Ranking Methodology
To build our list of stock broker companies, we looked solely at discount brokerage houses in the United States. To make accurate comparisons among them, our stock brokerage firms list uses a 5-star rating system. Although no one company got a full 5 stars, several did receive 4½.
In our brokerage firms list, any company with at least 3½ stars can be recommended in at least one category (see the reviews for the researched categories). Although a brokerage house with 3 stars is acceptable, it usually is possible to find a better alternative in such cases.
A firm with an overall rating of 1 or 2 stars should generally be avoided, although remember that each company in our list of stock brokers in the USA has its own unique set of strengths and weaknesses.
Areas of Specialization
Many of the stock broker names in our list are household words today. But that doesn’t mean everyone is right for your trading needs. So do your research (our reviews are a great place to start) with an idea in mind of how you plan to invest. One broker, for example, might have a really good mutual fund selection but very rudimentary tools for options trading.
Our brokerage firms list should be used primarily as a starting point to conduct research to find the right broker for your trading regimen. Nevertheless, there are some common categories that most traders will probably want to analyze. These include:
- Available assets
- Customer service
- Trading software
- Fees and commissions
- Tools for research and education
The overall ratings in our US stock broker list incorporate category ratings.
Important Differences Within a Category
Sometimes two brokerage firms may offer the same product, like a desktop platform, but the two programs may differ widely. For example, it’s easy to say Webull’s browser platform is much more advanced than Ally Invest’s. But Ally Invest’s browser platform has better option tools than Webull’s browser software.
If a particular category is really important to you, like investment education, be sure to thoroughly compare brokers in this area using our reviews before choosing one. Although materials on education are usually available at any investment firm, both quality and quantity vary widely.
When to Look at Reviews
It’s a good idea to go over the reviews in our stock brokerage firms list before opening an account, although of course it’s always possible to look at our research after opening an account. If you’re unsatisfied with your current broker, our studies can help you find a new firm.
The Ever-Changing Brokerage World
The investment world is constantly changing due to new asset classes (cryptocurrencies, for example), mergers and acquisitions, and improvements in trading tools. This means our list of stock broker companies can and frequently does change.
Although some US broker-dealers are currently adding digital currencies to their lists of tradable assets, crypto services vary widely. SoFi Invest, for example, now offers 30 coins, while others, like TradeStation, have just a handful.
Some brokerage houses are also regularly updating their software tools. Webull, for instance, has made great improvements during the past year on both its desktop and browser trading systems. Other brokers, like M1 Finance, continue using the same software with little to no improvements.
Another exciting area is the launch of new brokers. Moomoo has recently begun offering brokerage accounts in the United States, and the firm’s customers are able to trade Chinese securities. This, of course, opens up new possibilities that aren’t available at other brokerage houses.
As more brokerage firms come online, new trading features undoubtedly will become available, and this will create new excitement and discussions online. We’ll definitely be reporting on these developments in our stock brokerage firms list.
Of course, we constantly stay abreast of all changes in the brokerage industry throughout the year. We update each firm’s profile page with changes in ratings and other particulars as needed.
Small Accounts vs. Large Accounts
Thanks to changes in industry standards, most online discount brokers today have low trading fees and almost no account minimums. Stock and ETF commissions are oftentimes $0 now, and account maintenance fees are a thing of the past.
A few brokerage houses in our US stock broker list may still have minimum opening deposits, however. Zacks Trade, for example, has a $2,500 minimum. Other brokers, like Citi and Vanguard, offer discounts for large accounts.
The Rise of Automated Investing
Many of the brokerage firms we cover have in recent years rolled out robo accounts. These are managed accounts where the company’s software program, rather than the account holder, makes all trading decisions.
Robo accounts typically have no commissions and little to no annual fees. They usually trade mutual or exchange-traded funds with low expense ratios. Because these accounts have grown in popularity, our reviews will mention if these account types are available. Some of the brokers we cover also offer traditional investment advice and portfolio management.
Account Transfer
If changes become significant enough for you, or if you’re not getting the service or experience you need, you can always jump ship mid-stream. Today, this is easier than ever thanks to the Automated Customer Account Transfer Service (ACATS).
Assets in one investment account can quickly be sent to another investment account at a different firm. Most, but not all, brokers today have online transfer tools, making the process even easier. Firstrade is one broker that has a digital transfer form. WellsTrade does not.
Only cash and securities can be moved through the ACATS network, so you won’t be able to move assets like futures contracts or cryptocurrencies. Of course, it’s always possible to liquidate such assets and move the resulting cash through the ACATS system.
Many firms on our US stock broker list charge nothing for a full or partial outgoing transfer. Fidelity, for example, charges $0 for a full outgoing transfer, while TD Ameritrade assesses no fee for a partial outgoing transfer. Virtually all broker-dealers charge nothing for incoming transfers. A few continue charging steep fees for outgoing transfers, though. TradeStation, for example, is at $125.
Safety and Insurance
Every brokerage firm we cover is protected by SIPC. This is America’s brokerage insurance. A single account is covered up to $500,000. Half of this amount can be in cash. The coverage level for securities guarantees the number of shares in an account, not market value. Despite this inherent risk, there are safeguards.
Every broker on our site is regulated by the SEC and FINRA. These are America’s securities watchdogs and regulators. They establish strict rules and guidelines that broker-dealers must follow. Infractions often come with steep penalties. You can always check on your broker to see if any proceedings have been taken against it at BrokerCheck.
Changes, Additions, Errors
If you know of a new broker on the scene that we haven’t reported on, feel free to contact us to request a review. Also, if you spot an error, or if a broker’s policy or service has changed, let us know so that we can make an update. Thanks for reading and good luck with your trading!
Disclaimer
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Arthur Chachuna is professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 23 years, and has background in both applied math and programming.
Updated on 1/20/2022.
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