List of Stock Brokerage Firms
We used a five-star-based rating system to rate U.S. stock trading companies in the online stock brokers list above. The best brokerage firms would
get the highest, five-star rating. In 2018 not a single firm got five stars, however five brokers were rated at four and half stars. Any brokerage house
with two- or one-star rating should be avoided. Three-star rated firm is perfectly fine, but there are, probably, better options for investors
to consider. All companies with three and half stars and higher are recommended for at least one category of investors.
Every online brokerage firm in list above has its strengths and weaknesses. It might be ideal for one customer and at the same time might not work
for someone else. Before opening a brokerage account, there are a lot of parameters to consider besides commissions, well-known name, and pretty website.
Some of the most important of these parameters are surcharges and fees; friendliness to client's knowledge level (perhaps one is a beginner? or needs
a professional-level trading platform?); availability of investment products a client wants to buy (for example forex, futures, or NTF mutual funds) as well
as availability of online community, virtual trading, and discounts. We suggest to investors to take a time to read brokerage reviews, and see for themselves
if a particular firm is a right fit.
Some online brokers in list above allow clients to open an account with $0 down: investors should take this opportunity and open few brokerage accounts,
and see which one they like the most. This will also allow investors to take advantage of unique and valuable features some of the companies provide
at no charge. For example, Ally Invest offers lots of great trading tools and investor community,
and $0 to open account. If a client decides to invest, the firm has hard-to-beat $4.95 commission on stocks and ETFs. With
TD Ameritrade there is $0 minimum to open an account, and a client will get an amazing selection
of independent, third-party investment research, best trading platform on the market, free Level 2 quotes, and generous promotional offer. There are no
inactivity or maintenance fees to worry about - everything is free.
The list of stock brokerage firms names is updated throughout the year. TradeMonster, MB Trading and Scottrade were removed from the table above,
since they got acquired and merged into Etrade, Ally Invest and TD Ameritrade respectively. In addition from keeping stock brokerage companies
list current we also update broker's rating and pricing, which are often correlated.
All companies mentioned in this article are members of SIPC and FINRA, which means that they have to follow strict government rules and regulations,
and their client accounts are insured (similar to bank accounts FDIC insurance) in case of brokerage company failure for up to $500,000 ($250,000 cash).
If you know an online stock trading company not in list right now but should be included, please contact us.
Overview of Special Services at Brokerage Houses
Some online stock trading companies in list above offer only a limited number of services, typically investing in stocks and ETF’s, without offering additional features.
Other brokerage firms supply much more than this, providing managed accounts, robo accounts, their own mutual funds, trading in forex, and much more. This article will
survey these special features, and see which firms form list of online brokers offer them and which don’t.
Forex and Futures
Most securities brokers only provide trading in securities—stocks, bonds, funds, and other instruments defined as securities. Forex and futures are not securities, and
so they’re usually not offered at most traditional brokerage houses. But a few brokers have broken through this mold and do offer trading in at least one of them. E*Trade,
for example, offers access to the futures markets. And Ally Invest customers can trade currencies on the forex market. Fidelity offers neither while
TD Ameritrade offers both.
If you do find a securities broker that provides trading in futures or forex, be aware that it may eventually exit the business. TradeStation, E*Trade, and optionsXpress
all used to provide trading in forex, but have since abandoned the service.
Global Investing
In today’s global economy, having access to international markets is necessary to capture all areas of investment opportunity. Some stock brokers in list above provide
access to foreign markets, while others do not. Interactive Brokers clients, for example, can trade on European, Asian, Australian, and North American markets. Available
stock and option markets include Mexican, Canadian, Italian, Swedish, Austrian, Japanese, Indian, and Australian exchanges.
Other brokers provide little to no global investing. Ally Invest, for instance, offers its clients very little in this area. The broker does not even provide access to the over-the-counter market in the United States, where some foreign stocks can be found.
Day Trading
Some firms from the list of online stock trading companies provide the advanced technology that day traders need to submit orders quickly to an exchange. Interactive
Brokers’s advanced desktop platform Trader Workstation is able to do just this. The firm also provides unbundled pricing, which can bring the cost of trading down to a
fraction of a penny per share, which could be of value to day traders. Lightspeed Trading also offers unbundled pricing along with advanced desktop software.
Other stock trading companies, like Capital One Investing, offer neither a desktop trading system nor unbundled pricing. Capital One charges $6.95 for every trade submitted through its website or mobile app.
Options
Many companies from the list of brokerage firms provide access to options. But not all of them offer advanced research and trading tools for the
securities. Vanguard clients can trade derivative contracts, but the company does not have any search tools other than very simple option chains.
TD Ameritrade provides advanced option research tools.
Pricing on options can vary widely as well. Depending on an account’s total monthly volume, Lightspeed Trading charges anywhere between 20 cents and 60 cents with no base charge. TD Ameritrade clients pay 75 cents per contract plus a base charge of $6.95.
Family of Mutual Funds
While most brokerage firms provide trading in mutual funds, some of them manage their own line of funds. Fidelity and WellsTrade (through Wells Fargo) manage their own mutual funds. While Fidelity’s funds are always transaction free when traded at Fidelity, some of the Wells Fargo funds actually have transaction fees at WellsTrade.
There are 111 Wells Fargo funds currently open to new investors. Fidelity manages 322 of its own mutual funds; it also offers 21 exchange-traded funds. Vanguard provides 70 ETF’s and 300 mutual funds.
Most brokers do not offer their own funds. These companies include TradeStation and Robinhood.
Long-term Investing
Buy-and-hold investors will find good resources at some brokers, but not at all. Long-term investors benefit from good customer service rather than low commissions. Brokerage houses that emphasize this model include E*Trade and TD Ameritrade, where 24/7 support is available. Both of these brokers also offer a good selection of mutual and exchange-traded funds, which may be of interest to long-term investors.
Other players from the list of online brokers emphasize the opposite. These firms provide low commissions, but less than stellar customer service.
Brokers in this category include Robinhood and SogoTrade. These firms would be better for short-term traders who don’t need a lot of guidance.
Investment Advice and Managed Accounts
During the past few years, more online brokers in the list have been offering managed accounts in addition to their usual line of self-directed accounts. Additional investment advice may be available in some of these cases.
Merrill Edge, for example, offers a managed account package that costs 0.85% per annum. This asset-based fee includes a face-to-face consultation with a financial advisor at a Bank of America location at least twice per year. The portfolio itself is managed by Merrill Lynch investment advisors. There is a $20,000 deposit requirement to begin the service.
Other firms form list of stock brokers do not provide any type of investment advice or portfolio management. Firstrade is one example.
Robo-advisory Accounts
Besides traditional human-managed accounts, some brokers have gone one step further by providing accounts that are managed by computer programs. Called robo accounts, customers pay anywhere from 0.0% up to 35 basis points for a software program to make all trading decisions.
Some brokers specialize in this model and don’t offer self-directed accounts. Betterment and Wealthfront are two examples. Other brokers, like Schwab and E*Trade, offer robo-advisory services plus human-advised accounts plus self-directed accounts.
The cost of robo-advised accounts varies among the firms that offer the service. Schwab has managed to provide its service for free, while Fidelity charges 0.35%. Trades placed by a robot are always commission free.
Despite the move to this intriguing method of portfolio management, there are still on-line discount firms that provide only self-directed accounts. Firstrade and Robinhood are two examples.
Stock Trading Companies Specialties Summary
Most brokerage houses today offer more than just stocks and bonds. Do some research before opening an account, and you’ll probably find a service that interests you.
Top Financial Investment Firms List
Schwab
Charles Schwab has recently lowered its stock and ETF commission from $8.95 to $4.95, making the broker less expensive than its rivals Merrill Edge and Scottrade. Despite the new pricing,
Schwab still provides more than 200 ETF's commission-free. The company also has over 300 brick-and-mortar locations plus 24/7 service over the phone or via on-line chat. Its very good desktop
platform StreetSmart Edge only requires a $1,000 account balance, and its mobile app streams CNBC news free of charge.
Fidelity
Very high in the list of financial firms is Fidelity, where customers pay only $4.95 for stock and ETF trades, but still receive excellent customer service in return. A representative is available over the phone or through on-line chat around the clock. The company also has several local offices. ETF traders have access to 84 securities that cost nothing to trade, while mutual fund investors can buy and sell more than 11,000 products. The Fidelity mobile app streams Bloomberg business news in HD, the only low-cost firm to do so. Fidelity also provides a platform for Apple Watch free of charge.
TD Ameritrade
There are over 500 Scottrade locations, more than any other in list of financial investment firms. Despite this convenient
service, traders still pay only $6.95 for stock and ETF trades. The firm offers 296 commission-free ETF's and more than 2,000
mutual funds that come with no load and no transaction fee. Option contracts are just 65¢ each, another low charge. An advanced
desktop platform is available to active traders, while other traders can use the TD Ameritrade website, which has been recently
redesigned and boasts a useful trading ticket.
Merrill Edge
Traders at Merrill Edge pay just $6.95 for stock and ETF trades. The broker's website has excellent educational and research
tools, while its trading ticket is very useful. There is also a Merrill Edge mobile app and Apple Watch platform. Frequent
traders can use the company's advanced desktop platform. While the firm doesn't offer any commission-free ETF's, it does give
out checks and a Visa debit card free of charge. Financial advice is available at an additional cost at many Bank of America
locations.
Ally Invest
Ally Invest traders pay just $4.95 for stock and ETF transactions with $1 discount for active traders and large balances. This
is one of the lowest commissions in the brokerage world. Option contracts are just 65¢ extra, also very low by industry
standards. The firm's website is easy to use and the broker provides a desktop platform free of charge. A mobile app is also
available. Both tools offer paper trading, a rare feature. Forex can also be traded at Ally Invest, one of the few securities
brokers in list above to offer the service.
WellsTrade
Stock and ETF trades cost $8.95 at WellsTrade, although certain Wells Fargo Bank clients receive a $2 discount. The financial
company requires no minimum deposit to open an account, although it does have a $20 annual fee. It can be avoided by maintaining
a $5,000 account balance. Although WellsTrade doesn't offer any commission-free ETF's, it does provide a large mutual fund
selection. WellsTrade does not have a desktop trading system, although the broker's website does have good charting tools with
several technical indicators. The firm's mobile app is one of the few in the industry that can be used on Windows 10 mobile.
Capital One Investing
Rounding up the list of brokerage firms is Capital One Investing which charges just $6.95 for equity transactions. There
no account fees with the broker. The Capital One Investing website is user-friendly, and it has a handy trade ticket. Its
mutual fund screener returns over 1,000 products, some of which carry no load and no transaction fee. While the broker doesn't
have a desktop platform, it does have good charting software on its website. The site also has on-line chat, which many broker's
don't provide.
Updated on 3/7/2018.
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