8 Best Discount Brokers of December 2024
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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ALSO CONSIDER: Best brokerage account promotions || Brokerage accounts with high interest rates || Best brokers for free trading |
A discount broker is an online broker with rock-bottom pricing — generally, discount brokers charge no commission to buy or sell stocks, and keep other fees as low as possible. Those fees include inactivity fees, annual fees and account transfer fees.
Here, we’ve sorted through the top online brokers to surface the ones with the best low-fee discount brokerage accounts — none of these brokers charge commissions, and all charge options contract fees of $.50 per contract or less (many don't charge an options contract fee at all). They will help you keep transaction costs down without hindering your ability to trade stocks, exchange-traded funds or options.
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ALSO CONSIDER: Best brokerage account promotions || Brokerage accounts with high interest rates || Best brokers for free trading |
A discount broker is an online broker with rock-bottom pricing — generally, discount brokers charge no commission to buy or sell stocks, and keep other fees as low as possible. Those fees include inactivity fees, annual fees and account transfer fees.
Here, we’ve sorted through the top online brokers to surface the ones with the best low-fee discount brokerage accounts — none of these brokers charge commissions, and all charge options contract fees of $.50 per contract or less (many don't charge an options contract fee at all). They will help you keep transaction costs down without hindering your ability to trade stocks, exchange-traded funds or options.
Why trust NerdWallet
Best Discount Brokers
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
 Robinhood Learn more on Robinhood's website | $0 per trade | $0 | 1 Free Stock after linking your bank account (stock value range $5.00-$200) | Learn more on Robinhood's website | |
 Webull Learn more on Webull's website | $0 per trade | $0 | Get up to 40 free fractional shares ( each valued up to $3,000) when you open and fund an account with Webull. | Learn more on Webull's website | |
 Public Learn more on Public's website | $0 | $0 | Earn up to $10,000 when you transfer your investment portfolio to Public. | Learn more on Public's website | |
 SoFi Active Investing Learn more on SoFi Invest's website | $0 per trade | $0 | Get up to $1,000 in stock when you fund a new account. | Learn more on SoFi Invest's website | |
 Firstrade | $0 per trade | $0 | Up to $200 in Transfer Fee Rebates | Read review |
$0
per trade
$0
1 Free Stock
after linking your bank account (stock value range $5.00-$200)
Pros
Commission-free stock, options and ETF trades.
Streamlined interface.
Cryptocurrency trading.
IRA with 1% match (3% for Gold members).
High interest rate on uninvested cash.
Cons
No mutual funds.
Little third-party research.
Why We Like It
Robinhood provides free stock, options, ETF and cryptocurrency trades (but no bonds or mutual funds), and its account minimum is $0, too. Robinhood Gold offers a high interest rate on uninvested cash and low margin rates.
$0
per trade
$0
Get up to 40 free fractional shares ( each valued up to $3,000)
when you open and fund an account with Webull.
Pros
Commission-free stock, options and ETF trades.
Easy-to-use platform.
Advanced tools.
High interest rate on uninvested cash.
High order execution quality.
Cons
No mutual funds.
Separate app required to trade crypto.
Why We Like It
Webull will appeal to the mobile-first generation of casual investors with its slick interface for desktop and mobile apps. The brokerage also delivers an impressive array of tools for active traders and a wide investment selection, including stocks (plus fractional shares), options, ETFs, crypto, commodities and futures. However, it lacks access to mutual funds.
$0
$0
Earn up to $10,000
when you transfer your investment portfolio to Public.
Pros
Commission-free stock, options and ETF trades.
Rebates for trading options.
Impressive selection of alternative assets.
Easy-to-use signup and trading interface.
High interest rate on uninvested cash.
Cons
No mutual funds.
Lack of tools (e.g. customizable investment screeners).
No IRA accounts.
Why We Like It
Public provides free stock and ETF trades, pays you to trade options, and gives traders access to crypto, alternative assets and bonds, as well as a high-yield savings account. The platform will appeal to traders looking for a low-cost options broker and access to many types of assets.
$0
per trade
$0
Get up to $1,000
in stock when you fund a new account.
Pros
No commissions on stock, options and ETF trades
Complimentary access to financial planners.
IPO access.
IRA match.
Cons
Low interest rate on uninvested cash.
Why We Like It
SoFi's $0 trading commissions, free advisor access, $1 account minimum and fractional share offerings make it an attractive choice for investors on a budget.
$0
$0
N/A
Pros
Powerful trading platform.
Commission-free stock, options and ETF trades.
Low options contract fees.
Strong mobile trading app.
Cons
Limited external research providers.
Low interest rate on uninvested cash.
Advanced platform not suitable for beginners.
$0
$0
None
no promotion available at this time
Pros
Commission-free stock, ETF and options trades.
No contract fee on equity options.
Popular, easy-to-use app.
High yield on uninvested cash.
Low margin rates.
Cons
No mutual funds or bonds.
Lower than average execution quality.
Why We Like It
Moomoo offers free stock and option trades in an easy-to-use trading platform that charges low margin rates. It's not built for passive retirement investors — IRAs aren't supported, nor are mutual funds — but there's a lot to like about Moomoo for more active traders.
Want to compare more options? Here are our other top picks:
Last updated on December 3, 2024
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 December 2024
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.
