Are you ready to start trading?
Short-term trading, unlike long-term investing, means buying and selling stocks on the same day (day trading) or within a few weeks of opening the position (swing trading). The best online stock brokers for trading are different than the best online stock brokers for investing.
I’m assuming you want the best broker for stock trading.
Each of the best online stock brokers for beginners has a few common criteria:
- Low commissions and fees
- Easy-to-use platform
- Low (or non-existent) minimum deposits
These criteria, along with a handful of others I’ll cover below, are the most important when choosing which online brokerage you want to use to start trading.
With that in mind, here is my list of the 6 best online stock brokers for trading.
I’ll take a look at their features, fees, and other essential factors to help you make an informed decision.
The 6 Best Online Stock Brokers for Trading
1. TradeStation: The Overall Best Online Stock Broker for Trading
Overall rating: ⭐️⭐️⭐️⭐️⭐️
- Stock commissions: $0
- Options commissions: $0.60 per contract
- Assets available: Stocks, ETFs, options, futures, crypto, bonds
- Minimum deposit: $0
TradeStation is easily the best online stock broker for trading.
TradeStation is fast, powerful, and customizable – the perfect combination for active traders.
While the number of features can be overwhelming at first, you will learn quickly how many different tools you need for a complete trading workflow.
TradeStation offers a range of advanced trading tools including real-time market data, customizable charting, and a range of technical indicators. The platform also supports something called automated trading, which allows you to create and test your own custom trading strategies.
And if you ever want to branch out of stock trading into options, futures, or cryptocurrencies, you will already have access to each of these asset classes via your TradeStation account.
2. TradeZero: The Best Online Broker for Short Selling
Overall rating: ⭐️⭐️⭐️⭐️⭐️
- Stock commissions: $0.005 per share
- Options commissions: $0.50 per contract
- Assets available: Stocks, ETFs, Options
- Minimum deposit: $200
TradeZero is a US-based online brokerage that specializes in commission-free trading for stocks and options.
The company’s focus on low-cost, high-speed trading has quickly gained it a reputation as one of the best online stock brokers for trading.
It’s one of the best online brokers for trading, but it’s especially good for short selling. Many of the best shorting opportunities are on “hard-to-borrow” stocks (stocks with low volume or trade on non-major exchanges). TradeZero’s short locator service makes it easy to find and short sell these companies.
Use extreme caution when shorting stocks.
It’s not the cheapest brokerage on this list (ZeroPro and ZeroWeb cost $59/month), but you get what you pay for.
3. eToro: The Best Online Stock Broker for Social Investing
Overall rating: ⭐️⭐️⭐️⭐️⭐️
- Stock commissions: $0
- Options commissions: $0 per contract
- Assets available: Stocks, ETFs, options, crypto, commodities
- Minimum deposit: $50
eToro is a solid and popular online brokerage which is best known for its unique social trading features. These features make it easy to learn from, exchange ideas with, and even copy the trades of other traders.
eToro’s CopyTrader allows users to follow and copy the trades of other traders. If you’re a beginner and are nervous about making big mistakes, this feature is particularly helpful. You can use it while you brush up on your studying and learn about the stock market, while not missing out on the trades of more experienced traders.
eToro’s user-friendly interface is easy to navigate and it offers a range of tools and features to help traders succeed. Its customizable watchlists, technical analysis tools, and range of educational resources can each make you a better trader.
eToro is an excellent choice for traders looking for a unique social trading platform with a user-friendly interface and low fees.
Disclaimer:
eToro is a multi-asset platform which offers both investing in stocks and crypto assets, as well as trading CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC does not offer CFDs and neither does it represent or assume any responsibility for the accuracy or completeness of the content of this publication, prepared by WallStreetZen, as a partner, using information available and public and not specific to the eToro entity.
4. Webull: The Best Broker for Stock Trading on a Mobile App
Overall rating: ⭐️⭐️⭐️⭐️⭐️
- Stock commissions: $0
- Options commissions: $0.00 + $0.50 per contract
- Assets available: Stocks, ETFs, options, crypto
- Minimum deposit: $0
Webull is one of the best online stock brokers for trading on-the-go, well-suited for mobile traders who want to stay up-to-date on the latest market news and execute trades from their smartphones.
Most importantly, Webull makes it easy to perform technical analysis on your phone – no need for a computer and multiple monitors.
The Webull app also provides traders with fast and reliable market access, real-time market data, and advanced charting tools. In addition, the app allows traders to execute trades quickly and easily, with no account minimums or fees.
Webull is one of the most affordable online brokers available. The broker does not charge any commission fees for trading stocks, options, or ETFs, and it offers competitive pricing for other securities, such as cryptocurrencies, should you be so inclined.
Plus, use any of our links and get up to 12 free stocks.
5. Interactive Brokers: The Best Online Stock Broker for Advanced Traders
Overall rating: ⭐️⭐️⭐️⭐️⭐️
- Stock commissions: $0.005 per share
- Options commissions: Differs – USD 0.65/contract for Lite + Exchange
- Assets available: Stocks, ETFs, options, futures, forex, bonds, mutual funds
- Minimum deposit: $0
If you want the platform used by expert traders, check out Interactive Brokers (IBKR).
Its advanced trading platform, low fees, and extensive range of investment products, Interactive Brokers is one of the best online stock brokers for experienced traders and investors. If you need a wide range of investment products, or want to hit the market with some complex trading strategies, Interactive Brokers might be your best bet.
IBKR’s primary target is sophisticated traders with large account balances. Its interface is not the easiest to use, but you will have access to nearly every asset class, including global stock markets.
The broker also offers a range of advanced trading tools, such as algorithmic trading and smart order routing, to help traders execute complex trading strategies for those looking for an even deeper edge.
It’s the most advanced online stock broker on this list.
6. TD Ameritrade: The Best Online Stock Broker for Beginners
Overall rating: ⭐️⭐️⭐️⭐️⭐️
- Stock commissions: $0
- Options commissions: $0.65 per contract
- Assets available: Stocks, ETFs, options, futures, forex, bonds, mutual funds
- Minimum deposit: $0
If you want a full-service brokerage with a bias toward traders, TD Ameritrade is the best overall choice.
TD Ameritrade is a well-known online brokerage and is easily one of the best online stock brokers for beginners.
It has multiple trading platforms and apps which range from fairly user-friendly to fairly complex, making it one of the best online stock brokers for both beginners and experienced traders.
Plus, its full-service nature makes it great for clients who want a long-term investment portfolio alongside their active-trading portfolio. It offers a wide range of securities including stocks, options, ETFs, and mutual funds while it also has you covered on the advanced trading tools, such as conditional orders and mobile trading, to help traders execute complex trading strategies.
TD Ameritrade is also one of the best when it comes to educational resources. The broker offers a range of educational content, including webinars, video tutorials, and articles, to help traders learn about investing and trading, and to give you that competitive edge you desire. In addition, TD Ameritrade offers a range of tools to help traders build and manage their portfolios, such as a customizable watchlist and a risk management tool.
If you’re looking for a wide range of investment products, in-depth educational resources, and a stunning overall product, TD Ameritrade is probably the broker for you. And it’s easily one of the best online stock brokers for trading.
Final Word: The Best Stock Brokerage Firms for Trading
When it comes to active trading, choosing the right online stock broker can significantly impact your success.
- TradeStation is the best online stock broker for trading overall due to its powerful trading platform, low fees, and extensive range of investment products.
- TradeZero is the best online stock broker for traders who want advanced tools for short-selling.
- eToro is an excellent choice for socially-inclined traders who want to follow and copy other traders.
- Webull is the best online stock broker mobile app for trading, with an easy-to-use interface and a range of advanced features. Plus, get free stocks.
- Interactive Brokers is the best choice for experienced traders who want access to a wide range of investment products and the ability to execute complex trading strategies.
- TD Ameritrade is an excellent choice for both beginners and experienced traders who want access to a wide range of investment products and comprehensive educational resources.
And don’t forget, if you’re a new trader with less than $25,000 in your account, you will fall under the SEC’s PDT rule which prevents you from placing more than 3 day trades in a 5-day period.
The best way to get around this is by opening multiple accounts at different brokerages, which is also the best way to test which broker you like the most.
So don’t just limit yourself to 1, choose a couple of the best brokers for stock trading from the list above.
FAQs:
Which one is the best broker for online trading?
The best broker for online trading is TradeStation.
What is the most trusted stock broker?
The most trusted stock broker is probably either TD Ameritrade or Fidelity, though all of the major U.S. stock brokers have FDIC and SIPC insurance and are regulted by the SEC.
Which is best broker for beginners?
The best broker for beginners is Fidelity or TD Ameritrade. The best broker for beginner traders is eToro, Webull, or Robinhood.
Who is the No 1 stock broker in USA?
The no. 1 stock broker in the USA is probably either TD Ameritrade or Fidelity.
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