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Welcome to the new era for free stock trading.
While stock trading price steadily declined in recent years, only a handful of brokerages offered $0 trades until October 2019, when the race to zero commissions broke into a sprint led by Charles Schwab. Now commission-free trades for stocks, exchange-traded funds and options are the industry standard among top online brokerages.
Here are NerdWallet’s picks for the best brokers for commission-free trading. (Need to back up on this process? See our step-by-step instructions for how to buy stocks.)
Welcome to the new era for free stock trading.
While stock trading price steadily declined in recent years, only a handful of brokerages offered $0 trades until October 2019, when the race to zero commissions broke into a sprint led by Charles Schwab. Now commission-free trades for stocks, exchange-traded funds and options are the industry standard among top online brokerages.
Here are NerdWallet’s picks for the best brokers for commission-free trading. (Need to back up on this process? See our step-by-step instructions for how to buy stocks.)
Summary of Best Online Brokers for Free Stock Trading of September 2021
| Broker | NerdWallet Rating | Fees | Account Minimum | Promotion | Learn More |
|---|---|---|---|---|---|
 SoFi Active Investing Learn more on SoFi Invest's website | $0 per trade | $0 | $5 to $1,000 in free stock for users who sign up via mobile app | Learn more on SoFi Invest's website | |
 E*TRADE Learn more on E*TRADE's website | $0 per trade | $0 | Get $600 or more when you open and fund an E*TRADE account with code: BONUS21 | Learn more on E*TRADE's website | |
 Interactive Brokers IBKR Lite Learn more on Interactive Brokers's website | $0 per trade | $0 | None no promotion available at this time | Learn more on Interactive Brokers's website | |
 TD Ameritrade Learn more on TD Ameritrade's website | $0 per trade | $0 | None no promotion available at this time | Learn more on TD Ameritrade's website | |
 J.P. Morgan Self-Directed Investing Learn more on J.P. Morgan's website | $0 per trade | $0 | None no promotion available at this time | Learn more on J.P. Morgan's website |
on SoFi Invest's website
SoFi Active Investing
Fees
per trade
Account Minimum
Promotion
in free stock for users who sign up via mobile app
on SoFi Invest's website
on E*TRADE's website
E*TRADE
Fees
per trade
Account Minimum
Promotion
when you open and fund an E*TRADE account with code: BONUS21
on E*TRADE's website
on Interactive Brokers's website
Interactive Brokers IBKR Lite
Fees
per trade
Account Minimum
Promotion
no promotion available at this time
on Interactive Brokers's website
on TD Ameritrade's website
TD Ameritrade
Fees
per trade
Account Minimum
Promotion
no promotion available at this time
on TD Ameritrade's website
on J.P. Morgan's website
J.P. Morgan Self-Directed Investing
Fees
per trade
Account Minimum
Promotion
no promotion available at this time
on J.P. Morgan's website
on Webull's website
Webull
Fees
per trade
Account Minimum
Promotion
after opening a Webull account, activating crypto trading, and completing 1 crypto trade before 10/20/21.
on Webull's website
on Robinhood's website
Robinhood
Fees
per trade
Account Minimum
Promotion
after linking your bank account (stock value range $2.50-$225)
on Robinhood's website
Want to compare more options? Here are our other top picks:
Disclosure: The author held no positions in the aforementioned securities at the time of publication.
Last updated on September 16, 2021
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Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers and robo-advisors by assets under management, along with emerging industry players, using a multifaceted and iterative approach. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgments on which ones will best meet your needs.
DATA COLLECTION AND REVIEW PROCESS
We collect data directly from providers, and conduct first-hand testing and observation through provider demonstrations. Our process starts by sending detailed questionnaires to providers to complete. The questionnaires are structured to equally elicit both favorable and unfavorable responses from providers. They are not designed or prepared to produce any predetermined results. The questionnaire answers, combined with product 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). Ratings are rounded to the nearest half-star.
RATING FACTORS
Evaluations vary by provider type, but in each case are based upon the weighted averages of factors that include but are not limited to: advisory and account fees, account minimums and types, investment selection, investment expense ratios, trading costs, access to human financial advisors, educational resources and tools, rebalancing and tax minimization options, and customer support including branch access, user-facing technology and mobile platforms.
Each factor can involve evaluating various sub-factors. For instance, when gauging the investment selections offered by robo-advisors, 80% of the score is based on the potential for diversification (how well-diversified a resulting portfolio of investments could be) combined with the availability of specialty portfolios and level of customization for investors. Expense ratios form an additional 10% of the score, and low or no management fee the remaining 10%.
FACTOR WEIGHTINGS
The weighting of each factor is based on our team’s assessment of which features are the most important to consumers and which ones impact the consumer experience in the most meaningful way. The factors considered, and how those factors are weighted, change depending upon the category of providers reviewed.
Provider categories include: Best Brokers for Stock Trading, Best Brokers for Beginners, Best Brokers for Day Trading, Best Brokers for Options Trading, Best Discount Brokers, Best Brokers for Free Trading, Best Investment Apps, Best Brokers for Penny Stocks, Best IRA Brokers, Best Robo-Advisors, Best Financial Advisors, Best Real Estate Platforms, Best Brokers for ETFs and Best Brokers for Mutual Funds.
INFORMATION UPDATES
Writers and editors conduct our broker and robo-advisor reviews on an annual basis but continually make updates throughout the year. We maintain frequent contact with providers and highlight any changes in offerings.
THE REVIEW TEAM
The review team comprises seasoned writers, researchers and editors who cover stocks, bonds, mutual funds, index funds, exchange-traded funds, alternative investments, socially responsible investing, financial advisors, retirement and investment strategy on a daily basis. In addition to NerdWallet, the work of our team members has been published in The New York Times, The Washington Post, Forbes, USA Today, Bloomberg News, Nasdaq, MSN, MarketWatch, Yahoo! Finance and other national and regional media outlets.
The combined expertise of our Investing team is infused into our review process to ensure thoughtful evaluations of provider products and services from the customer perspective. Our writers and editors combine to have more than 70 years of deep experience in finance, ranging from a former Wall Street Journal reporter to a former senior financial advisor at Merrill Lynch.
CONFLICTS OF INTEREST
While NerdWallet does have partnerships with many of the reviewed providers, we manage potential conflicts of interest by maintaining a wall between our content and business operations. This wall is designed to prevent our writers and the review process from being influenced or impacted by our business partnerships. This way, all reviews can provide an unbiased review that serves the interests of our users. For more information, see NerdWallet’s editorial guidelines.
To recap our selections...
