enrich the NinjaTrader experience through offering education-rich content for free and, among other things, allows you to attach NinjaTrader to several supporting brokerages to give traders access to other markets, including options on futures, contracts-for-differences (CFDs), and equities.
NinjaTrader’s platform offers advanced charting with more than 100 technical indicators, advanced order types, automated trading, order flow analysis, streaming historical market replay, the SuperDOM (depth of market) tool, and more. The NinjaTrader desktop app is the most customizable of the platform’s versions, offering access to “thousands of trading apps and add-ons,” you can still enjoy most of NinjaTrader’s functions via its web and mobile apps.
Unfamiliar with futures trading? Anyone with an account can use NinjaTrader’s free futures trading simulator, which includes a backtesting engine that lets you use historical market data to simulate automated trading strategies and see how they would have performed.
You can download and use NinjaTrader’s platform for free, but you can reduce your commissions by subscribing to a monthly or lifetime account. Additional data does carry additional costs, however. For instance, for CME Level I top of book data (CME, CBOT, NYMEX, and COMEX), it’s $12 per month and Level II costs $41 per month for non-professional users. Professional users pay $135 per month per exchange. ICE Market data also costs $140 per month per exchange for all users.
NinjaTrader’s robust community and suite of tools have established it as a leading charting software—be it for stocks, futures, forex, or other assets. The burgeoning educational guides, video library and free ongoing webinars provide ample access to the understanding traders need to hone their craft. Plus, the platform offers an easy (and free) way to learn what the platform can offer through its SIM trading environment. Consider signing up for a NinjaTrader account and taking the service for a test-drive.
- NinjaTrader is a brokerage account offering access to futures and forex directly, and several other asset classes through integration with third-party brokers.
- The robust charting tools, technical analysis capabilities, and real-time full depth of market data empower active traders to make informed decisions.
- The NinjaTrader Ecosystem offers access to thousands of vendors and plugins and includes a comprehensive educational offering for traders to improve their understanding and execution of trades.
- NinjaTrader offers a free SIM trading environment designed to employ what you've learned from their ecosystem's educational content without risking your own money.
- If you open and fund a NinjaTrader account, you'll receive up to $250 in commission rates for trades placed within 30 days of your funding date.**
- Excellent charting and technical analysis tools
- Partial and full strategy automation
- NinjaTrader Ecosystem offers apps and add-ons
- Free SIM trading environment suitable for beginners
- Robust educational guides, videos and webinars
- Trading equities requires using a supporting broker
4. SoFi Invest (Best Schwab Alternative for Personal Finance-Focused Investors)
- Available: iOS, Android, Web
- Best for: Traders looking for an all-in-one personal finance experience
- Platforms: Web, mobile app (Apple iOS, Android)
SoFi is a multi-faceted financial company that offers everything from credit cards and savings accounts to student loans and mortgages … and they also allow you to trade and invest through its SoFi Invest app.
With SoFi Invest, you can invest as actively or as passively as you’d like.
The Active SoFi Invest Brokerage Account has no required minimum balance, charges no commissions on stock, ETF, and options trades, and its options trading is free of contract fees, too. SoFi does offer 24/7 cryptocurrency trading, too, but it charges a 1.25% markup on transactions.
The interface is still very much geared toward younger, less experienced investors—everything is focused on simplicity and ease of use, rather than an expanse of sophisticated tools. SoFi also offers budget-friendly features such as fractional shares, which allow you to invest for as little as $1. And SoFi even provides a social element, such as bringing SoFi members together at exclusive events.
Want to put your portfolio on autopilot? SoFi’s robo-advisory services will create a portfolio for you free of charge (that can be designed to address one or several goals) and auto-rebalance it for you as necessary over time.
And unlike many Charles Schwab alternatives with limited offerings, SoFi’s app allows you to manage a much wider range of financial services and products, such as banking, student loans, insurance, and mortgages.
SoFi also occasionally has sign-up bonuses attached to its brokerage accounts and/or its crypto trading services, which you can read more about below. You can also visit SoFi to learn more or sign up today. You can also download the app for iOS and Android.
- SoFi Invest allows you to trade or invest in stocks, ETFs, and options with no commissions and no account minimums. You can also invest in cryptocurrency and participate in some initial public offerings (IPOs).
- Invest for as little as $1 with fractional shares.
- Free robo-advisory services, including goal planning and auto-rebalancing.
- Special offer: Fund a new account with at least $25 within 30 days of opening an account, and receive $5, $10, $25, $100, or $1,000 worth of stock. (Prize level awarded at random.)
- Good selection of available investments
- No options contract fees
- DIY and automated investing options
- Fractional shares
- No mutual funds
- Limited trading tools
- No tax-loss harvesting
- No socially responsible robo-advisor functionality
- Higher-than-average cryptocurrency trading fees
Related: 15 Best Investing Research & Stock Analysis Websites
5. TradeStation Select (Best Schwab Alternative for Advanced Traders)
- Available: Sign up here
- Best for: Advanced traders, options and futures traders, active stock traders
- Platforms: Desktop app (Windows), web, mobile app (Apple iOS, Android)
TradeStation Select is an excellent alternative to Schwab if you’re an advanced trader or day trader. TradeStation’s powerful trading system includes a full-featured desktop app, a robust web trading platform, and a highly rated stock trading app—all of which include numerous tools for trading stocks that are useful to seasoned professionals.
Much like every other online discount broker found on this list, this free stock trading app helps traders avoid commissions. Specifically, TradeStation offers zero commissions on stocks, exchange-traded funds, options, futures, micro futures, and futures options.
But the reason traders opt for TradeStation over Charles Schwab isn’t just the cost—well, lack of it—but its advanced trading features and services.
What makes TradeStation different?
TradeStation is one of the most high-powered stock trading platforms on this list. That’s because opening a TradeStation brokerage account provides you with free access to the TradeStation Analytics platform, which includes advanced trading tools such as:
- Matrix: TradeStation packs market depth, advanced order entry, and order tracking all in a single window, then combines it with one-click trading and extremely fast order execution. TradeStation calls it the “Swiss Army Knife of trading tools,” and it’s an apt description.
- RadarScreen: Identify trading opportunities with RadarScreen, a real-time screener that can monitor as many as 1,000 tickers. You can also use RadarScreen to rank those stocks based on your own custom criteria, or based on more than 180 preset (but customizable) fundamental and technical indicators.
- OptionStation Pro: This app provides a more visually appealing, and easier-to-understand, method of exploring the options markets. You can build option chains, model options positions with 3D graphics, and quickly place your trades.
- EasyLanguage: Want to take your trading to the next level? Create your own trading tools, indicators, even applications, with this trading-focused programming language—a language TradeStation already uses in every one of its indicators, strategies, and user functions.
(Note: Even if you don’t use TradeStation as your trading platform, you can still access TradeStation Analytics for $99 per month if you’re a non-professional trader, or $199 per month if you’re a professional trader.)
Other trading features include a simulated trading mode that allows you to test out trading plans without putting your funds at risk, backtesting, and customizable charting.
A passive feature of note is the Fully Paid Stock Lending Program. Through the program, you can allow TradeStation to lend out fully paid or excess margin securities, and in exchange, they’ll pay you a portion of the interest TS earns each day.
Other considerations
TradeStation is one of the best stock trading apps for advanced traders, but even experts might need a hand every now and then—and less experienced traders very well might need assistance. Fortunately, TS offers personalized support from the company’s brokerage professionals.
While TradeStation is commission-free, it’s hardly cost-free. For instance, all stock options trades still require a 60-cent contract fee. Futures trades are charged $1.50 per contract per side, micro futures trades are charged 50 cents per contract per side, and futures options are charged $1.50 per contract per side. Margin rates, currently in the double digits, are high compared to peers. And mutual fund fees are a steep $14.95 per trade—no big deal for traders, who likely would avoid them anyways, but a hurdle for anyone looking to buy and hold mutual funds in their TS account.
And let’s be clear: Beginning traders could be overwhelmed by this service, which caters to extremely active and experienced traders who use the trading platform primarily for its research tools and advanced trading tools.
Regardless, TradeStation’s top-of-class trading tools (and a wide variety of ways to access them) makes it one of the top Charles Schwab alternatives for advanced traders on this list. Intermediate users should be able to make plenty of hay on this platform, too. So if you’re interested, visit TradeStation to sign up for an account or get more information.
- TradeStation is a powerful trading platform that allows you to invest in a wide array of products, including stocks, ETFs, mutual funds, options, bonds, forex, futures, micro futures, and futures options. You can also participate in IPOs through TradeStation.
- The platform comes equipped with trading and investing tools that are useful to seasoned professionals and new traders alike. Identify trading opportunities, explore option markets visually, even create your own trading tools with TradeStation's proprietary programming language.
- TradeStation's brokerage services and trading education resources are recognized by respected industry reviewers.
- Excellent selection of available investments
- Professional trading features and capabilities
- Intuitive trading interfaces and tools
- Competitive pricing for trading volume
- Varied and confusing fees for specific actions/events
- Mac users can only run TradeStation desktop platform through a Windows emulator
Related: 7 Best Wealth + Net Worth Tracker Apps [View All Your Assets]
6. eToro (Best Schwab Alternative for CopyTrading)
- Available: Sign up here
- Best for: Beginner traders
- Platforms: Desktop app (Windows, macOS), web, mobile app (Apple iOS, Android)
Most trading apps keep you in one place: Your account. But eToro wants to change that.
eToro has made investing social by giving you the chance to engage with other traders, creating a social trading network designed to share ideas on the publicly traded markets. You can trade stocks, exchange-traded funds (ETFs), and options commission-free, and you can also get exposure to cryptocurrencies. (In non-U.S. markets, you can also trade currencies, as well as contracts-for-difference, or CFDs.)
eToro is known for its CopyTrader service—a novel product that allows you to copy the trades of experienced investors automatically. No more guesswork on making trades yourself; you simply follow the leader and let the app handle the legwork for you. While this might not interest advanced traders, it’s an appealing feature for beginners looking to replicate the performance of popular traders on the platform. (Editor’s Note: Even though this can make for a fun trading experience, you should still be fully aware of the risks entailed through this feature—namely, the potential for losses.)
Of course, you don’t have to copy anyone—you can trade on your own ideas. This intuitive investing app began with a strong crypto focus, but you can now make self-directed trades across a host of other assets.
In addition to offering access to thousands of stocks and hundreds of ETFs, it also allows you to invest directly in dozens of cryptocurrencies—something Schwab doesn’t offer. When you trade crypto with the platform, you’ll encounter an industry-standard spread of 1%. Of particular interest to options traders, eToro charges no options contract fees in the U.S. Investors can also use the app to understand environmental, social, and governance (ESG) scores through their user-friendly “traffic light” color scheme: green means the company is a leader in its sector, yellow indicates average, and red means the company scores poorly relative to sector competitors.
Lastly, if you’d like to invest based on a specific theme or strategy, eToro offers Smart Portfolios. These are fully allocated, balanced portfolios, investing in various market segments, that are backed by professional research and various risk management rules. You only need $500 to participate in Smart Portfolios, and you pay no management fees.
And for people interested in testing the waters without opening their wallet at the start, eToro offers a free Demo Account that comes with $100,000 in virtual money to test your trade ideas.
Opening an account is quick and simple to do. Simply visit eToro’s website to open and fund an account. From there, you get access to their commission-free trading platform for stocks, ETFs, options, forex and crypto.
- The eToro trading platform allows you to buy and sell stocks, ETFs, and options with 0% commission, including no contract fees on options.
- Trade dozens of the most popular cryptocurrencies.
- Not sure what kind of trading strategy you want to employ? eToro allows you to replicate the trades of popular traders automatically, in real time.
- Test out your strategies with eToro's $100,000 practice account.
- $100 minimum deposit to get started.
- Special Offer: Get $10 when you deposit $100 or more.*
- Good selection of available investments
- No options contract fees
- Fractional shares
- Copy trading functionality
- Strong technical analysis tools available
- $100,000 virtual portfolio included for free
- Charges withdrawal fee ($5)
- Doesn't offer robust fundamental tools
- Unavailable in 4 U.S. states (NY, NV, HI, and MN)
Related: 15 Best Stock Research & Analysis Apps, Tools and Sites
7. Webull (Ideal Schwab Alternative for Intermediate Investors + Traders)
- Available: Sign up here
- Best for: Self-directed investors and intermediate traders
- Platforms: Desktop app (Windows, macOS, Linux), web, mobile app (Apple iOS, Android)
Webull first hit the investing world in 2018 and made a splash by offering free stock trading, as well as commission-free trading of exchange-traded funds (ETFs) and options. And since then, it has become one of the best stock apps for intermediate traders and investors, though many of its features are helpful to beginners as well.
For one, Webull remains friendly to wallet-conscious traders today. It costs nothing to open a Webull account. Stocks, ETFs, and options still trade without transaction fees. Many options have $0 contract fees. And Webull has no deposit minimums. On top of that, it offers fractional shares, which allows investors to start buying for as little as $1. So beginners working with small dollar amounts can still easily diversify across numerous investments.
Newer investors can also learn trading skills through the courses in Webull’s education center, and even practice their skills via Webull’s paper trading service.
And Webull is available across just about every platform, allowing you to research, trade, and track your stocks on your smartphone, tablet, or desktop.
Why choose Webull to trade stocks?
Webull provides investors with several useful features and advanced trading tools, including:
- Customizable screeners for both stocks and ETFs
- Preset lists–including Top Gainers, Top Losers, Most Active, and Best-Performing Industries—investors can use to identify opportunities
- Voice commands: Simply speak to buy, sell, or look up information about a ticker
- “Big Button Mode”: Populates giant buttons on your screen that allow you to quickly make trades with just a push.
- Charting tools
- Free real-time stock quotes and stock alerts
We’ll point out that while Webull allows for many types of commission-free trading, other costs will still apply to a few transactions. For instance, a 55-cent contract fee applies to certain options trades. And Webull doesn’t directly charge fees for trading cryptocurrencies; however, it does build a 1-percentage-point markup into the price of cryptocurrency when you buy or sell crypto.
One particularly noteworthy shortcoming for investors is that you can’t buy mutual funds on Webull. Yes, ETFs offer a wide array of diversified strategies, but the mutual fund world offers some cheap index funds and many successful actively managed strategies.
Regardless, Webull remains one of the best, and most cost-friendly, Charles Schwab competitors you can come across. And on top of all the free features mentioned above, Webull also runs frequent promotions that allow investors to collect free stocks.
Read more in our Webull review, or sign up at Webull today.
- Webull is a low-cost trading and investing app that allows you to invest in stocks, ETFs, options, and crypto, and participate in initial public offerings (IPOs). Webull has also expanded its U.S. offerings to include futures and commodities trading.
- Commission-free trades on stocks, ETFs, and options.
- Trading features include charting tools, technical indicators, customizable screeners, real-time stock alerts, and group orders.
- Let Webull manage your money for you with Webull Smart Advisor, which combines Webull's in-house investment expertise and artificial intelligence to build, manage, and rebalance an ETF portfolio for you.
- New users also get one free month of Nasdaq TotalView's Level 2 Quotes service. (That subscription costs $2.99/mo. thereafter.)
- Sign up for Webull Cash Management to earn a 5.0% APY without fees or minimums.
- Special offer: Open an account and deposit at least $500 to receive 20 free fractional shares, collectively worth between $60-$90,000.*
- Good selection of available investments
- Fractional shares
- Powerful technical analysis tools
- Offers robo-advisory services
- Accessible to beginning and intermediate users
- Voice commands
- Offers highly competitive APY through Webull Cash Management
- Does not support mutual funds
Related: 11 Best Stock Trading Apps [Free + Paid]
8. Vanguard (Best for Vanguard Fund Investors)
- Available: Sign up here
- Best for: Basic trading options with cheap mutual fund investing
- Platforms: Web, mobile app (Apple iOS, Android)
Vanguard has long been regarded as the low-cost index fund investing service provider. In fact, in 1975, John Bogle launched the first U.S.-listed index fund available to retail investors. Now, Vanguard offers numerous dirt-cheap index products in both its mutual fund and exchange-traded fund lineups.
But Vanguard also offers low-cost investing, and no account minimums, through its brokerage and other accounts. That means commission-free trading not just on Vanguard products like VTI or VTSAX, but also on stocks, all other ETFs, and all no-transaction-fee mutual funds. But investors and traders still shoulder some costs. Unless you have more than $1 million in your account, transaction-fee mutual funds cost $20 per trade. And if you have a higher risk tolerance, you can trade options on Vanguard—but while commission-free, you’ll still incur a $1 contract fee on options trades.
Vanguard’s web and mobile versions are very much geared toward beginning investors, though the latter is better-designed. The web version can be downright clunky at times, and it can be difficult to access some of the features. I used to use the app to manage my work’s 401(k) plan, and I’ll admit to its bloat and lack of clarity on calculating investment returns on a percentage basis. The mobile apps run more smoothly, and I like the secure two-step login. But certain features, such as price alerts, aren’t available on mobile.
My main beef with Vanguard’s apps is that they make it difficult to measure the performance of individual holdings. All that said, Vanguard might have made this by design, incentivizing you to check your funds less often and thus living by their buy-and-hold ethos.
Still, if you’re a beginner who’s not sure if you’ll be more into trading, or more into long-term investing, a Vanguard account is a good place to start.
- Vanguard's low-cost mission continues through its commission-free brokerage and other investment accounts. Invest in stocks, ETFs, and Treasuries with zero commissions.
- Pay $0 to trade Vanguard mutual funds and no-transaction-fee mutual funds.
- Want to trade options? You can do that on Vanguard, too.
- Vanguard's mobile app is simple and easy to understand.
- Good selection of available investments
- Commission-free Treasuries
- Some commission-free mutual funds
- Can purchase fractional shares of mutual funds
- Can optimize your portfolio with Vanguard Portfolio Watch
- Limited investing and research tools
- Somewhat clunky web interface
- High options contract fees
- Limited features on mobile app
- No fractional shares of stocks or ETFs unless reinvesting through a DRIP plan
Related: The 10 Best Vanguard Funds for Everyday Investors
9. Tastytrade (Schwab Alternative With Live Trading Video Feed)
- Available: Sign up here
- Best for: Traders
- Platforms: Web, mobile app (Apple iOS, Android)
Tastytrade is an award-winning, self-directed brokerage started by the original founders of the famous thinkorswim trading platform, which was purchased by TDAmeritrade and subsequently bought by Charles Schwab.
The service offers competitive commissions on the usual suspects: stocks and ETFs, but also on options ($1/trade on stock and ETF options), futures, options on futures, commodities, indices and cryptocurrencies (1% commission on trade volume up to a $10 cap).
The platform offers the chance to experience cutting-edge, game-changing technology that anticipates next generation needs from traders. And one of the ways Tastytrade excels is their charting tools. They’re robust, interactive tools with over 250 available technical studies traders can use to analyze price and volume action in securities they follow. Traders can detach chart windows from the main trading screen to spread across a multi-monitor setup to keep eyes on several securities at once. Further, the stock charts allow for near endless customization so each trader can have the individual setup best suited to their needs.
The service aims to fix “trader’s block,” or the trader’s equivalent to writer’s block. It offers the ability to track traders on the platform and engage in video-feeds with other people to discuss all things markets. The service also partners with Tastylive, a financial news network entirely focused on talking shop about trading. Tastytrade says the services, when combined, can “transform you from a timid beginner to a confident, everyday trader.”
If you’re new to Tastytrade, they have ongoing incentives to make signing up for an account worthwhile. Learn more by visiting the Tastytrade site, opening an account and seeing if the trading platform’s stock charts handle your needs.
- Tastytrade is a self-directed brokerage offering stocks, ETFs, options, crypto and futures trading.
- Company started by original founding Thinkorswim team.
- Relies on competitive rates and cutting-edge technology to empower individual retail traders.
- Deposit Bonus: Get $50-$5,000 when you open and fund a new account with Referral Code "MYNEWBONUS".*
- Low trading costs, especially for higher volume traders
- Intuitive and easy-to-use trading platform
- Strong research and analytical tools
- Education-focused platform with live programming
- Fee structure favors more active traders
- Limited tradable products
- No interest on idle cash balances
- No mutual funds offered
10. Interactive Brokers (Best Charles Schwab Competitor for Day Traders)
- Available: Sign up here
- Best for: Advanced and professional traders seeking low margin rates
- Platforms: Desktop app (Windows, macOS), web, mobile app (Apple iOS, Android)
Interactive Brokers, founded in 1978, is one of the largest U.S. electronic trading platforms, offering traders access to stocks, bonds, funds, options, cryptocurrencies, forex trading, futures trading and more.
It’s also another excellent Schwab alternative for day traders. IB’s Trader Workstation (TWS) is Interactive Brokers’ flagship desktop program—a trading platform with roots back to 1995. But since then, the company has launched a number of other access points for brokerage accounts, including:
- IBKR Mobile: A powerful mobile platform for iOS and Android that allows people to trade on the go
- IBKR GlobalTrader: A simplified app for iOS and Android that targets global traders, allowing deposits in up to 23 different currencies
- Client Portal: A lighter web-based platform allowing clients to manage their account, evaluate performance, and read market news
- IBKR EventTrader: A web-based platform allowing investors to trade “event” contracts (yes-or-no questions like “Will the S&P 500 Index close above 3,900 today?”)
- IBKR Impact: A mobile app that helps investors select holdings most in line with their values.
But Workstation remains the workhorse, serving as one of the top Charles Schwab alternatives for traders looking for advanced trading tools. The platform supports investments across 150 global markets, and offers a wide variety of features, including real-time monitoring, risk management tools, paper trading—all packaged under a heavily customizable layout.
While TWS users can still select the original view, they can build their own bespoke view through Mosaic. Functions such as stock monitoring, order entry, charts, and more appear as “tiles,” sized and arranged however you want them, and you can save custom layouts designed for one or more monitors.
Trader Workstation also lets investors:
- Create example watchlists
- Use preset scans or build your own
- Create real-time trading alerts using price, time, margin, and volume
- Access more than 100 order types and algorithms to execute better trades
- Read breaking news from Reuters, Dow Jones, and other financial news outlets
- Access to third-party investment research and free stock reports from Morningstar, Zacks, and other firms
Interactive Brokers offers two primary plans—IBKR Lite and IBKR Pro—and both have no account minimums and zero maintenance fees. They also provide investors with access to many of the same features, including the Client Portal, Trader Workstation, and IBKR Mobile platforms; advanced order types; fractional shares of U.S. and European stocks and ETFs; paper trading; and Risk Navigator, which evaluates your risk in single positions or across your entire portfolio.
IBKR Lite is most suitable for beginner and intermediate investors, offering unlimited commission-free U.S.-listed stock and ETF trading, and fixed pricing for non-U.S.-listed stocks and ETFs, mutual funds, options, and futures.
IBKR Pro, meanwhile, is meant for advanced investors and active traders. While it does charge commissions on even U.S.-listed stocks and ETFs, it provides better execution for trades via its IB SmartRouting, which seeks out the best available prices for stocks and options across exchanges and dark pools—possibly resulting in lower spreads that offset the commissions you pay. It also offers better margin rates than Lite, though both platforms’ rates are among the best on offer.
Pro also offers some features not available on IBKR Lite, including higher interest paid on idle cash balances, lower interest charged on margin loans, backtesting, and access to IBKR APIs, which allow you to build your own custom trading applications and even develop commercial trading software—features often used by hedge funds, Registered Investment Advisors (RIAs), and proprietary trading firms.
We should note that IBKR’s rating does get dinged (by both us and app-store users) for its sometimes buggy mobile-app experience. But the desktop app is a mainstay among advanced and professional traders.
You can visit Interactive Brokers to sign up or learn more.
- Trade stocks, bonds, ETFs, mutual funds, options, cryptocurrencies, foreign exchange, futures, micro futures, and futures options using the powerful legacy Trader Workstation desktop software or IBKR's web and mobile platforms.
- No account minimums, no maintenance fees with both IBKR Lite and IBKR Pro.
- Commission-free stock and ETF trading with IBKR Lite.
- Optimized trade execution and higher interest on cash balances with IBKR Pro.
- Access features including watchlists, preset or customized stock scans, real-time trading alerts, advanced order types, and news and research from numerous leading providers.
- Excellent selection of available investments
- Extremely feature-rich desktop (Trader Workstation) and app (IBKR Mobile) platforms to satisfy even the most advanced traders
- Below-average options contract fees
- Trader Workstation Mosaic view is versatile and highly customizable
- Robo-advisory services are available through Interactive Advisors
- Mobile app can be buggy, difficult to navigate, and sometimes has long load times
Related: 12 Best Investment Opportunities for Accredited Investors
Who Are Charles Schwab’s Competitors?
Charles Schwab has faced several competitors over the years, first with traditional brokerages like Merrill Lynch and Morgan Stanley in the 1970s through the early 1990s, Fidelity Investments starting in the 1990s, and then discount brokerages like TD Ameritrade and Interactive Brokers in the 2000s and eventually apps like Robinhood in the 2010s onward.
Charles Schwab and its competitors have grown considerably as discount brokerages lowered the price of entry into the market through reduced commissions and transaction fees. The companies continue to grow, vying for each other’s customers and attracting new ones who invest money for the first time.
Related: 12 Best Stock Trading Apps + Platforms for Beginners
Can You Invest in Charles Schwab Funds Through Charles Schwab Alternatives?
The answer: It depends.
A few of the Schwab alternatives mentioned above don’t offer any access to mutual funds, so you wouldn’t be able to access Schwab mutual funds from those platforms—though Schwab ETFs would almost certainly still be supported.
Where mutual funds are allowed, you should be able to access most Charles Schwab mutual funds. But you’ll want to check the broker’s commissions—you might be able to buy them commission-free, but you might not.
Also, many Charles Schwab money market funds won’t be available to you unless you invest through Schwab. This is typical—major brokerage houses often limit availability mostly to their own in-house money market funds.
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