Best Investment Companies: List of 10 Top Rated Online Investment Firms

2020 best online investment companies. 10 top stock investing firms list. U.S. financial brokers ratings and rankings.

Broker Fees Stock/ETF
Mutual Fund
Annual IRA
TD Ameritrade $0 $49.99 $0.65 per contract $0 $0
Ally Invest $0 $9.95 $0.50 per contract $0 $0
Fidelity $0 $49.95 $0.65 per contract $0 $0
Charles Schwab $0 $49.95 $0.65 per contract $0 $0
Firstrade $0 $0 $0 $0 $0
WeBull $0 na $0 $0 $0
M1 Finance $0 na na $0 $0
Etrade $0 $19.95 $0.65 per contract $0 $0
IB $0+ $14.95 $0.25+ per contract $0-$240** $30
Tastyworks $0 na $1.00 per contract ($10 max, $0 to sell) $0 $0

Broker Review Cost Investment Products Trading Tools Customer Service Research Overall Rating
TD Ameritrade
Ally Invest
Charles Schwab
M1 Finance

Listed above are the top 10 highest ranked investment firms in 2020 for individual investors. You can see the online investing companies ratings (the highest possible is 5-star); links to the brokerage websites (logo image); commissions on stocks, ETFs, no-load mutual funds, and options trades; investment products offered by the firms as well as the links to detailed account reviews that contain new client sign up offers.

Some of these top 10 investment companies allow opening an account with no initial deposit requirement ($0 down) and no obligation (customers can close non-retirement account with no fee with all of these firms; and some brokers, such as TD Ameritrade, Webull, and Charles Schwab, also don't charge retirement account closing fees). This is a great opportunity to open a few brokerage accounts, and see first-hand which one you like better.

All the top financial investment firms in the list above do not charge account maintenance fees for non-retirement accounts (except IB). Some companies do have retirement account fees: we suggest checking our Fees pages for complete information (links to these pages are available in our brokerage reviews). IB is the only broker in the list above that might charge account inactivity fee in some instances.

As you can see, commissions on stock and ETF trades are $0 at all brokerage companies.

Mutual funds commissions have wide price range: the rate is anywhere from $0 at Firstrade and all the way up to $49.95 for purchase transaction at Charles Schwab. Many of these investment firms also offer no transaction fee mutual funds and that allows their clients to buy and sell mutual funds without paying commissions.

Each of the 10 top investment companies has its strengths and weaknesses, and not every firm is right for a particular investor. We encourage readers to take time to read the reviews, to see if a specific firm is a good fit for them.

The companies are not shy to offer new customers promotional deals and incentives for opening a new non-IRA or even a retirement account: anything from reimbursing account transfer fees charged by an old broker; free trades for a period of time (usually one or two months); and up to significant cash bonuses (where amount of bonus often depends on the amount of initial deposit). Investors should definitely take advantage of these offers!

While investment company advice can certainly be beneficial, there are nevertheless potential disadvantages. For example, some brokers might try to sell its own products to clients who pay for investment advice. In this situation, there is a conflict of interest because the brokerage house is supposed to be providing objective information, but may just be selling its own funds. These can include both mutual and exchange-traded funds. Some of the top 10 investment companies today manage and sell both types of funds.

Besides selling funds, there could be other conflicts of interest. For example, a stock investment company could benefit from placing trades in a managed account. The firm could also receive compensation by recommending a certain custodian for client assets.

Investors who elect to turn over their assets to an investment advisor also lose the incentive to educate themselves about financial topics. There's a certain level of blind trust when clients simply turn their money over to an advisor.

Despite the disadvantages of investment broker advice, there are certainly benefits. A financial advisor is an excellent choice for beginners who aren't confident enough to make decisions with their own money. Financial planning could also benefit older people who are in retirement or approaching retirement. People who simply don't have enough time to manage their finances could also benefit from the services of a professional money manager. Many of the above top 10 investment companies offer such investment advice.

Long and short positions. Taking ‘long position’ means investor buys an instrument with the further goal to sell it later to get financial result. Such strategy works on bullish market when investor hopes for stocks’ growth (picture #1). In case investor is negatively predisposed to the whole market or specific shares, he can perform the opposite transaction called ‘short selling’. For instance, you expect that Google’s stocks (GOOG) will fall in the nearest future, namely you don’t believe in its growth and want to make money on this decreasing. So you firstly sell stocks and later buy them again at the lower price on the market (picture #2). For making such transaction you rent stocks from your broker and pay him some fee, after further purchase you return shares to company. In case you receive loss, you obliged to return shares to broker any way (he isn’t interested in its price, just quantity).

Short and long-term investment goals. Success in stocks’ trading means, in the main, to get positive difference between purchase and selling prices’ on the short-term periods of time. For long-term periods of shares’ possession dividends become to play a major role. Dividends are a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. 

Consecution of definite strategy. Successful trading demands following concrete strategy: what instruments, when and why you trade; what market conditions are favorable or adverse for your positions; what corporate and market events effects your trading. Rambling trading cannot bring benefit on a permanent basis. Conversely an elaborate strategy leads good results matter you are daily trader or portfolio investor.

Technical and fundamental analysis. Usually speculative traders operate positions on the short-term periods from several seconds to several days. They choose stocks and derivatives (futures and options) which are actively traded, and besides the fundamental basis of such instruments doesn’t matter. Speculative traders use charts and technical analysis instruments to dissect assets prices’ dynamic to provide further expectations on the basis of previous movements. Conservative investors are eager to get long-term solid outcome through clear assets with strong fundamental justification. Such factors include: period of the activity of the company-issuer; its financial performance; company’s market reputation; state of the company’s industry; development prospects; general market conditions. Thus active traders choose active instruments with great price’s dynamic and make money on it; conservative investors create diversify portfolios to avoid long-term market’s hazards. Investors can combine speculative and portfolio’s approaches in their strategy with orientation on different time periods, and even use different accounts for this.

News background. Everyday company’s news effects on its securities’ price. There is even an expression ‘trading news’. The key news for investors include: yearly and quarter financial reports; changes in the board of directors; new products/services launches; mergers and acquisitions in the company. Everyday news background shouldn’t distract you from weighted decision-making, however omission of important news is fraught with a lack of monitoring the portfolio. For instance, unsuccessful launch of new operational system Windows 8 from Microsoft lowered its shares on several percent in one day session (picture #3), and speculative traders could made some quick money.

Best Investment Companies reviewed by Rating: 5