Best Online Brokers: Fees, Features, Pros & Cons Compared

By Ethan Thompson│Updated January 25, 2024

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Stock investing generates 7% – 10% per year in returns above the initial capital. If you have a well-diversified portfolio, you can earn reliable passive income that builds generational wealth. However, stocks are not easy to buy directly. The easiest way to reach the stock market and buy assets is to use online brokerage accounts. Discover the best brokerage accounts and compare them by features, trading fees, minimal deposit thresholds, pros & cons, etc. You will also learn about 10+ criteria to choose the best stock broker. Keep reading to discover the 8 best online brokerage firms.

Overview

eToro

Our rating

Listed Assets

300+

Min Deposit

$10

Fees

Stock trading fee: 0%

eToro is an established social trading platform where you can buy up to 50 different stocks. You can also invest in over 300 ETFs, including the most performing ones, like SPDR S&P 500. On eToro, you don’t pay stock trading fees as the brokerage covers associated charges by the SEC and FINRA.

eToro is one of the best stock trading platforms for beginners as well. You can use copy trading to follow the best market moves and grow your portfolio by leveraging professional traders’ experience. eToro also offers a virtual trading environment where you can test your trading strategies without spending real money. Additionally, the broker offers stock analyses with charts and performance projections under each listed asset.

eToro is a secure and regulated exchange. It keeps your funds in the world’s best banks and protects user information with advanced data encryption. eToro is insured by the FDIC for up to $250,000 in cash and $500,000 in securities per customer if the brokerage goes bankrupt. Also, Apex Clearing brokerage accounts are eligible for up to $37.5 million in securities and $900,000 in cash.

Pros:

  • 300 ETFs and 50 stocks available
  • Zero fees
  • Educational tools for beginners
  • Built-in stock analysis
  • eToro Academy

Cons:

  • Unavailable in American Samoa, Guam, Hawaii, Minnesota, Nevada, New York, Puerto Rico, and the U.S. Virgin Islands

SoFi Invest

Our rating

SoFi Invest logo

Listed Assets

500+

Min Deposit

$1

Fees

Stock trading fee: 0%

SoFi Invest is a versatile online brokerage platform where you can buy over 500 stocks, ETFs, options, and cryptocurrencies. Since SoFi features many low-entry stocks and ETFs, it’s one of the best online trading platforms for investors who prefer smaller deposits. It is also one of the best forex online trading platforms as you don’t pay trading fees for forex and forex ETFs.

SoFi Investing features a seamless ecosystem of financial products. It offers many products alongside stocks, including private student loans, personal loans, insurance services, banking services, credit cards, and mortgages. 

You can also use robo-investing tools that manage diversified portfolios based on risk tolerance and other parameters. Also, SoFi Invest features educational resources, including but not limited to market analyses and investment guides. 

SoFi Invest is a reliable, reputable, and regulated U.S. online broker. It’s licensed by the SEC and FINRA. SoFi Invest partners with banks insured by the Federal Deposit Insurance Corporation (FDIC) at up to $250,000 per individual. SoFi Invest takes leading data security measures, protecting personal information with 256-bit encryption, two-factor authentication, and regular malware scanning.

Pros:

  • Zero trading fees
  • Many financial products
  • Available in all 50 U.S. states plus the District of Columbia
  • Compensation up to $250,000 per individual

Cons:

  • Available only in the U.S.
  • Limited stock research tools compared to other brokers

Fidelity Investments

Our rating

Fidelity Investments logo

Min Deposit

$0.00

Fees

Stocks, ETFs, mutual funds: $0.00

Options & Contracts: $0.65 per contract

Bonds & CDs: $1 in secondary trading

Fidelity Investments is one of the oldest online brokerage firms, founded in 1943. Fidelity Investments serves over 40 million customers worldwide and provides financial and investment services to over 3600 advisory firms. It’s one of the most reputable and reliable brokers in the industry.

You can purchase stocks and options and invest in ETFs, mutual funds, and other financial products. Fidelity Investments offers life and health insurance, retirement & IRA savings accounts, and 529 college savings. Also, Fidelity Investments features stock analyses by the industry’s best research providers, including Zacks Equity Research. 

Fidelity.com keeps your funds safe and protects customer data 24/7 using encryption and virus scans. Fidelity Investments is insured by the Federal Deposit Insurance Corporation (FDIC). Investors can receive up to $250,000 in compensation per individual if the broker goes bankrupt. Users can also secure their accounts with two-factor authentication.

Pros:

  • Available worldwide
  • Zero fees on stocks, mutual funds, and ETFs
  • Strong stock research
  • Vast choice of financial services

Cons:

  • Comparatively high fees for options and contracts

Robinhood

Our rating

Robinhood logo

Listed Assets

5,000+

Min Deposit

$0.00

Fees

Trading fee: $0.00

Robinhood offers many stocks and ETFs, including real estate, commodities, indexes, and growth ETFs. It allows you to trade options and cryptocurrencies as well.

A friendly fee structure makes Robinhood the best option trading platform. It charges zero fees for stocks, options, ETFs, and cryptocurrency. Robinhood also doesn’t apply regulatory fees to sell orders of up to $500, which also makes it the best day trading platform.

Robin hood also offers very lucrative retirement deposits, with no employer required. Its retirement program adds 1% to every dollar deposited yearly.

Robinhood is regulated by the SEC and FINRA and available in all 50 U.S. states, Washington D.C., the U.S. Virgin Islands, and  Puerto Rico. Robinhood takes safety seriously. It’s a Securities Investor Protection Corporation (SIPC) member and protects users’ securities for up to $500,000 if it goes bankrupt. It’s also a member of the Federal Deposit Insurance Corporation (FDIC).

As for cybersecurity, the Robinhood app encrypts user data and offers two-factor authentication to protect user accounts from unauthorized access.

Pros:

  • Available in all 50 U.S. states and territories
  • Customer insurance up to $500,000
  • Zero trading fees
  • Beneficial retirement program

Cons:

  • No mutual funds
  • No bonds

TradeStation

Our rating

TradeStation logo

Min Deposit

$1

Fees

Stocks & ETFs: 0%

Stock options: $0.60 per contract

Futures: $1.50 per contract

Micro futures: $0.50 per contract

TradeStation is an online trading app for active traders with robust tools and zero commissions. It has over 40 years of business experience. TradeStation allows you to trade stocks, futures, ETFs, options, futures options, mutual funds, and cryptocurrencies.

TradeStation offers powerful trading tools, including advanced charts, over 150 custom indicators, real-time trading opportunities, and order matrices. Like many platforms on the list, TradeStation has a low entry barrier due to the $0.00 account minimum.

The low entry barrier makes it the best stock trading platform for beginner investors who seek a well-balanced trading experience and are eager to learn advanced trading charts.

As for security, TradeStation applies 256-bit data encryption, advanced firewalls, encrypted passwords, two-factor authentication, and other industry-leading protection measures. Most importantly, TradeStation is insured by the Securities Investor Protection Corporation (SIPC). User funds are protected for up to $500,000, including $250,000 in cash.

Pros:

  • Low trading fees
  • No account minimum
  • Regulated and insured for up to $500,000 per customer
  • Advanced trading tools

Cons:

  • Limited mutual fund offerings
  • Only whole shares are supported
  • It charges maintenance fees for IRA accounts

Interactive Brokers

Our rating

Interactive Brokers logo

Listed Assets

18,000+

Min Deposit

$10

Fees

Stocks & ETFs: 0%

Options: $0.65 per contract

Futures and FOPs: $0.85 per contract

Event contracts: $0.10 per contract

Spot currencies: $0.20

Cryptocurrencies: 0.18%

Precious metals: 1.5 BPS

Bonds: 0.1%

Mutual funds: 0% – 3%

Trade desk: $0.01 per share

Interactive Brokers is a global online broker operating in 200 countries. You can trade over 150 markets, including stocks, bonds, mutual funds, ETFs, options, event contracts, and futures. The brokerage also offers crypto trading with some of the lowest trading fees on the market.

Interactive Brokers offers interest accounts, credit and debit cards, loans, and no-transaction-fee ETFs. You can also use stock research tools to quickly map the most performing assets.

Additionally, Interactive Brokers features helpful education resources, including free online trading courses, resources for educators, blog podcasts, and trading insights. Abundant features make it one of the best platforms for active traders.

As for security, Interactive Brokers is insured by the Securities Investor Protection Corporation (SIPC). The brokerage compensates users for $500,000 in securities & cash and up to $250,000 in cash.

Interactive Brokers also offers two-factor authentication for better account protection, scans its systems for malware regularly, and uses an encrypted connection. It’s a reliable brokerage platform with low trading fees that gives its users valuable info for free.

Pros:

  • Low trading fees
  • Free educational resources
  • Up to $500,000 in securities and cash insurance per individual
  • Available in 200 countries

Cons:

  • Perplexing website navigation
  • No live chat support

J.P. Morgan Self-Directed Investing

Our rating

J.P. Morgan logo

Min Deposit

$0.00

Fees

U.S. stocks, bonds, ETFs, mutual funds, U.S. treasury notes: 0%

Secondary market: $10 per trade

J.P. Morgan Self-Directed Investing allows you to invest in stocks, ETFs, mutual funds, bonds, treasury notes, options, donor-advised funds, and other assets.

You can also invest in retirement accounts, buy life insurance, and manage college savings accounts. J.P. Morgan fits both experienced traders and beginners. It charges 0% trading fees for self-directed investing and offers brokerage-assisted trades at $10 – $25 per trade.

J.P. Morgan Self-Directed Investing is the best bond brokerage due to zero fees for this asset type. J.P. Morgan’s investing platform also has a portfolio builder tool to help users diversify assets and maximize profits. It suits investors who rely on dividends and value appreciation rather than active trading. 

J.P. Morgan Self-Directed Investing is a member of the Securities Investor Protection Corporation (SIPC). You can get up to $500,000 in compensation (cash and securities) if the brokerage goes bankrupt. As for data security, J.P. Morgan applies two-factor authentication, data encryption, cyber-threat prevention, and malware protection.

Pros:

  • Insurance up to $500,000 per individual account
  • Available in all 50 U.S. states and Washington D.C.
  • Good for holding stocks
  • Good for retirement planning

Cons:

  • Not for active traders
  • Limited stock research functionality

Webull

Our rating

Webull logo

Min Deposit

$0.00

Fees

Stocks, options, ETFs: 0%

OTC securities: 5%

F-stocks: $5 per trade

Webull allows you to trade stocks, options, ETFs,  and OTC securities. It’s a good option for beginners as it features a demo trading platform to test trading strategies and gain experience. You can also open IRA accounts, set up recurring investments, and earn up to 5% APY in cash savings accounts. You can also receive 12 free stocks valued at $8 – $3,000 each under Webull’s promotion program.

You can also access free A-Z guides to investment strategies, types of investments, stock analysis, and other educational materials.

Webull provides many analysis tools, including price charts, historical performance charts, news, and press releases. It also suits active traders due to low fees.

Although Webull is a private company, and there is little data about its financial health, it is insured by SIPC and regulated by the SEC and FINRA. You can get up to $500,000 in compensation if the brokerage goes bankrupt.

Webull also applies industry-leading data security measures, like 256-bit data encryption, two-factor authentication, firewalls, and malware scans.

Pros:

  • Up to 12 free stocks valued at ~ $30,000
  • Low trading fees
  • SIPC insurance
  • Advanced trading analytics tools
  • OTC securities trading

Cons:

  • No mutual funds, bonds, or cryptocurrencies trading
  • No live chat support

What is an Online Broker?

An online broker, also known as an online brokerage firm, is a financial firm that provides access to the stock market. It allows investors and traders to buy stocks, bonds, options, futures contracts, exchange-traded funds, and other financial instruments. A brokerage firm owns an online platform that facilitates transactions between traders. Best online brokers make it easy and convenient for investors to benefit from financial market moves. You can do the following activities on an online brokerage platform:

  • Buy, sell, and trade financial instruments

  • Invest in mutual and exchange-traded funds

  • Open savings accounts, including 401(k) accounts

  • Earn dividends by holding stocks

  • Manage investment portfolios

  • Learn about financial markets

  • Get personal, student, and business loans

How Does an Online Broker Work?

An online broker works in the following way:

  • 1

    Account registration. Open an account on the online brokerage platform. The platform may require you to provide personal information, including your name, phone number, and email address. Since reliable brokers follow customer identification regulations for fraud prevention and security, you should provide identity verification.

  • 2

    Account funding. After completing the sign-up, you can deposit funds in your brokerage account. Online brokers usually accept debit cards and wire transfers.

  • 3

    Research and analysis. Before buying financial instruments, you can use built-in research and analysis tools to understand which securities match your financial goals.

  • 4

    Order placing. You can place orders (market orders, limit orders) to buy assets on online brokerage platforms. You can also use stop orders to protect your funds from negative market moves.

  • 5

    Order execution. Once you place an order, the system executes the trade at the best price. It matches buy and sell trades and may process low-liquid assets longer than high-liquid ones.

Online Brokerage Fees

An online brokerage fee is a commission charged by the broker for specific services, including but not limited to stock purchases and sales, stock trading, broker-assisted trades, and consultations. Online brokers may have different fee structures. Check the following list of stock trading fees on online brokerage platforms.

Online broker fee Description Example
Trading fee Applies when you trade securities, currencies, and other financial instruments on the platform Fidelity Investments charges  $0.65 per option contract

  • You pay $6.5 per 10 option contracts regardless of the total contract price
Deposit fee Applies when you deposit funds to your brokerage account Interactive Brokers charges a 1% physical cash deposit fee

  • You will be charged $1 for depositing $100 in physical cash
Withdrawal fee Applies when you transfer funds from the brokerage account to your debit card or bank account Robinhood applies a 1.5% fee to instant withdrawals

  • You pay $1.5 for $100 withdrawn from Robinhood
Regulatory fee Charged by regulatory bodies such as the U.S. Securities and Exchange Commission (SEC). Regulatory fees apply to online brokers. However, online brokers may pass these fees on to their customers Fidelity Investments charges a $0.03 – $0.05 regulatory fee per option buy & sell transaction

  • You will pay up to $0.50 per 10 options
Assisted trade fee Applies when a brokerage manages a trade on your behalf J.P. Morgan charges $10 – $25 per assisted trade

  • You will be charged up to $250 for 10 assisted trades regardless of the total trading volume
Account maintenance fee Charged for keeping your brokerage account up and running Interactive Brokers charges a maintenance fee for Broker type of accounts if the account commissions for the first 8 months are less than the required minimum account deposit of $10,000

  • As a broker, you will be charged a $3,000 account maintenance fee if your commissions are $7,000 for the first 8 months of trading activity
Inactivity fee Charged when a user doesn’t log into their account or make trades for a long time eToro charges $10 per month as inactivity fee after a year of inactivity

  • You will be charged $50 in total for 1 year and 5 months of inactivity

How to Choose the Best Trading Platform?

There are over 3,000 brokerage firms, according to FINRA. Thus, it may be challenging to choose the best online brokerage firm for your financial goals. However, you can achieve better results if you consider the following criteria while selecting online brokers for stocks, ETFs, options, bonds, and other assets.

Online broker selection criterion Key highlights Example
Listed assets Online brokers that support many financial instruments make your trading experience more flexible.

The more trading options and listed assets, the more diversified portfolio you can build on a single platform.

 Robinhood supports over 5,000 asset

Interactive Brokers supports over 18,000 assets
Minimum deposit Prioritize online brokerage firms that allow you to start with little money.

Brokerage firms with high initial deposits ($500+) may not be beginner-friendly.

 SoFi Invest has no account minimum

eToro has a $10 minimum deposit
Brokerage offerings Ensure a brokerage firm offers services other than standard investing, such as savings accounts, 401(k) plans and student loans.

More financial options will allow you to diversify and secure your investments.

 Active investing, automated investing, IRAs, ETFs, mutual funds

Savings accounts

Retirement plans

Personal, student, and business loans

Life, health, and home insurance

Mortgage refinancing

Estate planning

Credit cards
Brokerage insurance Ensure brokerage firms are insured in case of bankruptcy.

Reliable brokers secure user funds for up to $500,000 per customer in both securities and cash.

 eToro protects user funds for up to $500,000
Transaction fees Carefully read the brokerage’s fee statements. Aim for as low fees as possible to earn the most from your investments.

Pay attention to hidden fees, such as regulatory, custodian, account maintenance, and account inactivity fees.

 Fidelity Investments charges $0.65 per option contract

eToro charges a $0.00 stock trading fee

Robinhood charges a regulatory fee of $5.10 per $1 million in sale transactions

Trading tools Ensure the brokerage firm provides stop-loss orders, virtual trading options, portfolio & risk management, and financial analytics tools.

Robust stock market research and analytics tools help you make informed decisions and grow your portfolio.

 Real-time quotes and charts

Technical analysis tools: Chart patterns, moving averages, relative strength indicators, Bollinger Bands

Stock screeners

Market analysis, research reports, options chains, and options strategy builders

Copy trading, virtual trading, and paper trading

Algorithmic trading and automated trading
Ease of moving funds Ensure the brokerage firm processes deposits and withdrawals as fast as possible.

Ensure it is easy to withdraw your funds from the brokerage account (no time-consuming multi-step procedure).

 Withdrawals from eToro take 3-7 business days depending on the withdrawal method

Withdrawals from Webull take 1-5 business days depending on the withdrawal method 

Withdrawals to a bank other than the deposit bank are eligible 60 days after a deposit on Webull due to anti-money laundering laws
Educational resources You will benefit from brokers that offer free educational content about investing, stock research, personal finance, etc. SoFi Invest features a learning center with free guides on financial topics

eToro offers a trading academy with trading courses, helpful articles, and video guides on investment topics
User satisfaction Check user feedback on multiple platforms with verified testimonials, such as G2, Capterra, Trustpilot, and others

Check what users say about the broker on forums and social media, including YouTube, Reddit, X (former Twitter), etc.

 SoFi Invest has 4.6 stars from 6,500+ reviews on Trustpilot

Interactive Brokers has 3.8 stars from 2,300+ reviews on Trustpilot
Operating history Clean operating history increases the chances of reliable performance in the future, although gives no warranties of said performance.

Pay attention to recorded data breaches and their consequences.

 The Fidelity Investments and J.P. Morgan data breach of 2014 affected over 76 million households, but no confidential data was stolen.

Robinhood suffered a social engineering hack attack that compromised millions of customer names and email addresses in 2021.
Regulatory compliance Ensure the broker complies with the FINRA, CFTC, NFA, FDIC, and international regulatory bodies, such as the FCA and MiFID

Your funds will be much more protected with regulated brokers

 eToro is regulated by the Financial Conduct Authority (FCA), the Securities and Exchange Commission (SEC), and the Markets in Financial Instruments Directive (MiFID).

FAQ

Fidelity Investments is one of the top online brokers by audience, with over 43 million active brokerage accounts and over $11.7 trillion in assets under management.

Fidelity Investments is the largest brokerage firm by user count. It has the most registered and active users among all online brokerage firms.

eToro provides the best trading advice with its copy-trading options, virtual trading environment, and trading academy. With eToro’s educational content and sandbox trading, you can safely gain valuable experience and make more successful trades with real money.

eToro’s copy trading features mirror the best investors in the industry, allowing you to follow their moves and safely grow your portfolio.

The following online brokerages provide the best customer support:

  • Fidelity Investments offers reliable, professional customer service via online chat and phone. Live customer support is available from 8 AM to 10 PM on work days and from 9 AM to 4 PM on weekends. 
  • eToro offers 24/7 support through a ticket system and online chat with a virtual assistant. 
  • SoFi Invest offers 24/7 chat with a virtual assistant,  live customer support chat, and a helpline during working hours. 

You can research an online broker and use the comparison of brokerage accounts, like InvestmentDoctrina’s, to know if your target broker is reliable. Discover whether an online broker is regulated by the SEC and FINRA and whether your funds are insured. 

You can also research the broker’s reputation and operating history.  If the broker is insured, regulated, and has a good reputation, you will have a high chance of getting a positive trading experience.

SoFi Invest, eToro, TradeStation, and Robinhood are the best online trading brokers for beginners due to low fees, helpful educational materials, and useful trading tools like copy trading or sandbox trading.

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