Choose the best discount broker, we did the research for you. We tested in-depth only quality online brokers available for European and US customers. We evaluated fees, funding, withdrawal, product portfolios, account opening, trading platforms and more.
As a result, we filtered out the online brokers with the lowest fees and the highest quality.
Our top eight picks for the best discount brokers in 2018 are:
|Broker||Description||From which regions you can open an account?|
|Interactive Brokers||Leading discount broker from the US||Worldwide|
|DEGIRO||Upcoming Dutch discount broker||Europe|
|tastyworks||Upcoming US low commission option broker||Europe, US, Latin America|
|Tradestation||Large discount broker from the US||Worldwide|
|Pepperstone||Australian discount forex broker||Worldwide except for the US|
|Oanda||US discount forex broker||Worldwide|
|eToro||CFD broker specialized in social trading||Worldwide except for the US|
|Markets.com||Discount CFD broker||Worldwide except for the US|
Head to our country selector to get detailed info on which broker is available in your country.
We have created three online broker categories: discount stockbrokers, discount forex brokers and discount CFD brokers. The three groups substantially differ in several areas, like fee structure, so it makes sense to create the three peer groups. This categorization will also help you to easily find a cheap stockbroker, forex broker or CFD broker.
The best discount broker for beginners is DEGIRO. It has an easy-to-use trading platform and very low fees.
|Funding and withdrawal||★★||★★★||★★||★★★|
|Trading platform (web)||★★||★★★★||★★★★||★★★|
|Funding and withdrawal||★★★★★||★★★★|
|Trading platform (web)||★★★★★||★★★★|
|Funding and withdrawal||★★★★★||★★★★|
|Trading platform (web)||★★★||★★★|
CFDs are complex and very risky products, thus not suitable for everyone. You can easily lose all of your invested money. Start by reading more about CFD trading if you don't have a clue what a CFD is. Just a short FYI for US customers: CFD trading is banned in the US.
Not sure which one to choose? For a personal broker recommendation, check out Brokerchooser's broker selection tool. You input your preferences and you get a personal recommendation fitting your needs.
Want to see more options? For comparing all the brokers, visit our comparison page.
A discount broker by definition is a brokerage company that executes your buy and sell orders at a low trading fee. Discount broker's fees can be lower since they don't provide extra services like full-.service brokers. These extra services include research, personal investment advice, tax planning or robo-advisory.
Discount brokers were appearing with the wider penetration of the internet and the online broker services. Brokerage companies started to provide their service online and fully automatized. This was the rise of the online trading platforms. An online trading platform is basically a website, where you can insert your own orders and you get only a customer support, no investment advice.
The distance between the full-service brokers and discount brokers has been narrowing in the last 5-10 years. Discount brokers started to provide extra services as well, like research, while full-service brokers started to lower their fees.The full brokerage and wealth management industry is under a fee pressure thanks to the more and more cost-effective online broker companies.
Nowadays, the new discount brokers are the free-trade brokers. These provide commission-free trading and charge an extra fee for ancillary services, like after hour trading. The biggest free-trade online broker in the US is Robinhood. In the UK, Freetrade is planning to launch its trading app this year. Stay tuned, we will come out with a Robinhood and Freetrade broker reviews soon.
A few years ago, I switched almost entirely to the market of futures options. I used to trade a lot with stock options and ETF options, but today I rarely do that. Let's see why!
But before explaining why I like futures options, it is worth clarifying what futures trading means, as this topic is totally obscure even for many advanced traders.