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The online brokerage industry is a highly competitive space consisting of a wide range of companies, each offering its own set of features that will appeal differently to individuals. After two months of comprehensive research, Investopedia found that Fidelity offers the best overall online brokerage services and trading platform. Not only did Fidelity earn the highest overall score when measured by our proprietary scoring model, but it also scored highly for its low costs, excellent ETF selection and research, and robust cash management product. <\/p>" } } , { "@type": "Question", "name": "What Is an Online Brokerage Account and How Does it Work?", "acceptedAnswer": { "@type": "Answer", "text": "

A brokerage account is a type of account similar in function to the accounts you have with a bank. With a brokerage account, you deposit funds with an investment firm (the brokerage). This is usually done by a transfer from your existing bank account. Once funds are added to your brokerage account, you can put the money to work using the brokerage's trading platform to invest those funds in the market. The assets you buy with your cash can be anything offered by that brokerage, including stocks, bonds, ETFs, and even cryptocurrency.<\/p>

Your online brokerage account will display your holdings (the assets you've purchased) as well as your cash balance (your buying power). If you invest in something that gains in value, you can sell it and the profits will be deposited in your online brokerage account. From there, you can place another trade or even transfer the funds out to your regular bank account to use elsewhere. Some brokerage accounts even allow you to earn interest on your uninvested cash.<\/p>" } } , { "@type": "Question", "name": "How Much Money Do you Need to Open a Brokerage Account?", "acceptedAnswer": { "@type": "Answer", "text": "

There is no longer a real minimum to start investing in the financial markets. With many brokers offering margin accounts with access to fractional shares and no required minimums, you can open and fund an account with any amount of money. If you don't have a lot of money to invest, however, it will influence how you approach the market. Although you could invest $1 in fractional shares<\/a> of a specific stock, the better approach with limited capital is to use ETFs. Index tracking ETFs<\/a>, for example, offer greater diversification for your dollar than a single company stock because every share (and fractional share) of the ETF replicates an index made up of many companies in many different industries. You could also consider using options to leverage your dollars with a directional bet on the market or a specific stock, but this is an investment strategy best reserved for risk capital<\/a>—not the whole of your limited investment capital.<\/p>

When investing with small sums, consistency is the key to building wealth. If you can regularly put a set amount of money into the market—even $10 a week—you will be surprised at how quickly it begins to grow. This consistency also helps to smooth market effects, as you will be buying dips and peaks as the market goes up and down.<\/p>" } } , { "@type": "Question", "name": "Can You Invest With a Small Amount of Money?", "acceptedAnswer": { "@type": "Answer", "text": "

Many online brokers allow for small minimum deposits which can be a great alternative for those with limited funds. Account minimums (if any) are displayed at the top of our reviews, as well as in our selection of the best platforms for different types of investors. If you are looking for more general guidance on investing with limited capital, check out our article on smart investing on a small budget<\/a>.<\/p>" } } , { "@type": "Question", "name": "Do Brokers Offer Mobile Platforms?", "acceptedAnswer": { "@type": "Answer", "text": "

Some online brokers have powerful mobile apps delivering nearly all the features that their desktop counterparts do. For example, E*TRADE's app, which we picked as our best app for mobile investing and trading, offers two mobile platforms that are streamlined versions of the company's powerful desktop platform.<\/p>" } } , { "@type": "Question", "name": "Can You Lose Money in a Brokerage Account?", "acceptedAnswer": { "@type": "Answer", "text": "

Yes, you can. It is a reality of the market that no reward comes without risk<\/a>. You can lose money buying a bad investment, but you can also lose money by buying a good investment at the wrong time. Investment decisions should be guided by extensive research and careful consideration of your risk tolerance. When it comes to the financial markets, there are endless possibilities for making and losing money. Unless all the funds in your brokerage account are sitting in uninvested cash (brokerage cash accounts are afforded up to $250,000 of protection by Securities Investor Protection Corporation<\/a> insurance), there is a risk you will lose money.<\/p>

Another way of looking at that, however, is that a brokerage account sitting full of uninvested cash isn't at risk of making any money either. You can use strategies like asset allocation and diversification to reduce the risk of losing money, but you will never fully eliminate it without also eliminating your chances of making a decent return.<\/p>" } } , { "@type": "Question", "name": "Can I Buy Stocks Without a Broker?", "acceptedAnswer": { "@type": "Answer", "text": "

Yes, you can actually buy and sell stocks without a broker, but it is not a common approach these days. Some companies still offer direct stock purchase plans<\/a> that allow you to buy shares directly from the company. Companies administer these plans according to internal rules, and some are only open to company employees. You need to contact companies to find out whether they offer a direct stock purchase plan and what the terms and conditions are. These plans initially helped investors avoid brokerage fees, but the rise of online discount brokers with zero fees has removed this barrier, making the direct stock purchase plan somewhat of a relic.<\/p>" } } , { "@type": "Question", "name": "What Is the Difference Between Investing and Trading?", "acceptedAnswer": { "@type": "Answer", "text": "

An important thing to consider is the distinction between investing and trading<\/a>. When people talk about investing, they generally mean buying assets to hold long-term. The goal of investing is to gradually build wealth and reach your retirement goals. Conversely, trading involves short-term strategies that maximize returns on a short-term basis, such as daily or monthly. Trading is generally considered riskier than investing.<\/p>

All these factors are worth considering before choosing an online broker. Do you want to trade or invest? Do you want a great mobile app to check your portfolio wherever you are? What types of assets are you looking to invest in? Answering these questions is not always easy. For more support on how to choose a broker, you can check out our guide to choosing a stock broker<\/a>. Once you've made a decision on a broker, you can refer to our guide to opening a brokerage account<\/a>.<\/p>" } } , { "@type": "Question", "name": "Companies We Reviewed", "acceptedAnswer": { "@type": "Answer", "text": "

We researched and reviewed 27 online brokers and trading platforms to find the best companies you see in the list above. Below is the full list of companies we researched along with links to individual company reviews to help you learn more before making a decision:
<\/p>

Ally Invest<\/a>, Charles Schwab<\/a>, ChoiceTrade<\/a>, E*TRADE<\/a>, eOption<\/a>, eToro<\/a>, Fidelity<\/a>, Interactive Brokers<\/a>, J.P. Morgan SDI<\/a>, Lightspeed<\/a>, Lime Financial<\/a>, Merrill Edge<\/a>, Public<\/a>, Robinhood<\/a>, SoFi Invest<\/a>, SogoTrade<\/a>, T. Rowe Price<\/a>, tastytrade<\/a>, TradeStation<\/a>, Tradier,<\/a> TradeZero<\/a>, Vanguard<\/a>, Webull<\/a>, Wellstrade<\/a>
<\/p>


<\/p>" } } , { "@type": "Question", "name": "Disclosures", "acceptedAnswer": { "@type": "Answer", "text": "

Investing involves risk, including risk of loss<\/strong>
**$0.00 commission applies to online U.S. equity trades, exchange-traded funds (ETFs), and options (+ $0.65 per contract fee) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). A limited number of ETFs are subject to a transaction-based service fee of $100. See full list of ETFs subject to this service fee [here<\/a>]. There is an Options Regulatory Fee that applies to both option buy and sell transactions. The fee is subject to change. Other exclusions and conditions may apply. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.**
**You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund’s sponsor, is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress. Fidelity’s government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares.<\/em><\/p>

Fidelity Crypto® is offered by Fidelity Digital Assets®. Investing involves risk, including risk of total loss. Crypto as an asset class is highly volatile, can become illiquid at any time, and is for investors with a high risk tolerance. Crypto may also be more susceptible to market manipulation than securities. Crypto is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Investors in crypto do not benefit from the same regulatory protections applicable to registered securities. Fidelity Crypto® accounts and custody and trading of crypto in such accounts are provided by Fidelity Digital Asset Services, LLC, which is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business (NMLS ID 1773897). Brokerage services in support of securities trading are provided by Fidelity Brokerage Services LLC (“FBS”), and related custody services are provided by National Financial Services LLC (“NFS”), each a registered broker-dealer and member NYSE and SIPC. Neither FBS nor NFS offer crypto as a direct investment nor provide trading or custody services for such assets. Fidelity Crypto and Fidelity Digital Assets are registered service marks of FMR LLC.
The Fidelity ETF Screener is a research tool provided to help self-directed investors evaluate these types of securities. The criteria and inputs entered are at the sole discretion of the user, and all screens or strategies with preselected criteria (including expert ones) are solely for the convenience of the user. Expert Screeners are provided by independent companies not affiliated with Fidelity. Information supplied or obtained from these Screeners is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell securities, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy or approach to screening or evaluating stocks, preferred securities, exchange-traded products, or closed-end funds. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from its use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation, and other individual factors, and reevaluate them on a periodic basis. 
***Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read [Characteristics and Risks of Standardized Options<\/a>]. Supporting documentation for any claims, if applicable, will be furnished upon request.
 ****Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See [Fidelity.com/commissions<\/a>] for further details.
Before investing, consider the funds’ investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. 
<\/em><\/p>" } } ] } ] } ]

Best Online Brokers and Trading Platforms for October 2025

By
Michael Sacchitello
Michael Sacchitello, Senior Editor, Investing and Trading Product Reviews
Full Bio

Michael is a former senior editor of investing and trading products for Investopedia. He has 20+ years of mutual fund, macro market research, institutional trading desk, and trading education experience. Michael holds a bachelor's degree from West Virginia University and is a chartered member and subject matter expert (SME) for the industry-leading Chartered Market Technicians (CMT) Association.

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Updated October 20, 2025
Reviewed by
Anthony Battle
Anthony Battle
Reviewed by Anthony Battle
Full Bio
Anthony Battle is a CERTIFIED FINANCIAL PLANNER™ professional. He earned the Chartered Financial Consultant® designation for advanced financial planning, the Chartered Life Underwriter® designation for advanced insurance specialization, the Accredited Financial Counselor® for Financial Counseling and both the Retirement Income Certified Professional®, and Certified Retirement Counselor designations for advance retirement planning.
Learn about our Financial Review Board
Fact checked by
Michael Rosenston
Michael Rosenston
Fact checked by Michael Rosenston
Full Bio
Michael Rosenston is a fact-checker and researcher with expertise in business, finance, and insurance.
Learn about our editorial policies

Our editors independently research and recommend the best products and services. You can learn more about our independent review process and partners in our advertiser disclosure . We may receive commissions on purchases made from our chosen links.

As the S&P 500 reached an all-time high of over $6,764 on Oct. 9, 2025, it is seen as one of the most important economic indicators to aid in gauging market sentiment and the economy's overall health. However, relying on it to make wise investment decisions isn’t enough. The best online brokers provide their customers with sophisticated trading tools, strong research amenities, real-time portfolio management data to help you make tax-efficient decisions, educational resources to help you act confidently in moments of opportunity, strong customer support for when things go wrong, and more—all with a competitive and transparent fee structure.

After hundreds of hours of comprehensive research, data analysis, and live broker platform demos, Fidelity Investments is founded to be the best overall online brokerage platform for investors due to its low fees, expansive product offering, wide-ranging full-service features, and so much more. Fidelity is just one of 27 online brokers that we evaluated based on 92 weighted criteria, including available assets, account services, user experience, and additional features.

Best Online Brokerage Accounts and Trading Platforms

Fidelity Investments: Best Overall, Best for ETFs, Best for Low Costs, Best for Cash Management

4.8
Fidelity Investments
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  • Account Minimum: $0
  • Fees: Free online commission trading on stock and ETFs, $0 plus $0.65/contract for options trades
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Why We Chose It

Best Overall

For the fourth consecutive year, Fidelity reigns supreme in bringing critical full-service brokerage features, sophisticated tools, and low fees to a wide range of traders and investors across continually enhanced platforms.

Best for ETFs

Fidelity is our top broker for ETFs because of its rich exchange-traded fund (ETF)-focused educational content and research tools, expansive ETF offering, and fractional ETF trading. Fidelity is a repeat winner in this category, having earned the top spot from Charles Schwab in 2023.

Best for Low Costs

Fidelity has long been an industry leader when it comes to lowering fees, and its transparent and compelling fee schedule is the reason why—for the fourth year running—it wins for low costs.

Best for Cash Management

Finding the best brokerage account for cash management is not just about earning the highest interest rate possible. It’s also about seamless integration with essential, no-fee banking features and insurance. In these areas, Fidelity’s cash management offering is unmatched, and it comes with solid passive earnings power on uninvested cash, along with reimbursable access to a global network of ATMs.

Pros & Cons

Pros

  • No payment for order flow (PFOF) makes for excellent order execution

  • Strong portfolio analysis and account features

  • Superior trading platforms for all types of investors

  • Top-tier educational content, screening tools, and research capabilities

  • FDIC insurance up to $5 million on uninvested cash

Cons

  • Only three digital coins available for trading

  • Minimum balance required for some index trading

  • Multiple platforms may be required to access all tools

Overview

In an industry full of innovative companies competing for the attention of an incredibly diverse universe of traders and investors, Fidelity delivers the most well-rounded product offering to suit the needs of nearly every investor. Headquartered in Boston, Fidelity’s storied history began in 1946. As of Oct. 20, 2025, the company holds $6.4 trillion in discretionary assets and is ranked among the top brokerage firms in terms of assets under management.

Investopedia began evaluating online brokerages in 2019, and Fidelity has shown a commitment to improving its financial products and services ever since. Improvements in financial advisor support, bond liquidity analysis, and the new Fidelity Youth app were the highlights of our 2024 product demonstration with the company. But the enhancements didn't stop there: Fidelity also revamped its process for opening core brokerage accounts, further streamlining the online experience for new users. The accounts now also have a comprehensive cash management product that is jam-packed with banking features. 

Fidelity has long been an industry leader in lowering fees, but it is also widely-regarded for its vast customer service network, which includes 217 customer centers, and provides excellent client support for its low-cost, high-value offering. Investors looking for an online broker that keeps trading costs low, all while delivering some of the most powerful tools in the industry and resisting the common industry practice of collecting PFOF, will be hard-pressed to find a better broker than Fidelity.

New & Notable

On Sept. 25, 2025, Fidelity announced the launch of Fidelity Trader+™, a sophisticated trading platform integrated into the Fidelity ecosystem at no additional cost for its traders. Fidelity Trader+ is designed to provide real-time market insights, dynamic visual analytics, powerful trading tools, analyst ratings, and custom alerts that are interconnected across its web, desktop, and mobile platforms. The new experience will also feature a fully rebuilt downloadable desktop platform, access to Fidelity Crypto® on its mobile and web platforms, with desktop integration slated for 2026.

Editor's Note

In addition to our review of Fidelity's online brokerage platform, we've also reviewed the company's robo-advisor service, Fidelity Go.

Charles Schwab: Best for Beginners

4.7
Charles Schwab
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  • Account Minimum: $0
  • Fees: $0 for stock/ETF trades, $0.65 per contract for options
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Why We Chose It

Even before TD Ameritrade’s educational content was incorporated into its ecosystem, Charles Schwab—which acquired TD Ameritrade in 2020—was known as one of the best platforms for new traders and investors. With the integration now complete, Schwab has taken over the top ranks in this category, a position TD Ameritrade used to dominate. Schwab now houses the most comprehensive library of evergreen learning materials, along with seemingly endless coaching programs and regularly scheduled live training events, making it the best for beginner investors.

Pros & Cons

Pros

  • Industry-leading educational content

  • Multiple user-friendly platforms 

  • Superb ETF research and scanners

  • Over 420 branches in 48 states 

  • Access to the highly regarded thinkorswim® platform

Cons

  • Relatively high margin rates

  • Low interest earned on uninvested cash

  • Lacks fractional ETF trading

  • No direct investments in cryptocurrencies

In the News

On July 21, 2025, Charles Schwab announced a significant expansion to the list of securities that users of the company's thinkorswim platform can now trade overnight. Schwab retail clients can now trade more than 1,100 securities, primarily exchange-traded funds (ETFs), 24 hours a day, five days a week, using extended + overnight session orders (EXTO). EXTO orders are continuous orders that expire at 8 p.m. ET each market day.

Overview

Chuck Schwab and his partners formed First Commander Corporation in April 1971, and later changed the company’s name to Charles Schwab & Co., Inc. in 1973. Charles Schwab has since grown into a household name in the brokerage industry and, in October 2020, completed its acquisition of TD Ameritrade, with full client integration finalized by mid-2024. Not only does Schwab provide the right mix of usability, tools, education, and research to its diverse customer base, but it does so across multiple top-tier platforms. As of Oct. 20, 2025, Schwab’s total client assets stood at $11.59 trillion.

With Schwab’s integration of TD Ameritrade complete, the combination of Schwab’s exceptional lineup of products and services and TD Ameritrade’s powerful trading capabilities has boosted the company even closer to the top of our comprehensive rating model. One of the most anticipated additions to Schwab's lineup occurred on April 11, 2024, with the company announcing that futures and forex trading, along with a new Portfolio Margin feature, have been made available on its thinkorswim platform.

On Oct. 30, 2024, the company announced even more exciting news when it introduced overnight trading in S&P 500 and Nasdaq-100-traded stocks, as well as hundreds of additional exchange-traded funds (ETFs), 24 hours a day, five days a week (24/5). On Feb. 12, 2025, the company made overnight trading available to all clients via the thinkorswim platform. Prospective customers should note, however, that crypto spot trading still isn’t available, but spot Bitcoin and Ethereum ETFs are offered.

Editor's Note

In addition to our review of Charles Schwab’s online brokerage platform, we also reviewed the company's robo-advisor service, Schwab Intelligent Portfolios.

Interactive Brokers: Best for Advanced Traders, Best for International Trading, Best for Algorithmic Trading, Best for Risk Management, Best for Generating Stock Trading Ideas, Also Good for Cryptocurrency Trading

4.7
Open an Account
  • Account Minimum: $0.00
  • Fees: $0.00 commissions for equities/ETFs available on IBKR’s TWS Lite, or low costs scaled by volume for active traders that want access to advanced functionality such as order routing. $0.65 per contract for options on TWS Lite; that is also the base rate for TWS Pro users, with scaled rates based on volume. $0.85 per contract for futures, also scales with volume for TWS Pro users. 0.12%-0.18% on cryptocurrency trades depending on volume with a minimum $1.75 fee per trade.
Read full review
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Why We Chose It

Best for Advanced Traders

Interactive Brokers’ lineup of advanced analytical tools, trading technology, and breadth of assets is, quite frankly, awe-inspiring. Ongoing enhancements to legacy platforms like the masterfully constructed Trader Workstation (TWS) and the addition of the next-generation IBKR desktop offer just a small glimpse into how Interactive Brokers equips advanced traders to capitalize on fundamental dislocations and pricing inefficiencies better than any other platform we reviewed. This is the fourth straight year Interactive Brokers has earned this award.

Best for International Trading

Simply put, not one of the 27 online brokerage companies we reviewed comes close to offering the scope of global research capabilities, international trading, support access, and currency-based funding variety that Interactive Brokers offers. That's why, for the fourth straight year, the company is our top broker for international traders.

Best for Algorithmic Trading

As trading technology continues to advance, so too does the interest in algorithmic trading. Advanced traders will find a powerful lineup of algorithmic trading features in Interactive Brokers’ pre-built algos, a laundry list of API languages, available algorithmic paper trading accounts, and so much more.

Best for Risk Management

With its powerful rebalancing features, robust portfolio and risk analysis tools, nearly boundless opportunities for asset diversification, and available access to licensed brokers, investors will be hard-pressed to find a better platform for managing portfolio risk than Interactive Brokers.

Best for Generating Stock Trading Ideas

For professional and retail traders looking for investing and trading ideas across the vast universe of equities, over short-, intermediate-, and long-term time horizons, Interactive Brokers brings together leading industry research vendors, proprietary search tools, and the industry’s largest universe of investable stocks to provide a nearly endless source of ideas that suit every investing and trading strategy.

Also Good for Cryptocurrency Trading

Already known as a platform with industry-leading trading technology and access to abundant account amenities for traders of all levels. Interactive Brokers offers 11 cryptocurrencies that can be traded, including Bitcoin, Ethereum, Solana, Cardano, Ripple, Dogecoin, and more. Its existing crypto lineup can be traded with no spreads added to the relatively low commission of 0.12% to 0.18%.

In The News

On July 10, 2025, Interactive Brokers announced the launch of IBKR InvestMentor, a new mobile "microlearning" app designed to deliver free and easily accessible educational content to beginner and aspiring investors through short, interactive lessons that build foundational knowledge in economics and investing.

Pros & Cons

Pros

  • Increasing availability of beginner-friendly platforms

  • Superior order execution

  • Excellent selection of contingent orders

  • Unparalleled range of investable foreign and domestic assets

  • Powerful and highly customizable professional-level functionality

Cons

  • IBKR's SmartRouting not available to IBKR Lite clients

  • TWS can be difficult to learn

  • No in-platform backtesting

  • Often confusing tiered pricing

Overview

Founded under the name T.P. & Co. in 1978 by its current chairman, Thomas Peterffy, the company pioneered the use of computers in trading. Eventually, Interactive Brokers Inc. was incorporated as a U.S. broker-dealer in 1993, and the company has since developed into one of the industry’s most complete online brokerage platforms. Interactive Brokers (IBKR) offers astonishing access to 160 markets in 36 countries and support for its services in 200 countries and territories, all with funding and trading capabilities in up to 28 currencies. Simply put, this is by far the broadest global coverage in the industry. As of October 2025, IBKR held over $757.5 Billion in client equity.

One of the first adopters of technology in the financial markets, both algorithmic and active traders have long regarded the company highly for its advanced trading features, highly customizable tools, low margin rates, and alpha-generating capabilities. Investopedia's team of industry experts is constantly delighted by IBKR’s innovative enhancements, which make so much sense from a purist’s perspective.

IBKR’s latest product innovation is IBKR Desktop, a next-generation platform that combines a simple user interface with many of the company’s powerful trading solutions. It features innovations like Option Lattice, a graphical options chain display highlighting potential outliers in key metrics, and MultiSort, which enables users to sort data using multiple factors simultaneously. Always looking for ways to use the latest technology to give clients an advantage, the company also recently launched AI-powered news summaries.

This idea of simplicity is really where things have been getting interesting for Interactive Brokers, as the company has committed to making its platforms more accessible for beginners. With notable touches like the expansion of educational content across several platforms, including its entry-level IBKR Lite platform, available fractional investing, and the innovative and helpful Options Wizard tool offered on its user-friendly Global Trader mobile app (as well as other platforms), Interactive Brokers is quickly gaining ground on the industry’s top all-around brokerage platforms.

Editor's Note:

In addition to our review of Interactive Brokers' online brokerage platform, we've also reviewed the company's robo-advisor service, Interactive Advisors.

tastytrade: Best Broker for Options

4.1
logo
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  • Account Minimum: $0
  • Fees & Commissions: $0 stock trades, $1 to open options trades (capped at $10 per leg), $0 to close
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Why We Chose It

For the fourth year in a row, we chose tastytrade as the best options trading platform because of its industry-leading options pricing structure, which includes pricing caps that make it the lowest-cost brokerage for high-volume, high-frequency option traders. In addition, tastytrade optimizes tools and content to specifically suit the needs of its options-focused client base.

Pros & Cons

Pros

  • Capped commission structure for options

  • Highly regarded tools for analyzing and monitoring options trades

  • Fantastic options-specific content and educational material

  • Fully customizable trading experience

  • Follow Feed feature allows users to follow trades of tastylive contributors

Cons

  • No on-platform paper trading support

  • Few investing and retirement resources

  • Lacks some key investment choices like mutual funds


Overview

Ask any options trader, and they are likely to tell you that this form of derivative trading is complex and difficult to master. But with the right guidance, the many options strategies that are available to use can become powerful weapons that allow both traders and investors to benefit from key factors like time decay and leverage. Created by the same people who developed TD Ameritrade’s highly regarded thinkorswim platform, tastytrade maintains its stance as the best broker for options because of its intuitive delivery of an industry-best mix of comprehensive options-focused tools and content.

Launched as tastyworks in 2017 and headquartered in Chicago, tastytrade delivers very competitive transaction fees for options trading, including standout commission caps for large lot sizes, as well as the absence of any fees when closing positions. Fortunately for tastytrade users, these low commissions come with a platform that continues to undergo enhancements, which complement its already powerful delivery of options analytics, platform workflow, trade execution, and valuable digital content. On Oct. 16, 2024, tastytrade even launched an options backtesting tool–a highly advanced feature that very few competitors boast.

Robinhood: Best for Cryptocurrency Trading

3
Robinhood 2022
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  • Account Minimum: $0
  • Fees: $0 commissions for stock, ETF, options, and cryptocurrency trading, $0.50-$0.75 per futures contract. Other fees apply.
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Why We Chose It

Robinhood is Investopedia's choice as the best traditional broker for trading cryptocurrency because of its industry-leading selection of available digital assets and sleek, user-friendly platform.

Pros & Cons

Pros

  • Simple, intuitive trading experience

  • $0 trading commissions

  • Brokerage industry's largest selection of supported crypto assets

  • Solid cash management features

  • Available IRA match

Cons

  • Lack of full transparency around crypto spread pricing

  • Limited research

  • Limited account types

  • Not all crypto assets are tradable through Robinhood Legend

Overview

Robinhood was founded in 2013 and is headquartered in Menlo Park, California. It began as a simple, bare-bones mobile-focused platform determined to disrupt the brokerage industry with no-commission trading on stocks and ETFs. Since then, the company has gone on to introduce options and futures trading, has made solid cash management and IRA matching services available to its Robinhood Gold members, rolled out its more advanced Legend trading platform, and launched a wealth management product known as Robinhood Strategies, along with a number of additional products the company plans to roll out later this year.

Along the way, Robinhood has also introduced cryptocurrency trading to its customers and has continued to build its list of tradable crypto ever since. U.S.-based crypto enthusiasts who appreciate Robinhood for its easy-to-use trading platforms will enjoy selecting from the company's list of 40 supported crypto assets, the brokerage industry's largest. For more advanced traders, however, Robinhood still lacks access to some of the critical research and sophisticated trading tools that some larger industry competitors offer. In addition, commission-free crypto trades still come with spread charges, and roughly half of the cryptocurrencies that Robinhood supports are not tradable through the new Legend platform.

E*TRADE: Best for Mobile Investing & Trading

3.8
E*TRADE logo 2025
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  • Account Minimum: $0
  • Fees: No commission for stock, ETF, and mutual fund trades; options are $0.50-$0.65 per contract, depending on trading volume
Read full review
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Why We Chose It

A pioneer in both mobile and online trading, E*TRADE has mastered the art of developing a mobile experience with the right mix of intuitive navigation, robust portfolio and risk management capabilities, deep research, easy-to-digest education, and complex trading tools to cater to investors and traders of all levels. Ongoing enhancements to E*TRADE's mobile capabilities over the past couple of years have solidified its position as our best mobile trading and investing platform for the first time ever.

Pros & Cons

Pros

  • Excellent range of tools and resources

  • Pre-built and automated portfolio options

  • Educational content library

  • Top mobile apps for traders and investors of all levels

Cons

  • Lacks international exchange trading

  • No direct crypto investing

  • Fractional shares only available through a robo-advisor portfolio or dividend reinvestment plan (DRIP)

Overview

Since its founding in 1982, E*TRADE has been at the forefront of embracing innovation that makes for one of the best customer experiences in the industry. Following Morgan Stanley’s acquisition of E*TRADE in 2020, the company has only continued to advance its capabilities by integrating many of Morgan Stanley’s highly regarded research materials, thought leadership insights, and large pool of financial advisors.  

As one of the largest online brokers in the country, E*TRADE brings an expansive list of investment choices and trading tools to clients via its website, desktop, and two mobile platforms.E*TRADE’s already vast educational catalog has only grown with the Morgan Stanley integration, complementing the intuitive site design in a way that lets new investors enter the market with confidence.

For more experienced investors, the ability to do deep analysis has never been greater than now, when proprietary Morgan Stanley research joins highly regarded third-party research and consensus ratings. While E*TRADE only offers these more advanced traders exposure to cryptocurrencies via Spot Bitcoin & Ethereum ETFs and related stocks, traders have access to a wide array of analysis tools, charting functionality, and trading technology to make the most informed decisions in this and many other asset classes. 

Editor's Note

In addition to our review of E*TRADE’s online brokerage platform, we also reviewed the company's robo-advisor service, E*TRADE Core Portfolios.

The Bottom Line

Through our exhaustive research, we found that Fidelity not only outshines the competition when it comes to ETF investing, low costs, and cash management features, but it is also the best online brokerage platform overall. While International Brokers’ ongoing evolution into a more beginner-friendly platform is driving it closer to parity with the industry’s top all-around brokerage platforms, it remains a top choice for advanced trading techniques and risk management, as well as international trading.

For traders planning to make options the main strategy they use to reach their investment goals, tastytrade’s platform and market content are hard to beat. Charles Schwab’s integration of TD Ameritrade's educational programs and trading personalities has produced an unparalleled body of actionable learning materials and live training content for beginners.

E*TRADE’s long history of enhancing the user experience continues to shine through with its fantastic mobile apps, while Robinhood makes crypto trading fun and easy for crypto enthusiasts.

Compare the Best Online Brokers

Broker Star Rating Minimum Deposit Stock Trading Fee Per Contract Options Fee Max Option Legs Fractional Share Trading of Stocks New Spot Bitcoin & Ethereum ETFs
Fidelity Investments 4.8 $0.00 $0.00 $0.65 4 Yes Yes
Charles Schwab 4.7 $0.00 $0.00 $0.65 4 Yes Yes
Interactive Brokers 4.7 $0.00 $0.00 $0.65 6 Yes Yes
tastytrade 4.1 $0.00 $0.00 $1.00/Open Only 4 Yes Only Spot Bitcoin ETF
Robinhood 3.0 $0.00 $0.00 $0.00 4 Yes Yes
E*TRADE 3.8 $0.00 $0.00 $0.65 4 No, ETFs only Yes

Why You Should Trust Us

Investopedia collected 89 criteria that are critical to investors from 27 online brokerage companies. We used this data to review each brokerage platform for fees, usability, research amenities, and other key features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their investing needs. Investopedia launched in 1999 and has been helping readers find the best online brokerage accounts since 2019.

How to Choose an Online Brokerage Account

Investors choosing an online broker will find a wide range of options, each with varying product offerings, cost structures, and features. The best online broker for you will ultimately depend on your individual goals, priorities, and preferences. Some investors may require advanced platforms with access to niche markets and exotic instruments, while others happily settle for a simple, user-friendly mobile app and cost-effective pricing. Whatever your objectives, here are some key factors to consider when choosing an online broker.

Commissions and fees

The commissions and fees your broker charges directly impact your bottom line and can be a major factor to consider, especially for active traders. Nowadays, with rare exceptions, online brokers offer commission-free stock, ETF, and mutual fund trading, but still charge for options trades. Brokers also generally charge for trading more advanced instruments, like futures, and more exotic asset classes, like cryptocurrencies.

Available assets and instruments

The breadth of assets and instruments available to trade determines how flexible your investment portfolio or trading strategies can be. Most online brokers offer trading in stocks, ETFs, and options. A sizable number also provides access to futures and mutual funds. A small, but steadily growing group allows clients to trade cryptocurrencies. 

Some brokers now offer fractional shares, which allow investors to buy a portion of high-priced stocks and ETFs. This feature can be especially helpful for those with smaller accounts, as it makes expensive stocks more accessible. Access to a specific asset class can be a deciding factor when choosing an online broker.

Your own investing or trading style

Different brokers cater to different trading styles. Whether you manage a long-term stock portfolio, trade complex options strategies, or actively scalp intraday, make sure the platforms and features offered by your broker complement your style and facilitate your trades.

User experience

A well-designed, intuitive platform can make trading easier and more enjoyable for traders of all levels, but especially for beginners. In recent years, many online brokers have invested significant time and money into making the user experience as seamless as possible. Although advanced platforms are improving, they may still come with a learning curve due to the number of instruments and the complexity of tools on offer.

Research tools

Research tools help investors make better trade decisions. Among others, this may include access to market data, analyst ratings, charting tools, and the latest financial reports. Brokers with robust research capabilities may provide traders with an edge by offering quicker access to essential market data.

Educational content

Educational resources are a way for beginners and experienced investors alike to continue improving their knowledge and strategies. A broker offering tutorials, webinars, and in-depth guides can help users stay informed about new trading strategies and grow their trading expertise.

Other key features

Other considerations may include account minimums and benefits, supported order types, customer support accessibility, and premium account offerings. Brokers with zero account minimums are more accessible to new investors, while traders with large account balances may benefit from earning interest on unused cash. 

Active traders will value a broker’s support of complex order types, and those who trade international markets or cryptocurrencies will appreciate the ability to get customer support 24/7. More recently, some brokers also began offering premium accounts - providing additional services or offering better pricing, usually in exchange for a monthly fee. Such accounts may be beneficial to certain investors.

Financial Advisor Insight

"When you're thinking about opening a brokerage or investment account, it’s good to start by considering your goals and how hands-on you want to be," said Taylor Kovar, CFP, MBA, a member of Investopedia’s Financial Advisor Council. "Are you looking to invest for something long-term, like retirement or a big purchase, or are you focusing on shorter-term goals? And don’t feel like you have to go all in right away—you can always start small and gradually increase your contributions as you get more comfortable."

What Is the Difference Between a Full-Service Broker and an Online Broker?

This report identifies the best online brokers and trading platforms. It is natural to ask, “How do these brokers and platforms differ from full-service brokers?” One key difference is that online brokers cater to do-it-yourself (DIY) investors. In contrast, full-service brokers aim to relieve you of as much heavy financial lifting as possible by shifting it to their own advisors or affiliated experts.

While online brokers harp on their low costs–not just for trades but also low minimums to open accounts and low costs for access to research, tools, and services–full-service brokers boast of the wide range of their offerings. Those include everything from personal financial planning to insurance, estate planning, retirement planning, accounting services, tax advice, and more.

Still, the boundary between the two categories of brokers is more and more blurry. Online brokers increasingly offer more services, while full-service brokers increasingly cut costs. In fact, many investors would be hard pressed to explain why some online brokers–especially the larger ones–should not be thought of as full-service firms. 

Financial Advisor Insight

Certified financial planner Michael Donnelly, who is account director of corporate relations at the CFP Board of Standards, said, “The financial services landscape has dramatically changed over the past 30 years. Firms that once served specific clients now compete to keep pace with broader client needs and lower-cost competitors. [Full]-service and online brokers have had to expand their offerings and cut costs to stay competitive. As a result, investors benefit from more similar and competitively priced products across the financial planning ecosystem.”

Frequently Asked Questions

What Is the Number One Online Stock Broker?

The online brokerage industry is a highly competitive space consisting of a wide range of companies, each offering its own set of features that will appeal differently to individuals. After two months of comprehensive research, Investopedia found that Fidelity offers the best overall online brokerage services and trading platform. Not only did Fidelity earn the highest overall score when measured by our proprietary scoring model, but it also scored highly for its low costs, excellent ETF selection and research, and robust cash management product. 

What Is an Online Brokerage Account and How Does it Work?

A brokerage account is a type of account similar in function to the accounts you have with a bank. With a brokerage account, you deposit funds with an investment firm (the brokerage). This is usually done by a transfer from your existing bank account. Once funds are added to your brokerage account, you can put the money to work using the brokerage's trading platform to invest those funds in the market. The assets you buy with your cash can be anything offered by that brokerage, including stocks, bonds, ETFs, and even cryptocurrency.

Your online brokerage account will display your holdings (the assets you've purchased) as well as your cash balance (your buying power). If you invest in something that gains in value, you can sell it and the profits will be deposited in your online brokerage account. From there, you can place another trade or even transfer the funds out to your regular bank account to use elsewhere. Some brokerage accounts even allow you to earn interest on your uninvested cash.

How Much Money Do you Need to Open a Brokerage Account?

There is no longer a real minimum to start investing in the financial markets. With many brokers offering margin accounts with access to fractional shares and no required minimums, you can open and fund an account with any amount of money. If you don't have a lot of money to invest, however, it will influence how you approach the market. Although you could invest $1 in fractional shares of a specific stock, the better approach with limited capital is to use ETFs. Index tracking ETFs, for example, offer greater diversification for your dollar than a single company stock because every share (and fractional share) of the ETF replicates an index made up of many companies in many different industries. You could also consider using options to leverage your dollars with a directional bet on the market or a specific stock, but this is an investment strategy best reserved for risk capital—not the whole of your limited investment capital.

When investing with small sums, consistency is the key to building wealth. If you can regularly put a set amount of money into the market—even $10 a week—you will be surprised at how quickly it begins to grow. This consistency also helps to smooth market effects, as you will be buying dips and peaks as the market goes up and down.

Can You Invest With a Small Amount of Money?

Many online brokers allow for small minimum deposits which can be a great alternative for those with limited funds. Account minimums (if any) are displayed at the top of our reviews, as well as in our selection of the best platforms for different types of investors. If you are looking for more general guidance on investing with limited capital, check out our article on smart investing on a small budget.

Do Brokers Offer Mobile Platforms?

Some online brokers have powerful mobile apps delivering nearly all the features that their desktop counterparts do. For example, E*TRADE's app, which we picked as our best app for mobile investing and trading, offers two mobile platforms that are streamlined versions of the company's powerful desktop platform.

Can You Lose Money in a Brokerage Account?

Yes, you can. It is a reality of the market that no reward comes without risk. You can lose money buying a bad investment, but you can also lose money by buying a good investment at the wrong time. Investment decisions should be guided by extensive research and careful consideration of your risk tolerance. When it comes to the financial markets, there are endless possibilities for making and losing money. Unless all the funds in your brokerage account are sitting in uninvested cash (brokerage cash accounts are afforded up to $250,000 of protection by Securities Investor Protection Corporation insurance), there is a risk you will lose money.

Another way of looking at that, however, is that a brokerage account sitting full of uninvested cash isn't at risk of making any money either. You can use strategies like asset allocation and diversification to reduce the risk of losing money, but you will never fully eliminate it without also eliminating your chances of making a decent return.

Can I Buy Stocks Without a Broker?

Yes, you can actually buy and sell stocks without a broker, but it is not a common approach these days. Some companies still offer direct stock purchase plans that allow you to buy shares directly from the company. Companies administer these plans according to internal rules, and some are only open to company employees. You need to contact companies to find out whether they offer a direct stock purchase plan and what the terms and conditions are. These plans initially helped investors avoid brokerage fees, but the rise of online discount brokers with zero fees has removed this barrier, making the direct stock purchase plan somewhat of a relic.

What Is the Difference Between Investing and Trading?

An important thing to consider is the distinction between investing and trading. When people talk about investing, they generally mean buying assets to hold long-term. The goal of investing is to gradually build wealth and reach your retirement goals. Conversely, trading involves short-term strategies that maximize returns on a short-term basis, such as daily or monthly. Trading is generally considered riskier than investing.

All these factors are worth considering before choosing an online broker. Do you want to trade or invest? Do you want a great mobile app to check your portfolio wherever you are? What types of assets are you looking to invest in? Answering these questions is not always easy. For more support on how to choose a broker, you can check out our guide to choosing a stock broker. Once you've made a decision on a broker, you can refer to our guide to opening a brokerage account.

Companies We Reviewed

We researched and reviewed 27 online brokers and trading platforms to find the best companies you see in the list above. Below is the full list of companies we researched along with links to individual company reviews to help you learn more before making a decision:

Ally Invest, Charles Schwab, ChoiceTrade, E*TRADE, eOption, eToro, Fidelity, Interactive Brokers, J.P. Morgan SDI, Lightspeed, Lime Financial, Merrill Edge, Public, Robinhood, SoFi Invest, SogoTrade, T. Rowe Price, tastytrade, TradeStation, Tradier, TradeZero, Vanguard, Webull, Wellstrade


How to Pick a Broker That's Right for You

How We Picked the Best Online Brokers and Trading Platforms

Providing readers with unbiased, comprehensive reviews of online brokers and trading platforms is a top priority for Investopedia. We combined our industry research and subject matter expertise to guide the research and weightings for our 2025 online broker rankings. To collect the data, our researchers collected data points through online research of provider websites. To fill in any gaps, our research team reached out to the individual brokerages. In some instances, our researchers did much deeper online research to get the information they needed to complete the data collection. The data collection process spanned from Dec. 20, 2024 to Feb 19, 2025.

We then developed a proprietary model that scored each company to rate its performance across 11 major categories and 120 criteria to find the best online brokers and trading platforms. The score for each company’s overall star rating is a weighted average of the criteria in the following categories:

Online Broker Evaluation Categories

Category Weight
Research Amenities 12.78%
Trading Technology 11.86%
Range of Offerings 11.59%
Trade Experience 10.12%
Costs 10.00%
Educational Material 8.95%
Mobile App Usability 8.93%
Portfolio Analysis and Reports 7.67%
Customer Service 6.98%
Account Amenities 6.16%

Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of the top online brokers and trading platforms.


For more information, read our full methodology explanation.

Guide to Online Brokers and Trading Platforms

Learn more about online brokers and trading platforms:

Disclosures

Investing involves risk, including risk of loss
**$0.00 commission applies to online U.S. equity trades, exchange-traded funds (ETFs), and options (+ $0.65 per contract fee) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). A limited number of ETFs are subject to a transaction-based service fee of $100. See full list of ETFs subject to this service fee [here]. There is an Options Regulatory Fee that applies to both option buy and sell transactions. The fee is subject to change. Other exclusions and conditions may apply. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.**
**You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund’s sponsor, is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress. Fidelity’s government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares.

Fidelity Crypto® is offered by Fidelity Digital Assets®. Investing involves risk, including risk of total loss. Crypto as an asset class is highly volatile, can become illiquid at any time, and is for investors with a high risk tolerance. Crypto may also be more susceptible to market manipulation than securities. Crypto is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Investors in crypto do not benefit from the same regulatory protections applicable to registered securities. Fidelity Crypto® accounts and custody and trading of crypto in such accounts are provided by Fidelity Digital Asset Services, LLC, which is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business (NMLS ID 1773897). Brokerage services in support of securities trading are provided by Fidelity Brokerage Services LLC (“FBS”), and related custody services are provided by National Financial Services LLC (“NFS”), each a registered broker-dealer and member NYSE and SIPC. Neither FBS nor NFS offer crypto as a direct investment nor provide trading or custody services for such assets. Fidelity Crypto and Fidelity Digital Assets are registered service marks of FMR LLC.
The Fidelity ETF Screener is a research tool provided to help self-directed investors evaluate these types of securities. The criteria and inputs entered are at the sole discretion of the user, and all screens or strategies with preselected criteria (including expert ones) are solely for the convenience of the user. Expert Screeners are provided by independent companies not affiliated with Fidelity. Information supplied or obtained from these Screeners is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell securities, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy or approach to screening or evaluating stocks, preferred securities, exchange-traded products, or closed-end funds. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from its use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation, and other individual factors, and reevaluate them on a periodic basis. 
***Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read [Characteristics and Risks of Standardized Options]. Supporting documentation for any claims, if applicable, will be furnished upon request.
 ****Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See [Fidelity.com/commissions] for further details.
Before investing, consider the funds’ investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. 

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The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

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  5. Schwab.com. "Schwab Announces Further Expansion of Overnight Trading."

  6. Charles Schwab. "About."

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  9. Businesswire. "Schwab Introduces Futures, Forex and Portfolio Margin on thinkorswim."

  10. Businesswire. "Schwab to Significantly Expand Its 24-Hour Trading Capabilities."

  11. Schwab. "Schwab Makes Expanded 24-Hour Trading Available to All Clients."

  12. Interactive Brokers. "Cryptocurrencies."

  13. InteractiveBrokers. "Press Release."

  14. Interactive Brokers. "IBKR is the Professional’s Gateway to the World’s Markets."

  15. Interactive Brokers. "General."

  16. Interactive Brokers. "IBKR Desktop."

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  19. Robinhood. "Robinhood Strategies."

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