Top low cost investment companies with the best trading commissions on stocks, options, mutual funds, and ETFs

4.5-star brokerage firm rating

  • Stocks & ETFs: $0
  • Mutual Funds: $49.99 to buy, $0 to sell
Promotion: $0 stock/ETF trades + transfer fee refund.

TD Ameritrade is an excellent brokerage firm for price-conscious investors. Stock and ETF commissions are $0.

This low cost broker gets top marks for a history of excellent customer service and its interactive trading platform, which is fully customizable and user friendly. Beginners will appreciate the ease of use of the trading tools. TD Ameritrade's investment research tools are also intuitive and easy to understand. New investors can also take full advantage of the company's excellent education center, which allows users to gain more knowledge on investing strategies. There is even a section dedicated to “Rookies” where beginners can learn the basics on everything, from bonds to options trading strategies.

Best Low Cost Broker

TD Ameritrade's investment products are inline with bigger names in the industry, and even include forex and futures trading which few other online brokers offer.

TD Ameritrade's top advantages are:

  • Very low trading commissions
  • No minimum to open an account
  • No account inactivity or maintenance fees
  • Free DRIPs (dividend reinvestment plans)
  • Advanced trading tools, interactive charts, and user-friendly platform
More in TD Ameritrade Review »

Webull Rating

  • Stocks & ETFs: $0
  • Options: $0 per contract
  • Crypto-currencies: $0
  • Mutual Funds: n/a
Promotion: Grab your last chance to get 12 free stocks valued up to $30,600.

Webull is the lowest cost brokerage firm that offers an amazing price - rock-bottom $0 commission on all trades! Don't look for a catch - there is none. The company makes money on optional add-on features which many clients don't need to use.

Best low cost investment firm

Webull is rated the best low cost broker for stock, ETF, and crypto coins investors as well as for options traders. The broker's top advantages include:

  • $0 commissions on all products
  • Low margin rates
  • No inactivity or account maintenance fees
  • Free DRIPs (dividend reinvestment plans)
  • Clean and easy to navigate website
  • $0 minimum to open an account
More in Webull Review »

Investing In Stocks With A Low Cost Brokerage

Stocks have historically provided a higher average annual rate of returns than other investments, including bonds and cash equivalents. There are two ways investors can make money by investing in stocks. The first one is through stock appreciation, and the second way is through growth or dividends. However, past performance is no guarantee of future results. Global economy, business and economic conditions, government and an investor's actions can affect the value of stock; therefore, there are no assurances that the stock will increase in value.

It is important to diversify among different stocks, types of stocks, as well as stocks of different industries and companies to avoid putting all of your eggs in one basket. Investors can choose to invest into growth stocks, income stocks, blue chips stocks, value stocks and penny stocks. The latter are highly speculative and very risky investments.

By offering free tools and research within their online accounts, discount brokerages firms make it easier for investors to determine the right stock that fits investment objectives. Stock screeners and even predefined screeners are designed to help clients identify potential investments based on market capitalization, performance, dividends, P/E ratio and other criteria. Both low cost brokers mentioned above offer excellent search tools for stocks.

Before You Start Investing In Stocks With A Low Cost Broker

It is important to know, that discount brokerage firms often get compensated through additional fees charged to investors' accounts. There is nothing bad about it. Some fees can be waived with conditions, therefore can be easily avoided. Review all account fees before opening an account and make sure that you fully understand every fee. Early precautions can prevent later misunderstandings and can save you a fortune over a long time.

Opening A Low Cost Brokerage Account With A Special Offer

Brokers frequently provide special offers and incentives to entice new customers. Brokerage firms offer cash bonuses and free trades, which are the most inexpensive way to establish your portfolio with a broker and increase your earnings, potentially.

Brokerage promotions are one of the ways to cut trading commissions. Yet, it is usually one time offer, it's rarely offered to existing customers. Low stock trading commissions save you much more in a long run, especially if you are a cost-conscious investor or an active trader. It is rare when you can take advantage of both, a special offer and low pricing. Currently, both TD Ameritrade and Firstrade offer excellent incentives to new clients for opening an account.