11 Best Online Brokers for Stock Trading of May 2022
In our analysis, these online brokers stood out as the best for stock trading due to their low fees, strong trading platforms and tools and quality customer support.
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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 online 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 online brokers, alongside links to our investing experts' in-depth reviews on each.
Best Online Brokers for Stock Trading
| Broker | NerdWallet Rating | Fees | Account minimum | Promotion | Learn More |
|---|---|---|---|---|---|
 Merrill Edge Learn more on Merrill Edge's website | $0 per trade | $0 | Up to $600 when you invest in a new Merrill Edge® Self-Directed account. | Learn more on Merrill Edge's website | |
 Fidelity Learn more on Fidelity's website | $0 per trade for online U.S. stocks and ETFs | $0 | Get $100 when you open a new, eligible Fidelity account with $50 or more. Use code FIDELITY100. Limited time offer. Terms apply. | Learn more on Fidelity'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 | |
 E*TRADE Learn more on E*TRADE's website | $0 per trade | $0 | Get up to $600 or more when you open and fund an E*TRADE account | 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 |
on Merrill Edge's website
Merrill Edge
Fees
$0per trade
Account minimum
$0Promotion
Up to $600when you invest in a new Merrill Edge® Self-Directed account.
on Merrill Edge's website
on Fidelity's website
Fidelity
Fees
$0per trade for online U.S. stocks and ETFs
Account minimum
$0Promotion
Get $100when you open a new, eligible Fidelity account with $50 or more. Use code FIDELITY100. Limited time offer. Terms apply.
on Fidelity's website
on TD Ameritrade's website
TD Ameritrade
Fees
$0per trade
Account minimum
$0Promotion
Noneno promotion available at this time
on TD Ameritrade's website
on E*TRADE's website
E*TRADE
Fees
$0per trade
Account minimum
$0Promotion
Get up to $600 or morewhen you open and fund an E*TRADE account
on E*TRADE's website
on Interactive Brokers's website
Interactive Brokers IBKR Lite
Fees
$0per trade
Account minimum
$0Promotion
Noneno promotion available at this time
on Interactive Brokers's website
on Webull's website
Webull
Fees
$0per trade
Account minimum
$0Promotion
Get 6 free stockswhen you open and fund an account with Webull. Promotion ends 6/9/2022.
on Webull's website
on Ally Invest's website
Ally Invest
Fees
$0per trade (on eligible US securities)
Account minimum
$0Promotion
$100-in cash bonus with qualifying deposit.
on Ally Invest's website
on TradeStation's website
TradeStation
Fees
$0per trade
Account minimum
$500Promotion
$50-cash credit with a minimum deposit of $5,000.
on TradeStation's website
on Zacks Trade's website
Zacks Trade
Fees
$0.01per share
Account minimum
$2,500Promotion
Noneno promotion available at this time
on Zacks Trade's website
Want to compare more options? Here are our other top picks:
Last updated on April 22, 2022
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Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers 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). Ratings are rounded to the nearest half-star.
For more details about the categories considered when rating brokers and our process, read our full methodology.
To recap our selections...
NerdWallet's Best Online Brokers for Stock Trading of May 2022
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 and ETFs. 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.
