Investors looking for a great broker have many options to choose from. Whether looking for a traditional brokerage firm, a discount broker, or a fin-tech company offering a new approach to investing, there is a growing list of brokerage firms to choose from.
Top Brokerage Firms
When you want to find the best brokerage firms, you’ll need to consider what you need from your broker. As different brokers offer their own collection of services and investment vehicles, it is crucial to find a broker that fits your needs, goals, and expectations.
With such a long list of brokerage firms to choose from, narrowing down your options is not always easy. To make it easier for you, we’ve curated a list of the top brokerage firms in the U.S.
So, who are the top 10 brokerage firms? Keep reading to find out.
Top Ten Brokers
The top 10 brokerage firms on our list share some common attributes: they offer a good selection of tools and services and have some of the best rates in the industry.
At the top of our best brokerage firms list, we have some heavy hitters in the retail investment space. Fidelity, Schwab, and Firstrade each come with a full suite of investment and banking services to support virtually any investor type.
Each offers a good selection of account types (individual cash/margin, joint brokerage, retirement, educational, custodial, corporate, small business, cash management, and international), low rates, and a solid selection of investment vehicles (U.S.-listed stocks and ETFs, Forex, futures, crypto, mutual funds, fixed-income products, OTC, Pink Sheets, and more).
Schwab has acquired TD Ameritrade. With that acquisition comes thinkorswim, which gives the broker an edge in terms of technical analysis and professional charting.
Fidelity comes out on top for wealth management, low account-related fees, and cash management features.
Firstrade is the preferred option for low-cost trading and direct access to cryptocurrency markets.
Next up, we have some younger brokers that have made a name for themselves by bringing something new to the investment space.
Webull is a commission-free broker that offers an excellent charting experience across virtually any device type. In addition to low rates and free access to pro-level trading tools, Webull has some of the most generous promotional programs.
Robinhood is similar to Webull in many respects. It offers an ‘easy’ way to access the financial markets, comes with low rates, and provides an excellent mobile experience. Robinhood’s IRA contribution match program helps the broker stand out for investors looking for that.
Brokers holding a four-star rating are generally good but are lacking in one area or another. However, it is important to point out that these brokers are only ‘lacking’ when comparing them to the top brokerage firms in the U.S. For example, IBKR, TradeStation, Tastytrade, E*TRADE, and J.P. Morgan have four stars but are all excellent brokers.
Choosing the Best Broker
We consider many categories and details when deciding which brokers deserve a place on our list of top brokerage firms. Cost, account features, promotions, investment options, available account types, and trading tools are primary considerations.
Let’s take a closer look.
Cost
Most of the top-rated brokerage firms on our list have competitive prices. To find the brokers with the lowest fees, there are several things that we look at.
Commissions and margin rates are important, but we also consider maintenance requirements, account minimums, and inactivity fees. Subscriptions for market data and other premium services like news, account management features, and advisor services are also included.
Our favorite low-cost brokers are:
- Charles Schwab
- Webull
- Firstrade
Promotions
Promotional content and bonuses are also important to many investors – especially when looking for a new broker. The best brokerage firms often provide numerous bonuses. Examples are free stocks, cashback programs, referral programs, trial periods for premium services, and transfer cost reimbursements.
The brokers with the best bonuses are:
- Webull
- Firstrade
- E*TRADE
Account Features
The top 10 brokerage firms on our list have many account features that give investors more options to manage their money. You’ll see margin-based features like securities lending, margin loans, and short selling. Services like managed portfolios and account management, as well as robo-investing and AI-powered portfolio rebalancing features.
The best brokerage firms for account features are:
- Charles Schwab
- Fidelity
- Firstrade
Investment Vehicle Selection
Regarding investment vehicles, some brokers keep it simple, only offering U.S.-listed stocks and ETFs. Others provide access to a long list of investment products. While there is no ‘best’ option in this category, we give credit to brokers who go the extra mile.
If you are interested in accessing foreign stocks, Pink Sheets, Forex, futures, mutual funds, bonds, or cryptocurrencies, you’ll be well served by one of the highly-rated brokers from our list.
The top brokerage firms for investment options are:
- Charles Schwab
- Firstrade
- IBKR
- E*TRADE
- TradeStation
Account Types
Like investment vehicle selection, the availability of account types differs significantly from broker to broker.
Every brokerage offers basic investment accounts like margin and cash accounts. If you need an account that helps you plan for a child’s future or your own retirement, education, custodial, and IRA account options will be important to you. If you want to operate a brokerage account with another person, you’ll need to find a broker that offers joint brokerage accounts. Likewise, if you’re going to open a brokerage account with an ITIN, consider a broker that provides international account options.
Brokers with the widest range of account types are:
- Charles Schwab
- Fidelity
- Firstrade
- E*TRADE
Trading Platforms
Another important consideration when selecting the best brokerage firms is the available trading software and analytical tools. We look at platform availability and how well those platforms assist traders in their investment activity.
Some of the best brokers for professional investors include trading platforms with advanced features. Examples include support for third-party technical analysis add-ons, customizable charts, support for multiple monitor setups, hotkey trade execution, advanced order entry, and direct access routing.
Brokers also need to consider the growing need for mobility in trading. Most of our favorite brokers offer a solid choice for browser-based trading and feature-rich mobile applications that are easy to use.
Brokers with the best trading platforms are:
- Thinkorswim
- Fidelity
- Webull
- IBKR
- TradeStation
Brokers with the best mobile apps are:
- Webull
- Robinhood
