[Cheapest]8 Lowest Cost Brokers | How To Find The Best & Cheapest Stock Brokers
When you're ready to trade, you have to hope your best bet is to meet a trustworthy and efficient online broker to handle your trading accounts. Since the beginning of time, it has been shown that the purchase of trades and stocks cannot be done through mere bank accounts. You need a brokerage firm. You need able stockbrokers to manage your trading business. There was once a time when brokers were individuals from Wall Street who walked around, handling accounts for people. However, as the world advanced, so did the stock trade, and then, getting a brokerage firm to handle your account became less stressful and cheaper than before. In this article, we're going to tell you all you need to know about stockbrokers, how to find the best and the cheapest brokers online and in real life. Let's get right into it.
Best 3 Discount Online Brokers
The forex industry keeps evolving every day. (I mean, what do you expect?) Most of the time, people buy and sell stocks through online brokers. This has led to a lot of competition. You would see that most brokerage firms offer different fees from others. Some even go as low as zero-commission trading while others mainly provide research tools for veteran stock traders. Sometimes, it can be hard to thin the herd. We've decided to make that super easy for you and show you the top 3 online brokers that also provide the best discount rates.
You might wonder, who exactly are discount brokers and why do we call them discount brokers in the first place? In the wide world of forex trading, stockbrokers have, over the years, been divided into two. This is to ensure proper labeling and a clear insight into what they do without any confusion. Hence, brokers are divided into Full Service and Discount Brokers.
A full-service broker is a human stockbroker. This can be likened to the way things were done in the early days of stock trading when brokers were people you had to find and hire to do your trading for you. Full-service brokers help you place your trade, find investment opportunities for you in the forex market, and even help set up a retirement plan. One major problem with these kinds of brokers was their prices. Full-service brokers charge almost as high as the amount you're planning to invest.
Discount brokers on the other hand are where we're going. Most stockbrokers out there today are regarded as discount brokers as they help with their clients' needs online now without the need to walk around and meet them physically. All they do is help buy a stock or help sell it. Since they do the bare minimum, they can charge the lowest prices which makes them accessible to everyone.
One of the best discount brokers out there is Ameritrade. Its features include a highly accessible customer support system, in-depth stock research, and highly competitive commission.
- The service enables trading on $0 stock
- Its trading platforms are impeccable
- Its highly responsive customer support makes it top-notch
- It also allows for the selection, not mutual funds.
- As of now, it does not allow for any kind of trading on cryptocurrency
- Its margin rates are high, compared to other stockbrokers.
Even to newbies, Fidelity is not a new name. With its advanced features and easy-to-use interface, this brokerage firm has managed to make a name for itself in the forex world.
- Fidelity allows for the trading of commission-free stocks. It also allows for ETF trades
- Its wide selection of mutual funds makes it stand out from other brokers
- One of the most powerful features of Fidelity is its all-in-one mobile app. The app is of high quality and can be easily navigated
When it comes to options, its fees are always a little higher than its counterparts.
If you're not sure if you want to spend a lot in the forex business and you're thinking of monitoring the progress of your stock all the time, TradeStation may be the right brokerage platform for you
- It enables the trading of $0 stocks and ETF commissions
- It also allows for the trading of futures and cryptocurrencies
- Its high-quality trading platform is part of the factors that makes it one of the best stock brokers
- It allows for a low account minimum
- TradeStation also gives out cash rewards to its first-time account holders. The cash rewards are mostly depending on the amount deposited. They range from $50-$100 to $5000
One of the problems traders and investors have come across with TradeStation is its high margin rates.
How To Find The Best & Cheapest Stock Brokers
Most of the time, there's not a one size fits all brokerage firm for every stock trader. Sometimes, you need a broker that provides the kind of trading services well suited to your needs. However, to get the best stock broker, there are some features you need to consider
Most online stockbrokers now charge as low as $0 commissions when they investors and traders trade. Some stockbrokers even go as far as offering free options trading. (This means you wouldn't have to pay a premium fee). This is going to be essentially useful for active traders who buy and sell shares most of the time.
Even banks make sure you open your account with a specific amount for it to become active. Even though some stockbrokers don't have any kind of minimum requirement they expect their traders to meet, some do. This is often a way of verifying the fact that you can meet up with the minimal amount for investing.
The best stockbrokers have the best trading platforms, period. Most brokers do this by providing an easily accessible mobile application that allows for easy navigation. Others have trading platforms that have full features, AI advisors, and a wide array of research and tools to help with your trading.
A lot of stockbrokers provide services that enable you to seek a second or a third opinion on your shares in a stock. This is important when considering the best brokers. You would not only be able to converse with fellow traders, but you would also have access to a comprehensive selection of research tools to further aid your trading.
How To Compare
As said earlier, there isn't a one size fits all stockbroker for everyone. One investor's needs and demands in a brokerage firm might differ from another. Here are a few things you may also need to consider if you're planning on comparing the best online stockbrokers
- if all you plan to do is buy and hold shares, then a full-on trading platform might not be necessary for you.
- Say you majorly want to invest in mutual funds, you need a broker with a deep background in mutual funding and also has a thorough list. If possible, get one that doesn't charge additional fees for transactions of mutual funds.
- Let's say you're a newb instead and you want to test the waters first by throwing in a couple of hundreds, you need to get a broker that doesn't require a minimum requirement in your account.
- Lastly, make sure you fully compare the fees the stockbrokers charge for other activities such as options trading, bonds trading, and so on.
5 Lowest Cost Brokers
One of the things that make Merrill Edge outstanding is its free trades. It also offers tools that enhance deep-rooted research.
- Availability of enhanced third party research
- Integrated with BOA
Veteran traders may have difficulty in finding securities for sale
Apart from free stock and options trading, Robinhood also offers ETF trades and allows cryptocurrency. It does not have a required minimum before you can open a brokerage account.
- It allows for trading in cryptocurrency
- The minimum requirement to open a brokerage account is $0
- The interface is tailored to enhance navigation.
- There isn't much space for customer support
- As of now, Robinhood does not allow the trading of mutual funds and bonds
- There is no availability of retirement accounts.
A great option for traders, Ally Invest offers $0 minimum and $0 account trading commission. It however collects a fee of $0.50 on options trading
- There is no minimum account requirement
- A wider selection of tools to aid research and a powerful trading platform
- No commission fees on EFTs and eligible US stocks.
There is no allowance for mutual funds
This is one of the best brokerage firms for advanced traders due to its availability of advanced trading tools and a trading platform that's easy to navigate.
- Allows for cryptocurrency trading
- User-friendly interface
- Generally low fees
- Does not allow trading in mutual funds
- Slim to no educational support
The most important feature of Charles Schwab is its impeccable customer service. It also allows mutual funds and offers $0 trade commissions.
- Availability of tools for deep research
- Selection of mutual funds
- No commission on stock, ETF, and options trades.
The sweep rate is not that high compared to others.