Learn 5 Best Online Stock Brokers for 2023

4. E*TRADE – Best for Trading Derivatives

Morgan Stanley, one of the leading investment banks in the United States, owns E*TRADE. The platform, which was founded in 1982, is regarded as one of the forefathers of internet brokerages.

 

It also has substantial exposure to high-volume derivatives trading as a result of its 2016 acquisition of OptionsHouse’s parent business, Aperture New Holdings, Inc. It does not charge a commission on stock and ETF trading.

Options trading, on the other hand, has a cost ranging from $0.50 to $0.65, based on the contract volume and monthly trading history. Charges will apply to foreign stock trading, over-the-counter (OTC) deals, and large-block transactions.

E*TRADE is also a full-service broker, offering Robo-advisor as well as professional planning and advising services. Account holders can use E*TRADE’s Robo-advisory services, which include automated account services, portfolio development, and cash management, for as little as $500.

Its extensive teaching content and research material make it an excellent alternative for both rookie and experienced investors. The software, however, does not allow trading on overseas exchanges or cryptocurrency investing. Other comprehensive online brokerage services may benefit investors wishing to diversify beyond domestic equities into global markets and alternative asset classes.

 

5. Interactive Brokers – Ideal for Seasoned Traders and Foreign Markets

Interactive Brokers supports trading and investment in over 150 international markets across asset types. As of September 30, 2022, the platform had over 2.01 million customer accounts and $287.10 billion in client equity.

Individual investment accounts, as well as professional accounts for businesses and institutional investors, are available on the site. While Interactive Brokers is smaller than industry leaders such as Charles Schwab and Fidelity Investments, its outstanding features and services make it one of the best selections for a seasoned investor.

PortfolioAnalyst, the platform’s portfolio management solution, is not limited to investments. It also keeps track of all financial accounts, such as checking, savings, and debt. It has 49 predefined screeners for main asset groups and risk tolerances.

Investors can also use Interactive Brokers’ Tax Optimizer tool to plan their investments for optimal tax savings. Traders Academy, one of its numerous research tools, includes challenging finance themes for investors looking to broaden their knowledge base.

Interactive Brokers has also partnered with leading financial news outlets and real-time data platforms to provide clients with up-to-date market data at their fingertips. Clients of Interactive Brokers have free access to technical, macroeconomic, and quantitative data from sources such as Reuters Stockreports+, Edison Investment Research, and MorningStar Equity Ownership, to mention a few.