Best Online Stock Brokers for 2024

Interactive Brokers stands out as the premier platform for stock investing due to its competitive pricing, extensive range of tradable assets, advanced trading tools, and comprehensive research resources, catering to both novice and experienced investors alike.

Why Choosing the Best Online Stock Broker Matters

In today's digital age, selecting the right online stock broker is crucial for businesses and investors of all levels. Choosing the best fit can significantly impact your financial success by providing:

• Cost-effective trading: Competitive fees keep more money in your pocket.
• Streamlined transactions: User-friendly platforms simplify the trading process.
• Investment flexibility: Access to a wide range of assets caters to diverse investment goals.
• Enhanced decision-making: Powerful research tools inform smarter investment choices.
• Tailored support: Features like margin accounts and investor guidance cater to specific needs.

By carefully evaluating your options, you can unlock the full potential of online stock trading and achieve your financial objectives.

Quick Look at the Best Stock Brokers:

• Best for Stock CFDs: Plus500
• Best for Global Traders: Interactive Brokers
• Best for Intermediate Traders: Webull
• Best for Active Investors: Moomoo
• Best for Short Selling Over $25K: Cobra Trading
• Best for Beginners: Robinhood
• Best for AI Investing: Magnifi
• Best for Fund Investing: Charles Schwab
• Best for Trading Ideas: Public.com
• Best for Copy Trading: eToro
• Best for Scalping: TradeZero

Detailed Reviews of the Best Online Stock Brokers

Once you know what you’re looking for online stock brokers, you can make an informed decision on which stock broker to choose. For example, if you plan on making investments in foreign stock markets and already have considerable experience operating in the financial markets, Interactive Brokers might make a good choice. Advanced investors have specific needs, and financial products will vary from one platform to another.

1. Best for Stock CFDs: Plus500

Plus500 is an excellent choice for traders looking to get into CFDs (Contracts for Difference) across various asset types including stocks, forex, and commodities. It offers a user-friendly platform designed for advanced traders.

Fees: $0; currency conversion fees may apply
Minimum investment: $100

Features:

• Easy-to-Use Platform: Clean and intuitive interface.
• Wide Range of CFDs: Trade on various assets including stocks and cryptocurrencies.
• Leveraged Trading: Amplify potential gains with leverage.
• Risk Management Tools: Utilize stop-loss and take-profit orders.
• Guaranteed Stop-Loss Orders: Extra layer of protection (subject to regulation).

Why We Picked It: Plus500 simplifies online investing with a user-friendly platform and a variety of tradable assets, ideal for advanced traders looking for diversification.

How It Looks:

2. Best for Global Traders: Interactive Brokers

Interactive Brokers is renowned for its extensive market access and professional trading tools, making it ideal for active and global traders.

Fees: $0.0005 to $0.0035 tiered per share; Free for US clients choosing IBKR Lite plan.
Minimum investment: $0

Features:

• Competitive Pricing: Some of the lowest commissions in the industry.
• Extensive Tradable Assets: Trade stocks, options, futures, forex, and more.
• Advanced Trading Tools: Sophisticated charting and algorithmic trading.
• Comprehensive Research Resources: In-depth market data and analysis tools.

Why We Picked It: Interactive Brokers combines affordability, functionality, and extensive resources, making it a top choice for global and active traders.

How It Looks:

3. Best for Intermediate Traders: Webull

Webull is perfect for intermediate and advanced traders with its intuitive mobile and desktop apps featuring advanced charting and technical analysis tools.

Fees: $0; Sells only - $0.000008 * Total $ Trade Amount (Min $0.01)
Minimum investment: $5

Features:

• Commission-Free Trading
• Intuitive Platform
• Advanced Charting Tools
• Fractional Shares
• Paper Trading

Why We Picked It: Webull offers a user-centric platform with commission-free trading and a variety of tools to support active traders.

How It Looks:

4. Best for Active Investors: Moomoo

Moomoo provides an intuitive platform with professional tools, making it suitable for traders of all levels.

Fees: $0
Minimum investment: $0

Features:

• Commission-Free Trading
• Advanced Order Types
• Level 2 Market Data
• AI-Powered Research
• Educational Resources

Some new features from moomoo:

• New User Deposit Bonus: Deposit $100 and receive 7 fractional shares of a star-stocked bundle ("Magnificent 7" at $5 each)
• New User Transfer Bonus: Get a 1.5% cashback on your initial transfer amount (up to $300)
• Referral Bonus: Invite a new user who deposits $100 or transfers in $1,000, and receive 7 fractional shares of a star-stocked bundle ("Magnificent 7" at $5 each)

Why We Picked It: Moomoo offers a well-rounded package with features that go beyond basic stock trading, making it ideal for active investors.

How It Looks:

5. Best for Short Selling Over $25k: Cobra Trading

Cobra Trading is ideal for short selling with exceptional access to stock borrows and direct access routing.

Fees: As low as $0.0015
Minimum investment: $27,000

Features:

• Commission-Free Trading
• Direct Market Access
• Advanced Order Routing
• Short Locate Expertise

Why We Picked It: Cobra Trading caters to active traders with advanced tools and competitive commissions, ideal for those with larger portfolios.

How It Looks:

6. Best for Beginners: Robinhood

Robinhood is a popular platform known for providing easy access to the markets for all investors, allowing traders to buy and sell stocks without commission charges. It features a quality mobile app that is simple, intuitive, and easy to learn.

Fees: $0
Minimum investment: $0

Features:

• Commission-Free Trading: Enjoy free stock, ETF, and options trades.
• Fractional Shares: Invest in fractions of expensive stocks, making it easier to build a diversified portfolio.
• User-Friendly Platform: Sleek and easy-to-use interface, ideal for beginners.
• Educational Resources: Access basic investment information and educational materials to enhance your financial knowledge.

Why We Picked It: Robinhood remains a top choice for beginners due to its affordability and user-friendly platform. Commission-free trades and fractional shares allow you to invest on a budget, making it easy for new investors to navigate the world of investing.

How It Looks:

7. Best for AI Investing: Magnifi

Magnifi is a marketplace that allows investors to use common brokerage tools and AI to make the best decisions for their portfolios. The platform offers over 15,000 possible investment options and is suitable for both seasoned and novice traders.

Fees: $14 - $140 per month for the subscription. Free trial available.
Minimum investment: $0

Features:

• AI-Powered Investing Assistant: Personalized investment recommendations, portfolio analysis, and educational guidance.
• Natural Language Search: Find and research investments using simple terms and phrases.
• Commission-Free Trading: Free stock and ETF trades.
• High-Yield Savings Accounts: Earn interest on uninvested cash.
• Multiple Account Linking: Connect existing investment accounts for a holistic view of your portfolio.

Why We Picked It: Magnifi offers a unique approach with an AI assistant that personalizes investment advice and simplifies research with natural language search. This commission-free platform with high-yield savings allows you to maximize your returns.

How It Looks:

8. Best for Fund Investing: Charles Schwab

Charles Schwab charges $0 commission for online stock and ETF trading and offers a broad array of asset types including stocks, ETFs, mutual funds, bonds, options, futures, IRAs, custodial accounts, and trusts.

Fees: $0 commissions on stocks
Minimum investment: $0

Features:

• Commission-Free Trading: $0 commissions on stocks and ETFs.
• Fractional Shares: Buy into S&P 500 stocks with as little as $5.
• Diverse Investment Options: Access to a variety of asset classes.
• Real-Time Market Data: Get real-time quotes, market indices, breaking news, and in-depth charts.
• Schwab Assistant: Place trades, get quotes, set alerts, and receive clarifications on investment questions.

Why We Picked It: Charles Schwab offers a compelling combination of affordability, user-friendliness, and powerful features, making it a strong contender for a top online broker for a wide range of investors.

How It Looks:

9. Best for Trading Ideas: Public.com

Public.com is the only investing platform that lets you buy, sell, and hold stocks and ETFs alongside crypto and alternative assets like art and collectibles. It emphasizes community and themed investing.

Fees: $0 commissions on stocks.
Minimum Investment: $0.

Features:

• Fractional Shares: Invest in slices of expensive stocks.
• Commission-Free Trading: Free stock and ETF trades.
• Social Features: Follow other investors, share ideas, and learn from a collaborative online community.
• Thematic Investing: Curated investment baskets focused on specific themes or trends.
• Low Account Minimums: Start investing with a small amount of money.

Why We Picked It: Public.com gamifies investing with a social platform for beginners. Fractional shares, commission-free trades, and low minimums make it easy to start small and learn from other investors.

How It Looks:

10. Best for Copy Trading: eToro

eToro is renowned for its crypto offerings but also supports stock, ETF, and forex trading. It allows investors to engage with real, experienced investors and leverage social trading features.

Fees: $0 commissions on stocks
Minimum investment: $10

Features:

• Social Trading: Copy the trades of popular investors.
• CopyPortfolios: Invest in pre-built portfolios curated by eToro's investment team or other successful investors.
• Fractional Shares: Invest in fractions of expensive stocks.
• Multiple Asset Classes: Trade stocks, ETFs, options, cryptocurrencies, and CFDs (subject to regulation).

Why We Picked It: eToro empowers investors to copy the trades of successful investors through social features. The platform also offers flexibility with stocks, ETFs, crypto, and CFDs.

How It Looks:

11. Best for Scalping: TradeZero

TradeZero provides direct market access at low to no cost, making it ideal for active traders and those interested in short selling. It offers advanced trading tools and 24/7 live customer support.

Fees: $0 free limit orders; $0.005 per share on paid orders
Minimum investment: $250

Features:

• Ultra-Low Commissions: Some of the lowest commissions in the industry.
• Advanced Order Types: Wide range of order types for strategic trade execution.
• Active Trader Platform: Advanced charting, technical analysis tools, and level 2 market data.
• Free Stock Borrow Rate: Short-sell stocks without additional interest fees on borrows (availability subject to change).

Why We Picked It: TradeZero offers ultra-low commissions and advanced trading tools, making it ideal for active traders. Their powerful platform and potentially free stock borrows help you execute complex strategies.

How It Looks:

Online Stock Brokers - How Do They Compare?

Which Broker Suits You Best?

All the stockbrokers mentioned above have different features that might work better for certain people over others. A discount broker might be a good place to start with online trading. However, frequent traders may prefer a more robust brokerage that costs a little bit more. The best stock trading platform is the one that optimally fulfills your particular needs, going above and beyond a brokerage account. In short, it should always make investing easy.

Many of the best stock brokers also offer demo or paper trading accounts that let you gauge their services and platforms, so you can try them out before committing any funds. In the end, ensure that your online broker makes you feel comfortable and offers quality results.

Main Types of Brokerage Accounts

Understanding the different types of brokerage accounts is crucial for any investor. Choosing the right account aligns your investment strategy with your financial goals and risk tolerance. Here's a breakdown of the most common types:

• Cash Accounts:
  
• Key Features: You can only invest with settled funds (cash available in your account). No borrowing allowed. Suitable for beginners and conservative investors.
• Advantages: Lower risk, no margin interest, good for long-term investing.
• Limitations: Limits your buying power for potential gains.

• Margin Accounts:
  
• Key Features: Borrow money from your broker to buy securities. Amplify potential gains (and losses). Requires higher minimum account balances and carries higher risk.
• Advantages: Increased buying power for potentially larger returns.
• Limitations: Interest charged on borrowed funds, risk of margin calls if account value falls below maintenance requirements.

• Retirement Accounts:
  
• Key Features: Offer tax advantages for retirement savings. Examples include IRAs (Individual Retirement Accounts) and employer-sponsored plans like 401(k)s. Contributions may be tax-deductible and earnings grow tax-deferred or tax-free depending on the account type.
• Advantages: Significant tax benefits for retirement saving goals.
• Limitations: Restrictions on withdrawals before retirement age (penalties may apply). Contribution limits may apply.

A young investor with a long-term horizon might choose a Roth IRA for tax-free growth, while a more conservative investor nearing retirement might prioritize a cash account to minimize risk.

How Quickly Can You Start Trading?

Setting foot on the path of investment can appear daunting, especially when you're pondering over the initial sum required. Wealth is not a prerequisite for investing, and you will be surprised to learn that many platforms keep their minimums low, and you will rarely run into investments that are set aside for accredited investors.

Embracing the right strategies helps you stay grounded with limited resources. So long as you can complete the KYC or verification process, you can get started. Some brokers are faster than others.

Frequently Asked Questions