11 Best Discount Brokers 2020

Discount brokers FAQ

How much do discount brokers charge?

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.

What fees do brokers charge?

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 brokers to find out about any fees they may charge.

What is the difference between a full-service broker and a discount broker?

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.

One brokerage that offers both low-cost trades and free access to broker-assisted trades is Zacks Trade.

How can I trade online without a broker?

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.

How can I invest in stocks with little money?

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.

Some brokerages that allow for fractional purchases of stocks include Interactive Brokers, Sofi Active Investing, Stash and Motif. Meanwhile, Acorns lets you buy fractional shares of ETFs. A number of robo-advisors also offer fractional-share purchases.

How can I trade stocks for free?

Easy, now that many brokers have eliminated commissions: All the options above provide free stock trades.

Is it better to invest with a bank or a broker?

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; or, if they do, those investments tend to be offered through an investment advisory that likely charges higher fees than a discount broker.