10 best stock brokers for 2024: Reviewed by Digimagg
Discover the top 10 stock brokers for 2024 reviewed by Digimagg, helping you choose the right platform for your investment needs.
With numerous online brokers available, each boasting low fees and extensive stock support, selecting the ideal one for beginners in 2024 can be daunting. In this overview, we assess the top 10 stock brokers, aiding you in finding the optimal platform for buying and selling stocks online.
|
The best stock brokers for beginners 2024 |
| Below is a compilation of the top 10 stock brokers for the year 2024: |
|
1. eToro: With a minimum deposit of $50, eToro offers commission-free trading for all stocks and ETFs. It provides access to thousands of stocks from the US and over a dozen international markets. eToro also features passive investing tools like copy trading and smart portfolios. |
|
2. Interactive Brokers: While primarily catering to seasoned traders, Interactive Brokers offers a basic client interface for US clients to trade domestic stocks without commission. It also serves as a reliable option for investing in ETFs and mutual funds. |
|
3. Webull: This online broker provides commission-free access to the US stock market, offering fractional stocks starting from $5 per trade. There is no minimum deposit requirement, and the platform supports ACH and bank wire payments. |
|
4. E*TRADE: Ideal for building diversified portfolios, E"TRADE lists various financial products including stocks, ETFs, mutual funds, bonds, futures, and options. There are no commissions for buying and selling stocks on NASDAQ or NYSE. |
|
5. Trade Nation: A newcomer in the industry, Trade Nation prioritizes transparency, accessibility to over 1,000 markets, and robust security. It offers low-cost and fixed spreads for trading and provides round-the-clock support. |
|
6. Schwab: With a wide range of financial products, Schwab supports trading for all US-listed stocks across major and OTC exchanges. Its Stock Slices feature enables fractional investing from $5. |
|
7. SoFi: A user-friendly FinTech platform, SoFi provides a range of financial services including Robo advisor services for passive investing with a minimum investment of just $1. |
|
8. Fidelity: Tailored for long-term investing, Fidelity supports various retirement accounts and offers 0% commission trading for US-listed stocks and ETFs. It's also suitable for investing in domestic and international index funds. |
|
9. Robinhood: Known for simplifying investing, Robinhood offers commission-free trading for thousands of US-listed stocks, ETFs, and options. It also supports cryptocurrencies from $1, including popular altcoins. |
| 10. TD Ameritrade: Geared towards seasoned traders, TD Ameritrade's Thinkorswim platform offers advanced trading tools including screeners, risk management tools, order types, and high-level charting. |
Best stock brokers evaluated and contrasted
Selecting the optimal stock broker in 2024 necessitates consideration of several factors. Besides supported stock markets, fees, and commissions, this encompasses aspects such as payment methods, security measures, and minimum account balances. Below, we evaluate and contrast the top 12 stock brokers for these criteria and additional features.
Read Digimagg's Review
Established in 2007, eToro emerges as the premier choice for stock brokerage today. It facilitates trading in a multitude of stocks and ETFs from both US and international markets, offering a seamless avenue for portfolio diversification. Investors can access stocks from various regions including the UK, Europe, Asia, the Middle East, and more. Irrespective of the exchange or market, all stocks and ETFs on eToro are devoid of commission fees.
Consequently, investors are only required to cover the spread, i.e., the disparity between bid and ask prices. Moreover, eToro facilitates fee-free deposits in US dollars, encompassing payment methods such as debit cards, bank wires, and e-wallets. While eToro accommodates other currencies, a 0.5% deposit fee is applicable.
User-friendly interface Social trading Variety of assets.png)
Limited research tools Higher fees Limited asset selection in certain regions
.png)
Read Digimagg's Review
Interactive Brokers is a well-established trading platform renowned for its support of thousands of assets sourced from 33 global markets, rendering it one of the premier choices for international diversification. Its supported stock exchanges encompass a wide spectrum, ranging from the US, Canada, and Mexico to the UK, Australia, and Singapore.
In terms of pricing, US-listed stocks can be traded commission-free, albeit exclusively for users with an IBKR Lite account. Accessing the global markets necessitates an IBKR Pro account. Commission rates for non-US stocks typically commence from 0.05% of the order value.
Global access Low commissions Advanced trading tools Complex interface High account minimums Customer service
Read Digimagg's Review
Webull is a regulated online brokerage catering to US clientele, offering support for numerous US-listed stocks and ETFs, all of which can be traded in $5 increments. Notably, Webull imposes no minimum deposit requirement, positioning it as an ideal choice for budget-conscious investors.
Additionally, we discovered that Webull stands out as one of the most cost-effective stock brokers in 2024. It imposes no trading commissions, and ACH deposits and withdrawals are devoid of fees. However, users should note that domestic bank wire payments incur an $8 charge, while bank wire withdrawals carry a steeper fee of $25.
Diverse range of investment products Low commissions Strong regulatory oversight Inactivity fees Platform stability Customer service
Read Digimagg's Review
E*TRADE, supported by stands out as a premier option for investors seeking portfolio diversification. While its primary focus remains on US-listed assets, the platform offers a wide array of markets to explore. This encompasses all US-listed stocks and ETFs, including those in the OTC markets, all without incurring any trading commissions.
Additionally, E*TRADE extends support for US-listed mutual funds and commission-free options trading. Investors can also access bonds, futures, and participate in IPOs through the platform. However, it's worth noting that E*TRADE lacks support for fractional investing, meaning investors can only purchase stocks at their full share price.
Research and educational resources Retirement accounts Customer service Commission fees Complex fee structure Limited international markets
Read Digimagg's Review
Trade Nation is an emerging stock broker that prioritizes transparency, accessibility, and dependability. Launched in 2014, the platform has adeptly catered to the demands of contemporary traders. In contrast to numerous trading platforms that conceal fees, Trade Nation provides fixed spreads, which commence at a low rate and remain consistent. This approach instills confidence in traders and enables them to concentrate on their trading strategies.
Offering access to more than 1,000 markets spanning commodities to indices, Trade Nation guarantees ample opportunities for traders across diverse markets. Trade Nation prioritizes client security by safeguarding funds in segregated accounts with established banks, and regulatory oversight from authorities like FCA and ASIC reinforces their dedication to safety.
User-friendly platform Regulatory oversight Educational resources Limited asset selection Withdrawal fees Limited research tools
Read Digimagg's Review
Schwab, a well-regulated brokerage firm, offers a wide range of assets, including stocks and ETFs from NASDAQ and NYSE, available at no commission. OTC stocks incur a $6.95 commission, while ADRs for foreign stocks carry a $50 charge per trade. Futures and options have a fee of $2.25 per contract. With no minimum deposit requirement, Schwab caters to investors of all budgets. Fractional investments starting from $5 are available, primarily for S&P 500 stocks. However, full shares are required for small-cap stocks. Additionally, Schwab stands out for mutual fund investments.
Schwab provides a screening tool for investors to locate their desired fund, considering factors like performance, strategy, and risk. Additionally, it offers financial planning tools, retirement accounts, and margin trading services. Schwab stands out for its analysis tools, encompassing independent research and third-party insights, making it a comprehensive option for investors.
Branch network Retirement accounts Robust trading platforms Higher margin rates Limited international markets Account minimums
Read Digimagg's Review
SoFi stands out as a renowned FinTech platform offering diverse financial services, from mortgages and loans to credit cards and investment products. Among its offerings are thousands of US-listed stocks and ETFs, with no minimum account balance required. Additionally, investors can engage in fractional investing starting from just $5.
Trading US-listed assets on SoFi incurs no fees or commissions, and while the platform can be accessed via web browsers, its mobile app for iOS and Android is particularly noteworthy. With its user-friendly interface, the SoFi app empowers beginners to trade conveniently while on the go.
Crypto trading Commission-free trading User-friendly interface Limited investment options Platform stability No retirement accounts
Read Digimagg's Review
Fidelity stands out as an excellent choice for long-term investors, particularly those focused on retirement planning. It provides various tax-efficient account options, such as Roth, traditional, and rollover IRAs, along with a retirement planning tool to help investors gauge their saving objectives.
Additionally, Fidelity offers a wide range of long-term investment opportunities, encompassing stocks, ETFs, mutual funds, index funds, and bonds. These offerings extend to cryptocurrencies, futures, options, and IPOs. Fidelity also provides managed accounts, although a minimum balance of $25,000 is needed to access an independent advisor.
Diverse investment options Retirement accounts Branch network Account minimums Complex fee structure Limited educational resources
Read Digimagg's Review
With approximately 12 million monthly active users, Robinhood stands out as one of the most favored stock brokers in the US. Primarily targeting budget-conscious beginners, its platform allows users to invest small amounts, starting from just $1. This applies to all US-listed stocks on the NYSE and NASDAQ exchanges.
Robinhood extends this low-cost approach to ETFs and a variety of cryptocurrencies through its user-friendly investment app. All supported investment options, including options trading, come with zero commission fees. Moreover, there's no minimum deposit requirement, and users can fund their accounts through domestic bank wires and ACH transfers.
Commission-free trading Fractional shares User-friendly interface Limited investment options Complex fee structure Limited customer support
Read Digimagg's Review
TD Ameritrade stands out as a top choice for active investors looking for sophisticated analysis tools. The broker's proprietary platform, Thinkorswim, offers a comprehensive suite of advanced trading features, including customizable charts, stock screeners, risk management tools, and economic indicators. Thinkorswim is available as downloadable desktop software, providing traders with everything they need for long-term success. Additionally, access to tens of thousands of markets is available through web browsers and the iOS/Android app, albeit with reduced functionality compared to the desktop version.
This encompasses both domestic and international stocks listed on primary and OTC exchanges. Every stock purchase benefits from "intelligent order routing," optimizing execution at the most favorable price. Furthermore, all US-listed stocks, ETFs, and options are commission-free. TD Ameritrade extends its offerings to include forex, mutual funds, cryptocurrencies, futures, bonds, and opportunities to participate in IPOs.
Robust trading platforms Retirement accounts No account minimums Higher commission fees Limited cryptocurrency offerings Platform stability
How we evaluated the leading stock trading platforms?
Unsure which stock broker shines amidst the competition? Keep reading to discover how we assess the top stock brokers in 2024.
Regulation
The finest stock brokers adhere to regulations set by top-tier authorities. Those catering to US clients must comply with FINRA regulations, safeguarding client funds through segregation from the broker's operational capital. It's crucial for investors to steer clear of unregulated brokers.
Stock selection
Every stock broker reviewed here offers access to US-listed exchanges, encompassing the NYSE, NASDAQ, and frequently, the OTC markets.
However, for those seeking to diversify their portfolio with international stocks, eToro emerges as the top choice among stock brokers.
Distinguishing itself from others, eToro provides commission-free access not only to US markets but also to global exchanges spanning Europe, Asia, and the Middle East.
Fee structure
All the brokers discussed here offer commission-free trading for US-listed stocks and ETFs. Nevertheless, foreign-listed stocks typically incur additional charges, unless using eToro, where international stocks also come at no commission.
Additional fees to consider encompass:
- Margin trading expenses
- Early-exit fees for mutual funds
- Deposit and withdrawal charges
- Fees related to managed portfolios
Tools and analysis
Leading stock brokers furnish users with robust charting tools and fundamental research, often featuring trading ideas, market insights, and real-time data. Platforms that host quarterly earnings calls are particularly valued, aiding traders in making informed investment decisions.
Furthermore, eToro's copy trading tool stands out, allowing users to emulate the positions of expert traders.
Minimum deposit
Most stock brokers do not impose a minimum deposit requirement, enabling traders to commence trading with their preferred amount. However, it's important to note that not all brokers support fractional investments, contrary to platforms like Ally Invest and E*TRADE, which mandate the purchase of entire stocks.
Demo account
For beginners, a risk-free demo account can be invaluable. For instance, eToro offers a complimentary demo account with $100,000 in virtual funds, replicating live market conditions and providing newcomers with a platform to practice before investing real capital.
Mobile App
The best online stock brokers also offer a mobile app, seamlessly connecting to the brokerage account and facilitating trading on the go.
This feature will attract active traders who prefer to execute trades promptly.
Payment options
We also evaluate the best forex brokers based on their accepted payment methods. Most of the brokers mentioned here typically accommodate debit cards, e-wallets, and bank transfers. However, it's advisable to verify this before creating an account, as payment options can vary depending on the trader's location.
We've identified eToro, Webull, and Robinhood as the top choices for beginner-friendly stock broker apps.
Customer support
Moreover, we prioritize stock brokers that provide excellent customer service. For instance, Interactive Brokers extends telephone support to registered users, while eToro offers live chat assistance round the clock on weekdays.
How stock brokers operate?
Stock brokers act as intermediaries facilitating access to financial markets for investors. They execute stock trades on behalf of clients, offering a convenient way to invest online.
Traditionally, brokers charged commissions for their services, but with increased competition, most now offer commission-free trading. They cater to the retail market by allowing clients to purchase fractional shares with minimal investment.
Operating within strict regulatory frameworks overseen by entities like the SEC and FINRA, brokers ensure investor protection and segregation of client funds from their own capital.
Beyond basic brokerage services, top stock trading platforms provide retirement accounts, margin trading, and managed portfolios. They also offer research tools, charting capabilities, educational resources, and financial planning assistance.
Considerations before engaging in stock trading
Before delving into stock trading, it's essential to recognize that while the stock market can offer significant wealth-building opportunities and higher returns compared to traditional savings accounts, it also involves risks. Not all stocks appreciate in value, so thorough research is crucial before making any investments.
Prior to engaging in stock trading, investors should evaluate their long-term financial objectives and risk tolerance. For instance, individuals planning for retirement may opt for retirement accounts like a 401(k) or IRA, which offer tax advantages. However, early withdrawals from these accounts may incur penalties.
On the other hand, those with shorter-term objectives might opt for a traditional brokerage account or platforms geared towards day trading. These platforms allow investors to trade assets independently, with the flexibility to withdraw funds at any time. For investors interested in purchasing individual stocks with limited funds, choosing a broker that supports fractional investing could be beneficial.
For instance, Webull imposes a minimum stock trade requirement of $5 for all supported stocks, facilitating easy diversification for investors on a budget. Another crucial aspect to consider is the type of stocks one intends to trade.
Investors with a lower risk tolerance may opt for blue-chip stocks, which are well-established companies dominating their respective industries. Examples include Visa, McDonald’s, Nike, Johnson & Johnson, and Coca-Cola. Conversely, those seeking higher potential returns may turn to growth stocks, typically associated with companies in early growth stages, albeit accompanied by higher risks.
Ultimately, investors should conduct thorough research before purchasing any stocks. This entails delving into the company's fundamentals, analyzing quarterly earnings reports, and staying updated on market trends. For those lacking the time or expertise for active research, index or mutual funds may be more suitable investment options.
How to begin with a licensed stock broker?
In the last section of this manual, we'll outline the process of getting started with a regulated stock broker in just a few minutes. This step-by-step guide will demonstrate the process using eToro, a platform that offers commission-free trading on thousands of US and international stocks.
1. Register for an eToro account
As with any stock broker, the first step involves signing up for an account with eToro.
Select a username and password and input your email address. Then, furnish the required personal information and contact details as requested.
2. Provide KYC Documents
In compliance with FINRA regulations, eToro requests verification of new brokerage accounts. This involves submitting a government-issued ID, such as a passport, driver’s license, or state ID card.
Moreover, eToro also mandates proof of residency. The document should be issued within the last three months and can be a bank statement, tax bill, or utility bill.
3. Add investment funds
Click the 'Deposit' button and enter the desired amount of investment funds to add. You can deposit any amount starting from just $50.
Then, select your preferred payment method.
4. Search for stocks to purchase
Utilize the search bar located at the top of the screen to look for the desired stocks. In the example provided below, we are searching for 'Amazon'.
Another alternative is to click on ‘Discover’ and then ‘Stocks’. eToro displays all of its supported stocks, and users can apply filters to locate a suitable investment. These filters include industry, exchange, as well as a list of trending stocks and market movers.
5. Purchase stocks
Select the ‘Invest’ button to proceed to the stock order form.
Enter the desired investment amount in US dollars. At eToro, there is no obligation to purchase a whole stock; instead, investors can buy any amount starting from $50.
Lastly, select the ‘Open Trade’ button to execute the purchase of the selected stock.
In conclusion, with numerous stock brokers available, selecting the right platform can be daunting. However, based on our assessment, eToro emerges as a top choice for novice investors.
eToro offers access to over 3,000 stocks from both domestic and international markets, all commission-free and with the option for fractional investments. Additionally, its smart portfolios and copy trading features provide avenues for passive investment strategies.
Opening a verified trading account with eToro requires a minimum deposit of $50 and can be completed in just a few minutes, making it an appealing option for those new to investing.
