Unlocking your investing potential doesn’t require hefty fees. The rise of discount stock brokers has democratized investing, offering powerful tools and commission-free trades.
Platforms like Interactive Brokers provide advanced features for active traders, while user-friendly apps like Robinhood have simplified investing for beginners.
Whether you’re a seasoned investor or just starting out, the best discount brokers empower you to take control of your financial future without breaking the bank. Discover the perfect platform to match your investment style and start building your portfolio today.
8 Best Discount Stock Brokers
The rise of discount brokers has revolutionized investing, putting the power of managing your finances directly into your hands. These platforms offer a cost-effective way to buy and sell stocks, exchange-traded funds (ETFs), mutual funds and other investments, often with minimal or even zero commission fees. With so many choices available, finding the right discount stock broker is key to achieving your financial goals. Keep reading to learn about some of the top contenders in the field.
Best Overall: Plus500
Plus500 is a global multi-asset fintech group that operates trading platforms globally, offering a range of trading products, including CFDs, Share dealing and Futures trading (US).
Highlights of the platform include:
- Quick onboarding
- Simplified mobile trading
- Easy-to-use platform
- CFDs for indices, ETFs, shares, forex, commodities, options and cryptocurrency
- Free deposits and withdrawals
- $100 minimum investment
- 0.7% currency conversion fee per transaction, when the currency in your account is different from those traded
However, Plus500 is not a platform for novices as it solely makes money from spreads and does not charge a commission. You may start trading Plus500 right away, leverage your experience, expand your portfolio, and start making money right away.
Why We Picked It: Benzinga enjoys how Plus500 helps investors build multi-asset portfolios that can be tasked to save for the future, produce income now or something in between, including its intuitive interface and rich cache of information.
Best for Active and Global Traders: Interactive Brokers
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
Interactive Brokers (IBKR) is a top discount broker because of its exceptionally low costs. Its commission structure ranges from $0.0005 to $0.0035 per share and is highly competitive. Beyond commissions, IBKR’s margin rates are among the lowest in the industry, making it an attractive choice for investors who use margin lending.
IBKR caters to sophisticated investors with its powerful trading platform, Trader Workstation (TWS). TWS is a feature-rich platform offering advanced charting tools, real-time market data and a wide range of order types. While it may have a steeper learning curve than some simpler platforms, its robust functionality makes it ideal for active traders and those who require in-depth analysis and customization.
IBKR is a low-cost brokerage that provides access to a vast array of global markets and investment opportunities beyond domestic stocks.
Why We Picked It: IBKR’s financial strength and reputation contribute to its appeal. As a publicly traded company, IBKR is subject to regulatory oversight, providing an added layer of security for investor funds.
Best for Beginners: Robinhood
Robinhood revolutionized the discount brokerage industry with its intuitive, mobile-first approach. Its user-friendly interface simplified investing, making it accessible to new investors, particularly millennials and Gen Z.
The Robinhood app's clean design and easy navigation removed much of the perceived complexity associated with trading, attracting those who might have been intimidated by traditional brokerage platforms. The focus on user experience has made Robinhood a popular entry point for people looking to start their investment journey.
A key factor in Robinhood’s rise was its commission-free trading model. By eliminating trading fees, Robinhood lowered the barrier to entry for small investors, allowing them to make frequent trades without incurring significant costs. The zero-commission structure and fractional shares enabled investors with limited capital to participate in the market and build diversified portfolios.
Why We Picked It: Robinhood’s user-friendly mobile app and commission-free trading make it a solid choice for new and casual investors looking for a simplified entry point into the investing world.
Best for Robust Research: E*TRADE
E*Trade is a strong choice for investors prioritizing in-depth research tools and a wide range of investment options. E*Trade’s platform offers powerful screeners for stocks, exchange-traded funds (ETFs) and mutual funds along with insightful analysis and data visualization tools, making it easier for investors to identify opportunities and make informed decisions.
E*Trade provides the data and tools necessary to navigate the complexities of investment markets. The focus on empowering investors with knowledge sets E*Trade apart from other discount brokers that prioritize low costs.
E*Trade offers two platforms to suit different investor needs. Its Power E*Trade app is user-friendly for casual investors, while the Power E*Trade web provides advanced charting tools for active traders.
Why We Picked It: E*Trade earns its place on the list of best discount brokers by offering a combination of competitive pricing, user-friendly platforms and solid customer service.
Best for Long-Term Investors: Magnifi
Magnifi distinguishes itself in the discount brokerage world by focusing on AI-powered investment management. While many platforms offer basic screening tools, Magnifi takes it a step further, allowing users to describe their long-term investment goals and preferences in natural language. The platform’s AI then generates personalized portfolios tailored to those specific criteria, simplifying the often complex asset allocation and diversification process.
Beyond its AI capabilities, Magnifi offers a robust trading platform with access to a wide range of investment products, including stocks, ETFs and mutual funds. Users can easily monitor their portfolio performance, rebalance as needed and make adjustments based on changing market conditions or personal circumstances.
The platform’s intuitive interface and educational resources enhance the user experience, making it easy for investors to navigate the markets and learn more about investing.
Why We Picked It: For those seeking a balance between automated portfolio management and the control offered by a discount brokerage, Magnifi offers a compelling alternative.
Best for Trading Ideas: Public.com
Public.com blends commission-free trading with a social investing experience. The platform encourages community interaction, allowing users to follow and learn from other investors, share insights and discuss investment strategies.
The social aspect can be particularly appealing to newer investors looking to learn from more experienced traders and gain confidence in their investment choices.
Public.com offers a user-friendly interface that simplifies buying and selling stocks, ETFs and cryptocurrencies. The platform’s mobile-first design makes managing your portfolio easy, and fractional shares allow investors to start small and build their positions over time.
Why We Picked It: Accessibility combined with commission-free trading makes Public.com an attractive option for beginners and those looking to invest with limited capital.
Best for Customer Service: Fidelity
- Best For:Stock ResearchVIEW PROS & CONS:securely through Fidelity Investments's website
Fidelity’s commitment to top-tier research and educational resources differentiates it from other discount stock brokers. Investors gain access to a wealth of market data, insightful analysis and educational materials, empowering them to make informed decisions.
The focus on investor education, a user-friendly platform and a broad range of investment options make Fidelity an excellent choice for beginners and experienced traders. Its dedication to providing the tools and knowledge necessary for successful investing is a key reason for its strong reputation.
Fidelity excels in providing a robust and versatile trading platform. Whether you prefer a desktop platform, a mobile app or a web-based interface, Fidelity offers access to your accounts and trading tools. The focus on user experience and reliable customer service ensure investors can easily manage their portfolios and get assistance when needed.
Why We Picked It: Fidelity offers a well-rounded package that balances competitive pricing with exceptional service and resources.
Best for Sign-Up Bonuses: Moomoo
Moomoo stands out as a top discount brokerage, particularly for active traders, because of its feature-rich platform. Offering advanced charting tools, real-time market data and a wide selection of technical indicators, Moomoo empowers investors to conduct in-depth analysis and identify potential trading opportunities.
Moomoo sweetens the deal with competitive pricing, including commission-free trading on stocks and ETFs. The affordability and access to a diverse range of investment products, including U.S. and international stocks, options and ETFs, makes Moomoo an attractive option for investors looking to diversify.
The platform is designed to be user-friendly, with intuitive navigation and a clean interface. The availability of educational resources and responsive customer support can also help new users quickly get acquainted with the platform’s capabilities.
Why We Picked It: Moomoo frequently offers sign-up bonuses, such as free stocks or cash rewards, which enhances its appeal to new users.
What is a Discount Stock Broker?
Discount stock brokers offer a cost-effective way to buy and sell investments like stocks and bonds, charging lower commissions than full-service firms. They provide a platform and tools for investors to independently manage their portfolios without personalized advice.
Investors open an account, deposit funds and use the brokers’ online platform or app to research and execute trades, monitor performance and make further transactions as needed. The self-directed approach empowers investors with greater control and lower costs, making investing more accessible.
How to Choose the Best Online Discount Broker
Aside from the discount fees and commissions, investors looking for a discount broker should consider the following factors:
- Account minimums and requirements: Some brokers may have no minimum, while others require a certain deposit to get started. Other eligibility criteria may include age or residency.
- Research trading tools: Brokers provide research and trading tools to help investors make informed decisions and execute trades. This includes things like stock screeners, charting software, market data, analyst reports and order types.
- Additional tools and features: Beyond research and trading, brokers may offer features like mobile apps, educational resources, portfolio analysis tools and cash management features.
- Security measures: Brokers put safeguards in place to protect your account and funds from unauthorized access. This includes things like two-factor authentication, encryption and insurance, which protects your deposits up to a certain limit in case the brokerage firm fails.
- Customer support: Customer support may be provided through phone, email or chat to answer questions and resolve issues.
Navigating the World of Discount Brokers
Choosing the right discount broker is a crucial step in building a successful investment strategy. By carefully considering your needs – from trading frequency and investment goals to the importance of research tools and customer support – you can find the perfect platform to empower your financial journey.
Whether you prioritize rock-bottom costs, advanced trading features, or a user-friendly interface, thorough research and comparison will lead you to the broker that best suits your investment style and helps you achieve your financial aspirations.
FAQs
How much do discount stock brokers charge?
Full-service brokers provide extensive advice and services, often resulting in higher commissions per trade than discount or online brokers. Discount brokers offer fewer services and less advice, allowing them to charge lower flat-rate fees per trade, typically ranging from less than $5 to more than $30.
Where can I find the best discount stock brokers?
Finding the best discount stock broker requires careful research. Online resources like Benzinga offer in-depth reviews and comparisons, while checking broker websites directly allows you to explore platform features and pricing.
What are the disadvantages of discount stock brokers?
A major disadvantage of discount brokers is their self-directed approach. Investors seeking financial advice will likely find the limited guidance these firms offer insufficient, especially if they are inexperienced.