Investing in IPOs: Best Brokers That Offer IPO Access
To invest in a company's IPO, you'll need a brokerage account. The below brokers offer some form of IPO access to retail investors.
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The initial public offering market cooled substantially in recent years, but lately it's been showing signs of a comeback: Sept. 2023 hosted two splashy IPOs, from British semiconductor company Arm and delivery service Instacart, and in March 2024, social media platform Reddit went public.
How do you invest in an IPO?
IPOs have historically been accessible only to select investors — generally, institutions, company insiders or investors who meet certain trade or investment requirements. But in recent years, brokerage firms have started bringing IPOs to their platforms, offering regular retail investors unprecedented access.
Prior to the offering, the company will set a price range and an IPO date. The brokers below offer some level of access to IPO shares before they're widely available to the general public — if you don’t already have a brokerage account, you will need to open one. Keep in mind that some brokers may have additional requirements, including a mandatory investor assessment, trade minimums or account minimums.
As far as the process: Generally speaking, you'll make a request for the number of shares you'd like to purchase. Most brokers warn that you may not be allocated the number of shares you request; in fact, in some high-demand scenarios, you may not be allocated any shares at all. It's wise to be realistic about the number of shares you'd like to purchase, and do your research beforehand to ensure the stock is a good long-term fit for your portfolio.
What if you miss out on investing in an IPO?
You can still purchase shares of the stock on the open market following the IPO. In fact, this is a common scenario — for most investors, investing in an IPO means buying the stock once it begins trading, not before. That means the price you pay will reflect the demand for the stock on the day you purchase it, and that price could differ — sometimes dramatically — from the offering price.
Once the stock is public, the mechanics of purchasing shares are pretty straightforward. Here’s a brief guide on how to buy stocks, including information on how to navigate your broker’s website and place an order. All of the brokers on this list are good choices for stock trading, in addition to the IPO access they provide.
The initial public offering market cooled substantially in recent years, but lately it's been showing signs of a comeback: Sept. 2023 hosted two splashy IPOs, from British semiconductor company Arm and delivery service Instacart, and in March 2024, social media platform Reddit went public.
How do you invest in an IPO?
IPOs have historically been accessible only to select investors — generally, institutions, company insiders or investors who meet certain trade or investment requirements. But in recent years, brokerage firms have started bringing IPOs to their platforms, offering regular retail investors unprecedented access.
Prior to the offering, the company will set a price range and an IPO date. The brokers below offer some level of access to IPO shares before they're widely available to the general public — if you don’t already have a brokerage account, you will need to open one. Keep in mind that some brokers may have additional requirements, including a mandatory investor assessment, trade minimums or account minimums.
As far as the process: Generally speaking, you'll make a request for the number of shares you'd like to purchase. Most brokers warn that you may not be allocated the number of shares you request; in fact, in some high-demand scenarios, you may not be allocated any shares at all. It's wise to be realistic about the number of shares you'd like to purchase, and do your research beforehand to ensure the stock is a good long-term fit for your portfolio.
What if you miss out on investing in an IPO?
You can still purchase shares of the stock on the open market following the IPO. In fact, this is a common scenario — for most investors, investing in an IPO means buying the stock once it begins trading, not before. That means the price you pay will reflect the demand for the stock on the day you purchase it, and that price could differ — sometimes dramatically — from the offering price.
Once the stock is public, the mechanics of purchasing shares are pretty straightforward. Here’s a brief guide on how to buy stocks, including information on how to navigate your broker’s website and place an order. All of the brokers on this list are good choices for stock trading, in addition to the IPO access they provide.
Investing in IPOs: Best Brokers That Offer IPO Access
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
 Robinhood Learn more on Robinhood's website | $0 per trade | $0 | 1 Free Stock after linking your bank account (stock value range $5.00-$200) | Learn more on Robinhood's website | |
 Charles Schwab Learn more on Charles Schwab's website | $0 per online equity trade | $0 | None no promotion available at this time | Learn more on Charles Schwab's website | |
 Webull Learn more on Webull's website | $0 per trade | $0 | Get up to 75 free fractional shares (valued up to $3,000) when you open and fund an account with Webull. | Learn more on Webull's website | |
 TradeStation Learn more on TradeStation's website | $0 per trade | $500 | Qualify for up to $5,000 when you open and fund a new TradeStation account. Offer Code: NERDAFJO. | Learn more on TradeStation's website | |
 E*TRADE Learn more on E*TRADE's website | $0 per trade. Other fees apply. | $0 | Get up to $1,000 when you open and fund an E*TRADE account | Learn more on E*TRADE's website |
$0
per trade
$0
1 Free Stock
after linking your bank account (stock value range $5.00-$200)
Pros
Commission-free stock, options and ETF trades.
Streamlined interface.
Cryptocurrency trading.
IRA with 1% match.
High interest rate on uninvested cash.
Cons
No mutual funds.
Limited customer support.
Why We Like It
Robinhood provides free stock, options, ETF and cryptocurrency trades (but no bonds or mutual funds), and its account minimum is $0, too. Robinhood Gold offers a high interest rate on uninvested cash and low margin rates.
$0
per online equity trade
$0
None
no promotion available at this time
Pros
Commission-free stock, options and ETF trades.
Above-average mobile app.
Large selection of no-transaction-fee mutual funds.
Strong retirement planning tools.
Cons
Low interest rate on uninvested cash.
High fee for transaction-fee funds.
Why We Like It
Charles Schwab is one of the best overall IRA providers, with high-quality customer service, no account minimum and low fees. The company offers a large selection of no-transaction-fee funds, gives users access to extensive research and charges no commission for stock, options and ETF trades.
$0
per trade
$0
Get up to 75 free fractional shares (valued up to $3,000)
when you open and fund an account with Webull.
Pros
Commission-free stock, options and ETF trades.
Easy-to-use platform.
Advanced tools.
Access to cryptocurrency.
High interest rate on uninvested cash.
High order execution quality.
Cons
No mutual funds.
Thin educational support.
Why We Like It
Webull will appeal to the mobile-first generation of casual investors with its slick interface for desktop and mobile apps. The brokerage also delivers an impressive array of tools for active traders and a wide investment selection, including stocks (plus fractional shares), options, ETFs, crypto, commodities and futures. However, its relatively weak educational content may leave true beginners in the lurch, and it lacks access to bonds and mutual funds.
$0
per trade
$500
Qualify for up to $5,000
when you open and fund a new TradeStation account. Offer Code: NERDAFJO.
Pros
Commission-free stock, options and ETF trades.
High-quality trading platforms.
Comprehensive research.
Advanced tools.
Active trader community.
Cons
No transaction-fee-free mutual funds.
Plans and pricing can be confusing.
Low interest rate on uninvested cash.
Why We Like It
TradeStation is a strong choice for active stock, options and futures investors who rely on high-octane trading platforms, reams of research and sophisticated analytical tools. Trades are commission-free.
$0
per trade. Other fees apply.
$0
Get up to $1,000
when you open and fund an E*TRADE account
Pros
Commission-free stock, options and ETF trades.
Easy-to-use tools.
Strong customer support.
Advanced mobile app.
Cons
Website can be difficult to navigate.
Low interest rate on uninvested cash.
No fractional shares.
Why We Like It
E*TRADE has long been one of the most popular online brokers. The company's $0 commissions and strong trading platforms appeal to active traders, while beginner investors benefit from a large library of educational resources.
$0
$0
Earn up to $10,000
when you transfer your investment portfolio to Public.
Pros
Commission-free stock, options and ETF trades.
Rebates for trading options.
Impressive selection of alternative assets.
Easy-to-use signup and trading interface.
High interest rate on uninvested cash.
Cons
No mutual funds.
No margin trading.
Lack of tools (e.g. customizable investment screeners).
No IRA accounts.
Why We Like It
Public provides free stock and ETF trades, pays you to trade options, and gives traders access to crypto, alternative assets and bonds, as well as a high-yield savings account. The platform will appeal to traders looking for a low-cost options broker and access to many types of assets.
$0
per trade
$0
Up to $1,000
in free stock for users who sign up via mobile app
Pros
Commission-free stock, options and ETF trades.
Free financial counseling.
IPO access.
Cons
Low interest rate on uninvested cash.
Why We Like It
SoFi Active Investing's $0 trading commission, free access to financial advisors, fractional shares and $1 account minimum are attractive to new investors. More advanced investors will appreciate the company's wide mutual fund selection and IPO access.
$0
per trade for online U.S. stocks and ETFs
$0
None
no promotion available at this time
Pros
Commission-free stock, options and ETF trades.
Large selection of research providers.
Strong customer service.
Expense-ratio-free index funds.
Highly rated mobile app.
High interest rate on uninvested cash.
Cons
Relatively high broker-assisted trade fee.
Why We Like It
Fidelity is one of the largest and most well-established brokerages, and it shows. Fidelity charges no trading commissions, offers an extensive set of no-fee, no-minimum index funds. It also stands out for its top-notch research tools, a renowned trading platform and very strong customer service.
Last updated on May 31, 2024
Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokerage firms by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).
For more details about the categories considered when rating brokers and our process, read our full methodology.
To recap our selections...
