The Best Online Brokers for Free Stock Trading of September 2022
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The 8 best online brokers for free stock trading
Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.
The best online brokerages for free stock trading typically offer $0 account minimums or low minimum requirements, commission-free trading, investment education and/or market research, and flexible customer support.
When compiling our top picks, we also considered fees, investment choices, account types, and trading platforms.
Our expert panel for this guide
We consulted financial planners, investing experts, and our own wealth-building reporter to inform our picks for the best online brokers for free stock trading.
Insider
We're focusing on what makes an online brokerage account most useful. When comparing an app, it's best to consider fees, account types, investment choices, and investment research and education resources.
Best for index funds: Fidelity
- No account minimum or account fees
- No commissions for stock, ETF, and options trades; fractional shares available
- Thousands of no-transaction-fee mutual funds and fee-free mutual funds
- Several research tools and trading platforms available
- Fidelity Go accounts cost more for investors with higher account balances
- Representative-assisted trades are slightly more expensive than other brokerages
- No cryptocurrencies
- Promotion: None at this time
- App store rating: 4.8 iOS/4.3 Android
- Consider it if: You're focused on long-term investing and retirement.
Best for fee-free active trading: Firstrade
- No fees for stocks, ETFs, options, or mutual funds
- Options have no contract fees
- International investing accounts for non-US investors
- Chinese language support available
- Extended hours trading for eligible stocks between 8 a.m. and 9:25 a.m. and 4:05 a.m. and 8 p.m.
- No automated or advisor-assisted accounts
- Customer service only available during the week
- No cryptocurrencies
Best all around: Charles Schwab
- No minimums; commission-free trading on stocks, ETFs, and options
- Thousands of no-load mutual funds and 50+ Schwab-managed funds; fractional shares (Stock slices) available
- Automated and advisor-managed accounts available
- Multiple trading platforms; stock screeners and other trading tools
- $5,000 minimum for automated Schwab Intelligent Portfolios is on the higher end
- Schwab's no-load funds have a $100 minimum; some competitors offer lower minimums
- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want a wide range of account types, with easy-to-use apps and web interfaces
Best for low-cost trading and automated investing: SoFi
- No minimum to start investing
- No account or trading fees, and low fees to own funds
- Access to Certified Financial Planners at no additional charge
- Cryptocurrency trading available
- No tax-loss harvesting, an advanced investing technique where you sell a stock or mutual fund at a loss for a tax benefit
- No option for stop-loss orders when actively investing. SoFi's active investing account only uses market orders
- Currently only available to US residents
- Promotion: Get up to $100 in bitcoin when you make your first trade.
- App store rating: 4.8 iOS/4.2 Android
- Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.
Best for options trading: Webull
- No minimum deposit
- Commission-free trading on US-listed stocks, ETFs, and options
- Cryptocurrencies and margin accounts available
- Free real-time investment quotes
- No joint brokerage accounts, education savings accounts, or automated investing options
- No mutual funds
- Limited educational resources
- App store rating: 4.7 iOS/4.4 Android
- Consider it if: You're after something that's free to use (for most people) and friendly to active traders
Best for active trading: Robinhood
- Free stock, option, ETF, and cryptocurrency trades; 1.5% APY on uninvested cash
- IPO investing available
- Fractional shares and margin investing
- Cash management accounts available
- Website is easy to navigate; advanced charts for all users
- Lack of investing research and trading tools; can only take advantage of professional research if you're a Robinhood Gold member
- No retirement accounts, joint accounts, education savings accounts, or mutual funds
- Limited customer service availability
- Doesn't offer automatic transfer on death or allow users to name beneficiaries
- App store rating: 4.2 iOS/3.9 Android
- Consider it if: You want to invest in a wide range of stocks and ETFs.
Best for all types of investors: E*TRADE
- No commissions on US-listed stocks, options, and exchange-traded funds
- Wide selection of investments available for most accounts
- Thousands of no-load, no-transaction-fee mutual funds available
- Competitive mobile and online offerings for digital investors and traders
- 24/7 support and live chat
- Need at least $500 for automated investment management
- Infrequent traders pay more for options contracts
- Promotion: Get up to $3,500 when you open and fund a new brokerage or retirement account by June 30, 2022 (Promo code: BONUS22).
Best for advanced traders: Interactive Brokers
- Low commissions and fees
- International trading opportunities
- Competitive trading platforms and tools
- Several account types available
- Thousands of no-transaction-fee mutual funds
- Cryptocurrency investing available for bitcoin, bitcoin cash, ethereum, and litecoin
- Less active traders pay more for IBKR Pro
- Website can be tricky to navigate
- Promotion: None at this time.
Compare the best online brokers for free online stock trading
Fidelity (jump to Fidelity details »)
Why Fidelity made our list: Fidelity offers several investment products that cater to both active traders and passive investors. Like many of the brokerages on this list, it offers commission-free trading on stocks, ETFs, and options. But unlike the other brokerages mentioned below, Fidelity offers a considerably unique product: Zero Expense Ratio Index mutual funds.
Like the name suggests, Fidelity's Zero Expense Index Funds are free of account minimums and expense ratios. In other words, you'll only have to pay for shares. Fidelity offers four primary index funds: Fidelity® ZERO Large Cap Index Fund (FNILX), Fidelity® ZERO Total Market Index Fund (FZROX), Fidelity® ZERO Extended Market Index Fund (FZIPX), and Fidelity® ZERO International Index Fund (FZILX).
The brokerage also offers more than 3,400 mutual funds and more than 7,000 stocks and ETFs. If you're big on research access, Fidelity utilizes investment research from Thomson Reuters StarMine, and other sources.
If you're a passive or hands-off investor, Fidelity has multiple options for you. Its automated investment account, Fidelity Go, creates and manages an investment portfolio for you. The other option is Fidelity Personalized Planning and Advice. These accounts also offer automated investment management, but they give you one-on-one human advisor access as well.
What to look out for: One thing to keep in mind is that, if you're an automated investor, Fidelity Go charges more for higher account balances. For instance, Fidelity Go charges $0 for account balances under $10,000. You'll pay $3 per month if you have between $10,000 and $49,999. If you've got over $50,000, you'll pay an annual fee of 0.35%.
Review: Fidelity review
Firstrade (jump to Firstrade details »)
Why Firstrade made our list: Firstrade is an online discount brokerage offering a variety of wealth-building products for active traders. The investment app stands out due to three key qualities: Firstrade offers US trading and international trading in more than 65 regions, it offers a Chinese language support option for Chinese-speaking investors, and most of its investment products are free.
Firstrade charges no fees for stocks, ETFs, options and mutual funds. The investment app also charges $0 for options contracts (most investment apps charge $0.50 or $0.65 for options contracts).
Firstrade also has no shortage of investment research and trading platforms. It offers free market research from Morningstar, Benzinga, Zacks, and Briefing.com. In addition to its web and mobile platforms, Firstrade also gives you more trading flexibility with its Options Wizard and Firstrade Navigator tools.
Firstrade currently offers more than 11,000 mutual funds and more than 2,200 commission-free ETFs.
What to look out for: Firstrade is best for active traders who prefer to handle investment transactions and research on their own. The brokerage isn't the best option for you if you're looking for automated or advisor-assisted accounts.
Review: Firstrade review
Charles Schwab (jump to Charles Schwab details »)
Why Charles Schwab made our list: If you're set on stock trading, Charles Schwab is another competitive choice. The brokerage's combined offering of commission-free accounts, low-cost automated accounts, and IRAs make it an attractive option for all types of traders and investors.
You'll also have access to several types of investments, including stocks, ETFs, options, mutual funds, and more. Like Fidelity, Schwab also offers several of its own index mutual funds, but these funds have slightly higher expense ratios.
Schwab's two automated accounts — Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium — are best for hands-off investors. Schwab Intelligent Portfolios invests your money in a diversified portfolio of ETFs. The automated account also regularly monitors your portfolio's performance and rebalances the account when necessary.
Schwab Intelligent Portfolios Premium has a higher minimum requirement ($25,000) and annual fee, but it merges automated investing and one-on-one advice from a certified financial planner (CFP).
This brokerage also offers several investment education and market research resources. Schwab has a knowledge center that provides informational articles on all areas of financial planning. It also offers market insights and live webcasts and programs on investing.
What to look out for: Keep in mind that you'll need at least $5,000 to use Schwab's Intelligent Portfolios automated account. If you want one-on-one access to a human advisor, you'll need at least $25,000.
Review: Charles Schwab review
SoFi (jump to SoFi details »)
Why SoFi made our list: Though SoFi is popularly known for its loan services, the company also offers competitive investment products. Its investments include stocks, ETFs, IPOs, and cryptocurrencies, and it offers complimentary certified financial planner (CFP) access.
Whether you'd like to actively trade stocks and other investments, park your money in an IRA, or build wealth through an automated account, SoFi has an option for you. Plus, both it charges zero fees for both its self-directed accounts and its automated account.
You'll mainly run into fees when trading cryptocurrencies. SoFi currently offers bitcoin, ethereum, dogecoin, and more than 20 other coins (see its complete list coins here). But it charges a 1.25% markup on these assets.
What to look out for: SoFi only offers stocks, ETFs, and cryptocurrencies. If you're looking for other investments (e.g., mutual funds or bonds), this platform may not be the best choice for you.
Review: SoFi review
Webull (jump to Webull details »)
Why Webull made our list: Webull offers low-cost trading all around. While the investment app's account selection is limited to individual brokerage accounts and IRAs, it lets you open either account at no additional cost (with the exception of small clearing firm and regulatory agency fees).
Like Firstrade, Webull charges $0 for options contracts. Its other account features include extended hours trading (from 4 a.m. to 9:30 a.m. or 4p.m. to 8p.m.), Nasdaq-sponsored market data, and free real-time market quotes.
If you're interested in investing in virtual assets or borrowing money to invest, Webull also offers cryptocurrencies and margin trading.
What to look out for: Webull's investment selection only includes stocks, ETFS, American depositary receipts (ADRs), and cryptocurrencies. If you're interested in other investment choices, you may need to look elsewhere.
Review: Webull review
Robinhood (jump to Robinhood details »)
Why Robinhood made our list: Robinhood is best for active traders, options traders, and day traders looking to buy and sell investments at low costs. The app currently offers commission-free stocks, ETFs, and options (though options cost $0.65 per contract), and cryptocurrencies.
Robinhood and Webull share several similarities when it comes to fee-free active trading. They both offer the same investments, but they vary when it comes to account types and account features. Unlike Webull, Robinhood offers larger instant deposits (up to $50,000) for margin accounts, plus a cash management account that offers a 0.30% APY.
Robinhood also provides professional investment research, but this only applies to Robinhood Gold members. Robinhood Gold costs $5 per month, but it includes both margin trading (borrowing money to invest) and bigger deposits.
What to look out for: Robinhood's investment research is mainly available for Robinhood Gold members. Though the investment app offers a library that contains informational blog posts on investing topics, you won't get much guidance beyond that. Another thing to note is that Robinhood doesn't currently allow you to name beneficiaries on investment accounts. This could be a downside for those looking to transfer their assets after death.
The investment app also faced backlash earlier in 2021 after it temporarily restricted trades of Gamestop (GME), AMC Entertainment (AMC), and other companies. The app eventually reopened trading on those stocks.
Review: Robinhood review
E*TRADE (jump to E*TRADE details »)
Why E*TRADE made our list: E*TRADE is another popular brokerage that offers free trades on stocks, ETFs, and other investments. The investment app also has thousands of no-load, no-transaction-fee mutual funds (mutual funds that are free of commissions or sales charges).
Its options — which are also commission-free — cost $0.65 per contract if you make less than 30 trades per quarter. But if you make more than 30 trades per quarter, E*TRADE charges $0.50 per contract.
E*TRADE's account selection also includes automated accounts and managed portfolios. Its Core Portfolios automated account has a $500 minimum requirement and 0.30% annual fee. Its managed portfolios — Blend Portfolios and Fixed Income Portfolios — give you access to human advisors who help manage your investments.
E*TRADE also offers IRAs, Coverdell Education Savings Accounts (ESAs), and custodial accounts.
What to look out for: If you're planning on trading options, you'll pay less if you trade more frequently, but you'll pay more if you make less than 30 trades per quarter.
Review: E*TRADE review
Interactive Brokers (jump to Interactive Brokers details »)
Why Interactive Brokers made our list: Interactive Brokers offers a long list of trading tools and platforms, market research resources, and investment products for experienced, active traders. In addition to its commission-free offering, the brokerage lets you place trades both in the US and in international markets. This might be appealing to retail traders interested in investing in foreign currencies.
Interactive Brokers also provides fractional shares, automated investing, cryptocurrenies (through Paxos Trust Company), and investment education. For instance, its Traders Academy offers courses on all things investing. The brokerage's Trader Workstation (TWS) application gives you trading access in over 100 markets worldwide.
Interactive Brokers' automated advisor, Interactive Advisors, could be a good fit for those looking for more guidance. Minimums on its automated accounts range from $100 to $50,000, and annual fees span from 0.08% to 1.5%.
What to look out for: The investment platform's website can be tricky to navigate.
Review: Interactive Brokers review
Other brokers we considered
- Vanguard: Vanguard offers a vast collection of wealth-building products, including brokerage accounts, automated and advisor-assisted accounts, IRAs, cash management accounts, and more. It also provides commission-free trading on stocks, ETFs, and options.
- Ally Invest: Ally Invest is best for all types of investors. The online brokerage provides active trading, automated investing, IRAs, forex trading, and more. You can also use Ally to open checking, savings, or other bank accounts.
- Merrill Edge: Merrill Edge caters to all types of investors. The brokerage offers commission-free trading on stocks, ETFs, and options. And due to its affiliation with Bank of America, BOA users can integrate personal bank accounts with any Merrill Edge investing accounts (including its automated portfolios). The biggest thing to keep in mind is that you won't be able to buy investments like precious metals or cryptocurrencies.
- SoFi: Though SoFi is popularly known for its loan services, the company also offers competitive investment products. Its investment choices are limited to stocks, ETFs, IPOs, and cryptocurrencies, but the investing app offers complimentary certified financial planner (CFP) access.
- M1 Finance: This money management investment app offers a wide array of account types and features. Though it only allows you to trade stocks or ETFs, M1 Finance also offers an automated investing option for hands-off investors.
- TD Ameritrade: Now owned by Charles Schwab, TD Ameritrade offers interactive trading platforms, commission-free trading, automated investing, investment research resources, and more.
How we determined the winners
When narrowing down our list for the best brokerages, we paid attention to a range of factors, including fees, investment selection, account types, investment research availability, and customer support. We also included information on each broker's Better Business Bureau rating.
Each brokerage listed in this review offers unique features, but what they all provide is $0 or low account minimums and commission-free trading.
Frequently asked questions
Why trust us?
Personal Finance Insider's mission is to help intelligent people make the wisest decisions with their money. The word "best" is subjective, so we make sure to highlight both the benefits and drawbacks of each platform shown.
We spent hours comparing and contrasting the fees and features of various stock apps so you don't have to.
Brokerage accounts are financial tools that let you shop for stocks, bonds, ETFs, options, mutual funds, and other investments. Most brokers offer individual or joint brokerage accounts, or both.
You can hold both cash and investments in brokerage accounts. And like bank accounts, you can make deposits or withdrawals.
You can generally open brokerage accounts online and use them either via web platforms, or mobile devices. You can also use these accounts to deposit or withdraw funds, buy or sell assets, rebalance your investments, and stay updated on the latest market news.
The US Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) govern all brokerages. And fortunately for you, brokerage accounts are insured by the Securities Investor Protection Corporation (SIPC).
If you're interested in investing on your own, or with someone else, brokerage accounts are a great option. No matter what your savings goals are — whether that's buying a home, saving for retirement, or investing for general purposes — brokerage accounts are excellent tools for building wealth.
Experts recommend having a solid emergency savings fund before you begin investing. This is because investing — and different asset types — carries unique risks.
Most brokers have $0 minimum requirements and offer commission-free trading on stocks, ETFs, and options (though options usually include small contract fees).
But every brokerage isn't the same, and some investments — like mutual funds and ETFs — may come with higher account minimum requirements.
As you're comparing different apps, it's wise to choose the one that best aligns with your risk tolerance and time horizon. It's also a good choice to pay attention to each app's fees, account minimums, account types, and investment types.
The experts' advice on choosing the best stock trading broker
We interviewed the following four investing experts to see what they had to say about investment apps:
- Brian Fry, CFP, founder at Safe Landing Financial
- Charlotte Geletka, CFP, CRPC, managing partner at Silver Penny Financial Planning
- Kaysian Gordon, MBA, CFP, CDFA, CPA, wealth manager at Clarus Group
- Rickie Houston, wealth-building reporter, Personal Finance Insider
What are the advantages and/or disadvantages of using an online broker for free stock trading?
Brian Fry, CFP:
Online brokers offering free stock trading offer greater savings for investors. There are several options to choose from which is great for DIY investors.
It's important to consider how financial companies are making money, which may not always provide as transparent of an investing experience. Not to say this is always the case, but free trades encourage more trading instead of long-term investing.
Charlotte Geletka, CFP, CRPC:
Online brokerages are great for DIY, and they are typically very low cost. However, you will not receive the same financial advice as you would working with a financial advisor.
Kaysian Gordon, MBA, CFP, CDFA, CPA:
There are lots of advantages. As long as [the brokerage] has the guidance you need and the research capabilities, you're able to start investing for little to no cost.
Rickie Houston, Personal Finance Insider:
Online brokers offering free stock trading also typically provide $0 account minimum requirements. This can be great for active traders who are looking to minimize costs.
Who should consider using a broker that offers free stock trading?
Brian Fry, CFP:
Investors that have the time and interest to manage investments along with the discipline and experience of riding out volatile markets are a good fit for using an online broker for free stock trading.
Charlotte Geletka, CFP, CRPC:
This is a great place for what I call "fun money," so you can trade without risking your retirement or serious investment dollars.
Rickie Houston, Personal Finance Insider:
Brokerage accounts could be good for anyone interested in taking the DIY route to trading. If you can avoid commissions and high account minimums in the process, that's even better.
Any other advice you'd offer someone who's considering opening a commission-free brokerage account?
Brian Fry, CFP:
When considering opening a commission-free online brokerage account, proceed with caution. Free isn't always best. Consider the importance of investing long-term over short-term trading.
Kaysian Gordon, MBA, CFP, CDFA, CPA:
Do the comparisons. There are lots of great companies out there.
Rickie Houston, Personal Finance Insider:
Make sure to do your research on the fee differences between investment products. If you're looking to diversify your portfolio, fees could vary for different investment types.
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