To help you to find the best online brokers in 2021, we went ahead and did the research for you. First, we selected 84 quality online brokers, then checked and compared basically every aspect of their offering: fees, available markets and products, trading platforms, deposit and withdrawal options and more. To be selected best online broker, service providers had to prove their excellence in multiple areas. We dug deep, so you won't have to.
5 brokers made it to the top. We highly recommend all 5 to you. And now, without further ado...
The top 5 picks for the best online brokers in 2021:
- Interactive Brokers is the best online broker in 2021. Low trading fees. Wide range of products. Many great research tools.
- TD Ameritrade takes second place. Low trading fees (free stock and ETF trading). Superb desktop trading platform. Great customer support.
- E*TRADE rounds out the top three. Low trading fees (free stock and ETF trading). User-friendly mobile trading platform. Great research tools.
- Fidelity, numero quattro. Commission-free US stocks and ETFs. Great trading platforms and research. US and international stocks.
- Charles Schwab just made it to the list at number five. Free stock and ETF trading. Outstanding research. Great customer service.
| Broker | Accepts clients from | Score | Best in | |
|---|---|---|---|---|
| #1 | Interactive Brokers | Globally | 4.9 | Best online broker |
| #2 | TD Ameritrade | US, China, Hong Kong, Malaysia, Singapore, Thailand, Taiwan, Canada (through TD Direct Investing) | 4.9 | |
| #3 | E*TRADE | US | 4.9 | Best broker for bonds |
| #4 | Fidelity | US | 4.9 | Best broker for ESG |
| #5 | Charles Schwab | US | 4.8 |
What makes a good online broker? Surely, they need to provide great services in all areas. First of all, they need to offer fair fees and have a good safety score. Opening an account and depositing money should also be user-friendly processes. They need to provide access to a wide range of products and have a great platform.
These features are easy to list, but hard to figure out. We are testing brokers based on more than ~300 criteria with real accounts and real money. We know what's up. You can find all the ranking criteria in our methodology.
Not sure which broker to choose? For a tailored recommendation, check out our broker finder tool. If you enter the name of your country, it will show only the relevant brokers. Want more details? Compare brokers with our in-depth comparison table.
And now, let's see the best online brokers in 2021 one by one, starting with the winner, Interactive Brokers.
#1 Best online broker
Interactive Brokers
Interactive Brokers was founded in 1978 and is one of the biggest US-based discount brokers. 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).
As it has licenses from multiple top-tier regulators, Interactive Brokers is considered safe. Having a long track record and publicly disclosed financials while being listed on a stock exchange are also great signs for its safety.
Recommended for traders looking for low fees and a professional trading environment
| Pros | Cons |
|---|---|
| • Low trading fees | • Complicated account opening process |
| • Wide range of products | • Complex desktop trading platform |
| • Many great research tools | • High forex fees |
#1 Interactive Brokers
Fees
Interactive Brokers has low trading fees; for US clients, stock and ETF trading is free. On the negative side, there is a high inactivity fee for non-US clients.
| Pros | Cons |
|---|---|
| • Low trading fees | • Inactivity fee |
| • Free stock and ETF trading for US clients | |
| • Low margin rates |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| US stock | $1.0 | $0.0 | $0.0 | $0.0 | $0.0 |
| UK stock | $7.8 | - | - | $11.7 | - |
| EURUSD benchmark fee | $7.4 | $7.0 | - | - | - |
| Mutual fund | $15.0 | $50.0 | $20.0 | $37.5 | $24.8 |
| US stock index options | $6.5 | $6.5 | $6.5 | $6.5 | $6.5 |
| US micro e-mini stock index futures | $2.5 | $22.5 | $15.0 | - | $15.0 |
All spreads, commissions and financing rates (if applicable) for opening a position, holding for a week, and closing.
#1 Interactive Brokers
Account opening
IB's account opening process is fully digital and the required minimum deposit is low. On the negative side, the process is complicated, and account verification takes relatively long.
| Pros | Cons |
|---|---|
| • Fully digital | • Not user-friendly |
| • No minimum deposit for most account types | • Confusing messages throughout the process |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 | $0 | $0 |
| Time to open account | 1-3 days | 1-3 days | 1-3 days | 1-3 days | 1 day |
#1 Interactive Brokers
Deposit and withdrawal
Interactive Brokers offers many account base currency options and one free withdrawal per month. The main drawback is that you can only use bank transfer.
| Pros | Cons |
|---|---|
| • No deposit fee | • Credit/Debit card not available |
| • Several account base currencies | |
| • First withdrawal each month free |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Bank transfer | Yes | Yes | Yes | Yes | Yes |
| Credit/debit card | No | No | No | No | No |
| Electronic wallets | No | No | No | Yes | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#1 Interactive Brokers
Markets and products
Through Interactive Brokers, you can access an extremely wide range of markets, and all product types are available.
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Stock | Yes | Yes | Yes | Yes | Yes |
| ETF | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | Yes | No | No | No |
| Fund | Yes | Yes | Yes | Yes | Yes |
| Bond | Yes | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes | Yes |
| Futures | Yes | Yes | Yes | No | Yes |
| CFD | Yes | No | No | No | No |
| Crypto | Yes | Yes | Yes | No | Yes |
#1 Interactive Brokers
Web trading platform
Interactive Brokers's web platform is simple and easy to use, even for beginners.
| Pros | Cons |
|---|---|
| • User-friendly | None |
| • Clear fee report | |
| • Two-step (safer) login |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Web platform score | 4.5 stars | 4.3 stars | 4.5 stars | 4.5 stars | 4.3 stars |
| Mobile platform score | 3.8 stars | 4.8 stars | 4.5 stars | 4.5 stars | 4.2 stars |
| Desktop platform score | 3.0 stars | 4.5 stars | - | 3.8 stars | 4.0 stars |
#1 Interactive Brokers
Verdict
Interactive Brokers is one of the biggest US-based discount brokers, regulated by several top-tier regulators globally. We recommend this broker mainly for advanced traders.
On the plus side, IB has low fees, a vast range of available markets and products, and diverse research tools.
There are some drawbacks, though: there is a high forex fees, and the account opening process is complicated. The desktop platform is complex and hard to get a handle on, especially for beginners.
If you have experience navigating complex platforms and enjoy transparent, low-cost trading, Interactive Brokers could be a great fit for you.
| Interactive Brokers | |
|---|---|
| Summary | Interactive Brokers is a US discount broker. It is listed on a stock exchange and regulated by several authorities, including top-tier ones like the FCA and the SEC. |
| Fees score | 4.2 stars |
| Recommended for | Traders looking for low fees and a professional trading environment |
#2 Best online broker
TD Ameritrade
TD Ameritrade was founded in 1975 and is one of the biggest US-based stockbrokers. It is regulated by top-tier authorities like the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and the Commodity Futures Trading Commission (CFTC).
TD Ameritrade is considered a safe broker since it has a long track record, is listed on a stock exchange, has a banking background, discloses its financials, and is overseen by top-tier regulators.
Recommended for investors and traders looking for solid research and a well-equipped desktop trading platform
| Pros | Cons |
|---|---|
| • Low trading fees (free stock and ETF trading) | • You can trade only on US markets |
| • Superb desktop trading platform | • Accounts mostly limited to US residents |
| • Great customer support | • No credit/debit cards and electronic wallets for money transfer |
#2 TD Ameritrade
Fees
TD Ameritrade offers free stock and ETF trading, while forex, bond and options fees are also low. On the other hand, it charges high fees for mutual funds and futures.
| Pros | Cons |
|---|---|
| • Low trading fees | • High fund fees |
| • Low non-trading fees | |
| • Free stocks and ETFs |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| US stock | $1.0 | $0.0 | $0.0 | $0.0 | $0.0 |
| UK stock | $7.8 | - | - | $11.7 | - |
| EURUSD benchmark fee | $7.4 | $7.0 | - | - | - |
| Mutual fund | $15.0 | $50.0 | $20.0 | $37.5 | $24.8 |
| US stock index options | $6.5 | $6.5 | $6.5 | $6.5 | $6.5 |
| US micro e-mini stock index futures | $2.5 | $22.5 | $15.0 | - | $15.0 |
All spreads, commissions and financing rates (if applicable) for opening a position, holding for a week, and closing.
#2 TD Ameritrade
Account opening
TD Ameritrade offers many different account types, and there is no minimum deposit for US citizens.
| Pros | Cons |
|---|---|
| • Fully digital | None |
| • No minimum deposit | |
| • Many account types |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 | $0 | $0 |
| Time to open account | 1-3 days | 1-3 days | 1-3 days | 1-3 days | 1 day |
#2 TD Ameritrade
Deposit and withdrawal
TD Ameritrade has user-friendly account funding with no deposit fees, but USD is the only available base currency, and wire transfers incur a high fee.
| Pros | Cons |
|---|---|
| • Free withdrawal | • Credit/Debit card not available |
| • No deposit fee | • Only one account base currency |
| • User-friendly | • High withdrawal fee for wire transfers |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Bank transfer | Yes | Yes | Yes | Yes | Yes |
| Credit/debit card | No | No | No | No | No |
| Electronic wallets | No | No | No | Yes | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#2 TD Ameritrade
Markets and products
You can trade many asset classes, from stocks to futures and forex, while nice extras include social trading and robo-advisory. On the other hand, only the US market is covered.
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Stock | Yes | Yes | Yes | Yes | Yes |
| ETF | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | Yes | No | No | No |
| Fund | Yes | Yes | Yes | Yes | Yes |
| Bond | Yes | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes | Yes |
| Futures | Yes | Yes | Yes | No | Yes |
| CFD | Yes | No | No | No | No |
| Crypto | Yes | Yes | Yes | No | Yes |
#2 TD Ameritrade
Web trading platform
TD Ameritrade offers a good web trading platform with a clean design. On the flip side, the platform is not customizable.
| Pros | Cons |
|---|---|
| • User-friendly | • Limited customizability (for charts, workspace) |
| • Two-step (safer) login | |
| • Good variety of order types |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Web platform score | 4.5 stars | 4.3 stars | 4.5 stars | 4.5 stars | 4.3 stars |
| Mobile platform score | 3.8 stars | 4.8 stars | 4.5 stars | 4.5 stars | 4.2 stars |
| Desktop platform score | 3.0 stars | 4.5 stars | - | 3.8 stars | 4.0 stars |
#2 TD Ameritrade
Verdict
TD Ameritrade is one of the biggest US online brokers. It charges no commission on stock and ETF trades.
Research and education are outstanding at TD Ameritrade, offering you many useful tools. The 'thinkorswim' desktop trading platform is one of the best on the market. Customer service is great, you will get relevant answers within a short time.
TD Ameritrade has some drawbacks, though. It charges high financing (margin) rates, and it doesn't accept credit/debit cards and electronic wallets for money transfers. Furthermore, the product portfolio covers only the US markets.
TD Ameritrade offers great education tools including a demo account, so we definitely recommend giving them a try.
| TD Ameritrade | |
|---|---|
| Summary | TD Ameritrade is a US stockbroker regulated by top-tier authorities SEC and FINRA. The company is listed on NASDAQ and has a banking background as part of the TD Group. |
| Fees score | 4.3 stars |
| Recommended for | Investors and traders looking for solid research and a well-equipped desktop trading platform |
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#3 Best online broker
E*TRADE
E*TRADE is a US-based stockbroker founded in 1982. It is regulated by top-tier financial authorities like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
E*TRADE is considered safe because it has a long track record, is listed on a stock exchange, has a banking background, discloses its financials, and is overseen by top-tier US regulators.
In February 2020, E*TRADE was acquired by Morgan Stanley. To find out more about the motives behind the acquisition and about the wider market context, check out this article we wrote about the deal.
Recommended for investors and traders looking for solid research and a great mobile trading platform
| Pros | Cons |
|---|---|
| • Low trading fees (free stock and ETF trading) | • Only US markets, no forex |
| • User-friendly mobile trading platform | • Only bank transfer |
| • Great research tools | • Slow live chat |
#3 E*TRADE
Fees
E*TRADE offers free trading of stocks, ETFs, and some bonds and mutual funds. Non-trading fees are also low. On the negative side, fees for mutual funds that aren't free are high.
| Pros | Cons |
|---|---|
| • Free stock and ETF trading | • High fees for non-free mutual funds |
| • Some mutual funds and bonds are free | |
| • Low non-trading fees |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| US stock | $1.0 | $0.0 | $0.0 | $0.0 | $0.0 |
| UK stock | $7.8 | - | - | $11.7 | - |
| EURUSD benchmark fee | $7.4 | $7.0 | - | - | - |
| Mutual fund | $15.0 | $50.0 | $20.0 | $37.5 | $24.8 |
| US stock index options | $6.5 | $6.5 | $6.5 | $6.5 | $6.5 |
| US micro e-mini stock index futures | $2.5 | $22.5 | $15.0 | - | $15.0 |
All spreads, commissions and financing rates (if applicable) for opening a position, holding for a week, and closing.
#3 E*TRADE
Account opening
Account opening at E*TRADE (only available for US clients) is fully digital and user-friendly, but the account verification process is slow.
| Pros | Cons |
|---|---|
| • Fully digital | • Slow account verification |
| • No minimum deposit | |
| • User-friendly |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 | $0 | $0 |
| Time to open account | 1-3 days | 1-3 days | 1-3 days | 1-3 days | 1 day |
#3 E*TRADE
Deposit and withdrawal
E*TRADE charges no deposit fees, and transferring money is easy. On the flip side, you can only use bank transfer, and a high fee is charged for wire transfer withdrawals.
| Pros | Cons |
|---|---|
| • No deposit fee | • Credit/Debit card not available |
| • User-friendly | • High fee for wire transfer withdrawal |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Bank transfer | Yes | Yes | Yes | Yes | Yes |
| Credit/debit card | No | No | No | No | No |
| Electronic wallets | No | No | No | Yes | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#3 E*TRADE
Markets and products
You can trade plenty of asset classes at E*TRADE from stocks to futures, but only on the US market; in addition, forex trading is not available.
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Stock | Yes | Yes | Yes | Yes | Yes |
| ETF | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | Yes | No | No | No |
| Fund | Yes | Yes | Yes | Yes | Yes |
| Bond | Yes | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes | Yes |
| Futures | Yes | Yes | Yes | No | Yes |
| CFD | Yes | No | No | No | No |
| Crypto | Yes | Yes | Yes | No | Yes |
#3 E*TRADE
Web trading platform
E*TRADE has a great, user-friendly web trading platform, offering a clear fee report among others. On the negative side, it cannot be customized.
| Pros | Cons |
|---|---|
| • User-friendly | • Limited customizability (for charts, workspace) |
| • Clear fee report | |
| • Two-step (safer) login |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Web platform score | 4.5 stars | 4.3 stars | 4.5 stars | 4.5 stars | 4.3 stars |
| Mobile platform score | 3.8 stars | 4.8 stars | 4.5 stars | 4.5 stars | 4.2 stars |
| Desktop platform score | 3.0 stars | 4.5 stars | - | 3.8 stars | 4.0 stars |
#3 E*TRADE
Verdict
E*TRADE is one of the biggest US stockbrokers, and is regulated by top-tier authorities.
At the end of 2019, riding the commission-free trading trend in the US, E*TRADE introduced zero commission on stock and ETF trades. E*TRADE's research functions are of high quality and channel a lot of tools, including trading ideas and strategy builders. We liked the easy handling and the customizable features of the mobile trading platform.
E*TRADE has some drawbacks though. It doesn't accept credit/debit cards and electronic wallets for money transfers, and its product portfolio covers only US markets. In addition, live chat support is slow.
As trading fees are generally low, research tools are great and no inactivity fee is charged, you should feel free to try E*TRADE.
| E*TRADE | |
|---|---|
| Summary | E*TRADE is a US stockbroker regulated by top-tier authorities SEC and FINRA. The company is listed on NASDAQ and has a banking background. |
| Fees score | 4.4 stars |
| Recommended for | Investors and traders looking for solid research and a great mobile trading platform |
#4 Best online broker
Fidelity
Fidelity is a US stockbroker founded in 1946. It is regulated by top-tier authorities like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Fidelity is considered safe because it has a long track record and is regulated by top-tier financial authorities.
Recommended for investors and traders looking for solid research and great trading platforms
| Pros | Cons |
|---|---|
| • Commission-free US stocks and ETFs | • High mutual fund fees and margin rates |
| • Great trading platforms and research | • Slower account verification |
| • US and international stocks | • Slow live chat |
#4 Fidelity
Fees
Fidelity has low trading and non-trading fees, including commission-free stock trading. On the negative side, margin rates and fees for some mutual funds can be high.
| Pros | Cons |
|---|---|
| • Free stock and ETF trading | • High fees for non-free mutual funds |
| • Low bond fees | • High margin fees |
| • No inactivity fee |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| US stock | $1.0 | $0.0 | $0.0 | $0.0 | $0.0 |
| UK stock | $7.8 | - | - | $11.7 | - |
| EURUSD benchmark fee | $7.4 | $7.0 | - | - | - |
| Mutual fund | $15.0 | $50.0 | $20.0 | $37.5 | $24.8 |
| US stock index options | $6.5 | $6.5 | $6.5 | $6.5 | $6.5 |
| US micro e-mini stock index futures | $2.5 | $22.5 | $15.0 | - | $15.0 |
All spreads, commissions and financing rates (if applicable) for opening a position, holding for a week, and closing.
#4 Fidelity
Account opening
Opening an account at Fidelity is easy and there is no minimum deposit. You can also choose among many account types. However, account verification is a bit slow.
| Pros | Cons |
|---|---|
| • No minimum deposit | • Slower account verification |
| • User-friendly | • Not fully digital in some cases |
| • Many account types |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 | $0 | $0 |
| Time to open account | 1-3 days | 1-3 days | 1-3 days | 1-3 days | 1 day |
#4 Fidelity
Deposit and withdrawal
Fidelity offers an exceptionally wide range of base currencies. On the negative side, credit/debit cards are not accepted.
| Pros | Cons |
|---|---|
| • Free withdrawal | • Credit/Debit card not available |
| • No deposit fee | |
| • Several account base currencies |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Bank transfer | Yes | Yes | Yes | Yes | Yes |
| Credit/debit card | No | No | No | No | No |
| Electronic wallets | No | No | No | Yes | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#4 Fidelity
Markets and products
Fidelity offers a lot of different trading products, from stocks to options, including international stocks. However, forex and futures trading is not available.
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Stock | Yes | Yes | Yes | Yes | Yes |
| ETF | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | Yes | No | No | No |
| Fund | Yes | Yes | Yes | Yes | Yes |
| Bond | Yes | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes | Yes |
| Futures | Yes | Yes | Yes | No | Yes |
| CFD | Yes | No | No | No | No |
| Crypto | Yes | Yes | Yes | No | Yes |
#4 Fidelity
Web trading platform
Fidelity's web platform is easy to use, has many order types and provides two-step authentication. On the negative side, it is not customizable.
| Pros | Cons |
|---|---|
| • User-friendly | • Limited customizability (for charts, workspace) |
| • Clear fee report | |
| • Two-step (safer) login |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Web platform score | 4.5 stars | 4.3 stars | 4.5 stars | 4.5 stars | 4.3 stars |
| Mobile platform score | 3.8 stars | 4.8 stars | 4.5 stars | 4.5 stars | 4.2 stars |
| Desktop platform score | 3.0 stars | 4.5 stars | - | 3.8 stars | 4.0 stars |
#4 Fidelity
Verdict
Fidelity is one of the biggest US stockbrokers and is regulated by top-tier authorities.
Fidelity offers commission-free US stocks and ETFs. The trading platforms and research are outstanding, with many tools including trading ideas and detailed fundamental data. The offered range of products includes international stock exchanges in addition to the US market, which is not common among US brokers.
Fidelity has some drawbacks, though. Some mutual funds have high fees, and the margin rates are high as well. The account verification process and live chat support are both a bit slow.
As it has great research tools, a user-friendly web trading platform, and charges no inactivity fee, feel free to try Fidelity's services.
| Fidelity | |
|---|---|
| Summary | Fidelity is a US stockbroker. It is regulated by top-tier authorities SEC and FINRA. |
| Fees score | 4.2 stars |
| Recommended for | Investors and traders looking for solid research and great trading platforms |
#5 Best online broker
Charles Schwab
Charles Schwab is a US discount broker that was founded in 1971 and is listed on the New York Stock Exchange.
It is regulated by several top-tier financial authorities, such as the US Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and the UK's Financial Conduct Authority (FCA).
Recommended for investors and traders looking for solid research, low fees and great customer service
| Pros | Cons |
|---|---|
| • Free stock and ETF trading | • High fees for some mutual funds |
| • Outstanding research | • Only US/Canada markets available |
| • Great customer service | • Poorly-structured educational platform |
#5 Charles Schwab
Fees
Charles Schwab offers free stock and ETF trading, some mutual funds and bonds are also free, while non-trading fees are low. On the negative side, some mutual fund fees are high.
| Pros | Cons |
|---|---|
| • Free stock/ETF trading | • High fees for non-free mutual funds |
| • Some mutual funds and bonds are free | |
| • Low non-trading fees |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| US stock | $1.0 | $0.0 | $0.0 | $0.0 | $0.0 |
| UK stock | $7.8 | - | - | $11.7 | - |
| EURUSD benchmark fee | $7.4 | $7.0 | - | - | - |
| Mutual fund | $15.0 | $50.0 | $20.0 | $37.5 | $24.8 |
| US stock index options | $6.5 | $6.5 | $6.5 | $6.5 | $6.5 |
| US micro e-mini stock index futures | $2.5 | $22.5 | $15.0 | - | $15.0 |
All spreads, commissions and financing rates (if applicable) for opening a position, holding for a week, and closing.
#5 Charles Schwab
Account opening
Opening an account at Charles Schwab is easy, fast and fully digital. There is no minimum deposit for US clients, but other clients have to transfer a $25,000 minimum to start.
| Pros | Cons |
|---|---|
| • Fast | • $25,000 minimum deposit for non-US clients |
| • Fully digital | |
| • No minimum deposit |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 | $0 | $0 |
| Time to open account | 1-3 days | 1-3 days | 1-3 days | 1-3 days | 1 day |
#5 Charles Schwab
Deposit and withdrawal
Funding your account is easy and user-friendly at Charles Schwab and there is no deposit fee. However, you can only use bank transfer and there is a high fee for wire withdrawals.
| Pros | Cons |
|---|---|
| • No deposit fee | • High fee for wire (bank transfer) withdrawals |
| • User-friendly |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Bank transfer | Yes | Yes | Yes | Yes | Yes |
| Credit/debit card | No | No | No | No | No |
| Electronic wallets | No | No | No | Yes | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#5 Charles Schwab
Markets and products
At Charles Schwab, you can trade a lot of different asset classes, from stocks to futures. Unfortunately, the product portfolio covers only US and Canadian markets.
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Stock | Yes | Yes | Yes | Yes | Yes |
| ETF | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | Yes | No | No | No |
| Fund | Yes | Yes | Yes | Yes | Yes |
| Bond | Yes | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes | Yes |
| Futures | Yes | Yes | Yes | No | Yes |
| CFD | Yes | No | No | No | No |
| Crypto | Yes | Yes | Yes | No | Yes |
#5 Charles Schwab
Web trading platform
Charles Schwab offers a good web-based trading platform with a clean design. On the negative side, the platform is not customizable.
| Pros | Cons |
|---|---|
| • User-friendly | • Limited customizability (for charts, workspace) |
| • Clear fee report | |
| • Price alerts |
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Web platform score | 4.5 stars | 4.3 stars | 4.5 stars | 4.5 stars | 4.3 stars |
| Mobile platform score | 3.8 stars | 4.8 stars | 4.5 stars | 4.5 stars | 4.2 stars |
| Desktop platform score | 3.0 stars | 4.5 stars | - | 3.8 stars | 4.0 stars |
#5 Charles Schwab
Verdict
Charles Schwab is one of the biggest discount US brokers, regulated by top-tier authorities.
It was one of the first brokers, starting in late 2019, to charge no commissions for stock and ETF trades. Its research is outstanding, covering many tools, including trading ideas, Morgan Stanley analyst reports on equities, and detailed fundamental data. Customer service is great, providing relevant answers within a short time.
It does have some drawbacks, though. Except for the around 4,000 mutual funds that are free to trade, mutual fund costs are high and the product portfolio covers only US and Canadian markets. Lastly, the educational platform is not well-structured.
As trading and non-trading fees are generally low, research tools are great and the account opening is seamless, feel free to try Charles Scwhab.
| Charles Schwab | |
|---|---|
| Summary | Charles Schwab is a US discount broker, regulated by top-tier US authorities the SEC and FINRA. The company is listed on the New York Stock Exchange and holds a banking license. |
| Fees score | 4.4 stars |
| Recommended for | Investors and traders looking for solid research, low fees and great customer service |
Best online brokers
What makes a good online broker
Now that you know the top 5, you are probably curious how we came up with this list. Let's go through a few points quickly. What is an online broker? Why do we think these brokers are safe? What are the most important factors when selecting the best online brokers?
What is an online broker?
Thirty years ago, if you wanted to buy a stock, you had to pick up the phone and call your broker, who executed the transaction in return for a commission. Brokers back then were very much like the characters in the movie 'Wolf of Wall Street'. They were constantly monitoring stock prices while holding the phone and shouting. The Internet changed all that. Nowadays, if you want to invest in Apple shares, you open an online account, deposit money, and create an order on the brokers' online platform. These platforms are the online brokers. Online brokers help you buy and sell securities like stocks and ETFs. After setting up your order, the online broker executes it immediately. The entire process happens online.
Are these brokers safe?
Each broker on our list is considered safe. You can be sure none of them is a scam. They are all regulated by at least one top-tier regulator.
However, brokerage companies can also go bust. Remember the collapse of Lehman Brothers? In such cases, it is important to know what happens with your securities and cash. Your funds are usually held in segregated accounts, so even if your broker goes bankrupt, your funds are safe.
If all goes wrong, and for example, the broker can\'t pay your back your money, then you have a last resort, the compensation fund of the country where the broker is regulated.
How did BrokerChooser pick the best online brokers?
At BrokerChooser, we test online brokers based on more than ~300 criteria, with real accounts and real money. We don't want to overwhelm you, so we will list only the five top criteria.
| 1. Fees | The trading fees of a typical US equity trade can be 50 times higher at one online broker compared to another. It's definitely worth checking these fees. |
| 2. Account opening | Some online brokers require a minimum deposit to start investing while others don't ask for a fix first-time deposit. Check these requirements at the best online brokers. |
| 3. Deposit and withdrawal | At some online brokers, funding and withdrawing funds can take 5 times longer and be much more expensive than at others. |
| 5. Trading platform | A user-friendly and well-equipped trading platform can significantly increase your trading comfort. |
| 4. Markets and products | Want to invest in Amazon or trade Bitcoin? They might not be available. Check the product lineup before opening an account. |
Best online brokers
Bottom line
These were the details, now let's zoom out. Here are the best online brokers in 2021:
| Interactive Brokers | TD Ameritrade | E*TRADE | Fidelity | Charles Schwab | |
|---|---|---|---|---|---|
| Overall score | 4.9 | 4.9 | 4.9 | 4.9 | 4.8 |
| Best in | Best online broker | Best broker for bonds | Best broker for ESG | ||
| Fees score | 4.2 stars | 4.3 stars | 4.4 stars | 4.2 stars | 4.4 stars |
| Account opening score | 3.4 stars | 3.6 stars | 4.4 stars | 3.6 stars | 4.4 stars |
| Deposit and withdrawal score | 3.5 stars | 2.2 stars | 2.2 stars | 3.8 stars | 2.2 stars |
| Markets and products score | 5.0 stars | 4.0 stars | 3.1 stars | 3.9 stars | 3.3 stars |
| Web platform score | 4.5 stars | 4.3 stars | 4.5 stars | 4.5 stars | 4.3 stars |
| Mobile platform score | 3.8 stars | 4.8 stars | 4.5 stars | 4.5 stars | 4.2 stars |
| Visit broker | Visit broker | Visit broker | Visit broker | Visit broker |
Interactive Brokers is our winner, having been selected the best online broker in 2021. Low trading fees. Wide range of products. Many great research tools.
All of these brokers are considered safe and a great choice. Pick the winner, or any of the runners-up, and take the next step in your trading journey. Let us know what you think in the comments section.
Still unsure? For a tailored recommendation, check out our broker finder tool. If you enter the name of your country, it will show only the brokers that are relevant to you. Want more details? Compare brokers with the help of this detailed comparison table.
