Online Stock Trading is an area that many people are curious about. Many investors want to know the best online stock trading strategies, what the best online brokers are, and how to manage their money when they begin investing. Learning how to use the best online stock trading services can give you great returns.
When you are looking to get started investing but don’t know where to begin, using online stock trading platforms is the ideal place to start. Online trading platforms are safe, secure, and easy to use. Many businesses offer online trading for their employees without any face-to-face instruction. These intiatives help facilitate an environment that is conducive to growth and success.
Do you want to buy shares of stocks like Apple (AAPL), Facebook (FB), Netflix (NFLX), or Tesla (TSLA)? If so, you’ll need to set up a trading account with an online broker.
Every stock trading platform is unique. And now – with every broker offering $0 stock and ETF trades – deciding which one to use comes down to differences in the overall trading experience. Investment options, trading tools, market research, beginner education, customer service, and ease of use are all factors investors should consider when choosing a broker.
Having led these annual reviews for the past 11 years, I have seen the industry evolve firsthand. I placed my first stock trade when I was just 14 years old. (It was Starbucks.) Today, at 34, my lifelong tally of trades is more than 2,500.
I geek out over every aspect of the trading experience, which is why our review process is so exhaustive. This year we measured more than 250 individual variables. I couldn’t have done this alone, though. Big thanks to my teammates Steven Hatzakis, Jessica Hoelscher, and Joey Shadeck, along with the rest of our awesome editorial staff.
Fidelity Investments: Best Overall
4.8
- Account Minimum: $0
- Fees: $0 for stock/ETF trades, $0 plus $0.65/contract for options trade
Why We Chose It
Fidelity is on a multi-year run as our best overall broker due to its client focused approach. Other brokers are closing the gap, but Fidelity remains our overall pick for investors. In addition to refusing payment for order flow, Fidelity continues to keep costs low, provides exceptional tools to help investors manage and analyze their portfolio, and are always improving the platforms and app to make things easier for the individual investor. One example of this is Fidelity’s cash sweep of uninvested funds into a money market funds to give clients another source of modest returns in their portfolios. Fidelity also has excellent order execution and shares the revenue from the stock loan program back to clients.1 These features, and Fidelity’s commitment to lowering costs for customers while improving returns, are the key reasons it continues to be our selection for best overall broker.Pros
- 97.9% of Fidelity orders are executed at a price better than the national best bid or offer
- Robust research and asset scanners
- Cash is automatically swept into a money market fund
- Rich educational offerings
Cons
- Some traders and sophisticated investors may need Fidelity’s web platform in combination with Active Trader Pro to access all the tools and research they require
- Non-U.S. citizens or residents cannot open an account.
- Fidelity has a wide offering of securities, but no commodities or options on futures.
TD Ameritrade: Best for Beginners
4.5
- Account Minimum: $0
- Fees: Free stock, ETF, and per-leg options trading commissions. $0.65 per options contract.
Why We Chose It
TD Ameritrade’s strength in investor education flows naturally to TDA being one of the smoothest introductions to the market for new investors. There are, of course, brokers that do it cheaper or flashier, but TD Ameritrade has the resources, range of offerings, and the support that will help new investors become better over the long-term. Major factors in choosing TD Ameritrade include the expanded learning pathways covering everything from beginning to invest to advanced trading, and the ability to paper trade on the platform without making any commitment. TD Ameritrade makes a very compelling case for being a new investors’ choice to enter the market because it manages to be a comprehensive and robust platform without being overwhelming.
Pros
- Extensive education section with learning pathways designed with beginners in mind
- Dashboard on mobile and web where clients can quickly access account details
- A range of trading platforms and investment selections for all types of investors and traders
Cons
- Some investors may have to use multiple platforms to utilize preferred tools
- Wide menu of account types can make choosing the right one challenging
- Investors are paid a tiny rate of interest on uninvested cash unless they take action to move cash into money market funds
TD Ameritrade: Best Mobile App
4.5
- Account Minimum: $0
- Fees: Free stock, ETF, and per-leg options trading commissions. $0.65 per options contract.
Why We Chose It
TD Ameritrade has two apps which together form the best overall mobile app offering. The thinkorswim mobile app is designed to make trading easy for traders to manage existing positions and open new ones. The workflow on the app is intuitive and powerful enough that it is possible to trade solely from the app, potentially bringing about a generation of app-only traders who may never touch the more robust, downloadable platforms. The standard TD Ameritrade app for regular investors, you may find the app superior to the full website as it streamlines the entire experience to the necessities while nesting all the other functions in the app for those who are so inclined.Pros
- Mobile trading on TD Ameritrade mobile is more streamlined than the website
- Trading from charts on mobile is simple in both apps
- Dual apps allow traders and investors to select the one that best fits their needs
Cons
- Some tools found only on one platform
- Wide menu of account types can make choosing the right one challenging
- No fractional shares
In addition to our top five trading platforms for 2021, we reviewed six others: Merrill Edge, Firstrade, Ally Invest, TradeStation, Webull and Robinhood. Here are our high-level takeaways for each. To dive deeper, read our reviews.
Merrill Edge – Merrill Edge offers $0 trades with industry-leading research tools (especially ESG research) and excellent customer service. Better yet, for current Bank of America customers, Merrill Edge’s Preferred Rewards program provides the best rewards of any bank broker we tested in 2021.
Firstrade – While Firstrade is easy to use and terrific for Chinese-speaking investors, its overall offering struggles to stand out against brokers who also offer $0 stock trades.
Ally Invest – For current Ally customers looking to invest in stocks, Ally’s universal-accounts experience and easy-to-use website is a convenient solution.
TradeStation – As a trading technology leader, TradeStation supports casual traders through its web-based platform and active traders through its award-winning desktop platform, all with $0 stock and ETF trades.
Webull – Webull offers a unique community experience and easy to use trading platforms that will satisfy most young investors. However, for everyday investing, Webull lacks the trading tools and features to compete with industry leaders who also offer $0 stock and ETF trades.
Robinhood – Robinhood used to shine thanks to its easy-to-use mobile app and $0 trades. However, today, all of the largest online brokers offer free stock and ETF trades. As a result, it is much more difficult for Robinhood to outduel the competition.
Conclusion
Time is money, or so they say. For many, investing money in the stock market is a way to grow your wealth by making more money working less. But not everyone has time to track the fluctuations of a company, and monitor the markets 24/7 to only make a few bucks here and there. While the thought of online stock trading might be appealing to investors who want to get into the stock market but don’t have all the time in the world, not all online stock trading platforms are created equal. In fact, some platforms can be truly detrimental to an investor’s portfolio if they aren’t used properly.