Top Brokerage Firms
Investors in the U.S. now have many options to choose from when it comes to brokerage firms. From small brokers to large, from new
entrants to old dogs, traders have a rich selection of companies that fit their particular needs. In this highly
competitive market environment, brokerage firms must maximize profits in some areas while cutting fees in others to attract and keep
customers. So who are the top brokerage firms in 2021? Let's take a look to find out.
The Best Brokerage Firms On The List
Coming in at 4½ out of 5 stars the best brokerage firms in 2021 are TD Ameritrade and Ally Invest.
TD Ameritrade is a well-known, established and heavily-advertised
online broker. With 12 million customers, the company is among the biggest brokerages in the U.S.
TD Ameritrade has no minimum opening deposit, which gives investors a great opportunity to explore the broker's trading platform and other features before committing
any money. The broker offers the best in the industry trading platform called Thinkorswim at no charge to all customers.
New investors can start investing
with the broker's website-based trading platform and move up to either of TD Ameritrade's two advanced trading platforms
as soon as their trading skills improve.
Free advanced trading tools, great customer support, personalized service at branches, a broad set of instruments, including great
selections of mutual funds as well as the safety and security of a large company
make TD Ameritrade stand out among other investment companies on the list. TD Ameritrade is a top brokerage firm
for long-term investors and novices. Also, it ranks among the best stock brokers for in-person service and for options
traders.
Learn more about
TD Ameritrade »
Ally Invest is another high-rated brokerage firm that does not require a minimum investment to open an account and
provides an opportunity to explore their tools at no charge. This company offers some of the lowest commissions on stocks, ETFs and options.
Mutual fund commissions are the lowest among the largest discount brokers. Ally Invest gets top marks for a history of
excellent customer service, and for its trading platform Ally Invest LIVE that is fully customizable and user friendly.
Learn more about
Ally Invest »
At the third and fourth place on the list, are two big-name companies which are offering services
of both a traditional full-service brokerage house and a discount broker. Rated four and half stars,
these companies are Fidelity Investments and Charles Schwab. Customers receive more personalized
services and some features that are not available at other broker dealers. Buy-and-hold investors
and those who prefer a more personalized approach will be satisfied. The two companies offer advanced
trading platforms for active investors.
Taking the fifth position is Firstrade. Unlike the top 4 online brokers, this firm offers trades on
almost all investment products for $0 commission. It charges $0 account fees and has no opening deposit
requirement. Firstrade provides easy-to-use tools and free DRIPs.
More about
Firstrade »
Other Brokerage Firms
Further down the list, there are TradeStation and Interactive Brokers — highly rated brokers
catering to experienced and active traders. These companies offer low commissions, advanced
trading platforms and access to international markets. With main focus on high-volume frequent
traders, TradeStation now requires no minimum deposit to open an account. TradeStation's direct-access
trading platform is highly customizable and one of the best in the industry. Interactive Brokers was
the cheapest online broker for occasional and frequent traders before Firstrade lowered its cost to
$0.
Further down, Merrill Edge offers flat-rate commissions, has no minimum funding
or balance requirements and no maintenance or inactivity fees for
its taxable brokerage or IRA accounts. The broker offers mediocre services in comparison with the leading brokerage firms. However,
current Bank of America customers might find Merrill Edge services very convenient.
Wells Fargo's self directed brokerage firm — WellsTrade — has average commissions, poor trading tools and some fees that are not charged by many other
competitors. On the bright side, the brokerage offers good banking services.
USAA Investments moved down a few spots on the list. The brokerage offers good investment services
but is falling behind competitors in some important areas. The firm's fees are clear and
straightforward but trading tools are behind the industry's standards.
Even lower is SpeedTrader which is focusing on active traders. Advanced trading platforms are
offered for high fees. No investment research is provided. The broker is one of the few to still
charge commissions on stocks and ETFs.
Final Thoughts
Which brokerage company is the best for a particular investor ultimately depends on many factors. Firms with no minimum deposit requirement, such as
Ally Invest and Firstrade, would be a good choice for investors who have low capital to invest. Investors who trade frequently should consider
TD Ameritrade or Etrade for their advanced tools. Traders who need good customer service and have at least $2,500 to deposit can look to Fidelity or Charles Schwab for some extra guidance.
