Advertisement
Best discount brokers in 2022
DEGIRO logo
Interactive Brokers logo
Freetrade logo
SoFi Invest logo
Webull logo

To help you find the best discount brokers in 2022, we went ahead and did the research for you. So what did we focus on? Fees, fees and fees. We don't like them and surely you don't either. After carefully checking 101 brokers for fees, 5 made it to the top. And now, without further ado...

The top 5 picks for the best discount brokers in 2022:

  1. DEGIRO is the best discount broker in 2022. Low trading and non-trading fees, one free ETF trading per month.
  2. Interactive Brokers takes second place. Low trading and non-trading fees, free stock and ETF trading for US customers.
  3. Freetrade rounds out the top three. Low trading and non-trading fees, low stock and ETF fees.
  4. SoFi Invest is ranked fourth. Low trading and non-trading fees, free stock and ETF trading.
  5. Webull just made it to the list at number five. Commission-free stock and ETF trading, low non-trading fees.
Best discount brokers in 2022
Broker Accepts clients from Fees score
#1 DEGIRO Europe 4.6 stars
#2 Interactive Brokers Globally 4.5 stars
#3 Freetrade UK 4.7 stars
#4 SoFi Invest US 5.0 stars
#5 Webull US, China, and Hong Kong 4.8 stars

What makes a good discount broker? Well, did we mention low fees? This includes commissions, financing rates, and, let's not forget, non-trading fees like inactivity or withdrawal fees. The table above gives you a good hint; the scores include all fees, with 5.0 being the best. Besides low fees, a good discount broker should also offer access to a lot of markets and products, because providing low fees in more than one asset class is not an easy job. All brokers in our list offer real stocks, but we also looked into whether you can trade currencies, options or mutual funds.

These features may sound obvious and easy to list, but they're hard to figure out. We are testing brokers based on close to 500 criteria, using real accounts and real money. We know what's going on.

For a tailored recommendation, check out our broker finder tool. Answer 4 simple questions and get a list of the most relevant brokers.

And now, let's see the best discount brokers in 2022 one by one, starting with the winner, DEGIRO.

DEGIRO Logo

#1 Best discount broker
DEGIRO

4.8

DEGIRO is a German-Dutch online discount broker. It was established in 2008 by former employees of another brokerage company in the Netherlands. DEGIRO merged with flatexDEGIRO Bank AG in early 2021, creating the biggest online execution-only broker in Europe with its own banking license.

Check out our DEGIRO review tailored to the needs of beginner investors and traders.

DEGIRO is regulated by top-tier financial authorities such as the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, or BaFin) in Germany.

Disclaimer: Investing involves risk of loss.

Disclaimer for UK clients: Deemed authorised and regulated by the Financial Conduct Authority (FCA). The nature and extent of consumer protections may differ from those applicable to firms based in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the FCA's website.

Visit broker

#1 DEGIRO
Fees
4.6

DEGIRO has low trading fees for all asset classes. Non-trading fees are also low, as there are no inactivity or withdrawal fees. On the negative side, trading US options or futures will come with a €5 monthly fee. If you need currency conversion, a 0.25% fee will apply.
Pros Cons
Low fund fees €5 monthly fee for trading US derivatives (options and futures)
No inactivity fee 0.25% FX conversion fee
Low stock and ETF fees
DEGIRO trading fees
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
US stock $0.6 $1.0 $0.0 $0.0 $0.0
UK stock $3.2 $4.2 $0.0 - -
EURUSD benchmark fee - $10.4 - - -
US stock index options $7.5 $6.5 - - $0.0
Mutual fund $4.7 $15.0 - - -
DEGIRO non-trading fees
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
Account fee No No No No No
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0

Visit broker More

#1 DEGIRO
Markets and products
3.6

At DEGIRO, you can access many markets and trade a lot of different products. CFDs and forex are not available, though.
DEGIRO markets and products
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
Stocks Yes Yes Yes Yes Yes
ETFs Yes Yes Yes Yes Yes
Forex No Yes No No No
Funds Yes Yes No No No
Bonds Yes Yes No No No
Options Yes Yes No No Yes
Futures Yes Yes No No No
CFDs No Yes No No No
Crypto No Yes No Yes Yes

Visit broker More

Interactive Brokers Logo

#2 Best discount broker
Interactive Brokers

4.9

Interactive Brokers, one of the biggest US-based discount brokers, was founded in 1977. The broker is regulated by several financial authorities globally, including top-tier ones like the UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC).

Given that the broker has licenses from multiple top-tier regulators, Interactive Brokers is considered safe. The fact that it has a long track record and publicly disclosed financials while being listed on a stock exchange all point to IB being a safe service provider.

Interactive Brokers recently launched a new app for global stock trading: read our review of IBKR GlobalTrader.

In addition, Interactive Brokers also has an app you can use for ESG investing: read our review of IMPACT by Interactive Brokers.

Visit broker

#2 Interactive Brokers
Fees
4.5

Interactive Brokers has low trading fees and the best margin rates in the industry. For US clients, stock and ETF trading is free if they choose the Lite plan.
Pros Cons
Low trading fees None
Free stock and ETF trading for US clients
Low margin rates
Interactive Brokers trading fees
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
US stock $0.6 $1.0 $0.0 $0.0 $0.0
UK stock $3.2 $4.2 $0.0 - -
EURUSD benchmark fee - $10.4 - - -
US stock index options $7.5 $6.5 - - $0.0
Mutual fund $4.7 $15.0 - - -
Interactive Brokers non-trading fees
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
Account fee No No No No No
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0

Visit broker More

#2 Interactive Brokers
Markets and products
5.0

At Interactive Brokers, you have access to an extremely wide range of markets and all product types are available.
Interactive Brokers markets and products
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
Stocks Yes Yes Yes Yes Yes
ETFs Yes Yes Yes Yes Yes
Forex No Yes No No No
Funds Yes Yes No No No
Bonds Yes Yes No No No
Options Yes Yes No No Yes
Futures Yes Yes No No No
CFDs No Yes No No No
Crypto No Yes No Yes Yes

Visit broker More

Freetrade Logo

#3 Best discount broker
Freetrade

4.5

Freetrade is a UK-based fintech startup providing commission-free stock trading, regulated by the UK's Financial Conduct Authority (FCA). The company was founded in 2016. 

Freetrade is considered safe because it is regulated by a top-tier regulator, the FCA.

Visit broker

#3 Freetrade
Fees
4.7

At Freetrade, you can trade stocks and ETFs free of charge. Also, there are no account, inactivity or withdrawal fees. However, there is a high, 0.45% fee for converting your funds to USD.
Pros Cons
Free stock and ETF trading High currency conversion fee
No inactivity fee
No withdrawal fee
Freetrade trading fees
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
US stock $0.6 $1.0 $0.0 $0.0 $0.0
UK stock $3.2 $4.2 $0.0 - -
EURUSD benchmark fee - $10.4 - - -
US stock index options $7.5 $6.5 - - $0.0
Mutual fund $4.7 $15.0 - - -
Freetrade non-trading fees
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
Account fee No No No No No
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0

Visit broker More

#3 Freetrade
Markets and products
2.0

Freetrade has a limited product portfolio that covers only stocks and ETFs. There are no other asset classes available, like mutual funds, bonds or options.
Freetrade markets and products
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
Stocks Yes Yes Yes Yes Yes
ETFs Yes Yes Yes Yes Yes
Forex No Yes No No No
Funds Yes Yes No No No
Bonds Yes Yes No No No
Options Yes Yes No No Yes
Futures Yes Yes No No No
CFDs No Yes No No No
Crypto No Yes No Yes Yes

Visit broker More

SoFi Invest Logo

#4 Best discount broker
SoFi Invest

4.5

SoFi, short for "Social Finance", is a US-based fintech startup founded in 2011. It first specialized in student loan refinancing, but has expanded into the broker space since 2018. SoFi is regulated by the US Securities and Exchange Commission (SEC) and FINRA. SoFi Invest is SoFi's brand for zero-fee or discount brokerage services.

SoFi Invest offers active and automated investing services. The former means a self-directed account where you can trade stocks, ETFs, and cryptocurrencies on your own. By contrast, SoFi Invest automated investing is a robo-advisory service where SoFi Invest handles your investments. In this review, we tested SoFi Invest active investing. Click here for the SoFi robo-advisory review.

SoFi Invest is considered safe because it is regulated by top-tier financial authorities and provides up to $500,000 investor protection (including a $250,000 limit for cash) as part of the SIPC protection scheme.

Visit broker

#4 SoFi Invest
Fees
5.0

SoFi Invest has low trading and non-trading fees. It offers commission-free trades for US stocks and ETFs, and no fee is charged for inactivity or withdrawals.
Pros Cons
Free stocks and ETFs None
No withdrawal fee
No inactivity fee
SoFi Invest trading fees
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
US stock $0.6 $1.0 $0.0 $0.0 $0.0
UK stock $3.2 $4.2 $0.0 - -
EURUSD benchmark fee - $10.4 - - -
US stock index options $7.5 $6.5 - - $0.0
Mutual fund $4.7 $15.0 - - -
SoFi Invest non-trading fees
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
Account fee No No No No No
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0

Visit broker More

#4 SoFi Invest
Markets and products
2.2

SoFi Invest has a limited product portfolio comprising US stocks and ETFs as well as a few cryptocurrencies. You can't trade funds, bonds, forex, options or futures.
SoFi Invest markets and products
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
Stocks Yes Yes Yes Yes Yes
ETFs Yes Yes Yes Yes Yes
Forex No Yes No No No
Funds Yes Yes No No No
Bonds Yes Yes No No No
Options Yes Yes No No Yes
Futures Yes Yes No No No
CFDs No Yes No No No
Crypto No Yes No Yes Yes

Visit broker More

Webull Logo

#5 Best discount broker
Webull

4.6

Webull is a US-based fintech startup offering zero-fee or discount brokerage services. Founded in 2017, the company is regulated by the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) as well as the Hong Kong Securities and Futures Commission (SFC).

Check out our Webull review tailored to the needs of beginner investors and traders.

Webull is regulated by top-tier financial authorities and provides a maximum of $500,000 investor protection, including a $250,000 limit for cash under the Securities Investor Protection Corporation's (SIPC) protection scheme, which are all great signs for its safety.

Visit broker

#5 Webull
Fees
4.8

Webull offers commission-free trading for US-listed stocks, ETFs and options. There is no withdrawal fee for ACH transfers and no inactivity fee. However, wire transfer fees are high.
Pros Cons
No commission (for stocks, ETFs, options) High wire transfer costs
ACH transfers are free for funding & payout
Webull trading fees
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
US stock $0.6 $1.0 $0.0 $0.0 $0.0
UK stock $3.2 $4.2 $0.0 - -
EURUSD benchmark fee - $10.4 - - -
US stock index options $7.5 $6.5 - - $0.0
Mutual fund $4.7 $15.0 - - -
Webull non-trading fees
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
Account fee No No No No No
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0

Visit broker More

#5 Webull
Markets and products
2.8

Webull has a limited product portfolio that includes only US stocks, ETFs and options. Popular asset types such as funds, bonds and forex are not available.
Webull markets and products
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
Stocks Yes Yes Yes Yes Yes
ETFs Yes Yes Yes Yes Yes
Forex No Yes No No No
Funds Yes Yes No No No
Bonds Yes Yes No No No
Options Yes Yes No No Yes
Futures Yes Yes No No No
CFDs No Yes No No No
Crypto No Yes No Yes Yes

Visit broker More

Best discount brokers
What makes a good discount broker?

You're probably wondering how we came up with this list. To get a better understanding, let's discuss the following three points:

  • What is a discount brokerage?
  • Why do we think these brokers are reliable?
  • What were the most important criteria when we picked the best discount brokers?

What is a discount broker?

A discount broker is a brokerage company that executes your buy and sell orders at a low trading fee. Discount brokers can afford to charge lower fees because, unlike full-service brokers, they usually don't provide extra services such as research, personal investment advice, tax planning or robo-advisory.

The difference between full-service brokers and discount brokers has blurred somewhat in recent years. Discount brokers started to offer extra services as well, like research; while full-service brokers started to lower their fees. The traditional brokerage and wealth management industry is under fee pressure from increasingly cost-effective online broker companies.

Many US brokers have slashed their fees to zero and now promote commission-free trading, following in the footsteps of brokers such as Robinhood. Drawbacks for some of these commission-free brokers include the limited number of assets you can trade (for example, mutual funds are less likely to be offered), so some investors and traders still prefer traditional discount brokers, where order execution also tends to be better compared with zero-commission brokers.

Are these brokers reliable?

These brokers are all considered reliable. They are regulated by at least one top-tier financial authority. We at BrokerChooser distinguish between mid-tier and top-tier regulators, based on various factors with the most important being the investor protection amount.

How did BrokerChooser pick the best discount brokers?

We tested brokers based on almost 500 criteria, using real accounts and real money. When we selected the best discount brokers, the primary selection criteria were fees. Importantly, we only included brokers where you can trade real stocks. This means that we excluded brokers where stocks were only offered through CFDs.

We calculated the rankings based on trading fees for all asset classes, such as stock fees; as well as fees not directly related to trading, such as withdrawal fees. We also assigned a higher score to brokers that offer a wide range of asset classes, because providing low fees in more than one asset class is not an easy job and definitely a big plus for investors.

Lastly, we incorporated additional criteria to measure the overall quality of the broker: if the account opening process, customer service and other aspects of the broker are high quality, they all boosted the overall score.

Best discount brokers
Bottom line

You saw the details, now let's zoom out. Here are the best discount brokers in 2022:

Best discount brokers in 2022
DEGIRO Interactive Brokers Freetrade SoFi Invest Webull
Fees score 4.6 stars 4.5 stars 4.7 stars 5.0 stars 4.8 stars
Stock and ETF fee scores 4.8 stars 4.8 stars 5.0 stars 5.0 stars 5.0 stars
Markets and products score 3.6 stars 5.0 stars 2.0 stars 2.2 stars 2.8 stars
Deposit and withdrawal score 3.3 stars 3.0 stars 4.0 stars 2.2 stars 1.9 stars
Account opening score 5.0 stars 3.2 stars 5.0 stars 4.2 stars 5.0 stars
Visit broker Visit broker Visit broker Visit broker Visit broker

DEGIRO is our winner, the best discount broker in 2022. Low trading and non-trading fees, one free ETF trading per month.

All of these brokers are considered a great choice. Pick the winner or any runner-up, and save a lot of money on fees. Let us know what you think in the comment section.

Still unsure? Check out our broker finder tool and find the best broker for you, or learn more about how to invest your money.

Author of this article

Gergely Korpos

Author of this article

Gergely is the co-founder and CPO of BrokerChooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

Gergely Korpos

Co-founder, CPO

Gergely is the co-founder and CPO of BrokerChooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

Share

Comments

×