In this article, we will review the top 10 online stock trading brokers.
Most people don’t have time to research every trading platform, they just want to know which are the most affordable online stock trading brokers. With so many options and trade fees that can eat into potential profits over time, it is nice to have an overview of reputable companies. Plus, every service advertises itself as the best online stockbroker available. Of course, they each can’t be as good as they all claim to be. We’ve compiled a list of the top rated online stock brokers to make it simple to pick the one that speaks most to you and hop right into trading.
1. Wealth Simple
Wealth simple is a stockbroker that prides itself on expert financial planning designed to get higher returns than traditional investing platforms. They offer 3 tiers of service depending on how much is invested. The basic tier is given to anyone who invests less than a hundred thousand dollars. The second tier offers VIP airport access for anyone who deposits between 100 and 500 thousand dollars. Finally, the last tier earns you a dedicated team of advisors for anyone with more than 500 thousand dollars. The trading fee is 0.5% and can be reduced to 0.4% with the 2nd tier.
2. Bloom
Bloom is a stockbroker that focuses on building up a client’s 401k. After transferring your company account, a person can grow their 401k quicker by being advised on how to avoid common fees and errors that plague accounts that are left unattended. Bloom allows the user to put in their specific stats to determine how much they can save by switching over to the service.
3. SoFi
SoFi is a trading platform that offers an entire suite of financial services. Members can also benefit from career planning, loans, and mortgage assistance. The investment platform focuses on an active approach that teaches the client how to invest for themselves. This is an excellent choice for anyone who likes a hands-on approach when it comes to where their money is going. Plus, having no transaction fees makes it a great way to get started in the world of investing.
4. ZacksTrade
ZacksTrade focuses on competitive rates and the ability to invest in foreign opportunities. The trading platform boasts three dollar trades and margin rates as low as 5.91% depending on how much is borrowed. The ability to invest in 91 different exchanges across the world is by far the most unique feature offered. This gives the investor flexibility to take advantage of world events that make for some easy profit opportunities. The technical support is also top notch so users can expect great service whenever anything goes awry.
5. FirstTrade
FirstTrade is an investment platform that offers no commission fees on any trade whatsoever. This is a huge plus as fees can really cut down profits when not managed properly. Also, the platform was rated the best for bond and ETF investors in 2018. They also offer a host of tools and education to aid in researching potential plays. This is a fantastic service for both new and veteran investors alike. FirstTrade is a great choice for anyone just starting out as they can learn all about the market and not incur any fees on their trades.
6. Ally Invest
Ally invest is a stockbroker that also offers high yield savings accounts. The 2.20% yield on these savings accounts makes them a great place to park the cash in between trades. They take a $4.95 commission on each trade, which can be lowed to $3.95 for users who have over $100k deposited or make more than 30 trades each month. This platform is not the best for day traders as the commission fee will quickly eat into profits. Even when the fee is reduced by a dollar, it still adds up quickly when performing over 30 trades in a single month.
7. Merill Edge
Merill Edge is an investment platform that offers a variety of tools for investors to learn about and research various stocks. The $6.95 fee is a bit steep but can be waived if the investor has a Bank of America account. For this reason, it is only advisable to start with them if you are already a customer of Bank of America or are planning to get an account there in the near future.
8. ETrade
ETrade is a great platform for anyone who doesn’t want to worry much about their investment choices. In addition to a traditional brokerage, they offer managed portfolios as well. The pre-built portfolios divvy up the money deposited into the account in a variety of stocks, ETFs, and bonds chosen by various professionals. The user can choose to customize them a bit or sit back and watch the account grow on autopilot.
9. Acorns
Acorns is a unique app that rounds up the spare change made on purchases and adds that money into your portfolio. For instance, if you make a purchase with your card that costs $6.50, the user will be charged seven dollars and the fifty cents will go into the acorns account. In addition to this, certain brands such as Walmart will give you cash back into your account when you make a purchase there. Investors can choose a one, two, or three dollars a month plan that each offer more features and support.
10. Robinhood
Robinhood is a free trading platform that even gives you a free share of stock when you sign up. This share can be worth anywhere from $2.50 to $200 depending on the luck of the draw. These free stocks are chosen based upon the highest market capitalization on the platform. They manage to make money by earning interest on deposited cash and when people trade on margin.
Those are the top 10 stockbrokers available online. Each has its own quirks so it is best to look at your own personal situation and trade experience when determining which of the online stock trading brokers to use.
By BCR Staff
June 2019
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