Compare Online Investing Brokers

Read our Advertiser Disclosure.
Contributor, Benzinga
Updated: September 27, 2022

Want to claim 12 FREE stocks? Head over to Webull to get started.

If you’ve never traded stocks before, you might imagine trading to be like the old cliché: dozens of brokers in suits yelling at clients over the phone. It may be difficult to picture yourself in the chaos, especially if you’re a beginner.

Online stock trading removes you from the scene. You don’t have to deal with phone calls, broken promises and mayhem. Instead you can trade from the comfort of your own home or on-the-go.

Like many other industries, brokerages anticipated the need for great online experiences and delivered. Firms created desktop platforms and mobile experiences with built-in trading tools, education, and analytics at your fingertips. Compare the top online brokerages to find your platform today.

Online Brokerage Comparison Table

  • TD Ameritrade
    More Details
    Best For
    Options Trading
    Overall Rating
    Read Review
    securely through TD Ameritrade's website
    More Details
  • TradeStation
    More Details
    Best For
    Futures Trading
    Overall Rating
    Read Review
    securely through TradeStation's website
    More Details
  • Cobra Trading
    More Details
    Best For
    Short Selling over $25K
    Overall Rating
    Read Review
    securely through Cobra Trading's website
    More Details
  • Moomoo
    More Details
    Best For
    Active Traders
    Overall Rating
    Read Review
    securely through Moomoo's website
    More Details
  • IBKR GlobalAnalyst
    More Details
    Best For
    International Trading
    Overall Rating
    Read Review
    securely through IBKR GlobalAnalyst's website
    More Details
  • WiseBanyan
    More Details
    Best For
    Sign Up Bonus
    Overall Rating
    Read Review
    securely through WiseBanyan's website
    More Details
  • NinjaTrader
    More Details
    Best For
    Advanced Futures Trading
    Overall Rating
    Read Review
    securely through NinjaTrader's website
    More Details
  • eToro Stocks
    More Details
    Best For
    Copy Trading
    Overall Rating
    Read Review
    securely through eToro Stocks's website
    More Details

    Benzinga is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.

  • Robinhood
    More Details
    Best For
    Beginners
    Overall Rating
    Read Review
    securely through Robinhood's website
    More Details
  • Forex.com
    More Details
    Account Minimum
    $100
    Pairs Offered
    80+
    securely through Forex.com's website
    More Details
  • Tradovate
    More Details
    Best For
    High-volume Traders
    Overall Rating
    Read Review
    securely through Tradovate's website
    More Details
  • IG Markets
    More Details
    Account Minimum
    $250
    Pairs Offered
    87
    securely through IG Markets's website
    More Details
  • Webull
    More Details
    Best For
    Intermediate Traders and Investors
    Overall Rating
    Read Review
    securely through Webull's app
    More Details
  • Plus500
    More Details
    Best For
    Non-US Mobile Users
    Overall Rating
    Read Review
    securely through Plus500's website
    More Details

What is Online Stock Trading?

With online stock trading, you’re able to buy and sell securities over an online platform. It takes the place of the traditional method of making phone calls. There are 3 types of brokerages.

The 1st is a full-service brokerage, which provides comprehensive services, tips, and education. A beginner may want to choose this. The 2nd is a discount brokerage. They provide their services for a lower fee but do not provide advice or research. At times, there are hybrids that might tickle your fancy. eToro offers crypto, stocks and ETFs, zero commissions and a multitude of information. In short, you don’t need to settle for a broker that offers low fees and no information when, clearly, there are better alternatives.

The last is robo advisors. Robo advisors collect client information and make trades based on algorithms. They’re usually inexpensive but will lack the personalized service of other brokers. These brokerages provide services on the web and mobile applications.

Why Should I Trade Stocks Online?

Whether you’re just starting to trade or thinking of making the switch to an online brokerage, there are a few things you should know.

  • Online platforms normally have lower fees than brick-and-mortar brokerages. This is because operating online-only saves the brokerage both time and money. This savings is passed to onto the trader through low or no fees of commissions.
  • Access to the latest trading news and trends. So, you won’t have to pay for another news subscription service. Education can come in the form of live news alerts, weekly news roundups, and more intensive trading guides. Brokerage firms also integrate this information into their platforms, providing a seamless trading experience.
  • Because all of the trades happen online, they happen instantly instead of taking minutes. Over time, instant trades can make a huge impact on your portfolio, especially when trading volatile stocks.

But, if you have a great relationship with your current brokerage or are new to trading and want a more personal relationship with your broker, it may not be worth it to make the switch.

Who Trades Stocks Online?

Anyone from beginning traders to seasoned investors trades stocks online. With the recent improvements in online brokerage technology and lower fees, making the switch to online trading is easy. It can save money and time.

But online stock trading might not be right for everyone. While it’s true that you can make money trading online, you have to be willing to put in the work. It isn’t a get rich quick scheme; you have complete control of your success. If you’re not willing to put in the research, time, and money, you won’t see a return on your investments.

How to Start Trading Stocks Online

First, you’ll have to choose a brokerage. You’ll have to consider the following:

  • If you want your account self-managed or managed by an advisor. If you’re confident in trading, a self-managed account is worth the savings. If not, you’ll want an advisor. You will pay more in fees, but it may pay off if you have a great advisor.
  • What types of securities you’ll be trading. You can pick from stocks, mutual funds, options, forex, bonds, ETFs and futures. If you’re new to stock trading, know the risks and rewards associated with each type of security before you commit.
  • Commissions and fees. How much are you willing to pay? Many online platforms will have low fees, but you’ll need to do the math before you start trading, especially if you can’t commit a lot of money to stock trading. Consider annual fees, discounts for balances, and fees per share.
  • Think about account minimums. Some brokerages offer $0 minimums. Others may have higher account minimums, but more perks. If the brokerage does have account minimums, make sure to look into any penalties.
  • How much market data will you need? Certain brokerages will offer platforms with market data fully integrated into their user experience. Whether you’re a beginner or advanced trader, this may be crucial to your success.
  • What platform you see yourself trading on. At the minimum, brokerages offer access to a desktop platform. Most offer a mobile application. Some platforms are designed better than others, though. Watch out for reviews of clunky, slow, and hard-to-use platforms.
  • Customer support. 24/7 live customer support is the gold standard. Look out for supports via email and live chat as well.

Once you choose a brokerage, you can usually sign up for an account online. You’ll need to collect a few things 1st:

  • Social Security Number
  • Taxpayer Identification Number
  • Foreign tax ID, passport or visa number if you aren’t a U.S. citizen or permanent resident
  • Proof of identity
  • W-9
  • Your employer’s information
  • Method of funding your account

Now you’re ready to go! You should be able to sign up through the brokerage’s online portal. Depending on the online brokerage, you may even be able to start trading on the same day.

Trade Stocks Online

Online stock trading makes investing accessible to the masses. Brokerages provide low-to-no fees, user-friendly online brokerage platforms, and educational content to make trading simple – even for the beginning investor. But you still have to work hard, do your research, spend money, and be willing to put in the time to see a return on your investments.