BEST OF
11 Best Online Brokers for Stock Trading of February 2021
Want to trade stocks? You’re going to need an online broker, and that broker should offer a reasonable investment minimum, high-quality trading tools, robust access to customer service and no hidden account fees. On these measures, the brokerage firms below earned their place on our list of the best online brokers for stock trading.
We evaluated brokerage firms and investment companies on the services that matter most to different types of investors. For example, for active traders, we've noted online brokers with low or no commissions and robust mobile trading platforms. For people venturing into investing for the first time, we've included the best online brokers for educational resources (including webinars, video tutorials and in-person seminars) and on-call chat or phone support.
Read on to see our picks for the best brokers, alongside links to our investing experts' in-depth reviews on each.
Want to trade stocks? You’re going to need an online broker, and that broker should offer a reasonable investment minimum, high-quality trading tools, robust access to customer service and no hidden account fees. On these measures, the brokerage firms below earned their place on our list of the best online brokers for stock trading.
We evaluated brokerage firms and investment companies on the services that matter most to different types of investors. For example, for active traders, we've noted online brokers with low or no commissions and robust mobile trading platforms. For people venturing into investing for the first time, we've included the best online brokers for educational resources (including webinars, video tutorials and in-person seminars) and on-call chat or phone support.
Read on to see our picks for the best brokers, alongside links to our investing experts' in-depth reviews on each.
Summary of Best Online Brokers for Stock Trading of February 2021
Broker | NerdWallet Rating | Commissions | Promotion | Account Minimum | Learn More |
---|---|---|---|---|---|
$0 per trade | Up to $600 cash credit with qualifying deposit | $0 | on Merrill Edge's website | ||
$0 per trade | $50 or more when opening an account, with code: WINTER21 | $0 | on E*TRADE's website | ||
$0 per trade | One free stock for new account owners | $0 | on Robinhood's website | ||
$0 per trade | None no promotion available at this time | $0 | on Interactive Brokers's website | ||
$0 per trade | Up to $5,000 cash credit with a qualifying deposit | $0 | on TradeStation's website |
on Merrill Edge's website
Merrill Edge

Fees
per trade
Account Minimum
Promotion
cash credit with qualifying deposit
on Merrill Edge's website
on E*TRADE's website
E*TRADE

Fees
per trade
Account Minimum
Promotion
when opening an account, with code: WINTER21
on E*TRADE's website
on Robinhood's website
Robinhood

Fees
per trade
Account Minimum
Promotion
for new account owners
on Robinhood'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 TradeStation's website
TradeStation

Fees
per trade
Account Minimum
Promotion
cash credit with a qualifying deposit
on TradeStation's website
on Zacks Trade's website
Zacks Trade

Fees
per share
Account Minimum
Promotion
no promotion available at this time
on Zacks Trade'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 January 27, 2021
Methodology
NerdWallet's ratings for brokers and robo-advisors are weighted averages of several categories, including investment selection, customer support, account fees, account minimum, trading costs and more. Our survey of brokers and robo-advisors includes the largest U.S. providers by assets under management, plus notable and/or emerging players in the industry. Factors we consider, depending on the category, include advisory fees, branch access, user-facing technology, customer service and mobile features. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
To recap our selections...
NerdWallet's Best Online Brokers for Stock Trading of February 2021
Frequently asked questions
Not much. Note that many of the brokers above have no account minimums for both taxable brokerage accounts and IRAs. Once you open an account, all it takes to get started is enough money to cover the cost of a single share of a stock and the trading commission, if charged. (See “How to Buy Stocks” for step-by-step instructions on placing that first trade.)
Trading costs definitely matter to active and high-volume traders, but many brokers now offer commission-free trades of stocks, ETFs and options. Other factors — access to a range of investments or training tools — may be more valuable than saving a few bucks when you purchase shares.
One easy way is to invest in exchange-traded funds. ETFs are essentially mutual funds that are bought and sold just like individual stocks on a stock market exchange. Like mutual funds, each ETF contains a basket of stocks (sometimes hundreds) that adhere to particular criteria (e.g., shares of companies that are part of a stock market index like the S&P 500). Unlike mutual funds, which can have high investment minimums, investors can purchase as little as one share of an ETF at a time.
Your money is indeed insured, but only against the unlikely event a brokerage firm or investment company goes under. A broker’s SIPC coverage (Securities Investor Protection Corporation) doesn't cover any loss in value of your investments.
Your account choices boil down to a taxable brokerage account versus tax-favored retirement account, such as an IRA. Our guide to brokerage accounts goes into more detail about what’s involved in setting up a taxable account. Opening an IRA involves choosing which type, such as a Roth IRA, traditional IRA or SEP IRA. If you're new to this, we’ve got you covered in our guide to IRAs.
After you’ve opened the account, you’ll need to initiate a deposit or funds transfer to the brokerage firm, which can take anywhere from a few days to a week. Once that is complete, it’s off to the investing races! And by that we mean taking a thoughtful and disciplined approach to investing your money for the long-term.
Some key criteria to consider when evaluating any investment company are how much money you have, what type of assets you intend to buy, your trading style and technical needs, how frequently you plan to transact and how much service you need. Our post about how to choose the best broker for you can help you sort through the features brokerage firms offer and rank your priorities.