11 Best Discount Brokers of February 2023
Fees and commissions can really take a bite out of your returns. The discount brokers below charge no commissions and low or no account fees.
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A discount broker is an online stock broker with rock-bottom pricing — generally, discount brokers charge no commission to buy or sell stocks.
Here, we’ve sorted through our top online brokers to surface the ones with the best no-fee discount brokerage accounts. They will help you keep transaction costs down without hindering your ability to trade stocks, mutual funds, exchange-traded funds and other securities.
A discount broker is an online stock broker with rock-bottom pricing — generally, discount brokers charge no commission to buy or sell stocks.
Here, we’ve sorted through our top online brokers to surface the ones with the best no-fee discount brokerage accounts. They will help you keep transaction costs down without hindering your ability to trade stocks, mutual funds, exchange-traded funds and other securities.
Best Discount Brokers
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
 Interactive Brokers IBKR Lite Learn more on Interactive Brokers' website | $0 per trade | $0 | None no promotion available at this time | Learn more on Interactive Brokers' website | |
 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 | |
 Webull Learn more on Webull's website | $0 per trade | $0 | Get up to 12 free fractional shares (valued up to $30,600) when you open and fund an account with Webull. Promotion ends 2/28/2023. | Learn more on Webull'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 |
$0
per trade
$0
None
no promotion available at this time
Pros
Large investment selection.
Strong research and tools.
Over 18,000 no-transaction-fee mutual funds.
NerdWallet users who sign up for IBKR Pro get a 0.25 percentage point discount on margin rates.
Cons
Website is difficult to navigate.
Why We Like It
Interactive Brokers' IBKR Lite is a strong option for frequent traders: The broker offers international trade capabilities, no stock-trading commission and a quality trading platform.
$0
per trade
$0
Up to $600
when you invest in a new Merrill Edge® Self-Directed account.
Pros
Robust third-party research.
Integrated with Bank of America.
Cons
Advanced traders may find fewer securities on offer.
Why We Like It
Merrill Edge offers high-quality customer service, robust research and low fees. Customers of parent company Bank of America will love the seamless, thoughtful integration, with a single login to access both accounts.
$0
per trade
$0
Get up to 12 free fractional shares (valued up to $30,600)
when you open and fund an account with Webull. Promotion ends 2/28/2023.
Pros
Low costs.
Easy-to-use platform.
Advanced tools.
Access to cryptocurrency.
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, but the brokerage also delivers an impressive array of tools for active traders. However, its relatively weak educational content may leave true beginners in the lurch, and it lacks access to a few common asset classes.
$0
per trade
$0
None
no promotion available at this time
Pros
Commission-free stock and ETF trades.
Free research.
High-quality trading platforms.
No account minimum.
Good customer support.
Large investment selection.
Cons
No fractional shares.
Why We Like It
TD Ameritrade meets the needs of both active traders and beginner investors with quality trading platforms; $0 commissions on online stock and ETF trades; and a large selection of mutual funds.
$0
per trade
$0
Get up to $600 or more
when you open and fund an E*TRADE account
Pros
Easy-to-use tools.
Large investment selection.
Excellent customer support.
Advanced mobile app.
Commission-free stock, options, mutual fund and ETF trades.
Cons
Website can be difficult to navigate.
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
per trade (on eligible US securities)
$0
None
no promotion available at this time
Pros
Commission-free trades on eligible U.S. stocks, options and ETFs.
No account minimum.
Strong web-based platform.
Cons
No fractional shares.
Limited third-party research providers.
Why We Like It
Ally Invest’s robust trading platform and lineup of free research, charting, data and analytical tools make it a good choice for active traders. But it’s also appropriate for beginning investors who will appreciate that there is no account minimum and no annual fees.
$0
per trade
$0
1 Free Stock
after linking your bank account (stock value range $5.00-$200)
Pros
No account minimum.
Streamlined interface.
Cryptocurrency trading.
Cons
No mutual funds or bonds.
Limited customer support.
Why We Like It
Robinhood provides free stock, options, ETF and cryptocurrency trades, and its account minimum is $0, too. Mutual funds and bonds aren't offered, and only taxable investment accounts are available. Still, if you're looking to limit costs or trade crypto, Robinhood is a solid choice.
$0
per trade
$0
Get up to $700
when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money
Pros
Easy-to-use platform.
$0 commissions.
App connects all Chase accounts.
No account minimum.
Cons
Limited tools and research.
Portfolio Builder tool requires $2,500 balance.
Why We Like It
J.P. Morgan Self-Directed Investing is a clear-cut investment platform that is great for beginners looking to learn how to buy and sell investments. More advanced investors, however, may find it lacking in terms of available assets, tools and research. INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
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Last updated on February 1, 2023
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Methodology
How do we review brokers?
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).
For more details about the categories considered when rating brokers and our process, read our full methodology.
To recap our selections...
NerdWallet's Best Discount Brokers of February 2023
Frequently asked questions
There’s good news for investors — the primary fees charged by brokers, known as trading fees or commissions, have gotten much lower in recent years. As you can see in our table above, all of the brokers we've included here charge no trading commissions.
In addition to the trading fee or trading commission — if charged — there are a slew of other fees and charges to watch for, including ones for broker-assisted trades, as well as annual, transfer, closing and inactivity fees. (Lost? Here's our explainer on investment fees.)
In the table above, click on the review for each of our top-rated discount brokers to find out about any fees they may charge. You'll find most offer low or no account fees, which is part of how they made our list.
With a full-service broker, you pay higher fees in exchange for investment guidance and management, among other perks.
With a discount broker, you pay far less to trade investments, but generally, you’re in charge of managing your trades, and you’re likely to pay an extra fee if you want help from a person.
If you’re looking to sidestep a broker entirely, you can try investing directly through a company’s direct investment plan (aka DRIPs). Keep in mind, though, that generally it’s not as easy as trading with a broker — and only some publicly traded companies offer such plans.
It’s easier than ever to invest in stocks with very little money, in large part because a growing number of brokerages and robo-advisors offer fractional shares. These allow you to buy a small piece of a stock share, instead of the entire share. That means rather than needing hundreds of dollars to buy a pricey stock, you can invest in many companies at amounts as low as, say, $5.
This is easier than ever, now that many brokers have eliminated commissions: All the options above provide free stock trades.
If you have long-term goals you’re saving for, such as your own retirement or your kids’ college tuition, it makes sense to invest in the stock market because stocks offer the investment earnings that can power your savings.
Investing in the stock market usually means investing with a broker, because most banks don’t offer access to stock market investments; if they do, those investments tend to be offered through an investment advisory that likely charges higher fees than a discount broker.
