FROM OUR PARTNERS

Best Free Stock Brokers of 2022

Ashley Jackson

Want to start trading stocks? Set yourself up for success by selecting a stock broker that understands your needs. We’ve considered the best stock brokers based on commissions, account minimums, ease of use, and overall quality.

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 stock brokers do?

Free stock brokers, also known as online trading platforms that provide free stock trading to their customers, are a relatively new development in the world of finance. A company offering free stock brokerage services allows customers to conduct trades on their platform without paying transaction fees or monthly minimums.

Why use free stock brokers?

There are many reasons to use a free stock broker. The most common reasons are:

  • Buy and sell stocks and other securities: The main thing you want from a free stock broker is the ability to buy or sell stocks quickly at the best possible price. Many online brokers offer this service for free or at a low cost.
  • Potential long-term growth: Free stock brokers offer information about companies and their stocks so that you can make informed investment decisions. You might also get some guidance on how to invest wisely over time to avoid losing money due to market volatility or sudden downturns in value. If you’re unsure where to start investing in individual stocks or mutual funds, a broker’s advice can be helpful, when first starting in the market.
  • Reduce costs by avoiding transaction fees: If you’re just starting with investing and want to keep costs down, then using a free stock brokerage account can be a great option. Most companies that offer no-fee trading will also include research reports and other tools designed specifically for small investors who want to make smart investments. 

Are free stock brokers safe?

Free stock brokers are safe, but there are some important things to consider before signing up with a free brokerage.

In general, if you’re going to trade stocks online, it’s always best to find a broker who has been around for a while and has a reputation for being honest and transparent. 

What types of stock can you invest in?

Each type of stock has different characteristics that make it appealing to different investors. Here are some of the most common types of stocks:

  • Defensive or cyclical stocks: These stocks tend to perform well in both good and bad economic times. They tend to do well during times of growth but also hold up during times of recession. Defensive stocks are good for long-term investors who want steady returns over time.
  • Blue chip stocks: These are large companies with a lot of assets and capital behind them. It’s very rare for these companies to go bankrupt because they have too much money invested in them by other investors and banks. Blue chip companies are usually large corporations with high credit ratings and solid reputations, so they’re considered very safe investments. Most blue chip companies also have a high dividend payout ratio, which means shareholders receive regular payments from the company based on their investment amount.
  • Growth stocks: Growth stocks are companies that are expected to grow their profits yearly. These companies tend to be more volatile than other stocks.
  • Income stocks: Income stocks pay dividends to shareholders from quarterly earnings. These companies tend to have lower price-to-earnings ratios (P/E) than growth stocks because their main purpose is not growth but stability for investors who want steady income from their investments.

Benefits of investing through free stock brokers

There are many benefits of investing through free stock brokers, including:

  • Cost-effectiveness: One of the biggest benefits of using a free stock broker is that you don’t have to pay any fees for transactions or commissions when buying or selling stocks. Every dollar you invest goes directly into buying securities instead of going towards fees or commissions. Some brokerage firms charge fees for certain transactions like dividend reinvestments or cash withdrawals from your account, but these fees are usually reasonable compared with those charged by other types of financial institutions like banks or money managers.
  • Convenience: Another benefit of investing in stocks through free stock brokers is convenience. These platforms allow users to buy or sell shares from anywhere in the world as long as they have an internet connection and access to their bank accounts or credit cards which will be used to complete the transactions. This makes it easier for investors who want to trade outside of the office or when traveling abroad.
  • Always keep tabs: One of the most important things about investing in stocks is keeping tabs on how your investments perform. While there are many ways to do this, such as checking online, nothing beats having real-time access to your portfolio through your broker’s website or mobile app.

How to choose the best free stock brokers

Here are some things to look out for when considering a free online brokerage account:

  • Watch out for account fees: Some brokers charge monthly or annual account fees, while others don’t charge anything at all. These fees can often be avoided by keeping a minimum balance in your account, but it’s important to know what you’re getting into before signing up.
  • Look at the pricing and execution fine print: Many brokers advertise “free” trades, but there’s often a catch. For example, some brokers only allow one trade per month or charge extra if you want to buy fractional shares, i.e., not whole numbers. Other brokers may limit the number of stocks they allow you to buy or sell during any given trading day, sometimes as few as one or two trades per week. If this is important to you, check on those details before opening an account with a particular broker so that you don’t get surprised later on down the road.
  • Track record of reliability: You should look up the broker’s Better Business Bureau rating and see if any unresolved complaints are filed against them.