Stock trading platforms allow you to buy and sell securities like stocks, bonds, ETFs and more from a convenient location. These brokerages offer many benefits, including low fees for trades and research.
Fidelity has a solid home base with its investing account dashboard, while TradeStation has top-of-the-line tools. The best online brokers also have educational resources for beginners.
E*TRADE
E*TRADE’s broad range of features appeal to beginner investors and sophisticated traders alike. Its deep research menu includes consensus ratings from third parties and breakdowns of individual analysts via TipRanks. In addition, its Power E*TRADE platform offers 145 charting tools and a live-streaming Bloomberg TV feed.
The broker’s more beginner-friendly mobile app offers basic trade idea screeners for stocks, ETFs, and mutual funds that fit your trading philosophy. The app also integrates with portfolio analysis, quotes, and market research tools.
Unlike some competing brokers, E*TRADE accepts payment for order flow, which means it receives money from certain market makers when it routes an investor’s order to them. This revenue source is offset by lower commissions for US-listed equities. It also offers downloadable capital gains tax documents, calculation of future trades’ impact on net worth, and unrealized gain/loss reports.
M1 Finance
M1 Finance is an automated investing platform that offers a unique approach to investment management. Its extensive customization options are a major differentiator from the majority of robo-advisors that simply match you with an ideal allocation. This flexibility also makes it easier to build a diverse portfolio using the platform.
The M1 platform combines brokerage features with pre-made portfolios and push-button rebalancing to provide a simple investing experience for investors. It offers a range of accounts, including traditional and Roth IRAs. Members can also open custodial accounts for children.
M1 offers commission-free trading and supports ETFs and stocks on the NYSE and NASDAQ. Its fractional shares offer allows investors to fully invest their funds. The platform also uses its own algorithm to automate efficient rebalancing by buying the assets that are underweight and selling those that are overweight.
Robinhood
The commission-free stock brokerage Robinhood is a great choice for people who want to invest in stocks, ETFs, and cryptocurrencies. It also offers options trading and fractional shares. Its mobile app is fast and simple, making it a good choice for beginner investors.
The company pioneered the idea of zero-commission stock trading when it launched in 2015. The app offers free trades on stocks, ETFs, and cryptocurrencies. And its margin rates are lower than those of competitors.
However, it has suffered from several security breaches in recent years. And it doesn’t offer the same variety of account types as full-service brokers like E*TRADE and Schwab. In addition, customers can only reach customer service by email or through the online help center. The company has responded to these issues by beefing up its resources and improving its security.
SoFi
SoFi is a finance company that provides lending, cash management, and investment products in one native digital application. Its lending products include personal loans and student loan refinancing. Its investment products include brokerage and robo-advisor services. The company also offers career advice, content, news, and tools for its members.
Its automated investing portfolios are available at no management fee. They offer a conservative allocation of bonds and an aggressive allocation of stocks. These portfolios lack the diversification and downside protection of competitors’ offerings.
Moreover, SoFi’s automated investment platform does not allow for tax loss harvesting or the synchronization of outside accounts for analysis and recommendations. This could reduce the efficiency of the company’s investment strategies. In addition, the company’s high customer acquisition costs may hamper its growth and profitability.
TD Ameritrade
TD Ameritrade offers a competitive online brokerage experience. It charges no commissions on equity, ETF and options trades in US stocks, minus exchange fees and regulatory fees. It also charges low fees on futures and options contracts.
The broker offers a rich menu of trading features and educational content. Its desktop, web and mobile platforms are easy to navigate and offer feature parity across each version.
Traders appreciate TD Ameritrade’s robust research and data offerings. Its thinkorswim platform is a favorite among active traders who like its backtesting and level II quotes. Its Ticker Tape portal provides daily market commentary and analysis, and its thinkMoney magazine focuses on long-term investing and retirement strategies. TD Ameritrade also has a dense network of physical branches, which is a big perk for those who value face-to-face interactions with financial professionals.
