You can get access to the markets for investing your money with a broker. A broker can help you make the most of your money by guiding you through the investing process. When leading discount stock brokers offer free trading, you don’t need to pay broker high fees and commissions to make money. You can save money by taking advantage of the free trading offers of the discount broker.
While platforms with free trading and no account minimums don’t always come with the full power of a traditional brokerage house, for those just starting to invest, a free broker is a perfect place to start trading. These free trading platforms are an excellent way to learn about the stock market before moving to a more sophisticated platform.
15 Best Discount Stock Brokers for 2023
Here are today’s best discount stock brokers:
- Public.com
- Webull
- TradeStation
- SoFi
- M1
- TD Ameritrade
- Interactive Brokers
- E*Trade
- Fidelity
- Charles Schwab
- Robinhood
- Axos
- eToro
- Acorns
- Vanguard
1. Public.com
Public.com is an investing platform for all types of investors, and as its name suggests, Public.com provides users with a community of support and advice from various sources. The educational materials on public.com help users learn more about investing and make informed decisions.
You can see how celebrities invest their money. It is an interesting topic to explore and can be a great source of inspiration for your own investments.
With more than 80 years in the financial industry, public.com has developed tools to help you better understand how and why the market moves. Public.com’s user-friendly interface allows you to easily access the market insights needed to make informed decisions quickly and efficiently. Diversify with alternative assets. You can invest in bonds and cash equivalents.
No problem if your portfolio is eccentric. Explaining why you chose the items in your portfolio and how they relate to each other is even more important. You can manage the value of your art collection with public.com. You can make informed decisions about how to best manage your assets with Public.com’s ability to track and analyze market trends.
Pros:
- Trades direct with exchanges
- Commission-free stock/ETF trading
- Informative speeches from experienced investors and analysts
- Offers the ability to observe how others in the community are investing
- Encrypted security for all accounts
Cons:
- Desktop version is not available
- 1% commission fee on cryptocurrency trades
Learn more:
- Read our Public.com Review
2. Webull
Webull has become a top discount broker with its feature-rich trading platform. Webull’s intuitive design makes it easy to navigate, allowing users to quickly access the features they need without any hassle.
Users can start investing with as little as $5 via fractional shares, and there are no commissions on trading stocks, ETFs, or even options. Users can invest in a wide variety of stocks with fractional shares, rather than having to buy an entire share at the current market price. A free paper trading feature is offered by Webull for new investors. This feature allows you to invest in the stock market with virtual money, so you can test different strategies without any risk.
Their mobile app earned a score of 4.5 out of 5 in the app store and 4.3 out of 5 in the play store. This shows the app’s appeal on multiple platforms.
Webull is a great fit for anyone looking for an advanced trading platform. Webull has access to a wide range of information and data, as well as market updates and news. You can earn up to two free stocks for opening and funding your account. It’s a great way to start investing with minimal risk and no upfront cost.
Pros
- Zero commission for trading stocks, ETFs, and options
- Supports fractional trades
- Attractive sign-up bonus and referral program
- Excellent 24/7 customer service
Cons:
- Less educational content than competitors
- Newer company without an established history
Learn More:
- Read our Webull Review
3. TradeStation
Cons
- Higher margin rates than competitors
- No fractional trades
4. SoFi
There is an online banking platform based in San Francisco, California that provides a wide range of services to personalize your financial life. Student loan refinancing, mortgage lending, investing and personal loans are some of the services offered by SoFi.
You can get an auto or personal loan. There is a mortgage loan. You can get rid of your student loans at a fixed rate. Refinancing your student loans could save you a lot of money over time.
You can invest in a retirement account. Not only will investing in a retirement account help you save for the future, but it can also give you peace of mind knowing that your financial security is taken care of. If the user doesn’t want to be hands-on, they can automate their actions. Users can tailor their experience to their needs. Investing in cryptocurrencies is supported by SoFi. You can buy, sell and manage your investments with SoFi.
If you don’t want a loan or investing but need normal banking options, SoFi has you covered. No matter what your needs are, SoFi has a variety of banking options that can meet them. Checking accounts with up to 3% APY, no late fees, and rewards up to $250 by signing up and setting up direct deposit are new features. You can get a credit card with cash back and no yearly fees. You can earn cash back rewards right away if you get approved quickly.
Pros:
- Desktop and mobile
- Partners to offer insurance
- Competitive loan rates
- Cryptocurrency friendly
Cons:
- No physical locations
- Requires a membership to get full-service access (advice, information, coaching)
Learn more:
- Read our SoFi Review
5. M1
M1 is an online investment and banking platform for the investor that is serious and maybe has a little more experience. M1 allows customers to make decisions quickly and easily with their investments. They have up to 60 ready-made different portfolio options, which could be intimidating to some. Their customer service team is knowledgeable and friendly, so if you ever have any questions about customizing your portfolio, they are more than happy to help! Everything from high to low risk. There is something for everyone.
There are personal and margin loans available. If you have money sitting in a low-yield savings account, M1 offers an alternative of 4.5%.
M1 is a great platform for investors who want to automate their portfolio to the max.
Pros:
- Tools to personalize your portfolio
- No trading fees-desktop and mobile app
- Crypto friendly
Cons:
- No financial advisors available for assistance
- $100 account minimum
Learn more:
- Read our M1 Finance Review
6. TD Ameritrade
Let’s get this out of the way first: Charles Schwab is in the process of buying TD Ameritrade, which means any new Ameritrade account you open will eventually become a Schwab account.
The firm is still accepting new clients and is a stand-out in the business.
There is a wide variety of securities and a robust array of educational and research tools at Ameritrade. It also offers a wide range of products and services, making it an ideal choice for investors.
The think-or-swim platform is considered the gold standard for advanced traders. It is a great platform for traders of all levels. The platform allows everything from custom screeners and indicators to backtested strategies. The platform is designed to help users take their trading to the next level.
Beginner stock investors, on the other hand, like Ameritrade’s educational resources, which include live seminars (online and in-person) along with detailed videos and even quizzes. It also offers paper-trading, so that you can learn the market before taking any risks. Paper-trading is a great way to gain experience and develop your skills without the risk of capital.
As with Fidelity, expect to pay a 65-cent contract charge for options and a high fee for broker-assisted trades, though these policies will likely fall in line with Schwab’s price points after the acquisition is complete. Customers should keep an eye on pricing as the acquisition is expected to be completed later this year.
Pros
- Good variety of securities
- Top-notch educational tools for beginners
- Great selection of low-cost mutual funds
Cons
- High fees for broker-assisted trades
- Firm and its accounts should soon be part of Schwab
Learn More:
- Read our TD Ameritrade review
7. Interactive Brokers
Interactive Brokers has a wide variety of securities, which include foreign markets, commodities, margins, and futures.
IBKR lite is a new platform for casual investors looking for free and discounted trades. IBKR lite is a simplified and cost-effective approach to investing with features designed for novice and experienced investors alike.
There is a solid selection of commission free mutual funds on the new platform. It has access to research, insights, and educational content to help investors make better decisions.
IBKR lite does not have all the features of Interactive’s original platform, but it does offer a simple, streamlined approach for new investors who would like to make regular ETFs, stock, bond, options, or mutual fund trades. It is an ideal platform for those who don’t need the extensive research and analysis tools that come with IBKR Pro, but want the reliability and security of Interactive Brokers.
Interactive’s management fees are as low as 0.08 percent for some of its 70 or so portfolio options. The Interactive platform is a great way to start investing without the need for an advisor.
Pros
- Simple dashboard
- Fractional shares available
Cons:
- Some educational tools cost extra
- Inactivity fees (only if you upgrade to IBKR Pro)
Learn More:
- Read our full Interactive Brokers review
8. E*Trade
The $0-per-trade club was joined by E*Trade in October of 2019. The fee-free structure is seen by investors as a great benefit.
E*Trade is an option for free trading. Those looking to get into the market with a minimal investment can use E*Trade’s free trading capabilities. Power E*Trade, the firm’s options trading platform, gets its power from the firm’s acquisition of OptionsHouse. It is easy to trade options for investors at all levels with Power E*Trade.
Power E*Trade has charts that allow you to visualize potential trades. You can use these charts to compare different options strategies and decide which one is best for your portfolio. If you want to learn how to win with options, look at Power E*Trade. It’s a great place to learn how to use options in a trading strategy.
E*Trade’s fee is 65 cents per contract, but it lowers it to 50 cents for active traders. E*Trade has a tiered pricing structure for its options trading services. Power E*Trade has futures trading. With Power E*Trade, you can take advantage of multiple asset classes and have access to a wide range of online trading tools, including options, stocks, mutual funds, and now futures trading.
Along with Power E*Trade, the company has two other platforms, E*Trade Web and E*Trade Pro. E*Trade Pro has the latest trading tools and features to help traders stay ahead of the game. All three platforms have an impressive dashboard where you can analyze, trade, and track. It’s easy to see why these features are so popular. Each platform also offers additional features that make it stand out from the rest, making them a great choice for any trader looking for an efficient and user-friendly online trading experience.
Pros
- Great for learning options
- Chart-driven dashboard on all three platforms
- Solid educational resources
Cons:
- $19.95 fee for mutual funds not on free list (free list has about 4,400 funds)
- $75 fee to transfer all funds out of E*Trade
Learn More:
- Read our full E*Trade review
9. Fidelity
You probably know Fidelity Investments as a leader in mutual fund investing, but the firm has a growing brokerage arm that now offers commission-free trades. Retirement planning, estate planning, and tax preparation are some of the financial services offered by Fidelity Investments.
Fidelity also has one of the best robo-advisors for more passive investors.
You can trade stock and exchange traded funds for free with Fidelity, but you have to pay a 65-cent-per-contract fee. Fidelity has a wide range of investment products and services.
Fidelity has tax-advantaged retirement funds. The firm’s mutual fund offerings are second to none. The experienced financial advisors are able to provide tailored advice to their clients.
Fidelity’s website feels a little dated and cumbersome, but its apps are sleek enough.
If you make a broker-assisted trade, you will face a steep fee. Fidelity charges a broker-assisted fee for each trade. The fee includes unlimited phone access to Fidelity’s experienced trading specialists who can provide guidance and assistance in executing trades.
Pros
- Variety of securities
- Great market research
- Wide selection of mutual funds
Cons:
- Non-invested cash hardly earns interest
- High fees for broker-assisted trades
- Average user experience on web site
Learn More:
- Read our Fidelity review
10. Charles Schwab
Charles Schwab has been connecting clients with investment markets for over forty years. Charles Schwab is one of the most influential firms in the financial industry. Schwab has more than 12 million active investors and is a full-service broker. All types of investors can find a wide range of financial services and products at Schwab.
Thanks to pressure from upstarts, you can invest commission-free on the site. A comprehensive suite of tools and resources can help you make informed investment decisions.
With half a century of client service, Schwab has more to offer in the area of market research. It is easier for investors to build diversified portfolios with the thousands of commission-free ETFs offered by Schwab. Also, Schwab can usually offer a wider variety of securities — mutual funds, ETFs, and stock shares.
24 hours a day, you will get free phone customer support. If you need help, there are hundreds of offices around the country. There are knowledgeable professionals at each office. (Expect to pay for this kind of customer support.)
The downside? Uninvested cash in your account will have very little interest for you. It is important to invest your cash as soon as possible in order to maximize your return. Most of the earnings will be used to pay for your commission-free trades.
Since you can invest in partial shares, keeping your money active should be easier. Make the most of your money and reach your financial goals faster by taking advantage of the low cost investing options from Schwab.
Pros
- Good app and desktop experience
- Great variety of securities
- Top-notch market research
- Partial share investing available
Cons:
- Miniscule earnings on non-invested cash
Learn More:
- Read our Charles Schwab review
11. Robinhood
You can make an unlimited number of stock, option trades, and even exchange traded funds with no commission. It also provides real-time market data to help you make the best investing decisions. You can make free trades as well. You can easily invest in cryptocurrencies without putting your money at risk.
It’s as good as it sounds. It is an attractive option for investors as it allows them to make money without having to pay more. You can invest more of your money into your future. It is possible to create a secure financial situation for years to come with additional investment into your future.
You can set up a You don’t have to maintain a minimum balance in order to invest. You can save on trading fees by buying stocks and ETFs commission-free. Even though you can’t get free help over the phone, most users like the customer service and mobile app. Many users say that the customer service is quick to respond to email inquiries.
How can a company with nearly 6 million users give away so much for free? The company’s mission to provide free services and tools that are typically costly is what drives its commitment to provide.
Interest is earned on uninvested cash in users accounts. Users have access to a reliable source of passive income and are able to make the most of their money. More advanced investors can get a paid upgrade to Robinhood Gold. Extra features of Robinhood Gold include extended trading hours and more detailed analysis tools.
Pressure has been put on other brokers to offer free trades. As a result of this competitive pressure, free trades are becoming the new standard in the industry.
Pros
- Solid app and site
- Free stock share with new Robinhood account
- Commission-free trades
- Fractional shares for investors with smaller account sizes
- NEW: Get an extra 1% match on every dollar you contribute to a Robinhood Retirement account
Cons:
- No free phone customer service
Learn More:
- Read our Robinhood review
12. Axos
The online banking system is based in California. They appeal to a wide range of customers: the single person performing simple banking, a company working to grow, or a start-up needing a loan. Regardless of the financial situation, these banks offer a variety of products and services to meet each customer’s individual needs.
Their personal banking options are very attractive because they offer checking accounts with no late fees, rewards, and high interest rates. They also offer an extensive list of customer support services, such as live chat and phone banking, so customers can get help quickly and easily. You can grow your annual percentage yield with their rewards checking. With their rewards checking account, you can enjoy free online banking and mobile banking.
A variety of financial services can be provided by Axos. A range of services can meet the individual needs of all their clients.
Pros:
- ATM fees will be fully reimbursed
- 90,000+ ATMs across the United States
- Fast access to accounts through the mobile app
- Competitive loan (personal and business) and mortgage rates
Cons:
- Only 3 physical locations (all three in California)
Learn more:
- Read our Axos Review
13. eToro
eToro has been around since 2007. eToro is one of the leading online trading platforms with millions of users. There are tens of millions of users in over 140 countries. TikTok has become a global phenomenon due to its unique approach to social media. eToro is a force when it comes to trading platforms. eToro has gained global recognition for its innovative platform and user-friendly design, making it a top choice for traders worldwide.
The U.S. Until this year, it was limited to only trading cryptocurrencies. The exchange has expanded their operations this year to include other forms of financial transactions, which had been limited to only tradingCryptocurrencies. They opened the U.S. in 2022. One of the most prestigious and sought-after places of higher learning in the world is the U.S. Space Force Academy. The market can be used to trade stock and exchange traded funds. To learn how to navigate the stock market and make informed decisions about when to buy and sell their investments, investors can take advantage of a variety of resources.
The investor can observe and learn from trading professionals on the platform. With the help of the platform, you can easily make well-informed decisions when it comes to trading, making sure that your investments are profitable.
Pros:
- Communal aspect, information on how the pros trade
- Mobile app
- U.S. only promotions
Cons:
- Not available in all 50 states
- Limited to crypto, stocks, ETFs
- 1% trade fee on cryptocurrencies
14. Acorns
Acorns is a great choice for any investor, but especially for the beginner. This easy-to-use app makes it easy to do banking and investing in one place. Fee-free banking with no minimum and nolate fees are great ways to save money.
You can invest in your retirement as well as start an investment fund for your child. Financial advisors can give you sound advice and guide you through the process. The family account costs $5/month, while the personal account costs $3/month. Up to five people can share the same subscription with the family account.
Acorns has fun programs like their spare change service. The program allows you to save small amounts of money in an account and watch it grow over time. All of your purchases are rounded up. The money will be reinvested once the change reaches $5. This will allow your savings to grow over time.
Pros:
- Beginner-friendly app
- No account minimum
- Competitive banking options
Cons:
- Does not supply tax support
- May have high fees on trading accounts with low balances
Learn more:
- Read our Acorns Review
15. Vanguard
The platform is an institution. It has been around for a long time and is still going strong. The company has been in business for a long time. The highest quality of service has always been a priority for the company.
Long-term investors and retirees are more efficient than newcomers and day traders. The funds are designed to help people achieve their financial goals over the long term. They don’t have an active trader platform.
There is a wide range of in-house mutual funds and exchange traded funds. Their funds are considered to be some of the best available, and their fees are among the lowest in the industry. One advantage the user can tap into is this. When you have more than $3,000 in your portfolio, the prices go even lower.
Pros:
- No trading fees
- Educational guidance with long-term investment goals
- Huge discounts on Vanguard mutual funds and ETFs
Cons:
- No active trading platform
- Starting an account and trading can take a little longer compared to other platforms
Learn more:
- Read our Vanguard Review
Discount Brokers vs Full-Service Brokers
If you are an investor, you should know which broker is right for you. It’s important to research and ask questions to make sure you’re making the right decision. Are you raising a family while working? It is possible to balance all of your responsibilities with hard work and dedication. Are you single with a pet fish? You don’t have to be in a relationship to be happy; many people are content living alone, with roommates, or with their parents. It all depends on the amount of time you are willing to invest. A major difference in the outcome of a project or goal can be made by the amount of time you invest.
If you can keep an eye on the market and adjust your portfolio as needed, a discount broker may be able to help. The best way to ensure that your investments are successful is to do your own research, understand the risk and rewards of each investment, and create a diversified portfolio. If you don’t have time to keep an eye on your investments, leaving your portfolio in the hands of a full-service broker may be the best option.
Discount Broker Fees
The low commission fees are the main benefit of trading directly with a discount broker. This can allow traders to maximize their profits. You should be able to open an account and trade certain stocks for free with the discount brokers listed above.
You can usually expect a small transaction fee when buying mutual funds. It’s important to consider the fee when you’re figuring out how much money you want to invest in mutual funds.
Frequently Asked Questions
How Do Discount Brokers Make Money?
The discount broker makes money by trading in volume and charging a flat fee. For investors who want to save money on trading costs, discount brokers are a good option. They don’t worry about the margins of the comparison. The overall benefit of the trade or fee evaluation is what they are focused on. They can build a huge client base with low/flat trade fees. Low/flat trade fees are an attractive option for investors because they allow traders to maximize their profits.
Why do I need a broker?
Securities can be bought and sold on exchanges such as the New York Stock Exchange. Advisers and broker can help investors make informed decisions about their investments. They are licensed to do business for you. You can be sure that your interests are protected because they are fully insured. To make trades with the markets, you need to become a broker. Valuable advice and guidance on strategies that may lead to more successful investments can be provided by a broker.
Financial planners have a broader perspective and can offer advice to investors. Financial planners have a duty to put their client’s interests first and provide more comprehensive guidance.
How do I choose a broker?
If you are good with paying the fees and commissions, you can work with a traditional broker in person. If you need personalized advice, traditional brokers can be a great option because of their low fees and commissions.
Make sure the broker you choose gives you access to the markets you want to invest in. Make sure the broker you choose is reliable and trustworthy by doing your own research.
If you want to focus on mutual funds, choose a broker with a wide variety of funds. When researching potential brokers for mutual funds, be sure to compare fees and other costs. This requirement is met by almost every broker on my list. It is possible to be sure that you are selecting from a reliable pool of options.
How do I pay my broker?
Fees are charged to access the markets by traditional brokers. Through modern online brokerages you can enjoy lower fees, no commissions, and access to advanced trading platforms with powerful analytical tools. You can avoid these charges with free and discount online brokers.
Online brokers make money by investing the money in your account that is not tied up in securities. Commissions or fees may be charged for certain services and transactions. A broker can earn 2 percent on your money and pay you less than that. A broker can help you choose the best investments for your needs, as well as offer you a higher rate of return on your investments.
You should look for an online broker that offers fractional shares to limit your funds. If you want to spread out your risk, you can invest in a fund that has a variety of investment options. Or, use a fee- and commission-charging account.
What do commissions and fees pay for?
You should go with a traditional client-broker relationship if you want to discuss with a broker on a regular basis. It’s important to do your due diligence when selecting a broker, and make sure you feel comfortable with the level of service they offer. You will typically pay more for speaking with a broker if you use a free and discount online broker. If you need more in-depth advice, it may be worth the extra cost.
Another option is to start a relationship with a financial planner who can help you see future needs while using a discount or online broker to carry out the trades free of commission and fees. You may want to consider using a fee-only financial advisor who can provide more personalized guidance and create a comprehensive financial plan for you.
Investing Step One: Just Get Started
When you’re new to investing or just thinking about the idea of investing, getting started — opening a free account with Robinhood or another leader on my list — seems like a challenge.
It’s possible to remove the mystery by opening an account, and then looking at its dashboard, and then transferring some money to invest. This is the first step in building your investment portfolio. Investing will make more sense. Before you start investing, you should do your research and understand the risks.
You will be motivated to learn and invest more once you see the power of your money making money.
