Full-Service Brokerage or DIY Investing?

The trading platform offers conveniences such as the quick roll feature, which allows you to roll your option position into the next expiration cycle with a simple right click. Interactive Brokers’ Trader Workstation (TWS) desktop platform offers Level II market data, advanced charting, technical analysis tools, scanners, alerts and Bloomberg TV streaming. Popular features among professional day traders, such as “hot keys,” are also available. Your account choices boil down to a taxable brokerage account versus tax-favored retirement account, such as an IRA.

Make sure you check out their full commission schedule as it can be a bit complex. However, we would say they still generally lag in terms of usability compared to the companies above, and their customer service is lacking (they even eliminated online chat last year for many features). Schwab has been moving up the rankings for the last few years – reaching second place this year in our list of the best online stock brokers. The Kiplinger Readers’ Choice Awards aim to recognize and celebrate the best products and services in the personal finance arena. We asked you, our Kiplinger community, to help us name the products and services you think have delivered excellent value in the past year.

Stockbrokers are licensed professionals who manage client investments and administer financial advice to clients, and they are required to pass the Series 7, Series 63, and Series 65 exams to attain licensing. Brokers working at financial firms also need to be registered with the Financial Industry Regulatory Authority (FINRA). Licensed stockbrokers are expected to be fluent in stocks, bonds, and options. Through this all-encompassing data collection and Brokerage Charges review process, Investopedia has provided you with an unbiased and thorough review of the top online brokers and trading platforms. Investopedia’s team of industry experts is constantly delighted by IBKR’s innovative enhancements that just make so much sense from a purist’s perspective. IBKR’s latest product innovation is IBKR Desktop, a next-generation platform that combines a simple user interface with many of the company’s powerful trading solutions.

Users can’t bring in their existing crypto, but they can buy and store it with eToro’s wallet. Generally, you need much less to open an online brokerage account than to open a brokerage account with a traditional, full-service broker. Robinhood, Webull, Merrill Edge and Fidelity Investments, just to name four online brokers, do not require you to deposit any particular amount of money to open an account. Interactive Brokers is a long-time favorite among active traders and investing professionals thanks to its rock-bottom commissions and fees, staggering range of tradable products and powerful platform and tools. Webull will appeal to the mobile-first generation of casual investors with its slick interface for desktop and mobile apps, but the brokerage also delivers an impressive array of tools for active traders.

Established in 2019 by Jannick Malling and Leif Abraham, Public offers mobile and web browser-based trading best suited for investors interested in a unique set of alternative assets. The New York-headquartered company is a regulated broker-dealer, with SIPC protection in each account up to $500,000. Public offers an easy-to-use platform with social networking features, fractional investment capabilities, and a creative selection of alternative investment options. In addition to stock, option, ETF, and cryptocurrency trading, Public provides a platform for purchasing Treasury bills and alternative investments, like rare sneakers, trading cards, royalties, and more. Impulse trading, especially amid market volatility, is a key risk for do-it-yourself investors who trade through an online broker.

Merrill Lynch brokers are encouraged to focus on building and retaining relationships with wealthy clients. Merrill Edge is a discount online broker that has no account minimum and $0 commission stock and ETF trades while still providing some access to Merrill Lynch’s research and tools. Clients of full-service brokerages appreciated the convenience of having a personal broker handle all their investment needs. Most full-service firms provide online access and trading platforms.

• Other fees may creep up — most commonly, brokers tend to charge fees to trade more complex investments like options, and there may be fees to transfer money out of your account.
• When it comes to the financial markets, there are endless possibilities for making and losing money.
• Vanguard offers low-cost retirement plans and online tools that make it easier to manage your investments.
• Their trading tools and ability to integrate with charting and automatic software make it a top choice for active traders.
• Online brokers, like many companies, frequently entice new customers with deals, such as a cash bonus on certain deposit amounts.

Too many brokers emphasize short-term thinking through “what’s hot today” lists and charts. Merrill Edge has those lists too, but also encourages you to invest responsibly. Ironically, for something that’s positioned as a trading platform, I was happiest using MarketPro for fundamentally driven, long-term stock ideas. There’s a phenomenally powerful screener, ample stock data and research, an economic calendar, and good portfolio analysis. Merrill Edge’s mobile app is easy to use, great for research and exceeds the industry standard experience. For existing Bank of America customers, the universal account access and functionality make the app an easy winner.

I’ve found moving back and forth between bank and brokerage accounts to be easy and efficient. Customer service representatives were asked for assistance or details for prospective customers in several areas of broker services, including account opening, trading tools, apps, rollovers, active trading, and more. We analyzed online brokers’ offerings for clients with over $1 million of liquid, investable assets. See our guide to the Best Brokerage Firms for High Net Worth Individuals. If you want a simple app that lets you trade a mix of crypto, stocks, and ETFs, Robinhood is our top recommendation.

You might also want to consider platforms — we have a separate list of brokers with the best trading platforms. A discount broker is a company that typically allows you to buy and sell stocks or other investments online. Despite their name, discount brokers tend to have many favorable traits such as low commissions and trading fees, and easy-to-use online trading platforms. Many discount brokers also have educational tools and resources available to help guide your investing, but there’s typically not an advisor placing your orders.

So when you open your IRA (or any other kind of new account) you can just about ignore trading fees and commissions since they’re almost always going to be $0. While neither of these giants may be the absolute leader in any single category (except for beginner investing), each is near the top in virtually every category. And the proof is that the two are the largest diversified investment brokers in the industry. Mercedes Barba is a seasoned editorial leader and video producer, with an Emmy nomination to her credit. Presently, she is the senior investing editor at Bankrate, leading the team’s coverage of all things investments and retirement.

Trading costs definitely matter to active and high-volume traders, but many brokers offer commission-free trades of stocks and ETFs. A few online brokers have also eliminated fees for options contracts. Other factors — access to a range of investments, the quality of the research — may be more valuable than saving a few bucks when you purchase shares.

The final output produces star ratings from poor (one star) to excellent (five stars). Read our article on how to buy stocks for step-by-step instructions on placing that first trade. Morgan Self-Directed Investing account with qualifying new money.

12B-1 fees are part of the total expense ratio, not in addition to it, but it’s still important to know what you’re paying. Brokerage fees are what a broker charges for various services, like subscriptions for premium research and investing data or additional trading platforms. Some even charge maintenance and inactivity fees, but generally, you can avoid paying these brokerage fees with the right broker.

In addition to our review of Interactive Brokers’ online brokerage platform, we’ve also reviewed the company’s robo-advisor service, Interactive Advisors. In addition to our review of Charles Schwab’s online brokerage platform, we also reviewed the company’s robo-advisor service, Schwab Intelligent Portfolios. In addition to our review of Fidelity’s online brokerage platform, we’ve also reviewed the company’s robo-advisor service, Fidelity Go.