If you’re ready to invest and trying to find a brokerage account that’s right for you, it’s important to have a comprehensive overview of the main options – and that’s what Bankrate provides below.

We’ve reviewed the top brokers based on the features that matter to individual investors, including trading fees, account minimums, free research, and many other features. We’ve rated each broker on their pros and cons, and here’s how they stack up against the most important aspects for 2021.

Best Online Brokerage Accounts in 2021

Charles Schwab

Schwab has been well known for decades with its customer-centric approach. Charles Schwab does everything right from low fees to solid research to no minimum account – all at a reasonable trading commission. Newbies will appreciate the zero commissions and thousands of funds with no transaction fees, while more advanced traders will appreciate the highly customizable StreetSmart Edge trading platform.

On top of all this, the broker offers great customer support, teaching you how to invest and giving you a quick response.

Commission: $ 0 per share or ETF transaction; $ 0.65 per options contract

Minimum: $ 0

Fidelity Investments

With a reputation for being investor friendly, Fidelity is a great overall choice for your next broker. Fidelity provides a wealth of research and is also highly regarded for its prompt customer support. The broker offers commission-free transactions on stocks and ETFs and also throws thousands of mutual funds with no transaction fees.

The Boston-based broker is great for getting rid of unnecessary account fees, even though they offer a premium experience.

Commission: $ 0 per share or ETF transaction; $ 0.65 per options contract

Minimum: $ 0

TD Ameritrade

TD Ameritrade is ideal if you are looking for a broker who can go anywhere. Besides the usual stocks, bonds, ETFs and options, you will also have access to futures and forex. This is in addition to over 4,000 mutual funds with no transaction fees.

With free research and the high powered thinkorswim trading platform available to investors, this is a winner. And of course, this top broker does not charge any commission on stock and ETF transactions.

(Charles Schwab bought TD Ameritrade and will eventually integrate the two companies.)

Commission: $ 0 per share or ETF transaction; $ 0.65 per options contract

Minimum: $ 0

E-commerce

If you want access to all types of investing then E-Trade can give it to you, with access to stocks, bonds, options, ETFs, mutual funds and futures. You will also be able to purchase over 4,500 mutual funds with no transaction fees.

You’ll get full customer support (think 24/7 access via email, phone, and online chat), a high-quality mobile app in Power E-Trade, and plenty of research and review on the market, if you are looking for it.

Commission: $ 0 per share or ETF transaction; $ 0.65 per options contract, with a discount of $ 0.50 for 30 or more trades per quarter

Minimum: $ 0

Interactive brokers

With its clean trading interface, Interactive Brokers only looks like a no-frills broker. But this “broker for the pros” has put all of his resources into creating a great experience for active traders. It should come as no surprise, then, that this is a top choice among advanced traders and those who appreciate the finer points, such as quick execution of trades. Volume based discounts and a professional level trading platform attract a lot of these active traders.

You can stick with the broker’s Pro platform with minimum commissions of $ 1 (or half a cent per share above 200 shares) or enter the game for $ 0 in commissions if you level up. Lite service from the broker.

Commission: $ 0 (Lite service) or $ 1 minimum per transaction (Pro service), with volume discounts available; $ 0.65 per options contract

Minimum: $ 0

Merrill Edge

Merrill Edge’s strong point is the research it offers to clients, which comes from the broker’s extensive team of internal analysts. The package includes detailed analyst reports for the companies it covers, and Merrill has some good educational material for newbie investors as well.

One of the best features is the broker’s integration with Bank of America, which allows you to quickly transfer money from one bank to another, and all at a great price: free!

Commission: $ 0 per share or ETF transaction; $ 0.65 per options contract

Minimum: $ 0

Ally Invest

Ally Invest is a good addition for Ally Bank clients who need a fully functioning broker capable of executing all kinds of trades – stocks, ETFs, bonds, mutual funds and even forex, if you like that. You will get the industry standard commission on stocks and ETF trades, and you can earn a higher than industry commission on options contracts at just $ 0.50.

Although the broker does not have any mutual funds with no transaction fees, they do offer a low base price ($ 9.95) for such transactions.

Commission: $ 0 per share or ETF transaction; $ 0.50 per options contract

Minimum: $ 0

What to consider when choosing an online broker

If you’re just getting started, the world of investing can seem daunting. It’s good to start slowly and work your way through it. The good news for investors is that it has never been easier or cheaper to trade with an online broker. When looking for a broker, you’ll want to consider your needs first:

• Are you looking to trade for the short term or invest for the long term?
• Do you need a full broker that gives you access to retirement accounts like a Roth IRA or professional accounts like a SEP IRA?
• Looking to invest regularly but not really keeping up with the market?
• Do you want to invest in individual stocks or do you prefer funds?
• How much customer support do you need?

From there, you can start to think about how each broker can meet these needs. Some brokers such as Interactive Brokers are really geared towards advanced traders, while others such as Charles Schwab and Fidelity Investments make it easier for beginners and long-term investors to get started.

And if you’re just looking to trade with a mobile app and don’t want some of the frills (like retirement accounts), you might also consider turning to Robinhood or Webull.

To find the right broker, you must first identify your needs and then match yourself with a broker who meets them closely.

Are online brokers safe?

The Securities Investor Protection Corporation, or SIPC, protects clients of brokers covered by the plan, including those listed above. Think of it as a kind of FDIC for brokers. This means that it protects a client’s assets, up to $ 500,000 in total with a limit of $ 250,000 in cash, in the event of broker default. Some brokers like Interactive Brokers purchase even more insurance to reassure their clients that their assets are safe with the broker.

But this insurance does not protect you from making a bad investment and losing money. You can buy a stock and its value may go down, and its price may not go up until you’ve paid. While FDIC-backed banking products are fully insured, market-based products can lose money. That said, a long-term investment in a broadly diversified group of stocks can perform very well.

What is the best online stock broker for newbies?

Beginner investors should focus on brokers who are investor friendly, offer a lot of education and research, and offer solid customer service. These factors are essential for new investors to learn the basics of long-term investing and how to navigate the market and brokerage.

Brokers with strong customer support allow you to contact them and ask questions, sometimes at any time of the day by phone or chat. They will also have educational sections on their site that will tell you how to trade on their platform, what to look for in an investment and more.

Thorough research is also helpful if you are just getting started. If you are looking to buy equity funds, such as ETFs or mutual funds, it helps to have a broker who can pick the best choices. If you’re looking to buy individual stocks (which can be riskier for new investors), you’ll want to look for a broker who provides research on the company and its future prospects. But even with these resources, you’ll still want to make your own decision on how and why to invest.

Bankrate has reviewed the best brokers for newbies and offers their top picks.

At the end of the line

Selecting a broker forces you to think about your needs, as the deciding factor is not always the price. If you are a buy-and-hold ETF investor, you will probably need something different than if you are an active trader.

While new investors may find it difficult to choose a broker, you can’t go wrong with any of the names mentioned above. The biggest step has only just begun, so don’t delay. Once you find a broker, you can begin to chart your way to a more secure financial future.

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