4 Best Online Stock Trading Apps and Platforms
Choosing a broker can be difficult due to the wide range of options. While competition has driven many brokers to service commonly traded assets for free, investors evaluating these platforms will still find significant differences in ease of use, trading techniques, account features, and more.
Digging through all of this can be a daunting task, so we've done a lot of the work for you. We conducted an extensive vetting process on these US brokers, which included hands-on research to determine the best trading platforms in the industry.
1. Fidelity Investments: Best Overall
For years, Fidelity has reigned supreme as our top pick for brokerage accounts, thanks to their unwavering focus on the client. While competitors are steadily improving, Fidelity maintains its edge as the overall favorite for investors.
Fidelity's dedication to keeping costs low sets them apart. They refuse to participate in the practice of selling order flow, a tactic that can prioritize profits over getting investors the best execution price. Additionally, Fidelity has consistently reduced its own fees, making investing more affordable.
Beyond cost reduction, Fidelity empowers investors with top-notch tools. Their platform provides excellent resources for portfolio management and analysis. They are constantly innovating to make the experience smoother, like automatically transferring uninvested cash into money market funds. This simple step generates a bit of extra return for clients' portfolios.
Fidelity's commitment to client benefit extends further. They boast exceptional order execution capabilities, ensuring investors get the best possible prices on their trades. They even share revenue generated from their stock loan program with customers.
In a nutshell, Fidelity's unwavering dedication to minimizing client costs while maximizing returns positions them as the clear winner in the online brokerage arena. With their suite of helpful tools and unwavering client focus, Fidelity remains our top choice for overall excellence.
2. TD Ameritrade: Best for Beginners
For years, Fidelity has reigned supreme as our top pick for brokerage accounts, thanks to their unwavering focus on the client. While competitors are steadily improving, Fidelity maintains its edge as the overall favorite for investors (see previous paragraphs).
However, it's important to acknowledge the strengths of other brokers catering to different investor needs. TD Ameritrade, for example, shines brightly when it comes to investor education. Their smooth onboarding process is a godsend for new investors.
While some brokers might offer lower fees or flashier interfaces, TD Ameritrade wins with its resources, comprehensive scope, and dedicated support system – all geared towards helping beginners succeed in the long run.
Several factors make TD Ameritrade a compelling choice for new investors. Their educational platform offers an advanced learning path, covering everything from the basics of investing to more complex trading strategies.
Furthermore, you can explore the platform and make trades without any initial commitment. TD Ameritrade strikes a perfect balance, providing a powerful and comprehensive platform that won't overwhelm you with complexity. This focus on education and user-friendliness makes TD Ameritrade a strong contender for the title of "best brokerage for new investors."
3. Deliciousworks: The best broker for options
While Fidelity remains the overall champion for many investors, for those who have a deep passion for options trading, a different platform takes center stage: Tastyworks.
While Tastyworks remains highly competitive in terms of options contract pricing, it's their laser focus on options enthusiasts that truly sets them apart. Their platform boasts a wealth of flexible tools, in-depth educational content, and an intuitive design – all specifically tailored to the world of options trading.
Think of Tastyworks not as the training ground for options newbies, but rather the ultimate destination for those who have already mastered the basics and are ready to fully immerse themselves in this specialized world. Just like other brokers cater to specific investing styles, Tastyworks is optimized for the dedicated options trader.
The platform provides everything options traders need during their active trading sessions. From comprehensive tools to insightful analytics, Tastyworks equips users for optimal decision-making. When it's time to step away from the market, the platform offers a treasure trove of options-related educational content, allowing traders to continuously hone their skills and strategize for future sessions.
4. Interactive Brokers: Best for Advanced Traders
While Deliciousworks remains the overall champion for many investors, for those with specialized needs, other platforms excel. We've already seen how Tastyworks caters to options enthusiasts. Now, let's turn our attention to the day trading arena, where Interactive Brokers (IBKR) continues to reign supreme.
For experienced day traders, IBKR remains the undisputed king, extending its multi-year dominance. While advanced users might need to supplement the platform with third-party solutions for backtesting and automation, IBKR offers unparalleled advantages that outweigh this.
These include access to international exchanges, a vast selection of stocks readily available for borrowing, and significantly lower margin rates compared to competitors.
The addition of direct cryptocurrency trading in April 2022 further solidified IBKR's position for advanced crypto day traders. But even for those who don't dabble in crypto, IBKR boasts an impressive array of assets, global market coverage, and a comprehensive suite of trading tools – all offered at highly attractive margin rates.
This combination makes Interactive Brokers one of the best overall trading platforms, perfectly suited for the high-volume, fast-paced world of advanced day trading.