Best online brokerages for 2023
In yesteryears, the established route to execute a stock trade was by engaging a broker via telephone and instructing them to place an order on one's behalf. In today's world, a myriad of avenues exist for purchasing and offloading stocks, as well as other types of securities, all of which can be accessed online.
By liaising with an online stockbroker, investing and portfolio management can be considerably simplified. Nevertheless, distinct brokers excel in diverse areas. Furthermore, each broker could impose varying fees and present distinct user experiences. If the task at hand is to select the most suitable stockbroker, here are some commendable candidates recommended by us.
Regardless of whether one is an experienced investor or merely aspiring to dip one's toes into the investment waters, there is an array of online brokerages capable of catering to individual needs and assisting with the buying, trading, and selling of various asset types.
The Fortune Recommends™ editorial team conducted comprehensive reviews of over 20 different online brokerages, resulting in a list of our top 10 choices. Our rankings were developed taking into account factors such as the minimum sum required to open an account, stock trading charges, educational resources, margin trading accounts, and customer service options.
The preeminent online brokerages
Here is our compilation of the foremost online brokerages, as per the editors of Fortune Recommends. Please note: Minimum deposit requirements, fees, and other figures in our list are accurate as of January 20, 2023, and may be subject to alterations.
Interactive Brokers
Overview: With its headquarters in Greenwich, Connecticut, Interactive Brokers boasts a 46-year history and provides customers with an extensive variety of assets to invest in, encompassing stocks, options, futures, mutual funds, fixed income, and more.
- Account minimum: $0
- Trading fee: $0
- Customer support:
- Customer service representatives are accessible around the clock to assist account holders via phone, chat, email, or mail.
Our judgement:
This brokerage is recommended for traders seeking a broad selection of assets to invest in. Interactive Brokers topped our list due to its offering of the most diverse list of products compared to other online brokerages we ranked, along with its zero-dollar account minimum and stock trading fee. It also facilitates margin trading and offers an array of educational resources such as webinars, podcasts, learning labs, and more, to enhance investors' understanding of trading and financial markets.
TradeStation
Overview: TradeStation initially debuted as a software product that issued trading alerts to customers when their strategies’ conditions were fulfilled. It subsequently evolved into an online securities brokerage in 2001. TradeStation delivers a comprehensive suite of trading technology, online brokerage services, and trading education.
- Account minimum: $0
- Trading fee: $0
- Customer service:
- Representatives are reachable via telephone, email, and live chat, Monday through Friday, from 8:00 a.m. to 5:00 p.m. ET.
Our judgement:
We posit that this brokerage is beneficial for traders aiming to trade on margin at a competitive rate. Tradestation also secured a top spot on our list due to its outstanding customer service support, in addition to its $0 account minimums and stock trading fees. Investors can select from a broad spectrum of assets, including stocks, ETFs, options, futures, futures options, cryptocurrency, mutual funds, and bonds. TradeStation further offers margin trading accounts with interest rates as low as 3.5%, thereby providing investors with augmented purchasing power by leveraging their account assets.
Delving into TD Ameritrade:
Originating as Ameritrade in 1971, it underwent a transformation to TD Ameritrade in 2006 post the acquisition by TD Waterhouse USA, a subsidiary of TD Bank Financial Group. Its impressive array of offerings encompasses self-directed brokerage accounts, professionally managed investment accounts, and provisions for retirement and education savings.
The admirable aspect is the absence of a minimum account balance requirement or trading fee. Customer service is of paramount importance to TD, evident in their provision for round-the-clock phone support, and accessibility through Facebook Messenger and Twitter Direct Messages.
Weighing in the pros and cons, TD Ameritrade seems to be an optimal choice for traders desiring full-time customer support. It has made a mark on our list, clinching the third spot due to its diverse product offerings which range from stocks, options, ETFs, mutual funds, futures, forex, bonds, to CDs. Additionally, TD Ameritrade caters to the learning needs of investors by providing margin trading and educational resources like demos, videos, quizzes, and more, thus demystifying the trading world.
A Glimpse at Fidelity:
Established in 1946 with its headquarters in Boston, Fidelity extends its services to customers through 12 regional sites globally and more than 200 Investor Centers. It boasts low fees, exceptional customer service, and effective tools for managing everyday finances.
The advantage of zero account minimum or trading fee stands out in Fidelity's offerings. Their dedicated customer service team is readily available to resolve queries related to your brokerage account, providing 24/7 telephonic support and live chat from Monday through Friday, between 8:00 a.m. and 10:00 p.m. ET, as well as on weekends between 9:00 a.m. and 4:00 p.m. ET.
In our analysis, Fidelity appears to be a sound choice for traders preferring a passive approach to investing. Fidelity has earned its spot on our list owing to its affordable accounts and educational trading tools. Furthermore, the availability of numerous channels for contacting a service representative adds to its appeal. The company's online offerings span across stocks, mutual funds, crypto, fixed income assets, bonds, CDs, ETFs, and options. It has also made its mark in our list of top robo-advisors.
An Insight into Charles Schwab:
The first branch of Schwab was inaugurated in Sacramento, California, in 1975, and it took a leap into the digital era by launching its online trading platform during the internet boom of the late 1990s. Currently, it boasts an average of over 5 million trades executed daily.
Like its counterparts, Schwab too has a zero account minimum or trading fee policy. It provides 24/7 phone and online chat support, and in-person support is available at any of its more than 300 branches spread across the US.
From our perspective, Schwab is a viable option for traders with limited investment capital. With zero account minimums, maintenance fees, and stock trading fees, Schwab makes trading in stocks, options, bonds, mutual funds, ETFs, and other financial products affordable for everyday investors. Furthermore, Schwab users have access to educational resources catering to investors at all levels, aiding them in formulating and implementing a trading strategy. Not to mention, Schwab's margin lending service enables customers to borrow against the securities held in their brokerage accounts.