Top Online Brokers to Consider in 2020

Anyone who wants to trade stocks or manage their investments needs an online broker. There are quite a variety of online brokers, each presenting investors with attractive offers such as a reasonable minimum opening amount and quality trading tools. While some of these offers are attractive enough, some investors still get confused about which one to choose.

Selecting an online broker goes beyond checking out what attractive packages they offer customers to weighing their credibility based on fees, customer reviews, trading platforms, customer service, account options, research, and any other useful information. Another

We’ve been able to come up with a comprehensive list of online brokers we consider to be the best amongst the rest. We have been able to do this by weighing selected online brokers based on their commission costs and consolidation bearing in mind the current market situation as a result of the coronavirus.

Fidelity Investments

• Account Minimum: $0

• Fees: $0, $0.65 (for options trade)

Fidelity Investments has its customers covered from complex wealth management to managing their retirement needs and financial planning. It also offers customers a $0 commission trade with an account opening minimum of $0 (This applies to retail brokerage accounts only). It is available to all kinds of investors, both new and experts. This online broker has robust investing tools that would help investors properly manage their investment and get the best financial advice from their team of specialists. With their low-cost robo advisor solutions, investors can access professional investment management when needed.

Note: The $0.00 commission applies only to online US exchange-traded funds (ETFs), equity trades, and options (+$0.65) in a Fidelity retail account for retail clients of Fidelity Brokerage Services LLC. While sell orders attract an activity assessment fee ranging from $0.01 to $0.03 per $1000 of principal.

TD Ameritrade

• Account Minimum: $0

• Commissions (per trade): $0.00

Since its inception in 1975, TD Ameritrade has been empowering its clients by helping them manage their investments and finances. It has since managed over 11 million client accounts that add up to over $1 trillion in assets, with provision for custodial services to over 6,000 independent registered investment advisors. This online broker offers commission-free trades to its clients with full access to all its platforms and products with no hidden fees or trading minimums. Investors also have access to innovative tools and features required to make trading hitch-free by making smart and well-informed decisions. All investors can access these tools whether they are actively trading or investing long term. It also provides its investors with a variety of investments such as stocks, bonds, CDs, forex, non-proprietary mutual funds, commission-free ETFs, options, and futures, to select from. These investments make it easier for investors who would like to diversify their investment portfolios.

Interactive Brokers

• Account Minimum: $0

• Fees: $0.005 per share or 1% of trade value (for Pro platform), and $0 (for IBKR Lite)

Interactive Brokers can be highly considered for their high-tech tools and investment options such as options, equities, and futures, for their customers. This online broker connects its customers to 125 markets in 31 countries and makes provision for them to trade stocks, bonds, futures, options, forex, and some funds. Its international connection makes it the best broker for international trading. Investors can fund their accounts in their domestic currencies while IBRK handles all currency conversions at market rates when an investor wants to buy assets tagged with a foreign currency. It is packed with 60 different order types and a wide variety of assets.

IBKR also ensures that its customers are able to access as many electronic exchanges as possible and trade globally at any time. This online broker also has the ability to move with the flow of market changes with its order execution engine which is able to achieve price improvement, maximize possible rebates, and optimal execution by re-routing orders. The algorithmic order types used in IBKR include volume-weighted average price (VWAP) and time-weighted average price (TWAP). Its order execution engine is said to be the smartest order router compared to other online brokers.

Note: Advanced trading options are only available to IBKR Pro clients, and trades on the Pro platform are not commission-free.

Charles Schwab

• Account Minimum: $0

• Fees: $0 (for stock and ETF trading), $0.65 per options contract

Charles Schwab is a great choice for both new and expert investors. It offers its clients a variety of investment products to select from; they include mutual funds, stocks, ETFs, options, futures, closed-end funds, bonds and CDs, money market funds, and global investing. Investors that trade with Schwab have access to advanced tools, premium insights, reliable education, and specialist support, all of which would help them make well-informed and timely trading decisions.

Schwab allows investors to manage their investments personally by letting them access their expert research, platforms, insights, and service specialist to assist them when needed. That way, investors are able to make all their decisions and seek the help of a professional when the need arises. It’s easy-to-use online investing platform and mobile apps make it easy for new investors to navigate their way through and trade easily without getting stuck. While advanced online and desktop trading systems and a wide range of investment options are also made available to expert investors.

Investors can easily buy and sell securities, manage their accounts, access research, view ratings and reports on all investments. Schwab has relatively low fees, high-tech trading tools, a variety of investment options, and great customer service, all of which makes it attractive to new investors. Its customers also have access to commission-free ETFs and mutual funds from the Schwab fund family and Schwab’s Select list.

tastyworks

• Account Minimum: $0

• Fees: $0.00 (stock trades), $1.00 (open options trades $0.00 to close)

tastyworks is an online broker that believes in letting investors manage and control their own money rather than passively managing their accounts through money managers or robo-advisors. With high-tech tools, rates, and professional support, tastyworks gives its investors an edge to help them easily succeed by themselves. Though new investors may find it difficult to make use of this platform at first.

When it comes to options trading tastyworks is the best in the game. Since this online broker believes in letting investors personally manage their investments it provides its investors with the best tools to help them weigh and manage risks before placing any trade. The whole platform has been designed to help its clients evaluate the volatility and profitability of an asset before trading. According to tastyworks, over 90% of the trades their customers place are derivatives as all the tools needed for analyzing and trading derivatives are fixed into the platform.