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2 Best Brokerage Firms in 2024
The 2 best brokerage companies accounts in 2024 that offer low trading commissions and the
highest quality of investment services
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Best Brokerage Companies in 2024
In 2024, Charles Schwab and Robinhood were named the 2 Best Brokerage Firms for self-directed investors. Below are details about their fees, features, promotions, and links to full reviews.
Pricing
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Margin
Rate |
Maintenance
Fee |
Annual IRA
Fee |
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Charles Schwab
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$0
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$49.95 ($0 to sell)
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12.825%
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$0
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$0
|
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Robinhood
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$0
|
na
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6%
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$0
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$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
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Charles Schwab
|
|
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Robinhood
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Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Robinhood: 1% IRA match and up to $200 FREE stock at Robinhood.
Key Takeaways
• Both Robinhood and Schwab offer great financial services worth considering.
• Schwab provides investment-advisory accounts, unlike Robinhood.
• Robinhood allows cryptocurrency trading, while Schwab does not.
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Schwab’s approach to investing and money management is quite different from Robinhood’s. However, it provides several notable benefits:
Wide range of securities: In addition to what Robinhood offers, Schwab supports trading in bonds, preferred securities, mutual funds, annuities, and closed-end funds. Fixed-income options include Treasuries, TIPS, foreign bonds, corporate debt, and more. Many come with no commissions, and others are affordably priced (e.g., $1 per bond).
Global and OTC stocks: Schwab offers international and over-the-counter trading. It supports various global exchanges, like the Toronto and Hong Kong Stock Exchanges. Trades can be done in U.S. or local currency. OTC trades cost $6.95, while global ones vary but are generally under $15.
Futures and forex: Schwab includes futures and forex trading. Futures cost $2.25 per contract per side, while forex has no direct fees, with Schwab earning through the bid-ask spread.
Variety of account types: Schwab offers multiple account options, such as IRAs, trusts, 529 plans, and custodial accounts. These cater to diverse tax and investment needs.
International accounts: Schwab allows non-U.S. residents to open accounts. A digital passport copy is required, but a U.S. address is not. Learn more here.
Advanced software: Schwab provides tools like the thinkorswim platform, available on desktop, web, and mobile. Features include backtesting and direct-access routing.
Advisory service: Schwab offers robo and human advisory options for investment management. Services range from competitive fees to wealth planning for affluent clients.
Branch locations: Schwab has over 300 U.S. branches and some international locations, like Hong Kong and London.
Educational resources: Schwab offers a wealth of free learning materials online. These include articles, videos, and live content through Schwab Network.
Schwab Bank: Schwab operates an FDIC-insured bank with free checking and savings accounts linked to brokerage accounts. Debit cards work globally without ATM fees.
Insurance options: Schwab provides life, disability, and long-term care insurance through Crump Life Insurance Services.
Review
Read Charles Schwab Review
Promotion
$0 commissions + satisfaction guarantee at Charles Schwab.
Visit Schwab Website
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Robinhood offers a variety of helpful tools and features for self-directed investors. These include:
Low-cost securities trading: Robinhood users can trade stocks, options, and ETFs listed on major U.S. exchanges. These trades have no commissions, and option trades also have no per-contract fees.
Good option tools: Robinhood’s options platform includes pre-set strategies and tools like profit-loss diagrams that show breakeven points and potential gains or losses on trades. Both the mobile app and website offer this data in visual and numerical formats.
Cryptocurrency trading: Robinhood provides access to 19 digital currencies, including popular ones like Bitcoin and lesser-known ones like Tezos. Like securities, crypto trades are commission-free but include bid-ask spreads.
User-friendly software: Robinhood’s platform is simple enough for beginners but also works well for experienced traders. Both the mobile app and website offer features like stop, trailing, and recurring orders.
Extended hours: Robinhood allows trading outside normal market hours. Pre-market trading starts at 7:00 am EST, and post-market trading goes until 8:00 pm. Additionally, 24-hour trading is available for over 900 stocks and ETFs. Cryptocurrencies trade 24/7.
Fractional-share trading: Robinhood lets users buy and sell fractional shares using dollar amounts or share amounts. The ‘Buy In’ dropdown on the order form makes switching between these options seamless.
Initial Public Offerings: Robinhood offers access to IPOs, allowing users to buy new stocks before they hit secondary markets. Its IPO hub is accessible on both the app and website by searching for 'IPO Access.'
Spending account: Robinhood’s spending account includes FDIC insurance via Chase Bank. It offers its own routing and account numbers for transactions, along with perks like digital checks and a debit card.
Debit card benefits: The debit card includes cash-back rewards from select brands, early paydays, paycheck splitting, and the option to round up purchases to buy fractional shares. There are no overdraft fees.
Rewards: Robinhood offers bonuses for activities like referring friends. Current offers include free fractional shares, with the potential to earn up to $1,500 annually through referrals.
Retirement accounts: Robinhood provides Roth and Traditional IRAs without annual or termination fees. It is the only firm offering an IRA match—1% for standard users and 3% for Gold members.
Review
Read Robinhood Review
Promotion
1% IRA match and up to $200 FREE stock at Robinhood.
Visit Robinhood Website
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Charles Schwab and Robinhood are the top brokerage firms of 2024. Each has unique strengths in different areas. Choosing the right broker is crucial for achieving your investment goals, and this guide should make that decision much easier.
Updated on 11/28/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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