FROM OUR PARTNERS

Best 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 stock brokers do?

Stock brokers are financial professionals who help their clients buy and sell stocks, bonds, and other securities. They typically work for a broker-dealer, a company that makes markets in securities. That means they can buy and sell stocks on behalf of their clients.

Stock brokers also provide research, recommendations, and general advice about investing in equities. They may also act as financial advisers to clients with larger accounts and more complex financial needs than the average investor.

Why use a stock brokers?

Here are some reasons why you might want to use a stock broker:

  • Offer guidance and advice: A reputable stock broker will offer guidance on how to invest your money appropriately based on your goals. They will be able to recommend specific stocks or funds that they believe will help you achieve your goals while also considering your risk tolerance.
  • Provide access to research: Before making an investment recommendation, stock brokers must provide their clients with research reports from third-party sources such as Morningstar. This helps investors to make informed decisions about their investments.
  • Help you achieve your investment objectives: A stock broker will help you achieve your investment objectives. This can include helping you build a diversified portfolio or just finding the right stocks for your portfolio. A good stock broker will also help you determine which investment vehicles best meet your goals.
  • Keep track of all transactions: A stock broker will keep track of all transactions in an easy-to-use database so you can easily access this information anytime. This can be useful if you want to know how much money has been made or lost over time or if there have been any significant changes in price since the last purchase was made.

Are stock brokers safe?

In general, stock brokers are safe if they are reputable.

Before proceeding with a broker, you should always check with the Better Business Bureau. This will ensure that the broker has an excellent rating and has not been involved in any problems in the past.

Also, check out how long they have been in business and how many customers they have served. If they have been around for a while, then that is a good sign that they are doing something right and will continue to do so in the future.

What are the fees for stock brokers?

Stock brokers charge a wide range of fees, depending on the complexity of the investing service and whether they’re working with individual investors or institutions.

The following are some common stock broker fees:

  • Commission: Stock brokers receive commissions when you issue a buy or sell order. This can range from 1% to 2% of a client’s managed assets or a flat fee rate, but it’s also common for commission rates to be higher than that. The commission rate is negotiable, although it’s usually set by mutual fund companies or investment banks who use the broker to sell their mutual funds or stocks.
  • Annual account fee: Many brokers also charge a yearly fee for managing your portfolio. This may be based on your account balance, although some firms charge a flat rate regardless of your investment.

Types of stock brokers

The most common stock brokers are:

  • Full service stock brokers: Full service stock brokers are the traditional kind of stock broker. They offer a wide range of services and advice to their clients, including investment analysis, portfolio management, and financial planning. These brokers are paid on a commission basis, which means that they get paid based on the amount of money they bring in for their firm, whether that be through stocks or mutual funds.
  • Discount stock brokers: Discount stock brokers charge lower fees than full service brokers because they provide fewer services. You may be able to open an account with a discount broker without having to pay any fees at all, or you might pay a small commission when you buy or sell a security. Discount brokers may not be able to handle complex trades or help you make decisions about your portfolio, but they can give you quotes and answer basic questions about individual stocks.
  • Online stock brokers: An online stock broker is a type of brokerage firm that allows investors to buy and sell securities through their website or app. Online brokers are available for individuals, businesses, and institutions. Some companies offer both full service and discount services, while others focus on one or the other. However, most online brokers offer similar services as their traditional counterparts.

What types of stock can you invest in?

There are many types of stocks, but the most common ones are:

  • Common stock: Common stock is typically purchased through an open market sale or by issuing additional shares from the company treasury. In an open market sale, the shares are sold through a broker, who transfers them to another investor’s account. In addition to trading common stocks through brokers, you can purchase them directly from company websites or online discount brokers that allow self-directed trading without requiring investors to meet certain minimum deposits or trade minimums.
  • Preferred stock: Preferred stock is a security that allows investors to receive dividends before common stockholders do and have their investment repaid before common stockholders if the company goes bankrupt or liquidates its assets in bankruptcy court.
  • Large-cap stocks: Large-cap stocks can be an excellent place to invest. They tend to be less volatile than smaller companies and have more consistent earnings. They also offer larger potential returns if you buy them when undervalued and sell them when overvalued.
  • Mid-cap stocks: Mid-cap stocks are generally defined as being between the small and large cap on the market cap spectrum. Mid-caps are generally thought by many experts to be more promising than their large-cap counterparts because their size does not necessarily limit their growth as it is with large caps. The key here is that mid-caps have yet to reach the heights of large caps, but with time, they could do so, making them a good investment option for those looking for growth in their portfolio but don’t want to invest in small caps just yet.
  • International stocks: International stocks are issued by companies based outside of the United States. The most popular types of foreign stock include European and Asian companies. These often offer greater profits than domestic stocks but have higher risk factors because they aren’t always regulated by U.S. government agencies like the Securities Exchange Commission (SEC).

Benefits of investing with a stock broker

Here are some of the benefits of investing in stocks with a stock broker:

  • Get started quickly and easily: A stock broker can help you start buying stocks at once without having to go through all the paperwork first. You just need to provide personal information, including your name, address, and Social Security number.
  • Control over your investments: Stock brokers will give you more control over your investments because they give you access to many different investment options previously unavailable to most people due to high transaction costs or lack of knowledge about how to navigate markets efficiently.
  • Gain invaluable guidance: A stock broker can be an invaluable asset when making decisions about investments in the stock market. They will provide valuable advice that helps investors make informed choices about whether or not they should buy or sell a particular company’s shares at any given time or both. In addition, they can also guide how much money should be invested in each company based on their risk tolerance level and how much risk each investor should take on overall within their portfolio of stocks.

How to choose the best stock brokers

When choosing a stock broker, there are several factors you should consider. These include:

  • Look for brokers with a track record of reliability: You can start by researching the reputation of the brokerage firm and its brokers. Look for reviews from other customers and any awards or recognition the company has received.
  • Pay attention to account minimums: Check the brokerage’s minimum balance requirements before opening an account. Some brokers require high balances to qualify for lower commissions or other perks.
  • Watch out for account fees: Fees vary widely among brokerages and can be charged on different accounts, including regular and retirement accounts. Be sure you understand all fees before signing up for an account with any company.
  • Consider tools, education, and features: Most brokers offer trading platforms that allow you to place trades electronically or over the phone with a live representative. Some firms have better mobile apps than others, while others may offer online chat services where you can communicate directly with a person rather than send an email through their website interface.