Best online brokers for stock trading in January 2025

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Merrill Edge’s strongest suit is the research it offers clients, which comes from the broker’s extensive in-house team of analysts. The package includes detailed analyst reports for companies that it covers, and best customer service brokerage firms Merrill also offers good educational material for beginning investors. The best online brokerages usually don’t charge a monthly account management fee. Owned by Bank of America, Merrill Edge is notable for its extensive market research and analysis. Plus, if you’re a Bank of America customer, you can bank and invest on the same platform and easily transfer funds. Based on your combined investing and banking balance, you might also qualify for Preferred Rewards, which comes with extra perks.

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But if all you need is a no-frills investment account, then trimmed-down apps or relatively new brokerage firms are likely fine for you. NerdWallet’s comprehensive review process evaluates https://www.xcritical.com/ and rates the largest U.S. brokerage firms by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which one will best meet your needs. Bill Hampton, a financial consultant based in Atlanta, says that brokerage accounts can be good places to earn interest — for savers who don’t need immediate access to their money. If you’re in the market for an online broker, read our reviews to help determine which brokerage account is best for you. Firstrade scored well in our testing for penny stock trading, and is a great choice for Chinese-speaking investors.

Compare the Best Online Brokers

While these brokers pay interest similar to what you’d receive in a savings account, there are a number of differences to be aware of, including deposit insurance and features. Users can opt into Public’s high-yield cash account, which currently pays 4.1% (as of Jan. 3, 2024). Public also offers a Treasury Account with a 4.28% yield (as of Jan. 3, 2024). Over 60 investment account providers reviewed and rated by our expert Nerds.

With SogoTrade, you can access a wealth of information through in-house and third-party research. There’s also a free daily newsletter featuring equity analysis and trade ideas. Merrill Edge introduced a computer-generated aging tool called Face Retirement. This tool allowed users to see what they might look like as they age.

Some customers also find the platform’s user interface to be outdated. We collected data via a digital survey, which included 110 questions for each of the 26 brokerage firms in the survey. For any missing data points, they reached out to the brokerage or did further independent research. While it doesn’t charge a commission on stocks and ETFs—in line with similar online brokers—it stands out for not charging commissions or fees on options contracts. Most other brokers, while offering zero commission options trades, still charge a per-contract fee for options trades.

And seeking an innovative robo-advisor solution for automated investing. You’ll also find strong crypto-trading features on eToro and extensive educational materials on eToro Academy. Founded in 1922, Edward Jones emphasizes building relationships between clients and financial advisors. The company has nearly 15,000 offices in the United States staffed by close to 19,000 financial advisors. For detailed information about the categories considered when rating brokers, read our full methodology. Switching to a new broker is quick and easy, and in most cases, the entire process can be handled online.

The broker offers zero-commission trading and a $0 minimum on self-directed accounts (automated accounts have a $500 minimum). Fidelity boasts the most active brokerage accounts among major firms for which data is available, with 51.5 million. Stock brokerages saw a lift in new accounts in 2024 as the market delivered positive returns.

• These are comprehensive and user-friendly, offering advanced charting and custom trading tools.
• Our editorial team does not receive direct compensation from our advertisers.
• Active traders using the Pro platform will pay $1 minimum commission (or a half-cent per share above 200 shares), while users in the Lite tier won’t pay commission on stocks or ETFs.
• Schwab is one of the few brokerages on our list with physical branches that offer in-person customer service.

Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Selecting a broker requires you to think about your needs, because the deciding factor is not always about price. Once you’ve found a broker, you can begin plotting your way to a more secure financial future.

In addition to those strong positives, Firstrade offers a wide range of mutual funds without a trading fee, more than 11,000, but the funds themselves may still charge sales commissions. The broker added the ability to purchase fractional shares of stock in late 2023, so that feature may appeal to newer investors. Founded in 1971, Charles Schwab introduced the concept of the discount brokerage and has risen to be the largest stock brokerage firm around. It offers a variety of financial products and services, including stock trading, individual retirement accounts, and banking. Once you open an account, all it takes to get started is enough money to cover the cost of a single share of a stock, or, if your brokerage firm offers them, a fractional share.

NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokerage firms by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. She has covered personal finance and investing for over 15 years, and was a senior writer and spokesperson at NerdWallet before becoming an assigning editor. Arielle has appeared on the “Today” show, NBC News and ABC’s “World News Tonight,” and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. Robinhood gives customers commission-free trading on stocks, ETFs and options, and continues to add features that move it beyond its mobile app origins. WellsTrade offers a basic trading experience that may appeal to investors who bank with Wells Fargo, but more active traders may be disappointed by the bare bones approach.

Are you a day trader or do you have a more set-it-and-forget investing style? Depending on what kind of investor you are, you’ll need to find a broker that has the features you require. Here are the features you should look for depending on your investment style. Conversely, you won’t be able to invest in mutual funds, futures, or international stocks.

Webull charges $0.10 per options contract when trading more than 500 contracts at a time. This fee doesn’t apply to index options, which have a fee of $0.55 per contract. In NerdWallet’s analysis, the below brokers offered the highest APYs or yields on idle cash. More than 50 years of combined experience writing about finance and investing. Merrill Edge and its corporate parent, Bank of America, make a strong case to be your cradle-to-grave financial services partner.