The post 5 Online Stock Brokers I Recommend to Investors of All Levels by Dan Schmidt appeared first on Benzinga. Visit Benzinga to get more great content like this.
So you’re considering trading stocks for a living? It’s less exciting and glamorous than seen in movies like Boiler Room, The Wolf of Wall Street, or Trading Places.
In reality, it’s more like being a professional poker player. When you play for fun or with friends, making memories is often as enjoyable as making money. But when you play for a living, it’s not a recreational game — it’s a multi-hour grind requiring lots of quick math and sound decisions.
You can’t sit out by the pool with a drink and a smartphone and think you’ll have long-term stock trading success. Trading stocks for a living means parking yourself in front of a screen for long hours, not just to trade but to review charts, backrest theories, and comb through company news and financial data.
Table of contents
[Show]
Unlike poker players who rely solely on their wits, stock traders have a diverse arsenal. However, choosing the best stock broker is the key to unlocking these tools. Not all brokers offer the same features, so it’s crucial to identify the tools that align with your unique skill sets and investment goals. Consider the following:
- Available asset classes and account types
- Charting tools and technical indicators
- Fees and commissions
- Platform, app, and customer service.
Here are five brokers that make sense if you want to test your mettle trading stocks for a living. Now, I don’t recommend having an account with five different brokers. Still, these five have a diverse enough array of features, offerings, and account types that traders of all kinds should be able to find one that makes them feel comfortable and catered to. Here are my five picks in no particular order:
Interactive Brokers
get started
securely through Interactive Broker Primary’s
website
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Stocks, options, futures, forex, bonds and fund trading are also available, and most traders won’t pay a commission on any US stock purchase or sale if they choose the IBKR Lite pricing plan.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite plus new platforms, services and tools for investors of all levels, casual traders can also acclimate to IBKR’s offerings.
Best For
- Low cost trading
- Low margin loan rates
- High interest paid on instantly available cash in your broker account
- Access to foreign markets
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradable assets
- Comprehensive, quick desktop platform
- Mobile app mirrors full capabilities of desktop version
- Access to massive range of tradable assets
- Low margin rates
- Ability to earn high interest on instantly available cash balances
- Easy-to-use and enhanced screening options are better than ever
- IBKR GlobalTrader, IBKR GlobalAnalyst, Fractional Shares, Recurring Investments and tools like Options Wizard for simplified trading
- All-in-One Cash Management Solution enables investors to manage all of their finances in one account
- Overnight Trading Hours: IBKR offers overnight trading on over 10,000 US Stocks and ETFs enabling clients to react immediately to market-moving news and conveniently trade at almost any time.
- Trading platform may be intimidating for new investors
Active traders looking for a powerful platform should consider Interactive Brokers. This company caters specifically to day and swing traders, offering a combination of features that help them navigate the market precisely.
Trader Workstation (TWS) is the jewel of Interactive Brokers’ offerings, providing sophisticated tools for advanced traders. The platform goes beyond basic charting with over 100 technical indicators and pro features like Options Strategy Builder and Exit Strategy. TWS also provides customizable screeners that allow traders to filter and identify opportunities based on their specific strategies. Advanced order types also will enable them to react quickly to changing market conditions and execute complex strategies.
Beyond the platform, IBKR has a nearly unmatched assortment of available asset classes. Active traders can trade options, stocks, futures, currencies, bonds, and cryptocurrencies from a unified platform. Building a diversified portfolio and implementing complex trading strategies that combine different asset classes won’t be easier at any other brokerage. It’s important to note that IBKR has a steeper learning curve than simpler platforms. However, for active traders who prioritize in-depth analysis, precise execution, and a host of tradable assets, Interactive Brokers offers unparalleled control and flexibility.
Moomoo
get started
securely through Moomoo’s
website
Investing is a long-term journey, and moomoo can help guide investors of all levels every step of the way. Utilized by over 21 million users worldwide – including in the US, Singapore, Australia, Japan, Malaysia and Canada – moomoo is an investment and trading platform that empowers investors with pro-grade, easy-to-use tools, data and insights.
moomoo provides advanced charting tools, technical analytics and Level 2 data for funded accounts, so investors have the resources to make more informed investment decisions. Users can access educational materials and interactive events, as well as share and learn through the inline community.
With a low-cost, competitive fee structure, moomoo can work for all investors.
Best For
- Novices
- Intermediate and advanced traders
- Active traders
- Equity and index options trading
- Commission free trading for US options, stocks and ETFs and 6.8% margin rate
- Wealth of free options tools and features, including customizable options chain, options calculator, unusual options activity, implied volatility analysis, 13 options strategies and 0 days to expiration (0DTE) options by volume
- Free Level 2 data for funded accounts
- Advanced charting tools with 100+ indicators, 37+ drawing tools and 20 candle patterns
- No minimum deposit to open an account
- 24/7 online chat support
- 5.1% APY in Cash Sweep program for new and qualified users
- Does not support crypto
- Does not support retirement accounts or mutual funds
While not as well known as the others on this list, Moomoo has created a terrific stock trading platform with an instinctive mobile app, a wide range of available assets, and plenty of technical trading tools. Additionally, the company is running a very generous set of promotions, including a free stock giveaway and deposit bonus.
Moomoo offers commission-free stock and ETF trading, free equity options trades and reduced fees for index options. The platform resembles Robinhood but has far more advanced charting tools, including over 100 technical indicators. The app is available on smartphones, tablets, and desktops, and users can trade during the full range of pre- and post-market hours (4 a.m. to 8 p.m.)
The cash sweep program pays 5.1% on uninvested capital, and margin rates are competitive at 6.8%. Users can trade stocks, ETFs, and options, but Moomoo does not currently support cryptocurrencies, futures, bonds, or mutual funds. It’s a well-rounded brokerage platform for traders of various experience levels, but it’s a newer company that lacks the recognition of the four other choices. Use the paper trading feature if you want to test drive before buying.
Webull
get started
securely through Webull’s
website
Webull is a commission-free trading platform designed with both beginner and advanced investors in mind. Offering an extensive range of assets like stocks, ETFs, and futures, Webull makes it easy for users to manage their investments through a highly intuitive interface. With educational resources, paper trading options, and no minimum account balance required, Webull caters to those looking to start investing without high upfront costs. The platform’s mobile app ensures that users can trade anytime, anywhere, making it a flexible choice for those with busy lifestyles. Webull’s customer service options are limited, and the platform may feel overwhelming to those completely new to investing.
Best For
- Commission-free trading
- Mobile and desktop trading
- Beginners and experienced traders alike
- No commissions on trades
- Extensive range of tradable assets
- Easy-to-use mobile app
- Limited customer service options
- Learning curve for complete beginners
Webull is a cost-effective platform with advanced tools. Like most brokers, Webull offers commission-free trades on stocks and ETFs. It also provides zero-commission options trading and early access to certain IPOs. Beyond saving money, Webull empowers traders with robust charting tools featuring a variety of technical indicators to help identify precise entry and exit points. Advanced order types and customizable screeners further equip traders to make informed decisions based on market movements.
Webull has an intuitive mobile app and desktop trading platform, so users can easily trade from their smartphones, tablets, or laptops. In particular, the mobile platform shines compared to more superficial apps like Robinhood, where charting tools are scarce, and the gamification is ramped up significantly. Users can set up alerts, monitor holdings, deposit or withdraw money, and execute multi-leg trades on their smartphones without a steep learning curve.
One negative is the uncompetitive margin rates. Webull’s starting rate of 9.74% is higher than most competitors, including Robinhood’s 6.75%. To receive rates competitive with Robinhood, Webull users would need to borrow more than $3 million, which isn’t feasible for most traders. Webull also lacks some of the more in-depth analyst reports you would find at traditional brokerages; you’ll see more of a news aggregation feed instead of detailed reports from analysts at top firms.
Charles Schwab
get started
securely through Charles Schwab’s
website
Charles Schwab is a solid choice for traders of all skill levels. It offers full access to the U.S. equity and options markets as well as 30 international markets. Traders can create a diverse portfolio with $0 commissions and no account minimums. Schwab’s margin trading is expensive but Schwab makes up for it with affordable futures and options trades, along with a comprehensive mobile offering.
Best For
- 3 trading platforms perfectly in sync makes matching your platform to your skill level a snap
- Excellent futures trading education for new traders
- $0 account minimum means anyone can start trading
- Wide range of available assets to trade, including futures and 30 global markets
- SmartStreet Edge platform is powerful enough for advanced traders, yet easy enough for new traders to utilize
- Unique educational resources (like infographics and podcasts) make learning fun
- Margin rates are more expensive than competitors
- More limitations on available margin than competitors
- Expensive mutual funds
Thanks to the acquisition of TD Ameritrade, Charles Schwab has emerged as a strong contender for active traders. Combining their own strengths with the powerful tools of the Ameritrade platform has created a world-class trading experience with significant benefits for full-time stock traders.
The recently acquired Thinkorswim platform provides traders with robust analysis tools. You’ll find more technical indicators and backtesting capabilities than most competitors, and while the platform can be intimidating, it’s also one of the most powerful trading machines in the industry. Additional features like screeners and advanced order types provide even more comprehensive trading.
If you’re looking for a more basic setup, Schwab’s mobile app allows traders to monitor markets, analyze charts, and execute trades from anywhere. While you won’t get the full suite of tools from Thinkorswim, you can link your accounts, move money around, review charts, and execute trades from any device.
Schwab has competitive margin rates and a wide range of account types. Suppose you’re saving for a specific goal like retirement, a child’s education, or health expenses. In that case, you’ll find tax-advantaged accounts at Schwab like traditional and Roth IRAs, 529 Plans or Education Savings Accounts (ESAs), Health Savings Accounts (HSAs), trusts and beneficiary accounts, plus a full suite of banking and mortgage borrowing services.
Robinhood
get started
securely through Robinhood’s
website
Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.
Best For
- Beginners looking for simplicity
- Mobile-first investors
- Commission-free trades
- User-friendly mobile app
- Instant double
- Cash management
- Access to cryptocurrencies
- Limited research tools
- No mutual funds available
- Basic customer support options
When it launched in 2013, Robinhood triggered the commission cascade, forcing most other brokers to follow suit. Now, commission-free stock and ETF trading is the norm at most brokerage platforms, but Robinhood still has plenty to offer active traders.
While the commission-free aspects of the app remain (stocks, ETFs, and options), Robinhood has launched a premium service that carries a $5 monthly fee. But Robinhood Gold gets you access to the highest rates on uninvested cash (5.5% APY), a 3% IRA match, and a 1% boost on brokerage deposits. Traders also get Level 2 market data and Morningstar research reports. Robinhood also has lower margin rates (starting at 6.75%) than the Robinhood-like Webull platform.
The app is simplistic and intuitive but feels more gamified than the other brokerage apps. The colors are bright, the interface is sleek, and you get a little congratulations message every time you make a trade. However, if you’re just starting, no app has less of a learning curve. Opening, funding, and executing trades in your account requires very little navigation and even the most novice traders should have the hang of it within a few minutes.
But the app remains very basic, with minimal charting and technical analysis tools, so if you want to trade using complex strategies, you’ll likely be more comfortable elsewhere. Only moving averages, RSI, MACD, and Bollinger Bands are available, and chart data only goes back five years.
The post 5 Online Stock Brokers I Recommend to Investors of All Levels by Dan Schmidt appeared first on Benzinga. Visit Benzinga to get more great content like this.