FROM OUR PARTNERS

Best Free Investment Brokers of 2022

Ashley Jackson

Free investment brokers will give you the tools to monitor and track live market activity, giving you a real-time view of what’s happening and good insight into how the financial markets respond to global events. We’ve considered the best online brokers based on commissions, account minimums, ease of use, and overall quality.

Trade a wide range of financial assets

$0 - $9.95

Fee Per Trade

$0

Account Minimum

Overview

Ally Invest offers competitive pricing on financial securities and robust research tools to help you make better-informed investment decisions.

What we like

  • Low cost commissions 
  • Wide selection of product offerings 
  • Up to $3,000 cash bonus
  • No minimum deposit required
  • Up to $75 for brokerage transfers

What we don't

  • Crypto not supported
  • Mutual fund fees

Get up to $625 when you open and fund an account

$0

Fee Per Trade

$0

Account Minimum

Overview

J.P. Morgan Self-Directed Investing offers beginners and seasoned investors free trades and a portfolio tool to help build out their asset allocation.

What we like

  • Unlimited trades with $0 commissions
  • No minimum investment
  • Manage investments from a mobile app
  • Portfolio builder tool to help with asset allocation
  • Access to research and insights

What we don't

  • Limited accounts, such as no SEP-IRA
  • No fractional share trading

INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Copy investments from successful traders

$0

Fee Per Trade

$0

Account Minimum

Overview

eToro is a multi-asset platform that offers both investing in stocks, cryptocurrencies, and trading in CDF assets. It provides an innovative approach to ‘Social Trading,’ also known as ‘Copy Trading.’ Social trading allows users to connect, share their trades, and copy successful traders’ trades for potential gains.

What we like

  • Commission-free real stock trading
  • Offers money and risk management tools
  • A lot of learning materials available
  • Offers a free demo account
  • Copy successful traders investments

What we don't

  • Higher spreads and rollover fees
  • High non-trading fees

Discover new ideas from an active investing community

$0

Fee Per Trade

$0

Account Minimum

Overview

Public provides access to a powerful suite of tools, daily insights from millions of investors, and curated content and news, so all members can have the tools and resources needed to invest with context.

What we like

  • All-in-one investing platform 
  • Wide selection of product offerings 
  • Commission-free
  • Insights from an investing community of millions
  • Invest in any fractional asset
  • Live in-app shows about the markets

What we don't

  • Limited account types
  • No in-person customer support

Margin trading available with premium account

$0 - $9.95

Fee Per Trade

$0

Account Minimum

Overview

Axos Self-Directed Trading provides investors commission-free trades and an all-in-one solution for banking and investments.

What we like

  • Commission free trading on most assets 
  • Easy to use platform
  • Wide selection of product offerings 
  • No minimum deposit required
  • Extended market hours for premium accounts
  • Joint accounts available

What we don't

  • Crypto not supported
  • Premium account required for certain features
  • No in-person customer support

Offers fractional share trading

$0

Fee Per Trade

$0

Account Minimum

Overview

SoFi allows you to trade cryptocurrencies, stocks, and ETFs. It also uses the SIPC protection scheme and offers up to $500,000 in insurance coverage.

What we like

  • Free trading on ETFs and stocks
  • Offers fractional shares
  • A wide variety of cryptocurrencies
  • Free financial advice
  • No account minimum

What we don't

  • Does not offer mutual funds, bonds and options
  • Limited track record

What do free investment brokers do?

Free investment brokers are websites that offer investment advice and tools, usually for free.

They can be valuable resources for investors looking to start their first investments or who want to learn more about managing their portfolios. They provide information about the markets and investment strategies. This includes articles about current events in the financial world and information on specific stocks and other assets. You can also find calculators that help you determine how much money you can afford to invest and how much interest you can earn on it over time.

They offer tools to help you track your portfolio’s performance over time with charts and graphs so you can see how each asset performs against others in its category or sector at a glance. Some even have portfolio management tools like virtual trading platforms where users can practice buying and selling stocks without risking real money until they feel confident enough to invest.

Ultimately, a free investment broker facilitates transactions between buyers and sellers and it is usually done online.

Why use free investment brokers?

There are many reasons to use free investment brokers. These include:

  • Convenience: With the rise of smartphones and tablets, people want to be able to access their accounts from anywhere and at any time. Free investment brokers offer mobile apps that allow you to do just that. You can check your account, place trades, and more from your phone or tablet, so you don’t have to be tied down by your computer at home all day.
  • Affordable: These free investment brokers don’t charge any commissions when you trade.
  • Monitor your investments anytime: With an online broker, you can keep track of what’s happening with your investments at any time of day or night. If you have questions about how much your portfolio is growing or what stocks have been added, some tools will help answer those questions conveniently and quickly.
  • Greater control: Investors also have more control over their funds because they don’t have to wait for the broker to execute trades. Instead, they can place orders anytime during market hours and see those orders filled immediately. This allows investors to adjust their portfolios quickly, especially if they are day traders or swing traders.

Are free investment brokers safe?

Yes, brokerage accounts are safe. The money is in your name, and you have the power to withdraw it at any time. However, make sure the broker is a reputable one.

The best way to protect yourself from fraud is to check the investment broker’s background before signing up.

You should also ensure that your account has been set up properly so that no one can access it without your permission.

What can you invest in with investment brokers?

You can invest in various financial securities, such as:

  • Stocks: Stocks are the most common type of investment and they can be bought directly from a company or through a broker. Stocks represent a share in a company, which means that you own part of it. You can buy a stock at any time and sell it whenever you want during market hours. This makes them very liquid because you can sell your shares quickly if you need to.
  • Bonds: Bonds are debt instruments issued by companies or governments with the promise of paying interest until maturity (the date when the principal is repaid).
  • Mutual funds: A mutual fund is a type of investment vehicle that pools money from many investors and invests in stocks, bonds, and other assets on behalf of its shareholders. Mutual funds offer investors diversification for their portfolios, as well as professional management and low costs compared to individual securities ownership.
  • ETFs: Exchange-traded funds, or ETFs, are a type of fund that tracks an index. They’re passively managed, meaning they usually don’t require much time or effort to manage. The fees associated with these types of investments vary, but many low-cost ETFs have expense ratios under 1%.
  • Options: Options are contracts that give investors the right to buy or sell an asset at a set price on or before a set date. Options can be used for both hedging and speculation purposes. A call option gives its holder the right to purchase an asset at a specific price within a certain period of time, while a put option gives its holder the right to sell an asset at a specific price within a certain period of time.
  • Forex: Foreign exchange (FX) trading is the buying and selling of currencies in order to profit from changes in their values relative to one another. FX traders use leverage and margin to trade currencies with relatively small amounts of money compared with those required for other asset classes like stocks or commodities.
  • Futures: Futures contracts are used to lock in the price of an asset for delivery at a later date. Futures contracts differ from forward contracts in that they are standardized, traded on an exchange, and have a clearinghouse that guarantees the fulfillment of the contract. The two most common types of futures are commodity futures and financial future contracts.

Benefits of investing through free investment brokers

The benefits of investing in stocks using free investment brokers vary. The following are some of the benefits to keep in mind:

  • Lower fees: If you’re just starting or planning to trade only occasionally, free investment brokers give you all the tools and information at no cost. You’ll pay for trades based on their per-share price rather than through commissions, so it’s much cheaper than traditional brokers who charge commissions on every trade. Lower fees mean more money in your pocket at the end of each month.
  • Access to online tools: Online brokers offer access to their proprietary trading platforms, which provide several valuable features, including portfolio management tools, research reports, and charting capabilities that allow investors to make well-informed decisions about where to invest their money. These platforms also provide access to real-time quotes for stocks and other financial instruments, so investors can easily track their investments throughout the day or week.

How to choose the best free investment brokers

There are plenty of options, but it doesn’t necessarily mean they’re all worth your money. Here’s how to choose the best one for you:

  • Know your needs: You must first figure out what you want and need in a brokerage account. What kind of stocks do you want to buy? Are there specific stocks you want to invest in and follow closely? Do you want a lot of research tools and reports?
  • Narrow the field: Next, look at all your brokers’ options and see which offer similar services. You may find that many firms offer similar services at different prices and with different levels of support. Some firms may offer more tools and resources than others, while others might charge less or have better customer service ratings.
  • Figure out the fees: The next thing you need to do is figure out what fees the broker charges. Some brokers will charge per trade, while others may charge flat monthly or annual fees. You should also consider whether they have hidden costs, like maintenance or early redemption fees.
  • Test the broker’s platform: Once you’ve figured out how much money you want to invest and how much it costs to buy and sell stocks, mutual funds, or other investments through your broker, it’s time to test their platform. A good platform should be easy to use and provide information about each security, so it can help decide what to buy and sell.