Trade on IBKR
To find the best online brokers in 2020, we went ahead and did the research for you. After testing, analyzing and comparing 71 brokers, 5 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 2020:
- Interactive Brokers is the best online broker in 2020. Low trading fees. Wide range of products. Many great research tools.
- Fidelity in the second place. Solid research tools. Great web trading platform. US and international stocks.
- TD Ameritrade rounded out the top three. Low trading fees (free stock and ETF trading). Superb desktop trading platform. Great customer support.
- Charles Schwab, numero quatro. Free stock and ETF trading. Outstanding research. Great customer service.
- Saxo Bank. Great trading platform. Outstanding research. Broad product portfolio. Just made it to the list with being number five.
| Broker | Accepts clients from | Score | Best in | |
|---|---|---|---|---|
| #1 | Interactive Brokers | Globally | 4.9 | Best online broker |
| #2 | Fidelity | US | 4.8 | Best broker for bonds |
| #3 | TD Ameritrade | US, China, Hong Kong, Malaysia, Singapore, Thailand, Taiwan, Canada (through TD Direct Investing) | 4.9 | Best desktop trading platform |
| #4 | Charles Schwab | US | 4.9 | |
| #5 | Saxo Bank | Globally | 4.8 | Best web trading platform |
What makes a good online broker? First of all, they need to offer fair fees and to have a good safety score. It must also be easy to open an account and deposit money. They should give access to many products and need to have a great platform.
Easy to list, but hard to figure it out. We are testing brokers more than 100 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? For a tailored recommendation, check out the broker finder tool. You can enter your country and it will show only the relevant brokers. Want more details? Compare brokers with this detailed comparison table.
And now, let's see the best online brokers in 2020 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 inactivity fee |
#1 Interactive Brokers
Fees
Interactive Brokers has low trading fees; while 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 |
| • Low stock and ETF fees | |
| • Free stock and ETF trading for US clients | |
| • Low margin rates |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| US stock | $1.0 | $0.0 | $0.0 | $0.0 | $10.0 |
| UK stock | $7.2 | $10.8 | - | - | $9.6 |
| EURUSD benchmark fee | $17.9 | - | $13.4 | - | $15.7 |
All spreads, commissions and financing rate 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 | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 | $0 | $10,000 |
| Time to open account | 1-3 days | 1-3 days | 1-3 days | 1 day | >3 days |
#1 Interactive Brokers
Deposit and withdrawal
Interactive Brokers offers many account base currency options and one free withdrawal per month. The main drawbacks are that you can only use bank transfer, and the process is not user-friendly.
| Pros | Cons |
|---|---|
| • No deposit fee | • Credit/Debit card not available |
| • Several account base currencies | • Not user-friendly |
| • First withdrawal each month free |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Bank Transfer | Yes | Yes | Yes | Yes | Yes |
| Credit/Debit card | No | No | No | No | No |
| Electronic wallets | No | Yes | No | No | 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 | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Stock | Yes | Yes | Yes | Yes | Yes |
| ETF | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | No | Yes | No | Yes |
| Fund | Yes | Yes | Yes | Yes | Yes |
| Bond | Yes | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes | Yes |
| Futures | Yes | No | Yes | Yes | Yes |
| CFD | Yes | No | No | No | Yes |
| Crypto | Yes | No | No | No | Yes |
#1 Interactive Brokers
Web trading platform
Interactive Brokers's web platform is simple and easy to use, even for beginners. 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 | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Web platform score | 4.3 stars | 4.5 stars | 4.3 stars | 4.3 stars | 5.0 stars |
| Mobile platform score | 3.5 stars | 4.5 stars | 4.8 stars | 4.2 stars | 5.0 stars |
| Desktop platform score | 3.0 stars | 3.8 stars | 4.5 stars | 4.0 stars | 5.0 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 for advanced traders.
On the plus side, IB has low fees, a vast range of markets and products available with diverse research tools.
There are some drawbacks though: there is a high inactivity fee 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 | 4.3 stars |
| Recommended for | Traders looking for low fees and a professional trading environment |
#2 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 |
|---|---|
| • Solid research tools | • Not fully digital account opening |
| • Great web trading platform | • High mutual fund fees |
| • US and international stocks | • High financing rates |
#2 Fidelity
Fees
Fidelity has low trading fees and low non-trading fees. There are no commissions for stock trading, which is great. On the negative side, fees for some mutual funds and financing rates can be high.
| Pros | Cons |
|---|---|
| • Low non-trading fees | • High financing rate |
| • Free stock and ETF trading | • Higher fees for non-free mutual funds |
| • Some mutual funds are free |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| US stock | $1.0 | $0.0 | $0.0 | $0.0 | $10.0 |
| UK stock | $7.2 | $10.8 | - | - | $9.6 |
| EURUSD benchmark fee | $17.9 | - | $13.4 | - | $15.7 |
All spreads, commissions and financing rate for opening a position, holding for a week, and closing.
#2 Fidelity
Account opening
Opening an account at Fidelity is easy and fast, but not fully digital. The application with the relevant ID's photocopy had to be mailed.
| Pros | Cons |
|---|---|
| • No minimum deposit | • Not fully digital |
| • Low minimum deposit | |
| • User-friendly |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 | $0 | $10,000 |
| Time to open account | 1-3 days | 1-3 days | 1-3 days | 1 day | >3 days |
#2 Fidelity
Deposit and withdrawal
Fidelity offers an exceptionally wide range of base currencies. On the negative side, credit/debit cards are not accepted and there is a charge for wire withdrawals.
| Pros | Cons |
|---|---|
| • Free withdrawal | • Credit/Debit card not available |
| • No deposit fee | • $10 for outgoing wire transfers |
| • Several account base currencies |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Bank Transfer | Yes | Yes | Yes | Yes | Yes |
| Credit/Debit card | No | No | No | No | No |
| Electronic wallets | No | Yes | No | No | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#2 Fidelity
Markets and products
Fidelity offers a lot of different trading products, from stocks to options. In addition to US stocks, international stocks are available as well. However, forex and futures trading is not available.
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Stock | Yes | Yes | Yes | Yes | Yes |
| ETF | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | No | Yes | No | Yes |
| Fund | Yes | Yes | Yes | Yes | Yes |
| Bond | Yes | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes | Yes |
| Futures | Yes | No | Yes | Yes | Yes |
| CFD | Yes | No | No | No | Yes |
| Crypto | Yes | No | No | No | Yes |
#2 Fidelity
Web trading platform
Fidelity's web platform is easy to use, has a lot of order types, and provides two-step authentication. On the negative side, the web trading platform is not customizable.
| Pros | Cons |
|---|---|
| • User-friendly | • Limited customizability (for charts, workspace) |
| • Clear fee report | |
| • Two-step (safer) login |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Web platform score | 4.3 stars | 4.5 stars | 4.3 stars | 4.3 stars | 5.0 stars |
| Mobile platform score | 3.5 stars | 4.5 stars | 4.8 stars | 4.2 stars | 5.0 stars |
| Desktop platform score | 3.0 stars | 3.8 stars | 4.5 stars | 4.0 stars | 5.0 stars |
#2 Fidelity
Verdict
Fidelity is one of the biggest US stockbrokers regulated by top-tier authorities.
Fidelity's research is outstanding and covers many tools, including trading ideas and detailed fundamental data. The web trading platform is easy to use and offers advanced order types. 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. The account opening is not fully digital, fees for mutual funds are quite high, as is the financing rate.
Its research tools are great, the web trading platform is user-friendly, and no inactivity fee is charged, so feel free to try Fidelity.
| Fidelity | |
|---|---|
| Summary | Fidelity is a US stockbroker. It is regulated by top-tier authorities the SEC and FINRA. |
| Fees score | 4.1 stars |
| Recommended for | Investors and traders looking for solid research and great trading platforms |
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#3 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 |
#3 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 | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| US stock | $1.0 | $0.0 | $0.0 | $0.0 | $10.0 |
| UK stock | $7.2 | $10.8 | - | - | $9.6 |
| EURUSD benchmark fee | $17.9 | - | $13.4 | - | $15.7 |
All spreads, commissions and financing rate for opening a position, holding for a week, and closing.
#3 TD Ameritrade
Account opening
TD Ameritrade offers many different account types, and US citizens face no minimum deposit.
| Pros | Cons |
|---|---|
| • Fully digital | None |
| • No minimum deposit | |
| • Many account types |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 | $0 | $10,000 |
| Time to open account | 1-3 days | 1-3 days | 1-3 days | 1 day | >3 days |
#3 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 | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Bank Transfer | Yes | Yes | Yes | Yes | Yes |
| Credit/Debit card | No | No | No | No | No |
| Electronic wallets | No | Yes | No | No | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#3 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 | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Stock | Yes | Yes | Yes | Yes | Yes |
| ETF | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | No | Yes | No | Yes |
| Fund | Yes | Yes | Yes | Yes | Yes |
| Bond | Yes | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes | Yes |
| Futures | Yes | No | Yes | Yes | Yes |
| CFD | Yes | No | No | No | Yes |
| Crypto | Yes | No | No | No | Yes |
#3 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 | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Web platform score | 4.3 stars | 4.5 stars | 4.3 stars | 4.3 stars | 5.0 stars |
| Mobile platform score | 3.5 stars | 4.5 stars | 4.8 stars | 4.2 stars | 5.0 stars |
| Desktop platform score | 3.0 stars | 3.8 stars | 4.5 stars | 4.0 stars | 5.0 stars |
#3 TD Ameritrade
Verdict
TD Ameritrade is one of the biggest US online brokers. Joining the hot trend of introducing commission-free trading at the end of 2019, TD Ameritrade now 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 market.
As TD Ameritrade offers great education tools including a demo account, we encourage you to try it.
| TD Ameritrade | |
|---|---|
| Summary | TD Ameritrade is a US stockbroker, regulated by top-tier authorities the 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 |
#4 Best online broker
Charles Schwab
Charles Schwab was founded in 1971 and it is a US discount broker listed on the New York Stock Exchange.
It is regulated by several top-tier financial authorities, such as the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and the 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 | • Product selection covers only the US market |
| • Great customer service | • Not well-structured educational platform |
#4 Charles Schwab
Fees
Charles Schwab offers free stock and ETF trading, while some mutual funds and bonds are also free. Non-trading fees are also low. On the negative side, the fees for some mutual funds are quite high.
| Pros | Cons |
|---|---|
| • Low non-trading fees | • High fees for non-free mutual funds |
| • Free stock and ETF trading | |
| • Some mutual funds and bonds are free |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| US stock | $1.0 | $0.0 | $0.0 | $0.0 | $10.0 |
| UK stock | $7.2 | $10.8 | - | - | $9.6 |
| EURUSD benchmark fee | $17.9 | - | $13.4 | - | $15.7 |
All spreads, commissions and financing rate for opening a position, holding for a week, and closing.
#4 Charles Schwab
Account opening
Opening an account at Charles Schwab is easy, fast and fully digital. For US-clients there is no minimum deposit. If you open an account outside the US, there is a $25,000 minimum deposit.
| Pros | Cons |
|---|---|
| • Fast | • For non-US clients $25,000 minimum deposit |
| • Fully digital | |
| • No minimum deposit |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 | $0 | $10,000 |
| Time to open account | 1-3 days | 1-3 days | 1-3 days | 1 day | >3 days |
#4 Charles Schwab
Deposit and withdrawal
Transferring money is easy and user-friendly at Charles Schwab and there is no deposit fee. 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 | • High fee for wire (bank transfer) withdrawals |
| • User-friendly |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Bank Transfer | Yes | Yes | Yes | Yes | Yes |
| Credit/Debit card | No | No | No | No | No |
| Electronic wallets | No | Yes | No | No | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#4 Charles Schwab
Markets and products
At Charles Schwab, you can trade with a lot of asset classes, from stocks to futures. Unfortunately, the product portfolio covers only US exchanges.
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Stock | Yes | Yes | Yes | Yes | Yes |
| ETF | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | No | Yes | No | Yes |
| Fund | Yes | Yes | Yes | Yes | Yes |
| Bond | Yes | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes | Yes |
| Futures | Yes | No | Yes | Yes | Yes |
| CFD | Yes | No | No | No | Yes |
| Crypto | Yes | No | No | No | Yes |
#4 Charles Schwab
Web trading platform
Charles Schwab offers a good web-based trading platform with a clean design. On the flip side, the platform is not customizable.
| Pros | Cons |
|---|---|
| • User-friendly | • Limited customizability (for charts, workspace) |
| • Clear fee report | |
| • Price alerts |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Web platform score | 4.3 stars | 4.5 stars | 4.3 stars | 4.3 stars | 5.0 stars |
| Mobile platform score | 3.5 stars | 4.5 stars | 4.8 stars | 4.2 stars | 5.0 stars |
| Desktop platform score | 3.0 stars | 3.8 stars | 4.5 stars | 4.0 stars | 5.0 stars |
#4 Charles Schwab
Verdict
Charles Schwab is one of the biggest discount US brokers regulated by top-tier regulators.
Reflecting the wave of introducing commission-free trading at the end of 2019, Charles Schwab charges no commission for stock and ETF trades. Its research is outstanding and covers many tools, including trading ideas and detailed fundamental data. The customer service is great, you will get relevant answers within a short time.
It has some drawbacks though. It charges high fees for some mutual funds and the product portfolio covers only US markets. Lastly, the educational platform is not well-structured.
As the trading and non-trading fees are generally low, research tools are great and the account opening is seamless, feel free to try it.
| 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 |
#5 Best online broker
Saxo Bank
Saxo Bank is a Danish investment bank founded in 1992, providing online trading and investments. The company is regulated by several financial authorities globally, including the Danish Financial Services Agency (FSA) and the UK Financial Conduct Authority (FCA).
Saxo Bank is a global service provider. In the different regions, its subsidiaries are present in the form of separate legal entities. The services offered by each entity might change slightly especially in case of their fees and products available to trade. In this review, we tested Saxo Bank UK.
Saxo Bank is considered safe because it has a long track record, has a banking background, and is regulated by top-tier financial authorities.
Recommended for investors and traders looking for a great trading platform and solid research
| Pros | Cons |
|---|---|
| • Great trading platform | • High bond, options and futures fees |
| • Outstanding research | • High minimum deposit |
| • Broad product portfolio | • Lacks live chat and 24/7 availability |
#5 Saxo Bank
Fees
Saxo Bank has average trading and non-trading fees overall. The fees for forex, mutual funds and stock index CFDs are low, while they are average for real stocks, ETFs or stock CFDs. Bond, options and futures fees are high.
| Pros | Cons |
|---|---|
| • Low fund fees | • Inactivity fee |
| • No withdrawal fee | • High bond, options and futures fees |
| • Transparent fee structure | |
| • Lower fees for Platinum and VIP clients |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| US stock | $1.0 | $0.0 | $0.0 | $0.0 | $10.0 |
| UK stock | $7.2 | $10.8 | - | - | $9.6 |
| EURUSD benchmark fee | $17.9 | - | $13.4 | - | $15.7 |
All spreads, commissions and financing rate for opening a position, holding for a week, and closing.
#5 Saxo Bank
Account opening
Saxo's account opening is fully digital, user-friendly, and available in most of the world. On the other hand, the minimum deposit is high in certain countries, and account verification can take longer.
| Pros | Cons |
|---|---|
| • Fully digital | • Minimum deposit is high in certain countries |
| • User-friendly | • Slow account verification |
| • Available in almost every country |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 | $0 | $10,000 |
| Time to open account | 1-3 days | 1-3 days | 1-3 days | 1 day | >3 days |
#5 Saxo Bank
Deposit and withdrawal
Saxo provides multiple deposit and withdrawal options free of charge on a user-friendly interface.
| Pros | Cons |
|---|---|
| • Credit/Debit card available | • Electronic wallets are not available for deposit or withdrawal |
| • Free withdrawal | |
| • No deposit fee |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Bank Transfer | Yes | Yes | Yes | Yes | Yes |
| Credit/Debit card | No | No | No | No | No |
| Electronic wallets | No | Yes | No | No | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#5 Saxo Bank
Markets and products
Saxo Bank's product portfolio is great. It covers all asset classes and a lot of markets globally. Mutual funds and crypto are the only areas where its selection could be improved.
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Stock | Yes | Yes | Yes | Yes | Yes |
| ETF | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | No | Yes | No | Yes |
| Fund | Yes | Yes | Yes | Yes | Yes |
| Bond | Yes | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes | Yes |
| Futures | Yes | No | Yes | Yes | Yes |
| CFD | Yes | No | No | No | Yes |
| Crypto | Yes | No | No | No | Yes |
#5 Saxo Bank
Web trading platform
Saxo Bank's web trading platform is one of the best among online brokers. It's easy to use, but also provides features favored by professionals, such as an advanced order panel.
| Pros | Cons |
|---|---|
| • User-friendly | None |
| • Clear fee report | |
| • Two-step (safer) login |
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Web platform score | 4.3 stars | 4.5 stars | 4.3 stars | 4.3 stars | 5.0 stars |
| Mobile platform score | 3.5 stars | 4.5 stars | 4.8 stars | 4.2 stars | 5.0 stars |
| Desktop platform score | 3.0 stars | 3.8 stars | 4.5 stars | 4.0 stars | 5.0 stars |
#5 Saxo Bank
Verdict
Saxo Bank is a great broker, providing a complex and good service.
Saxo offers a user-friendly and well-designed trading platform, backed by great research. The product portfolio covers all asset types and many international markets.
It has some drawbacks though. The fees for bonds, options and futures are high. There is also a high minimum deposit for certain countries. Lastly, there is no live chat or 24/7 customer support.
In general, Saxo Bank is one of the best online brokerage companies out there. By opening an account, you will get a broad, well-developed service constantly responding to the needs of clients.
| Saxo Bank | |
|---|---|
| Summary | Saxo Bank is a Danish investment bank. It is regulated by more than 10 financial authorities, including the top-tier UK FCA. |
| Fees score | 2.9 stars |
| Recommended for | Investors and traders looking for a great trading platform and solid research |
Best online brokers
What makes a good online broker
Now you know the top 5. You are probably curious about 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 were like in the Wolf of Wall Street movie. They were checking the stocks' prices while holding a telephone and shouting. Everything changed after the internet appeared. Nowadays if you want to buy Apple shares, you open online an account, deposit money, and make the order through the brokers' online platform. These brokers are the online brokers. Online brokers help you buying and selling securities, like stocks. After making your order, the online broker executes it immediately. Everything is online.
Are these brokers safe?
You can be sure none of them is a scam. They are regulated by top-tier regulators. Some of them are also listed on an exchange, and some have a banking background.
However, also brokerage companies can go down. Remember Lehman Brothers? In these cases, it is important to know what happens with your securities and cash. These are usually held in segregated accounts, so even in case of a broker bankruptcy, you are safe.
If everything goes very bad and for example, the broker steals your assets, 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 more than 100 criteria, with a real account and real money. Not to overwhelm you we list the five most important criteria.
The 5 most important criteria for best online brokers are:
| 1. Fees | The trading fee of a typical US equity trade can be 50 times higher at one online broker compared to another. Worth to check the fees. |
| 2. Account opening | Some online brokers require a minimum to invest, others don't set a minimal first-time deposit. Check out what the best online brokers require. |
| 3. Deposit and withdrawal | Transferring money to your account can be 5 times longer and more expensive at one online broker compared to another. |
| 4. Products and markets | You want to invest in Amazon and Bitcoin? They might not be available. Check the product coverage before opening an account. |
| 5. Trading platform | A user-friendly and well-equipped trading platform can significantly increase your trading comfort. |
Best online brokers
Bottom line
You saw the details, now let's zoom out. Here are the best online brokers in 2020:
| Interactive Brokers | Fidelity | TD Ameritrade | Charles Schwab | Saxo Bank | |
|---|---|---|---|---|---|
| Overall score | 4.9 | 4.8 | 4.9 | 4.9 | 4.8 |
| Best in | Best online broker | Best broker for bonds | Best desktop trading platform | Best web trading platform | |
| Fees score | 4.3 stars | 4.1 stars | 4.3 stars | 4.4 stars | 2.9 stars |
| Account opening score | 3.4 stars | 2.9 stars | 3.0 stars | 4.5 stars | 2.5 stars |
| Deposit and withdrawal score | 2.5 stars | 3.8 stars | 2.2 stars | 2.2 stars | 4.8 stars |
| Markets and products score | 5.0 stars | 3.9 stars | 3.9 stars | 3.3 stars | 5.0 stars |
| Web platform score | 4.3 stars | 4.5 stars | 4.3 stars | 4.3 stars | 5.0 stars |
| Open account | Open account | Open account | Open account | Open account |
Interactive Brokers is our winner, the best online broker in 2020. Low trading fees. Wide range of products. Many great research tools.
All brokers are considered a great choice. Pick the winner, or any runner-up and take the next step in your investment journey. Let us know what you think in the comment section.
Still unsure? Use the broker finder and find the best online broker for you or learn more about investing your money.
