Takeaways
- Online stock brokerage accounts help you trade stocks and other investments.
- The best online stock brokerage accounts help you meet your financial goals.
- Online stock brokerage accounts help you manage your retirement accounts.
- Consider fees, promotions, and platform speed for your brokerage account.
- Setting up an online stock brokerage account only takes a few minutes.
Most people buy and sell stocks through their online brokers. Whether you are new to investing or a seasoned trader, ensuring you have one of the best online stock brokerage accounts can help you reach your financial goals.
At Smart Money, we are dedicated to helping you make the most of your money by showing you how to make the best money decisions. To help you find the best online stock brokerage accounts available today, we have evaluated and analyzed a range of online stock brokerages on what matters the most when buying and selling stocks and other investments (e.g., mutual funds, target date funds, index funds).
Read More: 5 Amazing Smart Money Saving Habits to Start Now
Below is a curated list of online stock brokerages that earned their way onto our list by meeting various specific criteria, including fees, platform speed, breadth of offerings, promotions, minimum investment amounts, and more.
Our Picks for Best Online Brokerage Accounts
On E*Trade’s website
E*Trade
Smart Money Rating: 5/5
Fees: $0
Minimum Balance: None
Promotion: $600 (or more) to open and fund an E*Trade account
On RobinHood’s website
RobinHood
Smart Money Rating: 5/5
Fees: $0
Minimum Balance: None
Promotion: 1 Free Stock (Value $5-200) after linking bank account
On J.P. Morgan’s website
J.P. Morgan Wealth
Smart Money Rating: 5/5
Fees: $0
Minimum Balance: None
Promotion: Get up to $700 when opening a J.P. Self-Directed Investing Account (with qualifying money).
On Fidelity’s website
Fidelity
Smart Money Rating: 5/5
Fees: $0
Minimum Balance: None
Promotion: None
On Webull’s website
Webull
Smart Money Rating: 5/5
Fees: $0
Minimum Balance: None
Promotion: Up to 12 free shares (fractional), valued up to $3,000
How Do I Start Trading?
To get started trading stocks, all you need to do is open an account by signing up online. Then, you will need to link your bank account to your brokerage account and transfer funds into your account. Keep in mind that it usually takes one to three days for the brokerage to recognize your deposited funds. After your funds are available for trading, you are free to make your first stock investment.
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Do I Need a Lot of Money to Start Trading?
Not really. Most of Smart Money’s picks for the best online stock brokerage accounts do not have account minimums. After you open an account, all you need to do is fund your account with enough capital to cover the cost of the stock you want to buy and any fees or trading commissions charged.
The barrier to entry to get started trading stocks is relatively low. The important part is for you to feel financially secure enough to begin investing. We recommend saving at least an emergency fund (and if possible, a slush fund) before you dig your toes into trading stocks. It is not a smart money move to invest the only dollars you have. Instead, take your time to get financially prepared and then hit the ground running!
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Do Online Brokerage Accounts Help with Retirement?
The short answer is yes. Most online stock brokerage accounts have both taxable brokerage accounts and offer Individual Retirement Accounts, such as Traditional IRAs or Roth IRAs. You can use your online stock brokerage account to fund your retirement goals and supplement your workplace 401(k) plan.
How Can I Diversify My Investments?
Diversifying your investments is one of the best ways to protect your portfolio. Finance experts recommend that a well-balanced portfolio should have a mix of stocks, bonds, cash, and marketable securities. Diversification helps balance your portfolio’s performance when one of your investments performs poorly.
One of the best ways to diversify your money is to buy mutual funds, exchange-traded funds, or target date funds. All these investments pool their money to buy a basket of stocks that meet the fund’s investment criteria. For example, some mutual funds might be focused on investing in a particular sector of the economy or mimicking a stock market index like the S&P 500. Or target date funds will automatically calibrate their portfolio mix based on the date you choose. Target date funds consider your investment time horizon and risk appetite.
Smart Summary
Setting up one of the best online brokerage accounts takes a couple of minutes, but it can fundamentally alter the trajectory of your financial health. Investing in the stock market, whether individual stocks or diversified investments like ETFs or mutual funds, is a smart money move. You want your money to do the heavy lifting while you focus on doing things other than money management. Setting up an online brokerage account allows you to practice the smart money habit of investing regularly.
