Online investing
The discount brokerage industry is more competitive today than at any point in its history. What this means for investors and traders alike is lower fees across the board. Not only are accounts and some commissions completely free nowadays, even professional-level software platforms often have no fees of any kind.
This remarkable situation means that the securities markets are no longer the exclusive club of a select few. Just about anyone with an Internet connection can now trade like the pros.
The specific assets available for trading vary by brokerage firm. At any one firm, you’ll find some, but probably not all, of these financial vehicles:
- Stocks
- Bonds and other fixed-income securities
- Options
- Forex
- Cryptocurrencies
- Futures
- Options on futures
- Closed-end funds
- ETFs
- Mutual funds
In the not-so-distant past, if you wanted to trade stocks and ETFs, there would be a one-share minimum. That, too, is quickly eroding as more and more brokers are offering whole-dollar investing.
The type of investing that’s available in 2020 continues to vary by broker. Some firms specialize in day trading. Others focus on long-term investing and retirement saving. Still others offer a combination of services.
And for the first time ever, if you don’t want to make any trading decisions yourself, and don’t want to hire an expensive financial advisor, you can sign up for an automated trading account, better known as a robo account. This service, too, is very inexpensive, with some brokerage firms offering its digital investment advisor for free.
Online broker rankings from Brokerage-Review.com
While paying for investment services is no longer a problem, sorting through all the available choices is a daunting task. There are more than 30 online brokerage firms today actively competing for investor attention.
Besides investment services themselves, the quality of services can vary widely from one firm to another. So how do you know which broker to choose? That’s where we come in.
We have spent thousands of hours poring over troves of information from all the available brokerage firms in the industry. The result is brokerage-review.com, where you’ll find all the details you need to make an informed decision. And if you’re not happy with your current broker, we’ll suggest some alternatives for you.
Our ratings and reviews focus on the following categories:
- Commissions and fees
- Software
- Educational materials and research tools
- Customer service
- Social networking
- Investment vehicles available to trade
- Miscellaneous services
Each broker gets a star-based rating in each category. Five stars is the highest possible rating, and one star is the lowest. There is also an overall score.
Almost all companies surveyed on Brokerage-Review.com are members of SIPC and FINRA. If a firm is not a member of SIPC or FINRA, we mention it in the company's review.
Opening and closing a brokerage account
Once you’ve done your research, it’s time to open an account. At most discount brokers today, it’s possible to open an account with no deposit; although to open a robo account, you may need $100 or more, depending on the firm.
If you decide to leave your broker, you might have to pay a fee in some cases. A few brokers still charge an IRA closeout fee, which can be anywhere from $20 to $125 (see the fee schedules in our reviews). All discount brokers we have reviewed don’t charge fees for closing taxable (non-retirement) brokerage accounts.