*Rates are subject to alter. All information provided here is accurate as of July 9, 2024.

Online trading platforms allow you to put money into securities like stocks, bonds, ETFs and mutual funds so you possibly can construct an investment portfolio that meets your goals.

Nonetheless, each platform offers a novel set of features and sometimes complicated fee structures, which might make it hard to decide on.

Read on to seek out the very best online trading platforms and our guide on the best way to select the fitting one for you.

Our Top Picks for Best Online Stock Trading Platforms

Best Online Trading Platforms Reviews

Why we selected it: Fidelity stands as the very best overall online broker platform since it provides a wide selection of investment selections, low margin rates and commission-free trades for stocks, options, ETFs, bonds and mutual funds.

Fidelity offers many various ways to take a position, from self-directed brokerage accounts for individuals who want to administer their very own portfolios to an inexpensive robo-advisor — Fidelity Go — for investors preferring hands-off investing. Those serious about holding larger portfolios and a more diverse investing strategy may also select from two different wealth management plans assisted by personal investment advisors.

Fidelity doesn’t charge account fees or require a minimum deposit for opening any of its brokerage accounts. As well as, it offers a few of the lowest margin rates.

Margin rates are the fee brokers charge to investors with margin accounts — a sort of account that enables you to borrow money from the brokerage to purchase shares. These rates can vary widely from one broker to a different.

Fidelity encompasses a wide selection of investment products, including domestic and international stocks, precious metals, cryptocurrencies and dollar-based investing through fractional shares. It’s also one among the few brokers that provides mutual funds with a zero expense ratio.

Fidelity’s robo-advisor also stands out from its competitors. There’s no minimum amount required to open an account and no advisory fees, trading fees or rebalancing fees for account balances under $25,000.

There may be, nevertheless, a 0.35% annual advisory fee for accounts with balances over $25,000. While that is somewhat higher than what robo-advisors like Betterment and Wealthfront charge, with Fidelity you get advisory services, including financial planning and training.

For more information, read our full review.

Why we selected it: Betterment is our selection for hands-off investors since it features a straightforward method to configure automated investing based heading in the right direction goals and tax-loss harvesting capabilities.

Betterment is one other robo-advisor that makes it easy to set it and forget it along with your investments. The corporate uses cutting-edge technology guided by the assistance of economic advisors so as to help secure the utmost return based in your risk tolerance, investment timeline, and other aspects.

Betterment will not be ideal for investors who wish to actively trade stocks, but it surely is an amazing selection for more cautious, beginner or hands-off investors. Upon opening an account you possibly can pick an upfront tax-smart investing strategy that runs on autopilot, and keeps you informed with projections of potential returns.

Other account features include automatic rebalancing of your portfolio and reinvestment of dividends. You can even arrange recurring deposits and earn money back whenever you pay with the Betterment Visa Debit Card.

Accounts with balances of $100,000 or more could be upgraded to Betterment Premium, which offers unlimited access to financial guidance from a Certified Financial Planner®. Do note, nevertheless, Betterment Premium charges a fee of 0.65% annually.

Betterment’s primary drawback is that it charges a $4 monthly fee for accounts under $20,000. To modify this monthly fee for a 0.25% annual fee, like Wealthfront does, you have got to establish recurring monthly deposits of $250 or reach a $20,000 balance across all of your Betterment accounts.

Why we selected it: E*TRADE offers a wide selection of investment options, an intuitive platform and access to educational materials, research tools and market evaluation to assist beginners make informed decisions.

E*TRADE is a pioneer in online trading that gives a big number of investment options, from easy online brokerage accounts designed for brand spanking new investors to advanced investing and trading options for knowledgeable traders.

The platform provides latest market news recaps, each day insights and a comprehensive online library to assist newer investors understand key trading and investing concepts.

E*TRADE has over 9,000 mutual funds to take a position in, over 4,000 of that are no-load, no-transaction-fee funds. E*TRADE also offers checking and savings accounts that assist you to transfer funds between all of your accounts seamlessly.

There are $0 fees for online U.S. stocks, exchange-traded funds (ETFs), making it easy for brand spanking new investors to start out constructing their portfolios. There are also managed portfolios with a flat 0.30% annual management fee for individuals who may have more guidance.

Though E*TRADE’s individual brokerage accounts don’t have minimum balance requirements, its managed portfolios have a $500 minimum.

For options trades, there’s a normal contract fee is 65 cents per contract (or 50 cents per contract for patrons who execute a minimum of 30 stock, ETF, and options trades per quarter).

As of this writing, Morgan Stanley is assuming responsibility for and offering services that E*TRADE had previously provided since their merger began in late 2020. Once E*TRADE accounts transition to Morgan Stanlety, the latter will routinely update E*TRADE customers’ account numbers and develop into the broker-dealer of record. Nonetheless, services will still be available though E*TRADE app and online platform.

Why we selected it: Charles Schwab’s big variety of over 2,000 commission-free ETFs from multiple asset classes and fund corporations makes it top-of-the-line online trading platforms for ETFs trades.

With Charles Schwab, investors can open a brokerage account with no required account minimum and luxuriate in zero-commission trades on online-listed stocks, ETFs, options and mutual funds. The corporate also offers broker-assisted trades, and traditional, Roth and Rollover IRAs.

Through Schwab’s Global Account you possibly can trade stocks in 12 foreign markets and eight currencies without an account minimum. You furthermore may get access to international stock screeners, third-party research and Schwab’s proprietary international equity rankings. Except for self-directed trading options, Schwab also provides automated trading in addition to investment planning with an authority advisor.

Self-directed investors can select an unlimited number of ETFs, including equity and non-equity ETFs from a spread of fund corporations in america. Some ETFs options include international ETFs, market-cap index ETFs, bond ETFs and currency ETFs. While all U.S. exchange listed ETFs are commission-free, some operating fees may apply to some funds. These fees are typically disclosed within the prospectus.

Charles Schwab’s learning and education center provides investing insights, weekly market outlooks and answers to basic investing questions, akin to how and when to take a position. It also features multi-media resources, like podcasts, live programming and videos.

For more information, read our full review.

Why we selected it: Webull’s in-depth evaluation tools and integrated trading paper functions makes it top-of-the-line investment apps for energetic trading.

Webull is a mobile app-based brokerage that provides commission-free stocks, ETFs, and other trading options. The platform offers advanced order types, charting, and tons of stock market research data for users to develop personalized investment strategies.

Webull also offers a notable trading simulator, which could be an amazing tool for beginners who wish to practice strategies with virtual money before risking their very own money. Webull Paper Trading also provides real-time data, integrated charting tools and over 50 customizable technical indicators. The corporate even holds competitions with money prizes to encourage latest traders to practice.

As well as, Webull encompasses a news feed, where you possibly can check top market news, other user’s posts and company actions of stocks in your watchlist. You can even write posts, create polls and share insight with the Webull community.

Despite its in-depth evaluation tools and academic resources, Webull can feel overwhelming for beginners, especially on account of its advanced charting. Nonetheless, traders can customize their dashboard display, including chart settings, and select simpler reporting for each the Webull desktop platform and its mobile app.

Why we selected it: Vanguard’s big variety of low price mutual funds makes it the very best option for investors trying to diversify their portfolios with index and actively-managed funds.

Vanguard manages one among the most important selections of low-cost mutual funds within the industry, offering a robust lineup of index funds and actively managed funds. It also offers stocks, ETFs, bonds, CDs and money markets.

Except for individual and joint brokerage accounts, Vanguard offers retirement accounts and education savings accounts. It also has wealth management and multiple advisory services, including digital and private advisors. Nonetheless, these have account minimum requirements, starting from $3,000 to $5 million.

Though Vanguard doesn’t have a minimum amount requirement to open an account, there are minimum investment requirements for some accounts. As an example, Vanguard Goal Retirement Funds require a minimum of $1,000, whereas most actively managed funds have a $3,000 minimum.

Vanguard charges an $25 annual account service fee for every brokerage account, which could be waived in one among 3 ways: (1) if you have got a minimum of $1 million in qualifying assets, (2) should you enroll for electronic statements delivery or (3) if you have got a trust account under an worker identification number or brokerage account enrolled in a Vanguard-affiliated advisory program.

For more information, read our full review.

Other Online Stock Trading Platforms We Considered

While we evaluated the businesses below, they didn’t make the cut for various reasons.

Interactive Brokers

Why it didn’t make the cut: Despite providing access to global markets, Interactive Brokers charges more fees than competitors in our top list.

Interactive Brokers (IBKR) has one among the most important selections of investment products and access to 150 global markets, including global exchanges within the Americas, Europe and Asia Pacific. IBKR’s robo-advisor enables you to select from dozens of themed portfolios. Themes can include top-performing corporations, for example, or socially responsible portfolios.

Amongst IBKR drawbacks is its somewhat complicated fee structure, especially should you’re serious about investing on global markets. The platform also requires a $100 minimum to open a robo-advisor account and charges an annual asset management fee of 0.10% to 0.75%, which is computed each day and charged monthly.

Robinhood

Why it didn’t make the cut: Robinhood has been involved in controversies related to company reliability, data breaches and trustworthiness, which also kept it off our top list.

Robinhood is a preferred online trading platform amongst latest and experienced retail investors. Its intuitive and easy-to-use web and mobile platform offer a streamlined experience, known for gamifying the best way people invest. Like many other discount brokers, Robinhood features no commission fees and access to stocks, ETFs, options, IPOs, fractional shares and crypto.

Nonetheless, Robinhood’s educational resources and research tools aren’t as comprehensive as other brokers, and only offers real-time market data and skilled research should you subscribe to its Gold plan for as much as $6.99 monthly or $75 yearly after a 30-day free trial; nevertheless, some users may pay as little as $5 monthly or $50 yearly depending on eligibility.

SoFi

Why it didn’t make the cut: Except for stocks, SoFi mainly offers trades of its own ETFs, options and just a few popular cryptocurrencies.

SoFi’s user-friendly platform enables you to manage banking and investing accounts all from one place. You may make a choice from DIY investing, automated investing or tax-optimized retirement accounts. As well as, you possibly can get free counseling from the corporate’s financial planners.

In comparison with competitors in our list, SoFi number of investment products is somewhat limited. As an example, its ETFs offering is principally limited to SoFi’s own funds and Vanguard, and its crypto selection to just a few popular options, like Bitcoin, Ethereum and Dogecoin. Nonetheless, it’s a very good option for newer investors, especially should you’re already conversant in SoFi’s banking products.

Merrill Edge

Why it didn’t make the cut: Merrill Edge features higher fees and margin rates than other competitors in our top list.

Merrill Edge’s provides a wide selection of educational material and research tools. It also offers seamless integration with Bank of America, making it easier for Bank of America customers to link accounts and transfer money.

Nonetheless, the corporate’s fees and margin rates are noticeably higher than its competitors. As well as, Merrill Edge’s offers a limited number of investments. As an example, there’s no access to fractional shares, penny stocks, crypto currencies, futures or international stocks.

Ally Invest

Why it didn’t make the cut: Unlike many competitors, Ally doesn’t offer the flexibility to trade fractional shares.

Ally features three investment approaches: self-directed trading, robo portfolios and wealth management services. It also offers low fees, charging $0 commission fees on U.S. stocks, ETFs and options. Plus its brokerage accounts meld extremely well with its banking products, making it a very good option for Ally Bank customers.

Nonetheless, unlike many trading platforms, Ally doesn’t offer fractional shares. As well as, it charges a 0.30% annual advisory fee for its hands-off robo portfolios and requires a $100 minimum to start.

Public

Why it didn’t make the cut: Public doesn’t allow you to put money into mutual funds, options, OTC securities or fixed income securities, like CDs or bonds.

Public stands out as one among the few investing platforms that provides engaging social media features. You may follow other Public users, exchange trading ideas and share market news all inside the same platform.

Except for its social features, Public offers similar features to those of most discount brokers. You may buy commission-free stocks, ETFs, cryptocurrencies and fractional shares of stocks with as little as $1. With that said, Public is a greater fit for beginners and social investors.

For more information, read our full review.

Online Stock Trading Guide

Try our guide below to learn more about how online trading platforms work, probably the most common varieties of orders you possibly can place, the aspects to contemplate when selecting a trading platform and the best way to start trading stocks online.

We also include a side-by-side comparison between the benefits and downsides of self-managed trading platforms and robo advisors.

What’s online trading?
How do stock trading platforms work?
What trading platforms have an OSO?
select the very best trading platform for you
What’s the difference between trading and investing?
start trading stocks online
Online trading platforms vs. robo advisor
Best Online Stock Trading FAQs

What’s online trading?

Online trading, or e-trading, is the technique of buying and selling assets, akin to stocks, bonds, mutual funds, options and other investment vehicles via an internet platform. These trading platforms are typically offered by financial institutions and discount brokers that assist you to easily open an account, deposit money and begin trading inside just a few minutes.

Most online brokerages allow customers to trade online versus phoning a trader on the ground of the stock exchange. Although some trading platforms may operate exclusively online, just a few pair online trading with traditional financial advisers who offer help and advice.

How do online trading platforms work?

Most online trading platforms, or online brokers, allow you to invest via a mobile app or its secured website. To start out, you have got to enroll and open the sort of brokerage account you would like — individual, joint, retirement, education or automated.

Online brokers typically allow you to start trading stocks, bonds, ETFs and more complex investments like options and cryptocurrency by simply selecting the specified variety of shares or the quantity in dollars you should buy.

These platforms also offer various research tools you should use to judge stocks and market activity in real time. As an example, many investing platforms have in-built stock screeners that assist you to find securities based on preferences like market capitalization, earnings per share or expense ratio.

Sorts of Brokers

Although every trading platform is different, stock brokers could be split into two broad categories: discount brokers and full-service brokers.

• Discount brokers offer self-directed portfolios, which require a hands-on investment approach, meaning you decide stocks, bonds and ETFs yourself. With a reduction broker, you’re in complete control of your securities and whenever you’d prefer to trade them. Robinhood and Webull are examples of discount brokers. These brokers typically offer accounts that require low to no account minimums and should waive a few of their fees for executing a certain quantity of free trades per 30 days, which makes them ideal for energetic or frequent traders.

• Full-service brokers offer a more traditional approach. Along with online access to your investments, these firms typically pair you with a financial adviser, who can offer advice about what stocks to purchase and even manage your entire portfolio for you. Many full-service brokers feature other services too, akin to retirement and estate planning, wealth management and tax planning. Consequently, account minimums and charges are much higher, in order that they are best fitted to high-net-worth investors who need a more personal level of service.

Sorts of Orders

Orders are instructions sent by investors to their brokerage directing them to purchase or sell a security. This could be done on the phone with a stock broker or through an internet trading platform. The three commonest varieties of orders are market orders, limit orders and stop-loss orders.

What trading platforms have an OSO?

Order-sends-order (OSO), or order-triggers-other (OTO), is a compound order execution that triggers a second trade once a primary order is filled. One of these order is usually available in additional advanced trading platforms, like Fidelity and TD Ameritrade, which permit for a greater variety of conditional orders.

These platforms also allow you to place multi-contingent orders, one-cancels-the-other (OCO) and one-triggers-a-one-cancels-the-other (OTOCO) orders.

select the very best trading platform for you

There are several aspects to contemplate when selecting an internet trading platform that aligns along with your investment experience and magnificence, trading needs and financial goals.

Consider your investment experience and desires

How long you have got been trading — or whether you’ve ever traded in any respect — is an enormous think about the sort of platform you must select.

If you happen to’re a beginner, search for platforms that provide basic educational resources, responsive customer support and that allow paper trading to practice trades before stepping into the true thing.

Experienced traders may profit from platforms that allow them issue specific varieties of trades and offer more complex analytic tools, akin to customizable charting.

Those in search of a hands-off option will probably want to start with a robo-advisor that manages a diversified portfolio of stocks and bond investments for you.

Select a brokerage account in your financial goal(s)

One of the necessary questions you must ask yourself before starting to take a position is why you’re doing it in the primary place. Are you investing to accumulate a retirement account or are you only in search of a method to potentially grow your money for a set period?

Although most online brokers offer similar varieties of brokerage accounts, having a solution to those questions can ultimately make it easier to select the sort of account and platform that higher suits your financial goals.

In case your goal is to avoid wasting for retirement or in your children’s college tuition, you must search for a broker that provides the fitting sort of account for it, akin to a conventional IRA, a Roth IRA or a 529 College Savings account.

But should you mainly wish to throw a wrench within the system and put money into meme stocks, then your platform should offer you the liberty to achieve this too.

Compare account fees and charges

Most online trading platforms offer commission-free trading for securities like stocks, ETFs and options. Nonetheless, there are other fees and charges you must be careful for, akin to account maintenance fees, options contract fees, margin rates and monthly memberships.

These fees can vary and be higher or lower depending on the platform. Compare pricing between stockbrokers and determine if its fee structure works for you.

Have in mind that some fixed monthly subscriptions or account maintenance fees can eat up your potential returns, especially should you’re investing small amounts of cash.

On this case, you must consider the expense ratio, which is the share of your investment that goes toward paying annual fees. In case your expense ratio is higher than your returns, it means you’re spending greater than what you’re getting back.

Search for a wide range of assets

Not all trading platforms offer the identical investment products. Some may limit their selection to popular selections like stocks, ETFs, options and crypto, while others offer a wider range of assets, including mutual funds, futures and international stocks.

With the ability to invest multiple investment vehicles enables you to diversify your portfolio and reduce your risk. Nonetheless, this doesn’t mean you must select the platform with probably the most investment options, relatively the one offering the alternatives which are right in your investment strategy.

Check brokers’ background

Online trading platforms and brokers must be registered with the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Each agencies ensure brokerage firms abide by fiduciary regulations.

Make sure that the brokerage can be insured by the Securities Investor Protection Corporation (SIPC). This non-profit organization is analogous to the Federal Deposit Insurance Corporation (FDIC), only that it protects investors against the loss of money and securities, as much as $500,000, in case of the brokerage’s insolvency.

You can even check a broker’s background information and registrations using search tools just like the SEC’s Investment Adviser Public Disclosure and FINRA’s BrokerCheck.

Work out deposit and withdrawal methods

Try the choices the broker offers for funding your brokerage account. While most trading platforms allow you to fund your account by linking a checking or savings account, there are just a few that assist you to use alternate methods, akin to a debit or bank card and digital wallets.

It’s also necessary to learn how the technique of withdrawing funds works and what number of days it may take. With most platforms it typically takes between one to 3 business days, but in some cases it may take longer. This offers you an idea of how quickly you possibly can access your money when needed.

One other major consideration is whether or not the platform gives you immediate access to your money after depositing it or if you have got to attend for the deposit to undergo to give you the option to put an order.

Evaluate security and customer support options

Make sure that the platform offers additional security measures, akin to two-factor authentication or biometrics. Many online platforms have mobile apps that allow you set passcodes along with passwords. Like passwords, passcodes could be used to limit your accounts information or features, making it harder to enter your account without authorization.

You might also check if the corporate has been involved in any recent data breaches. This may make it easier to form an idea of how reliable its security system is.

As well as, search for platforms that provide multiple types of customer support, including a help center with continuously asked questions, in case you encounter any issues and want assistance.

Although not all online trading platforms feature customer support via phone, most offer support over chat and email. Some even have pages on social media you possibly can reach out to.

Try the trading platform

Because all platforms offer different interface designs and tools, it is likely to be worthwhile to check out those that interest you probably the most. Many trading platforms allow you to open an account free of charge and without minimum deposits.

By opening an account, you’ll give you the option to judge its different features, the method for putting orders and its research tools. This may make it easier to determine if the platform is intuitive and whether it meets your specific needs.

What’s the difference between trading and investing?

Investing means buying and holding securities like stocks, bonds and ETFs to maximise returns in the long term. Day traders continuously buy and sell stocks to earn strong returns within the short term.

An investor may construct a diversified portfolio with stocks, bonds, funds and alternative assets to satisfy a long-term investing goal like saving for retirement. They concentrate on portfolios which have the potential for long-term growth and supply them with exposure to the broader market. Investors may “ride out” market downturns because they imagine they’ll recuperate losses and earn gains when the market rebounds.

Lively traders pay close attention to market movements hoping to seek out opportunities to profit. Traders often seek so-called undervalued stocks they imagine are priced below what they’re actually value so as to profit when the market reflects the stock’s true value.

Trading is dangerous, nevertheless, as even most skilled investors fail to outperform the returns of passive investments like index funds which aim to deliver returns of the stock market as an entire.

start trading stocks online

Online trading platforms and stock brokers adhere to some rules and regulations, similar to traditional brokerage firms. To avoid future liabilities, platforms ask for certain information prior to opening a trading account.

Most online brokers required the next:

☑ Personal information (your full name, physical and postal address, date of birth, phone number, email address)

☑ A duplicate of a government-issued ID, akin to your driver’s license or passport

☑ Social Security Number or taxpayer identification number

☑ Employment information (job title, department, work location, start date, etc.)

☑ Annual income

☑ Checking account information (should you’d prefer to fund your account through direct deposit)

☑ Brokerage account information (should you’re transferring an account from one other firm)

Corporations might also ask in your desired risk tolerance and what your investment goals are to find out the very best sort of account for you.

learn online trading

Learning the best way to trade could be time consuming and difficult at first. Nonetheless, should you commit to understanding the fundamentals of the stock market and constructing a solid foundation of data, you’ll eventually give you the option to develop your individual trading strategy and track your results.

One key thought to take into account is that there’s no magic formula and that the method can take numerous research, practice and discipline.

Below are some actions you possibly can take to start out learning.

1. Learn the fundamentals: Familiarize yourself with the technical features and terminology of trading, akin to order types and different investment products. Most trading platforms include educational resources you should use to deepen your knowledge of the stock market and develop your skills.

2. Take an internet course or webinar: There are numerous learning platforms that provide investing courses, akin to Coursera, Udemy and Simpler Trading. You might also consider taking courses from renowned universities that provide self-paced and instructor-led courses without having to enroll in a specific university program.

3. Practice in a demo account: Some online trading platforms offer paper trading — or simulated trading — which lets you practice trades using simulated money. This could be an amazing tool to arrange yourself for live trading and see your possible results before committing your hard-earned money.

4. Follow trading news and trends: There are numerous finance and business magazines online that, like Money, cover investment news and publish guiding content on the best way to buy popular stocks, akin to Apple stocks and Facebook stocks. Following a few of these publications can make it easier to stay informed with the newest news and trends on the stock market.

5. Subscribe to newsletters: Newsletters are one other great method to stay informed. There are numerous free newsletters that provide insight and quick rundown on market performance and macro-finance developments. As an example, you might consider Money’s Investing with Money, our weekly newsletter about all the things related to stocks, bonds, crypto and tools on the best way to develop into a more confident investor.

What’s the very best online stock trading site for a beginner?

Beginner investors should search for online trading platforms which are easy to navigate, offer comprehensive educational tools, top-notch support, and low fees and minimum account balances.

We selected E*TRADE as the very best online trading platform for beginners due to its user-friendliness, concentrate on online education and robust trading simulation services.

Online trading platforms vs. robo advisor

Although self-directed online trading platforms offer you the liberty to decide on your individual assets and develop an investment strategy, it may often be time consuming and require some basic knowledge of the best way to buy stocks, especially should you’re a first-time investor.

Robo-advisors, then again, offer a hands-off solution to investors who would relatively pass off investment decisions to skilled managers, a pc algorithm or a mix of each. In actual fact, the best robo-advisors typically offer advanced management algorithms and user-friendly interfaces, requiring little how-to knowledge.

Below are some key differences between online brokerages and robo-advisors.

How We Selected the Best Online Trading Platforms of 2023

The very best stock trading platforms make it easy for investors to seamlessly trade securities without charging commissions or high fees for his or her services.

We evaluated the next aspects, when selecting the trading platforms in our top list:

• Online Access – We favored corporations that allow you invest online seamlessly through easy-to-use platforms and that provide investors with multiple technique of managing their account(s).

• Low Trading Fees – We searched for online stock trading platforms that charge low trading fees or none in any respect.

• Access to Investment Research and Tools – We favored online stock trading platforms with tutorials, educational content and different investment tools.

• Smart Automation Technology – We considered the type of technology each platform uses and gave higher rankings to those with automated investing tools.

Summary of Money’s Best Online Trading Platforms of 2023