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A brokerage account is like a checking account for your investments. The difference, however, is that brokerage accounts act as a safe place to hold investable assets like stocks, bonds, ETFs, mutual funds, and crypto.
Best Online Brokerages
- Charles Schwab: Best online brokerage overall
- SoFi Invest: Best for beginners
- Fidelity: Best online brokerage for retirement savings
- TD Ameritrade: Best online brokerage for experienced investors
- Interactive Brokers: Best for active investors
- Public: Best online brokerage for mobile
- Stockpile: Best online brokerage for kids and teens
Compare Top Online Brokerage Reviews 2024
The best brokerage company for you depends on the kinds of assets you're looking for, your investment style, and how much you're willing to pay for top-notch trading tools like auto rebalancing, market trades, and real-time market data.
Here are the best online brokerages as picked by Business Insider's editors in 2024.
Charles Schwab
$0 ($5,000 for Schwab Intelligent Portfolios; $25,000 Schwab Intelligent Portfolios Premium)
0% ($0 Schwab Intelligent Portfolios; $30/month Schwab Intelligent Portfolios Premium)
- No minimums; commission-free trading on stocks, ETFs, and options
- Thousands of no-load mutual funds and 50+ Schwab-managed funds; fractional shares (Stock slices) available
- Automated and advisor-managed accounts available
- Multiple trading platforms; stock screeners and other trading tools
- $5,000 minimum for automated Schwab Intelligent Portfolios is on the higher end
- Schwab's no-load funds have a $100 minimum; some competitors offer lower minimums
Insider considers Charles Schwab to be the best online brokerage overall, as well as one of the best online brokerages for beginners. It's great for all types of investors — including active traders, passive investors, and retirement-focused individuals — in search of low costs and access to a variety of trading tools and platforms.
Charles Schwab Brokerage- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want a wide range of account types, with easy-to-use apps and web interfaces
- Awards: Investor's Business Daily recognized Charles Schwab as one of its Most Trusted Financial Companies for 2021.
Schwab is a major discount broker and one of the largest investment management firms in the United States. Charles Schwab is one of the best brokers for trading commodity futures, offering a range of brokerage accounts and products that meet the needs of virtually any investor.
Hands-on investors are best served by the basic Schwab self-directed brokerage account, which gives you access to various investment choices. If you want more help, you can sign up for managed Schwab Intelligent Portfolios, one of the best robo-advisors. This account also doesn't charge any fees.
What to look out for: There are also high phone and broker-assisted trade costs.
SoFi Invest
$0 ($1 to start investing); $5 fractional shares; $2,000 for margin trading
0% for active trading and automated investing
- No account minimum
- No account or trading fees, and low fees to own funds
- Access to Certified Financial Planners at no additional charge
- IPOs available
- SoFi 1% IRA match
- No tax-loss harvesting, an advanced investing technique where you sell a stock or mutual fund at a loss for a tax benefit
- No option for stop-loss orders when actively investing. SoFi's active investing account only uses market orders
- Currently only available to US residents
SoFi Invest is a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account.
SoFi Invest- Promotion: Get up to $1,000 in stock when you fund a new account.
- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.
SoFi is an online brokerage featured in our guides for the best investment apps. It charges almost no fees for its investment accounts, which include self-directed investing and automated investing (managed portfolios) with no recurring fees and a very low $1 minimum to get started.
SoFi's self-directed "Active Investing" account has no fees for trading stocks and ETFs. You can buy fractional shares of stocks, which SoFi calls "Stock Bits." SoFi also has a few of its exchange-traded funds that could be a fit for your portfolio. Plus, it now offers options for trading and IPOs.
What to look out for: SoFi has a limited selection of research and tools
Fidelity
$0 ($25,000 Fidelity Personalized Planning & Advice)
0% ($0 or 0.35% for robo-advisor)
- No account minimum or account fees
- No commissions for stock, ETF, and options trades; fractional shares available
- Thousands of no-transaction-fee mutual funds and fee-free mutual funds
- Several research tools and trading platforms available
- Fidelity Go accounts cost more for investors with higher account balances
- Representative-assisted trades are slightly more expensive than other brokerages
Fidelity is one of the best online brokerages for beginners and retirement savings. It has great features for all types of investors and traders.
Fidelity Brokerage- Promotion: None at this time
- App store rating: 4.8 iOS/4.4 Android
- Awards: Morningstar named the Fidelity HSA as the best HSA provider in 2019, 2020, and 2021.
- Consider it if: You're focused on long-term investing and retirement.
Fidelity offers multiple account types, a long list of available investments, and competitive pricing with industry leaders for low-cost investments. It offers zero-expense ratio Fidelity Flex mutual funds and uses them for its robo-advisors, Fidelity Go. Fidelity Go now has unlimited one-on-one coaching calls for account balances of $25,000 or more.
The online stock trading app Fidelity has no minimum balances or recurring fees. It offers commission-free stock and ETF trades with fractional shares available. You can invest in stocks, ETFs, options, mutual funds, bonds, CDs, and precious metals. Fidelity offers international investing in foreign markets and foreign currency exchange between various different currencies.
Fidelity can be a great choice for most investment needs, but it's especially strong for investors with a long-term retirement focus. The combination of low fees and a focus on helping investors reach a successful retirement helped make it the top choice for retirement brokerage accounts.
What to look out for: Fidelity gives you a lot for free, but mutual funds outside of the no-fee list cost up to $49.95 each, not including added fees for phone or broker-assisted trades. In addition, Fidelity charges higher margin rates than many competitors.
TD Ameritrade
$0 ($5,000 or $25,000 for managed accounts through Schwab)
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
- Free commissions on stock, ETF, and option trades
- No minimum requirement to get started with brokerage account
- Large investment selection
- Research and educational resources available
- No fractional shares
- Robo-advice and managed portfolios are more expensive
- No cryptocurrencies
TD Ameritrade is great for active traders interested in using multiple trading platforms. As one of the best online brokerages, TD Ameritrade offers secure storage for investments and other assets.
TD Ameritrade- Promotion: None at this time.
- App store rating: 4.5 iOS/3.6 Android
- Consider it if: You want multiple apps for different trading experiences and goals
TD Ameritrade is a discount brokerage that's great for both new and expert investors. Beginners will enjoy the simple online platform at TD Ameritrade's website. Experienced investors will want to take advantage of the advanced trading platform, called thinkorswim, and other expert resources TD Ameritrade makes available.
Like other large commission-free brokers, TD Ameritrade gives you access to almost any brokerage account you could want. It offers a list of tradeable assets bigger than most peers, another draw for experienced investors.
TD Ameritrade's thinkorswim provides a professional-style trading platform with advanced charting and order types. An embedded CNBC TV widget is a nice perk that keeps your trading strategy in sync with the markets. It's nearly Wall Street quality and comes included with TD Ameritrade accounts.
What to look out for: Charles Schwab acquired the company in 2020. TD Ameritrade has said on its website that it will continue to conduct business as usual while combining many components with Schwab.
Interactive Brokers
$0 ($100 Interactive Advisors automated accounts)
$0 for IBKR Lite; $0 IBKR Pro (per-share commissions apply)
- Low commissions and fees
- International trading opportunities
- Competitive trading platforms and tools
- Several account types available
- Thousands of no-transaction-fee mutual funds
- Cryptocurrency investing available for bitcoin, bitcoin cash, ethereum, and litecoin
- Less active traders pay more for IBKR Pro
- Website can be tricky to navigate
Interactive Brokers is one of the best online brokerages for advanced, active investors who trade securities frequently and value access to market analysis and trading platforms.
Interactive Brokers brokerage- Promotion: None at this time.
Interactive Brokers is a top investment platform for all kinds of investors. Trade at higher volumes and get access to tools optimized for your investing needs. Typical investors may not care about the difference of a few seconds when entering and executing a trade. Very active traders, however, care about milliseconds.
Interactive Brokers has multiple pricing options depending on your level of trading activity and your personal trading needs. The basic account, IBKR Lite, gives you commission-free stock, ETF trades, and competitive fees for most other trades.
IBKR Pro accounts use tiered or fixed pricing models. This means you won't get completely commission-free trades as you do with IBKR Lite. Pro accounts have additional access to market data. They also get access to the IBKR Web Trader platform and IBKR APIs for automated trading. Algorithmic trading, also known as algos, is included with Pro accounts.
What to look out for: Not all accounts and trades are free. Choose the right account level for your investment goals and experience.
Public
$0
0% stocks and ETFs; Crypto: 1% or 2% markup; Alternative assets: 2.5% per transaction; Public Premium: $10/month
- No minimums and commission-free trading on stocks and ETFs
- Cryptocurrency trading available for over 20 coins and tokens; alternative assets available
- Offers fractional share investing for as little as $1; Premium plan includes advanced market data and insights
- Several community features that allow you to share insights and receive insights from other users; educational resources like live audio events also available
- No mutual funds
- Not the best platform for day traders; it doesn't allow day trading of stocks
Public is best for active traders who want to invest in stocks, ETFs, and cryptocurrencies while utilizing the expertise and insights of other Public.com members.
Public- App store rating: 4.7 iOS/4.3 Android
- Consider it if: You value portfolio diversification and want a social component to your investing experience.
Public is an investment app that uses a mobile-first experience. The result is a mobile investment experience that's somewhat unique but still easy to navigate for both beginner and experienced investors. You can now earn a $0.18 rebate per traded options contract with no commission fees.
As the name suggests, trades at Public allow you to connect with other investors on the platform. You can follow others and chat about investment ideas. You can even join a group chat for live interaction with other investors. In some ways, it's like a built-in social network for investors.
Another useful feature for newer investors is the ability to view various themes. These group stocks by industry or other major categories to help you zero in on companies that make sense for your investment strategy. Public uses a commission-free pricing model so most users won't pay any fees when they trade.
What to look out for: Public doesn't offer a robo-advisor for hands-off automated trades. It's account selection is also limited as you can't invest in retirement, education, or custodial accounts with Public.
Stockpile
$0
$4.95 monthly subscription fee
- No minimums and no gift card/funding fees
- 1,000+ stocks and ETFs
- Can fund account with bank transfer or stock gift cards
- Fractional shares available
- Investment selection limited to stocks, ETFs, and crypto
Stockpile is a newer and smaller brokerage than some others on this list, but it's perfect for kids
- App store rating: 4.7 iOS/4.3 Android
- Consider it if: You want to invest with kids or teens
Stockpile is a top investment platform for kids to learn how to save and invest toward their future. Stockpile offers brokerage and custodial accounts with no recurring fees, minimums, or gift card fees. Invest in fractional shares for $1 and even trade popular cryptocurrencies. The online brokers have a $4.95 monthly subscription fee.
Other investable securities include over 4000 stocks and ETFs in five different kid account options and one adult account. Cryptocurrencies are also available. Parents and kids will enjoy the built-in education resources, such as the "mini-lessons," which teach stock market basics that prepare anyone for a more successful future in the stock market.
Stockpile is great for kids and teens for a few reasons. The simple and easy-to-navigate platform shows kids the logos and companies they are familiar with in their investment portfolios. You can fund the account through a bank account or with stock gift cards.
What to look out for: Other types of investments (such as mutual funds) are not supported.
Best Online Brokerage FAQs
Charles Schwab was our top pick for the best online trading platform that offers a range of brokerage account options, investments, and features that meet the needs of virtually any investor. It's a low-cost online trading site offering commission-free trades on assets like stocks and ETFs.
Brokerage accounts are a type of account used for investments. With a brokerage account open and funded, you can buy and sell stocks, bonds, funds, and other investments.
In most cases, modern brokerage accounts are free to open and keep. There should be no recurring fees or minimum charges if you're looking for the best online brokerage account for most investors. There should also be few or no commissions for stock, ETF, and options trades. Some fees for phone or broker-assisted trades are common, as are commissions for some mutual funds and other investments.
Before opening an account, investors will request to see your personal information to comply with current laws and regulations. You'll need information such as your name, address, telephone number, Social Security number, annual income, and more.
Many online brokers provide paper trading as a way to minimize risk. With a paper trading account, you can practice buying and selling investment assets before applying your strategy to your live account. Beginners can benefit from paper accounts since these accounts are usually free and have no risk.
Introduction to Brokerage Accounts
Types of Brokerage Accounts
Online brokerage accounts are licensed firms in which a broker is responsible for executing a client's orders. Types of brokerage accounts include:
- Self-directed brokerage accounts (individual and joint)
- Robo-advisors (aka automated accounts)
- Retirement savings accounts
- Education savings plans (like the best 529 plans)
- Custodial accounts (UGMA/UTMA)
- Cryptocurrency trading accounts
- Health Savings Accounts (HSA)
How to Open a Brokerage Account
Online brokerage accounts are taxable investment accounts similar to a bank account but for your investable assets. Rather than stepping into a brick-and-mortar building to open a brokerage account and start trading, you can open an online brokerage account to access the market from your phone or computer easily.
Here's you're opening a brokerage account checklist:
- Evaluate your risk tolerance, financial goals, and time horizon
- Explore different investment options in brokerage accounts to find the right one for you
- Compare fees, minimums, and investment features
- Determine what you need to open an account with that brokerage
- Gather the appropriate information and funds (if applicable) and start investing
Some brokerages require a minimum deposit to open an account. Depending on the brokerage and the type of account, this minimum can range from $0 to $10,000 or more. Make sure you're comparing fees in top brokerage accounts as well.
Security and insurance of brokerage accounts should also be considered before opening an account. Most platforms offer substantial coverage and security measures, but you'll want to check for any recent scandals or lawsuits in which the platform may be involved.
You may also need to provide personal information like your name, age, address, social security number, and banking information.
Choosing the Right Brokerage
The best online brokerages offer portfolio diversification, great customer support, low fees, and account flexibility. Here's how to choose the right online brokerage based on your risk tolerance, goals, and time horizon.
Everyone's investment goals and preferences are unique, and not all brokerage accounts are a perfect fit. To choose the best online brokerage, start by looking at your investment style and what you want from a brokerage. Whether that's cutting-edge active trading tools or a long list of no-transaction-fee mutual funds, there's a good online brokerage for everyone.
For most investors, a long-term, passive investment strategy is ideal. Many experts suggest building a diverse portfolio of low-cost index funds over picking individual stocks and riskier active trading tools.
Newer investors may be overwhelmed by advanced trading strategies and market charting features. The best online brokerages for beginners have strong customer support, easy trading tools, educational resources, staking rewards, and low fees and minimums.
Once you understand what you need, consider costs, platforms, investment account types, and available investments to decide what's best for you.
Criteria for Evaluating Brokerage Accounts
In evaluating the best online brokerage accounts available today, we rate investing products on various criteria. The most important factors for Personal Finance Insider rates and reviews products are pricing, account types, investment availability, platforms, and overall customer experience. Investing platforms are given a rating between 0 and 5.
Most brokerage accounts on this list have no minimum balance or recurring monthly fees. After a major shift in pricing in 2019, most brokerage firms on this list also offer commission-free trades for stocks and ETFs. They also removed base fees for options trades but charged per-contract fees in most cases.
Top brokerage firms offer different platforms for different investment needs. Some are best for beginners, and others are ideal for more advanced investors. Platforms were evaluated with a focus on how they serve in each category.
Why You Should Trust Us: Our Expert Panel For The Best Online Brokerage
We consulted financial advisors, investing experts, and our own wealth-building reporter to inform our choices for the best online brokerages.
We interviewed the following investing experts to see what they had to say about online brokerages:
- Brian Fry, CFP, founder at Safe Landing Financial
- Charlotte Geletka, CFP, CRPC, managing partner at Silver Penny Financial Planning
- Kaysian Gordon, MBA, CFP, CDFA, CPA, wealth manager at Clarus Group
What are the advantages or disadvantages of opening a brokerage account?
Brian Fry, CFP:
A taxable brokerage account offers the flexibility to have funds available when needed and without a tax penalty. They offer transparency and freedom when considering costs and investment options.
Other account types may add more value and/or tax-efficiency depending on a household's financial situation. For example, if qualified, HSAs provide tax deductions, tax-free growth, and tax-free distributions if used for qualified medical expenses; retirement accounts may provide tax deductions, tax-deferred or tax-free investment growth, and potentially tax-free distributions.
Education accounts may provide tax deductions and/or tax-free distributions if used for qualified educational expenses.
Charlotte Geletka, CFP, CRPC:
The advantages include access to stock exchanges to buy almost endless options of investments. This is where you can purchase stocks, bonds, ETFs, mutual funds, options, and almost the entire inventory of the open markets.
The multitude of options can also be a disadvantage. Most retirement plans offer a curated list of choices that have been well-vetted by consultants and investment experts. When you go into a brokerage account, it is daunting to know where to start. The recent rise of social media blogs surrounding investing may increase interest, but be cautious about investing, as any investment comes with risk.
Kaysian Gordon, MBA, CFP, CDFA, CPA:
The advantage of opening a brokerage account is — if you're interested in investing in stocks or bonds, mutual funds, or ETFs, as example, a brokerage is a great way to do it.
Savings accounts or checking accounts just do not have those features. So the disadvantage is [that] you have to be aware of what you're looking for. Lots of different brokerage accounts will provide you with different things, so it's a matter of specifically what it is that's important to you.
Who should consider opening a brokerage account?
Brian Fry:
A taxable brokerage account can be a good fit for anyone and everyone. Before saving in a taxable brokerage account, it's important to consider where saving adds the most value to your unique financial situation. Make sure to have an adequate emergency fund.
Charlotte Geletka:
Once you have set up an emergency fund and started funding a retirement account, then you might consider opening a brokerage account as a place to invest after-tax dollars.
Most often, the account you have set up in a brokerage will be a flexible investment. This is great because you have use of the money for various purposes, and you are not tied to specific withdrawal requirements the same way you would be in a retirement or college 529 account.
Kaysian Gordon:
When you're looking to start the process of investing after you have saved the amount that you need for your emergency funds — and typically that's three to six months— you should start looking to invest other personal cash. Make it a point to contribute as frequently as you can, because that's how wealth is built over time.
Is there any other advice you'd offer someone who's considering opening a brokerage account?
Brian Fry:
Before saving with a taxable account, consider the order of where you should save first to accomplish your financial goals best. Are you comfortable taking responsibility in making investment decisions? How are you going to rebalance? How are you going to take emotion out of investing? Taxable accounts can be a good vehicle if you can check all the boxes.
Charlotte Geletka:
There is a difference between trading and investing. Trading is exchanging [which is] usually short-term in nature. Investing involves time and is long-term in nature.
Kaysian Gordon:
Do your research because that's very important. Think about the things that are important to you. Do a comparison of the different names that you hear and see what the benefits are of one company over another before making a decision.
Nothing will have everything you need, but go with the brokerage account with the best of what you need.