Brokers are usually individuals who deal with customers’ orders to buy and sell securities. Trading brokers are intermediaries operating between the securities that trade on the market and the investors that buy them.
Investors must find the best trading brokers to handle their transactions. This article will review the firms that have recruited these talented people and how they can help you with trading securities.
We will also detail each firm’s commission costs per trade, minimum balance requirements, and what type of investors they fit best.
The Best Trading Brokers You Needed to Know in 2020
Before one becomes a certified stockbroker in the United States, one has to pass two licensing examinations issued by the National Association of Securities Dealers (NASD).
The examinations are Series 7 and Series 63. The purpose of these tests is to ascertain that a broker is well aware of what they are selling and that they are knowledgeable of the rules and regulations that govern the securities domain. The following trading brokers have proven to be the best by bringing their customers’ investments to fruition.
10. Motif Investing
Motif Investing is a brokerage firm best suited for advanced traders, stock traders, and traders who plan to invest in motifs (30-stock or ETF baskets). The firm offers its investors flat-rate commissions of $4.95 for stocks and ETFs. Moreover, it has an account minimum requirement of $0 for trading accounts and a $1,000 minimum for their Motif Impact accounts.
9. Interactive Brokers
This is yet another great brokerage firm that guarantees investors meager commission costs. The firm is ideal because of its high-quality trading platform and international trading capabilities. However, it demands a high minimum investment and charges an inactivity fee.
As such, it may not be suitable for infrequent investors and beginners. Interactive Brokers charge a commission with fixed-rate and volume-tiered pricing starting at $1, has an account minimum of $10,000, and its promotion has special terms for customers aged 25 and below.
8. Ally Invest
Ally Invest, however, cuts trading costs to $3.95 for the investors that place 30 or more trades for each quarter and those that carry a balance of $100,000. The broker demands a commission of $4.95, has no account minimum requirement, and discounts are available depending on trade volumes. They suit active, options, and forex traders best.
Robinhood used to shine thanks to its easy-to-use mobile app and $0 trades. However, today, all of the largest online brokers offer free stock and ETF trades. As a result, it is much more difficult for Robinhood to outduel the competition.
Like many other $0 discount brokers, Robinhood charges no commission for trading stocks, ETFs, options, or cryptocurrency. Robinhood offers stocks (including fractional shares), ETFs, options, and cryptocurrency trading.
Most online brokerages, with the exception being TradeStation, also do not offer cryptocurrency trading. However, mutual funds and bonds are not supported, nor is futures trading.
6. Trade Station
TradeStation supports casual traders through its web-based platform and active traders through its award-winning desktop platform, all with $0 stock and ETF trades.
On Trade Station, you can trade Stocks, ETFs, Futures, Options, Futures Options, Crypto, IPOs, and Mutual Funds.
TradeStation 10 is a desktop-based, downloadable trading platform for online trading that is robust and full of trading tools. In our testing, TradeStation 10 is rivaled only by TD Ameritrade's platform.
From monitoring multiple watch lists and setting price alerts to analyzing stock charts and placing trades, TradeStation Mobile provides a fantastic all-around experience for traders.
5. Merrill Edge
Merrill Edge is a full-service broker that offers equities and options trade. The firm’s accounts are linkable to any Bank of America account. It also offers up to 100 free trades per month via the Preferred Rewards Program.
Merrill Edge has competitive pricing and efficient customer service. Moreover, its clients have access to investment advice from over 2,000 Bank of America locations.
The firm takes a commission of $6.95 per trade with no additional charges for stocks less than $1 per share. Its account minimum requirement is $0, and it has a promotion of $100 to $600 cash bonus depending on the account size.
It is best suited for Bank of America customers, penny stock traders, high-balance customers, commission-free trading, and investors who value customer service.
ETRADE is among the best trading brokers operating via an online platform. Customers prefer this firm for its full-court-press advertising and marketing practices.
Furthermore, this broker offers a user-friendly website and a high-quality mobile experience. It also offers its clientele thorough research that guarantees customer satisfaction. In addition to the research material, ETRADE’s trading platforms are designed to enable easy navigation.
The firm demands a commission of $6.95 with volume discounts available. It also has a $500 account minimum requirement and a promotion that offers 60 days of commission-free trades with deposits exceeding $10000.
Usually, ETRADE is best suited for retirement planning assistance, research and data, commission-free exchange-traded funds, frequent traders, and beginner investors.
3. Charles Schwab
This broker offers high-quality customer service, a large selection of commission-free exchange-traded funds, and competitive trading platforms. In addition, the firm offers no-transaction-fee mutual funds.
The firm is committed to offering its clients more value and better experiences through constant improvement. It has two trading platforms and a low minimum investment requirement.
The features make it suitable for both active and new traders. It also has a trade commission of $4.95, a $1000 account minimum requirement, and a $100 promotion referral award for first-time customers.
Charles Schwab is best suited for advanced traders, beginner investors, value no-minimum index funds, and investors seeking commission-free ETFs.
Fidelity boasts of numerous services that include securities executions and clearance, discount brokerage services, annuities, and wealth management services, among others.
Research is usually key for stock trading, and Fidelity is well equipped to provide its investors with the tools to conduct extensive stock analysis research. The firm charges a trade commission of $4.95, which is quite inviting.
Fidelity also demands an account minimum of $2,500 and a promotion of $300 that is commission-free and trades with a qualifying deposit. It provides its services to businesses, individual investors, financial advisors, and institutions.
Fidelity stands out among other brokers because it has a lineup of research from more than 20 providers. It also invests in fixed income markets and public equity globally.
1. TD Ameritrade
If you want to buy and sell stocks or maybe trade options, TD Ameritrade is one of the best trading brokers available. The firm has excellent customer support, advanced trading platforms, and no trade minimum. Moreover, TD conducts extensive market researches whose findings are free for its customers.
Some of its most impressive features include a $0 minimum balance requirement, a commission of $6.95 per trade, and its promotion range from $100 to $600 in cash bonus, depending on the account size.
In addition to the appealing bonuses, TD has numerous subsidiaries. It also offers trade and investing services to over 7 million funded accounts that sum up to more than $750 billion in assets.
TD has over 5700 independent registered investment advisors (RIAs). The firm is best suited for advanced traders, beginner investors, and investors who want portfolio-building advice.
Choosing the best trading brokers entails several things.
An investor must choose the best trading broker if he/she wants to succeed as a trader. The best trading brokers provide low-cost stock trading, offer reliable trading tools, and have easy-to-use platforms.
The cost associated with a broker should be quite low. The broker should also have reliable analytic tools to aid with forecasting and risk assessment. It is also essential that you assess the educational resources that a stockbroker offers before settling for one.