The world of online brokerages has changed in the last decade. Discount brokers have become the norm with their basement busting pricing, while the full-service broker has become more of a rarity as a means for handling all your investment needs in one place.
Discount brokers offer you access to the stock market without paying trading fees, allowing you to have commission-free stock, ETF, options and cryptocurrency trading.
Learn more about the best discount brokers and brokerage accounts available online.
Best Online Discount Brokerage Firms—Our Top Picks
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Best Stock Trading App for Beginners
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Leading Multi-Asset Discount Broker
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Best Trading Platform for Low-Margin Rates
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4.5
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4.5
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4.6
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No commissions on equity trades. Robinhood Gold: $5/mo., free 30-day trial.
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No commissions on equity trades.
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IBKR Lite: No commissions on equity trades. IBKR Pro: Minimal commissions*.
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Best Discount Brokers and Online Brokerage Accounts
| App | App Store Rating + Best For | Fees | Promotions |
|---|---|---|---|
 Robinhood | ☆ 4.2 / 5 Basic stock, crypto and ETF investing | No-commission stock and ETF trades | Bonus stock with sign up (valued between $5 - $200) |
 Webull | ☆ 4.7 / 5 Self-directed investors and intermediate traders | No-commission stock and ETF trades | 20 bonus stocks with qualified deposit (valued between $60 - $60,000) |
 TradeStation | ☆ 4.5 / 5 Advanced traders, Options and Futures traders, Active stock traders | No-commission stock and ETF trades | None |
 Public.com | ☆ 4.7 / 5 Social theme-based investing interests | No-commission stock and ETF trades | None |
 SoFi Invest® | ☆ 4.8 / 5 Investors looking for robo-investing already using SoFi’s other personal finance products | No-commission stock and ETF trades | Bonus stock (valued between $5 - $1,000) |
 Interactive Brokers | ☆ 3.9 / 5 Low margin rates | No-commission stock and ETF trades | None |
 M1 | ☆ 4.7 / 5 Fee-free active trading and automated investing | No-commission stock and ETF trades | None |
 Axos Self-Directed Trading | ☆ 4.7 / 5 Current Axos Bank customers looking for a basic trading solution or Axos customers seeking premium research and attractive active trading capabilities | No-commission stock and ETF trades | None |
 E*Trade | ☆ 4.6 / 5 Options traders | No-commission stock and ETF trades | Account bonus commensurate with contributed funds |
 Vanguard | ☆ 4.7 / 5 Basic ETF investing | No-commission stock and ETF trades | None |
 Acorns | ☆ 4.7 / 5 Investors in college looking for a complete personal finance solution; Roth IRAs | $3/month - $12/month | $20 bonus when you set up recurring investments and make your first successful recurring investment |
| *Apple App Store Rating as of Dec. 12, 2024 | |||
1. Robinhood (Best Simple Stock Trading App for Beginners)
- Available: Sign up here
- Platforms: Web, mobile app (Apple iOS, Android)
Robinhood is a pioneer of commission-free trading, jumping into the investing public’s consciousness in 2013 when they rolled out commission-free trading. They remain a standout option for cost-minded investors thanks to their 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.
More importantly, though, Robinhood has evolved from a bare-bones app appealing to mostly beginner investors to a fuller-featured account suitable for a wider range of experience levels.
For instance, Robinhood now 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 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.
Robinhood has long catered to younger investors with its gamified interface and growing library of educational content. But over the years, it has added a boatload of other features for new and experienced investors alike. 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 Gold, which I mentioned above, is a monthly subscription service that offers several more features mostly geared toward advanced traders. Benefits include Level II market data provided by Nasdaq, a lower charged rate on margin investing than regular accounts, higher interest on uninvested brokerage cash via the cash sweep program, and bigger Instant Deposits.
If you want to keep your banking and investing close together, you can also add a Robinhood spending account. This FDIC-insured account includes a Robinhood Cash Card issued by Sutton Bank—however, if you don’t want this physical debit card, you do have the option of having a virtual debit card only. The Cash Card is compatible with Apple Pay, Google Pay, and Samsung Pay, and also provides you with access to fee-free withdrawals from more than 90,000 ATMs. The card allows you to round-up purchases and invest the money into your brokerage or crypto account.
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: 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.
- 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: 8 Best Stock Picking Services, Sites, Advisors and Subscriptions
2. Webull: Best Stock Trading App for Intermediate Traders
- Available via desktop, Apple iOS and Android App on Google Play
- Best For: Self-directed investors and intermediate traders
- Account Minimum: $0
- Sign up here
Webull first hit the investing world in 2018 by offering commissionless stock trading in addition to free trades of ETFs and options. This online discount broker allows you to trade on your smartphone, tablet or desktop, track your stocks and charges no commissions for the trades you make in your portfolio.
It also allows fractional shares for you to buy smaller portions of stocks with higher share prices.
Why Choose Webull as an Online Broker to Trade Stocks?
Webull also provides you access to several powerful tools useful for in-depth trading analysis. These easily make the service one of the best stock research and analysis apps for conducting technical analysis.
For traders, in addition to the commission-free trading and analytic tools, the discount broker offers a subscription to Nasdaq TotalView for $1.99/month, allowing you to see Level II quotes. This can help you better understand the supply and demand for a stock outside of the national best bid offer (NBBO). These advanced quotes will give you a deeper look into the market for understanding market direction and any potential supply and demand imbalances for a stock you pick.
If these brokerage account features sound attractive, the best part might also come with knowing setting up a Webull online stock broker account is free and comes with no account minimums you must meet or maintain.
If all the free listed above isn’t enough, Webull also runs frequent promotions involving receiving free stocks.
Read more in our Webull review.
- 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
3. TradeStation: Best for Intermediate to Advanced Traders
- Available via desktop, Apple iOS and Android App on Google Play
- Best For: Advanced traders, Options and Futures traders, Active traders
- Account Minimum: $0 (TS Go)
- Sign up here
TradeStation is one of the best online discount brokers for those needing a powerful stock trading platform.
The service is one of the premier online trading platforms which caters to active traders looking to leverage stock analysis tools. The platform comes equipped with brokerage services and educational resources recognized by respected industry reviewers.
Much like every other online brokerage account found on this list, the commission-free stock trading platform charges no commissions for stock and ETF trades on its TradeStation Go platform. It also assesses low fees on options and futures contracts.
TradeStation works well for its target audience: advanced, technically-minded and active traders. Beginning traders likely will be overwhelmed by this service and may even face fees.
The technical tools and screeners provided by TradeStation are all at or near the top of the class, making it the best stock trading platform for active traders looking for discount brokers on this list.
What Makes TradeStation Different?
TradeStation is one of the most high-powered stock trading platforms on this list.
The stock trading platform helps you analyze stocks, options, ETFs, futures, and more. If you open a TradeStation brokerage account, you can use the company’s robust TradeStation Analytics platform for free.
You have access to backtesting, historical intraday data, and extensive charting capabilities.
TradeStation Analytics helps you find the right opportunities in real-time, get into and out of trades, and discover hidden opportunities with technical analysis.
You can use the commission-free TS Go platform to trade stocks and monitor and rank up to 1,000 ticker symbols in real-time with access to more than 180 technical and fundamental indicators helpful in valuing a stock and identifying likely price action.
If you’d like to purchase the analytics software without using the platform for making your trades, you can pay a monthly fee of $99 for non-professionals and $199 for professional subscribers.
TradeStation Support
If you use TradeStation, you can also receive personalized, strong customer service from the company’s brokerage professionals.
Further, TradeStation provides state-of-the-art trading technology, catering to active individual and institutional traders who may or may not need support.
Consider signing up and opening your account with TradeStation.
- 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: Best Free Investing Apps That Allow You to Invest for Free
4. Public.com: Best Discount Broker for Theme-Based Investing
- Available via desktop, Apple iOS and Android App on Google Play
- Best For: New investors with limited capital
- Account Minimum: $0
- Sign up here
Public.com is another commission-free investment app that targets Millennials and Gen-Zers who have attuned their senses to social media. These age groups want to align their investing with their social preferences and keep good company to socialize and learn from others.
The stock investing app boasts an increasingly-common feature geared toward younger investors who may not have enough money to buy some higher-cost shares at one time: fractional investing. This product feature plays on the company’s mission of making the stock market an inclusive, educational investment opportunity that can be fun. They accomplish the latter point by allowing people to invest alongside friends and other well-regarded investors.
Much like social media platforms that provide the standard blue checkmark logo to verify public figures, Public.com provides visibility into trade activity and other insights these verified investors wish to provide to the Public.com community.
What Makes Public.com Different?
Unlike other commission-free discount brokers on this list, Public.com does not monetize its trading activity by receiving payment for order flow (PFOF).
In light of the GameStop market mania in early 2021, Public.com announced a change in its revenue model, breaking with how many commission-free stock apps generate income. They no longer generate revenue from PFOF and have introduced a tipping feature in the app, acting as a de facto (optional) commission. The company believes they have a responsibility to lead the industry in a different direction and no longer receive compensation for routing orders to market makers for trade execution.
With the Robinhood blow-up, we saw how this created a conflict of interest between brokerage and customer. By doing this, Public.com will better align its financial incentives with the best interests of its customers.
If this sounds like an interesting micro-investing app, open an account and make an initial deposit to see if the app meets your social and investing needs.
Read more in our Public.com investing app review.
- Public.com offers zero-commission trading on thousands of stocks and ETFs, available as fractional shares. The app also allows you to invest in cryptocurrency, and it's one of the rare brokerages that allows its users to buy alternative assets.
- Earn a 5.3% yield with Public.com's Treasury Account, which allows you to earn state- and local-tax-exempt income from T-bills.
- Use a social feed where members can share why they believe in certain companies (or don't) and can post comments on others' trades.
- Invest in curated lists of stocks and ETFs for people to aggregate investments by interest area or values.
- Subscribe to Public Premium for features such as advanced company-level data, Morningstar insights, and exclusive audio content from Public.com's expert analysts.
- Special offer: Transfer investments from another broker to Public.com and earn between $150 and $10,000.*
- Fractional shares
- Allows you to trade alternative assets
- No payment for order flow (PFOF)
- Creative social investing features
- Doesn't support mutual funds
- Limited investment research and other tools
Related: Best Online Brokers for Beginners
5. Interactive Brokers: Best Online Trading Platform for Professionals and Low Margin Rates
- Platforms: Desktop (PC, Mac), web, iOS, Android
- Best for: Professionals and low margin rates
- Account minimum: $0
- Sign up here
Interactive Brokers, founded in 1978, is the largest U.S. electronic trading platform, offering traders access to stocks, bonds, funds, options, cryptocurrencies, foreign exchange, and more.
IBKR’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 Desktop: This desktop trading platform combines the most popular tools from its flagship Trader Workstation (TWS) with new tools such as a powerful MultiSort screener and Options Lattice, as well as a growing suite of original features suggested by IBKR clients.
- IBKR Mobile: A powerful app 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. 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 news outlets
- Access research from Morningstar, Zacks, and other firms
IBKR Lite/IBKR Pro
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.
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.
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.
- Earn interest rates of up to 4.08% on instantly available cash.
- Earn extra income on your lendable shares with IBKR's Stock Yield Enhancement program.
- 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
- Share lending program
- Robo-advisory services are available through Interactive Advisors
- Mobile app can be buggy, difficult to navigate, and sometimes has long load times
Related: Best Investment Apps and Platforms to Invest
6. SoFi Invest®: Best for Personal Finance-Focused Investors
- Available via desktop, Apple iOS and Android App on Google Play
- Best For: Investors looking for automated investing already using SoFi’s other personal finance products
- Account Minimum: $0
- Sign up here: Sign up here
SoFi Invest is an app that allows you to track and trade stocks. The service is the latest from the SoFi financial wellness platform and offers commissionless trades on stocks and ETFs, and more.
The discount broker allows you to be an active trader by buying and selling offered assets daily or passive through its automated investing service.
The discount broker wants to serve all customers interested in improving their financial situation alongside participating in their other personal finance products like student loans, money management, credit cards and more.
- SoFi Invest allows you to trade or invest in stocks, ETFs, and options with no commissions and no account minimums. You can also participate in some initial public offerings (IPOs).
- Invest for as little as $1 with fractional shares.
- Robo-advisory services, including goal planning and auto-rebalancing, available for annual 0.25% AUM fee.
- Special offer: Fund a new account with at least $10 within 30 days of opening an account, and get up to $1,000 in stock.
- Good selection of available investments
- No options contract fees
- DIY and robo-investing options
- Fractional shares
- Doesn't support mutual funds
- Limited trading tools
- No tax-loss harvesting
- No socially responsible robo-advisor functionality
Related: 6 Best Stock & Portfolio Trackers [Investment Tracking Software]
7. M1: Best Brokerage Account to Automate Investing
- Available via desktop, Apple iOS and Google Android
- Best for: Passive Investors
- Account Minimum: $0 (Taxable); $500 (IRA)
- Sign up here
M1 works as one of the best stock trading apps because it provides self-directed and automated investing options according to your predetermined investment decisions. This high level of customization makes this stock trading app one of this site’s top robo-advisor picks.
Robo-advisors, which are almost exactly what they sound like, are automated investment managers who handle administrative investment actions on your behalf. Things like investing contributions, rebalancing your portfolio or making automated withdrawals.
Once you set up your portfolio, you can edit it as you wish or let the app handle all the nitty-gritty while learning how to increase your net worth with a growing account balance.
Specifically, clients can create a portfolio of stocks and ETFs tailored to their exact specifications, down to the last dollar, thanks to their ability to trade fractional shares.
However, one prominent callout before going further is that while M1 offers pre-made portfolios aligned to several investing goals, the company is not an advisory service.
That said, the firm has attracted billions of dollars in assets under management and has had over one million users on the stock trading platform since its founding in 2015—no small feat in today’s competitive brokerage account market.
Why M1?
Sophisticated investors and beginners alike can use this stock trading app to build wealth through customizing your portfolio for free, automating additional contributions and dynamically rebalancing it over time to keep your assets allocated to your wishes.
With all these benefits, this best free stock trading app has a primary selling point: an orientation toward medium and long-term investors interested in building wealth through automated diversified investing.
The robo-advisor provides the ability to buy and sell individual stocks and ETFs hence, why M1 is this site’s best passive investing platform.
Additionally, you can choose from 80+ expert portfolios or even purchase fractional shares if your target companies carry too high of a price tag. For example, if you wanted to buy an entire share of a major tech company like Google or Amazon but couldn’t float the entire cost, you could buy a fractional share.
Finally, investing with M1 can be as simple as depositing money, setting your stock and index selections and having the platform automate your investments on your behalf. This truly automates your investments if you set up recurring deposits, allowing your wealth to build.
Over time, M1 will also rebalance your portfolio in line with your stated asset allocation targets. Regular rebalancing has been shown to improve portfolio performance over time, all things equal. Consider opening an investment account with M1.
Read more in our M1 review.
- M1's Smart Money Management gives you choice and control of how you want to invest automatically, borrow, and spend your money—with available high-yield checking and low borrowing rates.
- Includes an FDIC-insured checking account and an M1 Visa debit card that delivers 1% cash back.
- Unlock perks including higher cash-back rewards on the M1 Owner's Rewards Credit Card, 4.25% APY from high-yield savings, ATM reimbursements, and 0% international fees.
- Invest in stocks, ETFs, and cryptocurrencies.
- Robo-advisor with self-directed investing capability
- Attractive cash-back and APY opportunities
- Doesn't support mutual funds
- Doesn't allow trading throughout the trading day
- Monthly fees for account balances <$10,000
Related: How to Know Which Stocks to Buy: Pick Stocks for the Long-Term
8. Axos Self-Directed Trading: Best Online Broker for Research Tools
- Available via desktop, Apple iOS and Android App on Google Play
- Best For: Self-directed investors currently banking with Axos
- Account Minimum: $0
- Sign up here
Axos Self-Directed Trading (SDT) offers no commission trading on US-listed equities—providing you with an easy-to-use platform and the tools you need to succeed.
Axos SDT also saves you time with an intuitive interface and mobile access so that you can trade anytime or anywhere.
So, how will Axos help your self-directed investing experience?
For starters, Axos SDT offers commission-free equity and exchange-traded funds as well as access to 10,000+ mutual funds.
Where Axos SDT differs from its competitors is its unified financial dashboard with its other Axos Banking products, allowing you to sync all of your accounts in one convenient place.
If you’d like to upgrade to a higher level of service, you might consider Axos Elite. This service provides:
- Instant fund access
- Lower fees
- Increased buying power with leverage
- Enhanced market knowledge through real-time market data expert insights and premium TipRanks market research
You can open individual taxable accounts, joint accounts and retirement accounts (IRAs).
- Axos Self-Directed Trading (SDT) offers no-commission trading on U.S.-listed stocks, ETFs, and mutual funds, and also allows for mutual fund trades, on an easy-to-use platform.
- Axos SDT also works to save you time with an intuitive interface and mobile access so you can trade anytime or anywhere.
- More experienced investors can upgrade to a higher level of service with Axos Elite, providing real-time market data, premium market research from TipRanks, margin trading, and lower options contract fees than Basic.
- Special offer: Receive $250 for signing up for Self-Directed Trading, depositing at least $2,000 within 60 days, and completing at least two trades ($25/trade minimum).
- Good selection of available investments
- Dividend reinvestment
- Integration with other Axos banking products
- Access to TipRanks research with Axos Elite
- High fees on mutual fund trades
- High options contract fees, even with Axos Elite account
- Limited investing tools and educational resources
Related: How to Get Rich Off Stocks [Steps to Invest in the Stock Market]
9. E-Trade: Best Online Brokerage Account for Options
- Available via desktop, Apple iOS and Android App on Google Play
- Best For: Options trades
- Account Minimum: $0
- Click “Open Account” below
E*Trade has long been seen as a leading stock trading app for retail investors. 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. 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.
Like with many zero-commission options trading platforms, though, options still have contract fees. Equity and index options are 65¢ regularly, though they’re reduced to 50¢ if you place more than 30 stock, ETF, or options trades per quarter. (E*Trade also has an options program called the “Dime Buyback Program.” If you close an equity option priced at 10¢ or less, E*Trade won’t charge you a per-contract fee.) A couple other fees worth noting are futures ($1.50 per contract) and secondary bond market trades ($1 each).
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.
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: 8 Best Swing Trade Alerts Services [Identify Profitable Trades]
10. Vanguard: Best Discount Broker for Vanguard ETF Trades
- Available via desktop, Apple iOS and Android App on Google Play
- Best For: Investors looking for a simple index fund investing app
- Account Minimum: $0
- Sign up here
Vanguard has long been regarded as the low-cost index fund investing service provider. John Bogle originated the idea of index fund investing and first offered them to retail investors as mutual funds and eventually exchange-traded funds (ETFs). The company has slashed fees over the years in a bid to outcompete other companies in the space and will always advocate for a low-fee index fund approach to investing.
Vanguard excels as a free stock trading platform when you wish to buy and sell Vanguard securities like index fund ETFs. You pay no commissions on their products like VTI or VTSAX, or VFIAX.
Vanguard recently announced it would no longer charge trading fees on competitors’ ETFs, a departure from a long-standing position. Vanguard also carries no account minimums.
What Vanguard lacks compared to some of these other apps is its clunky nature. I use the app to manage my old work’s 401k plan and admit to its bloat and lack of clarity on calculating investment returns on a percentage basis. My main beef with their interface is my performance statistics will not save after I add them to assess how my funds have performed. All that said, Vanguard might have made this by design, incentivizing you to check your funds less often and thus living by their index fund ethos.
- 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: Best Vanguard ETFs to Buy
Related Questions on the Best Online Brokerage Accounts and Discount Brokers
What Does a Discount Broker Charge?
An online stock broker, usually a discount broker, sometimes charges trading commissions on stock and ETF trades, though many brokers have adopted the commission-free trading model.
These brokerage firms no longer earn money on trading commissions, instead opting for other avenues of earning revenue, discussed more below.
The best online stock broker for you will depend on the style of investing you prefer, your needs for advanced tools and educational materials, the ability to place mutual fund trades, cryptocurrency trades, or trades on more exotic assets like options, futures, forwards and more.
The best discount brokers charge low fees (or none) for standard stock and ETF needs and low fees on these other assets.
Some will also avoid any commissions and instead rely on account fees like a fixed monthly charge or a percentage of assets under management approach like robo-advisors use.
Related: 13 Best Stock & Investment Newsletters for Inbox Alpha
What is the Difference Between a Full-Service Broker and a Discount Broker?
Full-service brokers offer many services to clients, such as investment advice, research and management, retirement planning, tax planning, insurance assistance and more.
Full-service brokers tend to charge commissions or a percentage of the assets they manage on your behalf in exchange for these tailored services.
Many refer to full-service brokers as financial advisors or investment advisors because they buy and sell stocks on your behalf, handle your investment strategy, and act as your customer support.
They can directly handle your customer service needs by maintaining the entire relationship with you and explaining the financial products used to prepare for your financial needs.
They offer all of this either for commissions on trades or financial products you purchase through them or through a management fee on the assets you hold with them on account.
Discount brokers, on the other hand, compare favorably on the cost to full-service brokers. Discount brokers don’t offer all of the value-added services full-service brokers do, and they reflect this pared-down offering through low-cost or commission-free stock and ETF trades.
Frequent traders, self-directed investors or people who wish to engage with financial markets themselves tend to use online brokers and discount brokers to do so, sidestepping trading fees (or paying low fees in some cases) and choosing to execute their trades.
This can also include mutual funds, options, cryptocurrencies, and other financial assets or securities regulated by the Commodity Futures Trading Commission (CFTC) or Securities and Exchange Commission (SEC).
These accounts carry Securities Investor Protection Corporation insurance for up to $250,000 in cash account value. Many brokers offer similarly to how the Federal Deposit Insurance Corporation (FDIC) offers insurance on cash held in a bank account.
How Does a Discount Brokerage Make Money?
Payment for Order Flow
In the ordinary business of buying and selling stocks, options and index funds through online brokers, they send your orders to market makers for execution.
Market makers act as individual market participants or member firms of an exchange to buy and sell securities for their accounts.
They do so at the prices displayed on the exchanges’ trading systems to profit from the difference between bids and asks (bid-ask spread).
Effectively, the quoted price differs from the ultimate settle price, with the difference going to the market maker for providing market liquidity.
This bid-ask spread capture allows market makers to receive compensation for holding assets if they deviate significantly in value over time.
In other words, if they must hold a substantial position in the security to create liquidity for the market, they must have some form of compensation to offset the risk of a significant decline in the security’s value, thereby causing a substantial loss on their books.
When you trade securities in many discount brokers’ brokerage accounts, they route these orders through a market maker for execution.
To compete with exchanges, market makers must offer rebates or discounts to brokers to use their service and not the exchange. These discounts go to discount brokers while you pay the quoted amount.
To maintain this profit opportunity, discount brokers maintain relationships with numerous market makers and send your orders to the ones they believe will have the best likelihood to execute your trade at an optimum price.
This lets you trade everything on these stock trading apps for beginners like stocks (including penny stocks), ETFs, options and cryptocurrencies commission-free.
Many discount brokers state they do not consider rebates when routing your brokerage orders and merely profit from the difference after the fact.
Interest on Cash Account Balances
Not all money in accounts held with online brokers gets invested, and some remain in cash. This cash can be deposited into a bank and earn interest when left idle in your account.
Most brokers earn money this way, supplementing other earnings they made on their trading platforms through online stock activities.
Other Brokerage Services and Subscriptions
Online brokers can also offer other services or subscriptions to supplement their income. This can include research tools, real-time data feeds, access to financial advisors, investment advice or priority customer support, and more.
Debit Card Interchange Fees
Some online brokers offer banking services attached to their online stock trading activities, and they may also offer debit card access. By providing debit cards to their customers, they can tap into revenue from the debit card interchange network.
Securities Lending
Suppose you decide to hold a position in your brokerage account. In that case, your discount broker may choose to lend these securities to other investors interested in shorting stocks, using your lent securities to sell stocks short in the hopes of profiting off the downward movement of a stock.
The borrower returns the lent securities once they close their short position. The discount broker earns interest on these lent securities.
Margin Lending
When you want additional capital to invest and are willing to pay interest to get it, the best discount brokers may have access to margin loans.
These loans use the account balance as collateral and may require the borrower to make a bigger deposit or face a margin call if account activity works against them.
Options Trading
Some of the best discount brokers offer options trading functionality and many charge commissions for facilitating this type of trading activity.
Monthly Account Fees
Some online brokers avoid commissions and instead use monthly account fees to earn money from their customers. This can be a fixed monthly account fee like those charged by Acorns or apps like it.
Assets Under Management Account Fees
Some brokers also choose to use the assets under management account fee approach. This sidesteps trading fees on stocks, ETFs, mutual funds and more and instead chooses to charge a percentage fee on the total assets invested on the platform.
This approach is a standard way a full-service broker charges their clients by taking a percentage of how much money you have invested with them.
Do Online Brokers Have Account Minimums?
Some online brokers have account minimums, though many do not. Most target no account minimums for their customers so more people can trade on their platforms.
Should Experienced Traders Use the Best Online Discount Brokerage Accounts for Trading Stocks, ETFs and Mutual Funds?
Experienced traders likely have a sense of where they should invest in getting the most from their money. This doesn’t mean they need to employ highfalutin trading strategies, use sophisticated investment products or research tools.
This can mean investing in online platforms that don’t charge trading fees and use their accounts to buy diversified investments like ETFs or mutual funds. These products are suitable for all investors because they tend to provide instant diversification.
Mutual funds also tend to be the mainstay of 401k plans, an investment vehicle many use to prepare for retirement.
