Online investing industry
In 2020, the online investing industry is more competitive than at any point in its history. There are over thirty notable discount brokerage firms actively
competing for investor attention. These companies range widely in size; some have tens of thousands of customers, while others have millions. Some brokers are
targeting active investors and day traders, while others focus their attention on long-term and retirement investors. There are brokerages that mostly concentrate
their attention on mutual funds, and there are companies that specialize in stock, options, forex, and futures trading. The industry is growing, filling all the
available niches, and offering clients an ever richer set of services, products, and tools.
With so many choices, it's not easy to choose a brokerage firm. How do you narrow down more than thirty brokers? This is where online broker reviews become very helpful.
There are business analysts, financial magazines, regular investors, and bloggers that opened investment accounts at the discount brokerage firms, tried their
services, and posted brokerage reviews online.
Brokerage-Review.com online broker reviews, ratings and rankings
When preparing our online brokerage firm ratings and reviews for 2020, we considered and compared discount brokers using the following parameters: investment commissions and
brokerage fees; customer service; usability of trading tools and website; presence of an online trader community and depth of educational resources; various
supplemental services; range of products to trade; and research amenities. After making this detailed analysis, each brokerage received a star-based rating. Five
stars is the highest possible online brokerage rating, and one star is the lowest. The discount brokers also were ranked according to the total score they received.
In our broker reviews, we tried to provide information useful to all readers, including active investors, day traders, retirement account holders, and long-term
buy-and-hold investors. Of course, all these groups have their own unique needs, and one rating score cannot be accurate for all investors.
Almost all companies on Brokerage-Review.com website are members of U.S. regulatory agencies: SIPC (the brokerage equivalent of FDIC insurance) and FINRA
(the largest independent regulator for all securities firms doing business in the United States). If a firm is not a member of SIPC or FINRA, we mention
it in the company's review.
The 2020 brokerage firm ratings, reviews, and rankings provided on this site are our own opinion unless specified otherwise. All the information is subject to change at any time.
Brokerage firms do occasionally alter their fees, commissions, technological offerings, and product availability. Visit broker websites directly for the most
up-to-date information on pricing and offerings.
Broker reviews and ratings from other sources
Every discount brokerage firm we have rated has its own unique strengths and weaknesses, and might not be the best choice for every type of customer. We strongly
encourage our readers to take time to read online broker reviews from a few sources on the internet. This will provide a more complete and accurate picture of a
brokerage firm under consideration.
It is also helpful to read brokerage companies' client reviews and complaints, which usually can be found as comments at the bottom of review articles or on
specialized customer complaints websites. It is, however, important to keep in mind that upset clients are much more likely to go on the internet and post reviews than satisfied customers. If a brokerage firm
has millions of clients and there are just a few complaints, it means a vast majority of the clients are happy with the firm.
Opening a brokerage account
Some online brokers allow new clients to open an account with no initial cash deposit. Opening a few accounts with these companies will allow you to try out
several companies and choose the one or two you like most, based on your own experience. Using this method will allow you to make better decisions about where to invest
your money. However, this approach will not necessarily work for all retirement accounts, since many brokers (although not all) charge an IRA closing
fee, which can be anywhere from $20 to $125 (see the fee schedules in our reviews). All discount brokers we have reviewed do not charge fees for closing taxable
(or non-IRA) brokerage accounts.