Top 10 online brokerage firms. Best discount stock brokers and investment companies comparison.

To achieve your financial goals it is important to find an online brokerage firm that not only offers low fees and pricing but is also very reliable and provides excellent services. In 2017 we compared the best discount stock brokerage companies in U.S. on overall customer value they provide. We hope that the brokerage firms ratings below will be instrumental in selection of the right investing company for you.

Scottrade Pricing

  • Stocks/ETFs: $7 per trade
  • Options: $7 + $0.70 per contract
  • No-load mutual funds: $17 per transaction for no-load mutual funds
  • Listed corporate bonds: $35 fee + $3 per bond (minimum investment $1,000)
  • Unit Investment Trusts: $50 liquidation fee

Scottrade Advantages

Investors who want more than just an on-line account with phone service should take a look at Scottrade. The stock brokerage firm operates more than 500 branch locations across most states. Many of the offices offer in-person seminars. The brokerage company also provides on-line events. These can cover a wide range of topics, from the U.S. economy to the firm's advanced platform, ScottradeELITE. This platform is for active traders and comes with a host of nice features, including advanced charting, Recognia technical analysis, and a sector trends tool. Traders who don't meet the requirements to use ScottradeELITE can trade on the broker's newly redesigned website. It includes a handy trading ticket at the bottom of the browser that can be used to trade stocks, options, and ETF's.

Scottrade is also a great place to trade mutual funds. The brokerage firm offers its customers more than 11,500 funds plus a very good screener that can search through all of them. Users can specify several important criteria, including Morningstar rating, expense ratio, investment minimum, and performance. Over 2,100 funds have no load and no transaction fee. Scottrade also provides pre-defined screens such as real estate, fixed income, and U.S. equity. A fund's availability, load status, and transaction-fee status are clearly marked with color-coded icons, a nice feature.

In addition to a great selection of mutual funds, the brokerage firm's customers also get stock and ETF trades for just $7. Scottrade recently lowered its commission on options to just 70¢ per contract, placing the broker squarely in the low-cost category. Despite this classification, the firm continues to offer good trading technology, including a useful mobile app, along with educational materials on its website that will be useful to many new investors. These resources include information on extended-hours trading, Brexit, long calls, and how to submit an order. There are also several beneficial calculators on the firm's website, including a college savings calculator and an IRA comparison tool.

Scottrade Review

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Current Scottrade Promotion Offer

Get $100 in Transfer Fees Refunded. No set-up fees. No Annual Fees.

TradeKing Pricing

  • Stocks/ETFs: $4.95 per trade
  • Options: $4.95 + $0.65 per contract
  • No-load mutual funds: $9.95 per transaction for no-load mutual funds
  • Bonds: $1 per bond with $10 minimum, $250 maximum
  • Treasuries: commission-free
  • Certificates of Deposit (CDs): $24.95 per transaction

TradeKing Advantages

In a world of $7 trades, $8 trades, and even $10 trades, investors may think the bottom of the barrel is at $6.95. But one of the discount brokerage firms has managed to offer $4.95 commissions while still offering good trading technology and a selection of educational tools. The broker's advanced platform, TradeKing LIVE, if free for all customers. It is browser based. Clicking on the LIVE icon after logging in generates a separate window for the platform. It has funds transfer, charting, real-time quotes, option tools, account data, and more. Limited equity research is also available, which includes news stories from Benzinga. The broker has another platform called Quotestream, which is available for active traders. It comes with multiple watch lists, streaming ticker symbols, and detailed stock information.

Besides general securities trading in stocks, options, and mutual funds, the brokerage firm is also one of the few in the industry to also offer forex trading. In fact, the broker has its own forex platform that is free to use. The minimum deposit amount to trade forex with the broker is only $500 for some currency pairs. There are also forex specialists at TradeKing who can assist clients who need any help with this product. Beyond currency trading, the firm also has a good selection of debt offerings for fixed-income traders. The debt screener is effective at narrowing down a list of thousands of bonds based on criteria such as coupon rate, maturity, bond rating, and call status.

One great feature that TradeKing has that other stock brokerage firms lack nowadays is a customer forum on the website. There are blogs, groups, and a discussion forum where traders can discuss financial news and investments ideas. In many of these chats, a TradeKing representative can answer any account-related questions. There are places for option traders, beginners, fundamental analysis, and value investors. There is also a trading feed that displays how many TradeKing customers hold a particular security. It's a great place to hang out and communicate with other traders.

TradeKing Review

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Current TradeKing Promotion Offer

Get $100 in free commissions. No hidden fees. No minimums.

TD Ameritrade Pricing

  • Stocks/ETFs: $9.99 per trade
  • Options: $9.99 + $0.75 per contract
  • No-load mutual funds: $49.99
  • Treasuries at auction: $25
  • All other bonds and CMOs, CDs: on a net yield basis
  • Futures: $2.25 per contract (plus exchange & regulatory fees)
  • Forex: Non-commission currency pairs trade in increments of 10,000 units (and do not contain a "#" symbol suffix). There are no additional fees or charges.

TD Ameritrade Advantages

Investors looking for a discount brokerage firm with good customer service, advanced trading technology, a large selection of funds and accounts, and excellent research and educational tools should take a look at TD Ameritrade. The firm is known for its high quality services. For example, the company has a network of branch locations spanning 34 U.S. states. Currently, there are more than 100 locations. The broker also has customer service representatives on the phone 24 hours a day, 7 days a week. TD Ameritrade clients can also get checks and a Visa debit card at no cost. ATM fees incurred with the card are reimbursed nationwide.

TD Ameritrade is one of the better fund brokers. There are over 11,000 mutual funds at the firm. Nearly 2,000 come with no load and no transaction fee. More than 100 exchange-traded funds are also available to trade commission-free. Many of these have low expense ratios, which will appeal to cost-conscious traders. Buying and selling these products is a breeze using the firm's trading platforms. The website has SnapTicket, an easy-to-use trading ticket at the bottom of the browser. There is also Trade Architect, a user friendly platform that operates in its own browser window. And Thinkorswim is an advanced desktop trading system, which is completely free to use. The firm has a total of three mobile apps that can be used on a variety of devices, including fingerprint-enabled phones. Even better, there is an app for Apple Watch for the most tech savvy of traders.

Investors will benefit from the excellent research and educational tools available on the TD Ameritrade website. There are effective screeners for all securities the broker offers. An educational section offers many learning materials, including articles and videos. Information on forex, futures, and retirement accounts can also be found on the TD Ameritrade website as these products are available with the firm. Beginners especially will benefit from these educational resources.

TD Ameritrade Review

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Current TD Ameritrade Promotion Offer

Join TD Ameritrade. Trade free for 60 days + Get up to $600.

Thinkorswim Pricing

  • Stocks/ETFs: $9.99 per trade
  • Options: $9.99 + $0.75 per contract
  • No-load mutual funds: $49.99
  • Treasuries at auction: $25
  • All other bonds and CMOs, CDs: on a net yield basis
  • Futures: $2.25 per contract (plus exchange & regulatory fees)
  • Forex: Non-commission currency pairs trade in increments of 10,000 units (and do not contain a "#" symbol suffix). There are no additional fees or charges.

Thinkorswim Advantages

Traders who need an advanced desktop program to buy and sell securities should check out Thinkorswim by TD Ameritrade. Not only does the software have some very sophisticated features, it's free to use for all the brokerage firm's clients. Especially beneficial is the charting. There are 400 technical studies, far more than Schwab offers on its advanced platform. There are also several drawing tools, including Fibonacci arcs, trendlines, and notes. The graph style is customizable, as is the rest of the platform. Users can select candlesticks, OHLC bars, line, mountain, equivolume, Heikin Ashi, candle trend, monkey bars, and seasonality. Futures and forex can also be charted, a rarity among brokers.

Beyond charting, Thinkorswim has many other features that will benefit traders. For example, there is a library of on-demand videos from Reuters and CNBC. These cover a wide range of recent business news stories. There are also a large number of heat maps. They are arranged based on indexes, ETF's, and watchlists. There are also several scanners in the software that search through various products, such as ETF's, stocks, forex, and options. Criteria that can be selected in the search engines include volume, EPS, yield, days to expiration, option type, and return on capital.

Thinkorswim also has a very useful economic calendar. It displays various financial events for the week, such as dividends, earnings announcements, conference calls, splits, futures liquidations, and ETF dividends. The calendar extends several months into the future. Traders can also sign up for alerts on the platform and read financial news articles from Dow Jones. Unlike the vast majority of stock brokerage firms, TD Ameritrade also offers forex and futures trading, both of which can be traded on Thinkorswim. Dealing boxes with buy green buttons and red sell buttons make trading these products quick and easy. With so many possibilities in the software, Thinkorswim is certainly one of the most advanced platforms in the industry offered by stock brokerage firms today.

Thinkorswim Review

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Current Thinkorswim Promotion Offer

Join Thinkorswim. Trade free for 60 days + Get up to $600

OptionsHouse Pricing

  • Stocks/ETFs: $4.95 per trade
  • Options: $4.95 + $0.50 per contract
  • No-load mutual funds: $20 per transaction for no-load mutual funds
  • Futures: $2.00 per contract
  • Call customer support to buy U.S. treasury bonds and listed corporate bonds

OptionsHouse Advantages

Frequent traders who are looking for good quality service with low commissions should consider opening an account at OptionsHouse. The brokerage firm has one of the lowest stock and ETF commissions in the industry at just $4.95. Derivative contracts are just 50¢ extra, another very low charge. Despite the low fees, the broker still has good options research and an advanced platform to trade the securities on. Chains and a strategy tester are good tools to help option traders find profit potential. The broker's desktop trading system is free for all clients. Besides option contracts, users can also trade stocks, ETF's, and mutual funds. Bonds are traded over the phone with a representative.

Investors who are new to the world of securities or haven't used the OptionsHouse platform before can try out the software without risking a dime of real money. The discount brokerage firm has incorporated paper trading into the platform, which allows users to trade $100,000 of fake money. All the great features of the platform are available on the practice system. This includes an economic calendar, a watch list, market news, and charting. The brokerage firm's mobile app also has paper trading. The app can be used on Android and Apple devices at no cost. Quotes, option chains, account information, and of course order entry are all available on the mobile platform. As with the desktop system, the mobile app is free of charge.

One of the nice benefits of OptionsHouse is that it offers futures trading. Most securities brokers do not. Investors can buy and sell futures contracts for just $2 per contract. Exchange fees are extra, which is the norm in the industry. The broker currently also has a special of just $1.50 per contract, which lasts until the end of September. Despite these low fees, OptionsHouse has good customer service, which includes an on-line chat system. And accounts come with no fees. The stock brokerage firm charges nothing for low balances or inactivity. This policy applies to regular securities accounts and retirement accounts.

OptionsHouse Review

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Current OptionsHouse Promotion Offer

Open and fund an OptionsHouse account to get up to $1,000 in free commissions for 60 days.

This article was updated on 1/11/2017

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