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Best Broker For Long Term Investors in 2024
The best stock brokerage firm for long term investing. Top account for long-term investors in
mutual funds and stocks.
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The Best Long Term Investing Broker
Charles Schwab has been one of the best stock brokers for long-term investors for many years. For good reasons: for a flat rate fee of $0 per trade, this company provides investors with tools that help make small to large investments over time, without having to worry about excessive overheads like minimum account deposits or purchase amounts, commissions, hidden fees, or charges to use their advanced trading platforms and research materials. One complete trading cycle (buy and sell) costs a customer $0. Compare that to the $40-$70 range a traditional broker would charge for just one transaction.
Other online trading platforms might advertise similar fees, but many also charge for any service that doesn’t involve pure buying and selling, as explained in this comparison table.
| Fees/Tools | Charles Schwab | E*TRADE | Robinhood |
|---|
| Flat Fee |
$0 |
$0 |
$0 |
| Minimum Deposit |
$0 |
$500 |
$0 |
| Commission-Free ETFs |
all |
all |
all |
| Forex |
Yes |
No |
No |
| Real-Time Quotes |
Free |
Platform Fee |
Free |
| Level II Quotes |
Free |
Platform Fee |
$5 per month |
| Charting Package |
Free |
N/A |
N/A |
| All Trading Platforms |
Free |
Free |
N/A |
| Learning Tools |
Free |
N/A |
N/A |
| Virtual Trading |
Free |
Free |
N/A |
| Access to Former Floor Traders |
Free |
N/A |
N/A |
| Trading via Mobile Apps |
Free |
Free |
Free |
| Funded Accounts |
35.7 million |
5 million |
24.8 million |
Charles Schwab also goes a step further for long-term investors by offering commission-free trading for over 4,000 mutual funds and all ETFs (exchange-traded funds), which is a great option for clients who do not have the time or patience to analyze market reports every day but still want to maintain a diversified portfolio.
Free Charles Schwab Account
Visit Schwab Website
Charles Schwab Services for Long Term Investors
For long-term investing, the broker offers a number of free services, including but not limited to:
- Up-to-date reports from S&P Capital IQ, Ford Equity Research, ResearchTeam, TheStreet, MarketEdge, and Jaywalk Consensus.
- A quick and robust trading platform. There has been negligible downtime since they went public in 1997.
- Free wire transfers (deposits and withdrawals) to personal bank accounts.
- Complete online account access anywhere in the world as long as you are connected to the web.
- Automatic deposits to an MMA (money market account) so cash can earn some interest until you decide to invest it. Though the interest is small, it is better than what most banks pay for checking accounts.
- Performance tracking tools and suggestions on how to minimize risks.
- No pushy marketing tactics. They offer investment advice only if specifically requested, with a separate fee for that service.
- Free access to paperMoney, a virtual trading program to practice with virtual money in real-time.
Bonus Brokerage Services for Long Term Investing
Some additional services they provide can be very useful for long-term investors:
- Portfolio Check-Up helps investors review their portfolios and realign investments with the help of professional advisors.
- Morningstar Instant X-ray gives investors access to Morningstar analysis and data reports for stocks and mutual funds.
- Retirement Calculator. As the name suggests, you can set your retirement goal and monitor your performance.
Customer Service and Reliability
Their customer attrition rate is one of the lowest among the competition even with over 35.7 million funded accounts. Trades go through quickly during regular trading hours. Real-time quote alerts, level 2 quotes, triggers, and buy and sell stops can be quickly set using the SnapTicket tool. The trading apps they offer for both Android and iOS are free and have access to all the perks of the online account. Here too, the downtime has been almost none.
Even though a major part of Charles Schwab is online trading, they also have over 450 physical locations in the United States. Their phone customer service is quick, reliable, and straightforward, unlike traditional banks where you might face long holds and numerous transfers, not to mention the inevitable ‘Would you be interested in applying for our new credit card?’ question.
Best Broker For Long Term Investors Conclusion
In summary, Charles Schwab's straightforward pricing, few fees, and excellent suite of investment and trading services and tools have made it one of the best online brokers for long-term investing for over 35.7 million customers for over 40 years.
Free Charles Schwab Account
Visit Schwab Website
Updated on 11/28/2024.
Arthur Chachuna is a professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 25 years, and has a background in both applied math and programming.
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