Kevin VoigtJul 1, 2021
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Want to trade stocks? You’re going to need an online broker, and that broker should offer a reasonable investment minimum, high-quality trading tools, robust access to customer service and no hidden account fees. On these measures, the brokerage firms below earned their place on our list of the best online brokers for stock trading.
We evaluated brokerage firms and investment companies on the services that matter most to different types of investors. For example, for active traders, we've noted online brokers with low or no commissions and robust mobile trading platforms. For people venturing into investing for the first time, we've included the best online brokers for educational resources (including webinars, video tutorials and in-person seminars) and on-call chat or phone support.
Read on to see our picks for the best brokers, alongside links to our investing experts' in-depth reviews on each.
SHOW LESS
Summary of Best Online Brokers for Stock Trading of August 2021
Broker NerdWallet Rating Fees Account Minimum Promotion Learn More
E*TRADE
E*TRADE
4.5/5
$0
per trade
$0 Get $600 or more
when you open and fund an E*TRADE account with code: BONUS21
on E*TRADE's website
TD Ameritrade
TD Ameritrade
5.0/5
$0
per trade
$0 None
no promotion available at this time
on TD Ameritrade's website
Interactive Brokers IBKR Lite
Interactive Brokers IBKR Lite
5.0/5
$0
per trade
$0 None
no promotion available at this time
on Interactive Brokers's website
Webull
Webull
4.0/5
$0
per trade
$0 2 Free Stocks
after opening and funding an account.
on Webull's website
Robinhood
Robinhood
4.0/5
$0
per trade
$0 1 Free Stock
after linking your bank account (stock value range $2.50-$225)
on Robinhood's website
TradeStation
TradeStation
4.0/5
$0
per trade
$0 Up to $5,000
cash credit with a qualifying deposit
on TradeStation's website
Zacks Trade
Zacks Trade
4.5/5
$0.01
per share
$2,500 None
no promotion available at this time
on Zacks Trade's website
Ally Invest
Ally Invest
4.5/5
$0
per trade (on eligible US securities)
$0 $100 - $3,000
in cash bonus with qualifying deposit.
Merrill Edge
Merrill Edge
4.5/5
$0
per trade
$0 None
no promotion available at this time
Charles Schwab
Charles Schwab
5.0/5
$0
per trade
$0 None
no promotion available at this time
Fidelity
Fidelity
5.0/5
$0
per trade
$0 None
no promotion available at this time
E*TRADE
on E*TRADE's website
E*TRADE
4.5NerdWallet rating
Fees
$0
per trade
Account Minimum
$0
Promotion
Get $600 or more
when you open and fund an E*TRADE account with code: BONUS21
View details
TD Ameritrade
on TD Ameritrade's website
TD Ameritrade
5.0NerdWallet rating
Fees
$0
per trade
Account Minimum
$0
Promotion
None
no promotion available at this time
View details
Interactive Brokers IBKR Lite
on Interactive Brokers's website
Interactive Brokers IBKR Lite
5.0NerdWallet rating
Fees
$0
per trade
Account Minimum
$0
Promotion
None
no promotion available at this time
View details
Webull
on Webull's website
Webull
4.0NerdWallet rating
Fees
$0
per trade
Account Minimum
$0
Promotion
2 Free Stocks
after opening and funding an account.
View details
Robinhood
on Robinhood's website
Robinhood
4.0NerdWallet rating
Fees
$0
per trade
Account Minimum
$0
Promotion
1 Free Stock
after linking your bank account (stock value range $2.50-$225)
View details
TradeStation
on TradeStation's website
TradeStation
4.0NerdWallet rating
Fees
$0
per trade
Account Minimum
$0
Promotion
Up to $5,000
cash credit with a qualifying deposit
View details
Zacks Trade
on Zacks Trade's website
Zacks Trade
4.5NerdWallet rating
Fees
$0.01
per share
Account Minimum
$2,500
Promotion
None
no promotion available at this time
View details
Want to compare more options? Here are our other top picks:
Ally Invest
Merrill Edge
Charles Schwab
Fidelity
Disclosure: The author held no positions in the aforementioned securities at the time of publication.
Last updated on July 1, 2021
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People often identify opening a savings account as their next money move.
Marcus by Goldman Sachs Online Savings Account
4.5NerdWallet rating
Marcus by Goldman Sachs Online Savings Account
APY
0.50%
With $0 minimum balance
Bonus
N/A
at Marcus by Goldman Sachs, Member FDIC
American Express® High Yield Savings Account
4.5NerdWallet rating
American Express® High Yield Savings Account
APY
0.40%
With $0 minimum balance
Bonus
N/A
at American Express National Bank, Member FDIC
Axos Bank® High Yield Savings
4.0NerdWallet rating
Axos Bank® High Yield Savings
APY
0.61%
With $0 minimum balance
Bonus
N/A
at Axos Bank®, Member FDIC
Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers and robo-advisors by assets under management, along with emerging industry players, using a multifaceted and iterative approach. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgments on which ones will best meet your needs.
DATA COLLECTION AND REVIEW PROCESS
We collect data directly from providers, and conduct first-hand testing and observation through provider demonstrations. Our process starts by sending detailed questionnaires to providers to complete. The questionnaires are structured to equally elicit both favorable and unfavorable responses from providers. They are not designed or prepared to produce any predetermined results. The questionnaire answers, combined with product demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
RATING FACTORS
Evaluations vary by provider type, but in each case are based upon the weighted averages of factors that include but are not limited to: advisory and account fees, account minimums and types, investment selection, investment expense ratios, trading costs, access to human financial advisors, educational resources and tools, rebalancing and tax minimization options, and customer support including branch access, user-facing technology and mobile platforms.
Each factor can involve evaluating various sub-factors. For instance, when gauging the investment selections offered by robo-advisors, 80% of the score is based on the potential for diversification (how well-diversified a resulting portfolio of investments could be) combined with the availability of specialty portfolios and level of customization for investors. Expense ratios form an additional 10% of the score, and low or no management fee the remaining 10%.
FACTOR WEIGHTINGS
The weighting of each factor is based on our team’s assessment of which features are the most important to consumers and which ones impact the consumer experience in the most meaningful way. The factors considered, and how those factors are weighted, change depending upon the category of providers reviewed.
Provider categories include: Best Brokers for Stock Trading, Best Brokers for Beginners, Best Brokers for Day Trading, Best Brokers for Options Trading, Best Discount Brokers, Best Brokers for Free Trading, Best Investment Apps, Best Brokers for Penny Stocks, Best IRA Brokers, Best Robo-Advisors, Best Financial Advisors, Best Real Estate Platforms, Best Brokers for ETFs and Best Brokers for Mutual Funds.
INFORMATION UPDATES
Writers and editors conduct our broker and robo-advisor reviews on an annual basis but continually make updates throughout the year. We maintain frequent contact with providers and highlight any changes in offerings.
THE REVIEW TEAM
The review team comprises seasoned writers, researchers and editors who cover stocks, bonds, mutual funds, index funds, exchange-traded funds, alternative investments, socially responsible investing, financial advisors, retirement and investment strategy on a daily basis. In addition to NerdWallet, the work of our team members has been published in The New York Times, The Washington Post, Forbes, USA Today, Bloomberg News, Nasdaq, MSN, MarketWatch, Yahoo! Finance and other national and regional media outlets.
The combined expertise of our Investing team is infused into our review process to ensure thoughtful evaluations of provider products and services from the customer perspective. Our writers and editors combine to have more than 70 years of deep experience in finance, ranging from a former Wall Street Journal reporter to a former senior financial advisor at Merrill Lynch.
CONFLICTS OF INTEREST
While NerdWallet does have partnerships with many of the reviewed providers, we manage potential conflicts of interest by maintaining a wall between our content and business operations. This wall is designed to prevent our writers and the review process from being influenced or impacted by our business partnerships. This way, all reviews can provide an unbiased review that serves the interests of our users. For more information, see NerdWallet’s editorial guidelines.
To recap our selections...
NerdWallet's Best Online Brokers for Stock Trading of August 2021
E*TRADE
TD Ameritrade
Interactive Brokers IBKR Lite
Webull
Robinhood
TradeStation
Zacks Trade
Ally Invest
Merrill Edge
Charles Schwab
Fidelity
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