Ranking Methodology
To create our list of stock broker companies, we focused exclusively on discount brokerage firms in the United States. To make fair comparisons, we use a 5-star rating system. While no company earned a perfect 5 stars, several achieved 4½ stars.
In our brokerage firms list, any firm with at least 3½ stars is recommended in at least one category (refer to the reviews for specific categories). A company with 3 stars is considered acceptable, but in most cases, better alternatives can be found.
A firm with an overall rating of 1 or 2 stars should generally be avoided. However, keep in mind that every company in our list has its own unique strengths and weaknesses.
Areas of Specialization
Many of the stock broker names in our list are well-known, but not all are suitable for every trader’s needs. It's important to do your research (our reviews are a great place to start) with a clear idea of how you plan to invest. For example, one broker might excel in mutual funds but offer limited tools for options trading.
Our brokerage firms list serves as a starting point for researching the best broker for your trading style. However, there are common areas most traders should examine, such as:
- Available assets
- Customer service
- Trading software
- Fees and commissions
- Tools for research and education
The overall ratings in our US stock broker list factor in these categories.
Important Differences Within a Category
Even when two brokerage firms offer the same type of product, such as a desktop platform, the features can vary significantly. For instance, Webull’s browser platform is more advanced than Ally Invest’s, but Ally Invest’s platform has better tools for options trading.
If a particular category, like investment education, is crucial to you, thoroughly compare brokers in this area using our reviews before deciding. While most firms offer educational materials, the quality and quantity can differ widely.
When to Look at Reviews
It’s wise to check the reviews in our stock brokerage firms list before opening an account. However, even if you already have an account, our research can help if you’re unhappy with your current broker. Our studies are a useful tool for finding a new firm.
The Ever-Changing Brokerage World
The investment industry evolves constantly due to new asset classes (such as cryptocurrencies), mergers, and improvements in trading tools. This means our list of stock broker companies is updated frequently.
For instance, some US brokers now offer cryptocurrency trading, but the services differ. Robinhood currently supports 19 coins, whereas others, like TradeStation, provide only a few.
Many firms are also enhancing their trading platforms. Webull has made significant upgrades to its desktop and browser tools, while others, like M1 Finance, have made few changes.
Additionally, new brokers are entering the market. Moomoo, for example, now offers brokerage accounts in the US and allows customers to trade Chinese securities, providing opportunities unavailable at other firms.
As more brokers emerge, innovative trading features will continue to appear, sparking new excitement and discussions. We will report on these developments in our stock brokerage firms list.
We monitor changes in the brokerage industry year-round, updating each firm’s profile page with new ratings and details as needed.
Small Accounts vs. Large Accounts
Thanks to updates in industry practices, most online discount brokers now have low trading fees and little to no account minimums. Stock and ETF trades often come with $0 commissions, and account maintenance fees are mostly gone.
A few brokers in our US stock broker list still require minimum deposits. For example, Zacks Trade has a $250 minimum. Meanwhile, firms like Citi and Vanguard provide discounts for larger accounts.
The Rise of Automated Investing
Many brokerage firms now offer robo accounts. These are managed accounts where software makes all trading decisions instead of the investor.
Robo accounts usually come with no commissions and minimal annual fees. They often trade funds with low expense ratios. Since these accounts have become popular, our reviews include details about their availability. Some brokers also continue to offer traditional investment advice and portfolio management services.
Account Transfer
If you're not satisfied with your current service, switching to another firm is simpler now, thanks to the Automated Customer Account Transfer Service (ACATS).
Assets in one investment account can quickly transfer to another account at a different firm. Many brokers provide online tools for this process. For example, Firstrade offers a digital transfer form, while WellsTrade does not.
Only cash and securities can be transferred through ACATS. Assets like futures contracts or cryptocurrencies cannot be moved, but you can sell them and transfer the cash proceeds.
Most brokers on our US stock broker list charge nothing for incoming transfers, while fees for outgoing transfers vary. Robinhood charges $100 for a full outgoing transfer, but Fidelity does not charge for partial transfers. Some brokers, like TradeStation, charge as much as $125.
Safety and Insurance
All brokerage firms we review are covered by SIPC, which provides insurance for brokerage accounts in the U.S. Accounts are protected up to $500,000, including up to $250,000 for cash. This insurance covers the number of shares in an account but not their market value. Despite this limitation, there are safeguards in place.
Every broker on our site is regulated by the SEC and FINRA. These organizations enforce strict rules for brokers. You can check your broker's record for any issues at BrokerCheck.
Changes, Additions, Errors
If you come across a new broker we haven’t reviewed or notice a policy change or error, let us know so we can update our information. Thanks for reading, and good luck with your investments!
Updated on 11/28/2024.
Paul Johnson is a Licensed Stockbroker with 7+ years of experience in the financial services industry. Paul enjoys teaching about investing and writing about financial topics. He is a husband and father of twin boys.
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