What is a discount broker?
A Discount Broker is a stock broker who carries out buy and sell orders at a reduced commission compared to a full-service broker. But it provides no one-to-one investment advice. Now-a-days, major online discount brokers have started to provide quality research to their clients. Most retail investors and traders are increasingly choosing discount brokers over traditional full service brokerages. In the past decade, there has been a proliferation of online discount brokers firms in the recent years. With the rise in the number of online discount brokers, competition has risen. The competition has forced innovation in trading platforms, low commissions, and additional features such as educational and training centers, and more.
The list below is the list of discount brokers compiled by our team who are the best in this category:
As you see the rankings, it is advised to take a look at their individual reviews before coming to a final conclusion. I recommend you to also visit the broker's websites to determine which online discount brokerage is the best for your needs.
Discount Broker Comparison
Our goal is to show you some of the best values in the discount brokerage space, and show you some of the top features they offer. We have focused on the more popular firms that consistently appear in the industry awards reviews, including those by Barron's, SmartMoney, and Kiplinger’s. Our brokerage comparison will give you some basic information on pricing structures, and the unique features about each of these online brokerage firms. Hopefully you can use this information to find the discount online brokerage that is best for your needs.
The above list comprises of the top online discount brokers. We analyzed each in six broad areas. First, the obvious: trading fees and commissions; and then others such as investment products, research quality, trading platform and tools, customer service, and trader education. We also measured the ease of navigation and functionality of their Web sites and apps. We must say at this point that no broker aced all of the areas, but surely Tradeking stands out tall amongst other discount stock brokers.
With just $4.95 in commissions and superb customer service and trading platform, Tradeking is a top choice for a retail-investor among the discount stock brokers online.
E*Trade is the star of this year’s rankings. It is the best discount broker according to our research. It charges $9.99 per transaction, and scores relatively low for that reason — but what amazes us is its wide range of investment choices, good research, and excellent trading platform & tools. These areas really made ETrade to stand ahead of the others. . To read the in-depth analysis, please visit Editorial Review and Ratings of ETrade.
When it comes to investment choices, the winner for ETFs is TD Ameritrade, which offers 101 ETFs without commission. The mobile apps from TD Ameritrade also stand aside as compared to others. The downside: TD Ameritrade charges $9.99 per trade. To read our in-depth analysis, please visit Editorial Review and Ratings of TD Ameritrade.
Cheapest Discount Broker While choosing the cheapest discount broker, we not only considered the trading commissions, but also the quality of the trading platform and customer service. According to us, Tradeking is the cheapest discount broker.