The Best Online Stock Trading Services of 2024: Reviews and Comparisons

In 2024, online stock trading continues to evolve at a rapid pace, with a wide variety of platforms offering powerful tools, low fees, and accessible services for both new and experienced investors. The rise of fintech and the increasing popularity of do-it-yourself investing have pushed brokerages to innovate and compete for customer attention. Whether you’re a day trader looking for the fastest execution or a long-term investor seeking robust research and portfolio management tools, the right online brokerage can make all the difference.

In this post, we’ll review and compare the best online stock trading services of 2024, evaluating features, fees, ease of use, customer service, and overall performance. By the end of this guide, you’ll have a better understanding of which platform might best meet your specific investing needs.

1. Charles Schwab

Charles Schwab will continue to be a leader in the online brokerage space in 2024. Known for its user-friendly interface, robust educational resources, and low costs, Schwab is an excellent choice for both beginners and seasoned investors.

Key Features:

• No commission on U.S. stock trades: Schwab offers commission-free trades on U.S. stocks, ETFs, and options.
• Fractional shares: Schwab’s “Stock Slices” feature allows you to invest in any S&P 500 stock with as little as $5, making it ideal for beginners with smaller amounts of capital.
• Research tools: Schwab provides access to a wide range of research reports, real-time data, and advanced tools like the StreetSmart Edge platform for more sophisticated traders.
• Customer service: Schwab consistently ranks high in customer satisfaction, with 24/7 support available.

Drawbacks:

• Complexity for advanced traders: While Schwab is great for most investors, its more advanced trading tools can feel limited for highly active traders or those seeking more niche products like futures.

2. Fidelity Investments

Fidelity has been a major player in the brokerage world for years, and it continues to deliver an excellent all-around experience in 2024. Fidelity stands out for its commitment to lowering fees and offering top-notch educational resources.

Key Features:

• Zero-fee index funds: Fidelity offers several zero-expense-ratio index funds, a huge perk for long-term investors looking to minimize costs.
• Commission-free trades: Fidelity offers commission-free trades on U.S. stocks, ETFs, and options, similar to Charles Schwab.
• Retirement planning tools: Fidelity’s platform excels in providing retirement planning calculators, IRAs, and robo-advisory services.
• Extensive research: With reports from independent sources like Zacks, Morningstar, and more, Fidelity has some of the best research tools on the market.

Drawbacks:

• Interface complexity: While feature-rich, Fidelity’s platform can feel overwhelming for new users. Its Active Trader Pro platform may also have a steep learning curve for day traders.

3. TD Ameritrade

TD Ameritrade has been a favorite among traders for years due to its powerful Thinkorswim platform. Even after being acquired by Charles Schwab, TD Ameritrade retains its own identity and provides a top-tier trading experience in 2024.

Key Features:

• Thinkorswim platform: This is one of the most advanced trading platforms available, offering highly customizable charts, sophisticated trading strategies, and comprehensive market data.
• Commission-free trading: Like most of its competitors, TD Ameritrade offers free trades on U.S. stocks and ETFs.
• Educational resources: TD Ameritrade’s commitment to investor education is impressive, with tutorials, webinars, and in-person events for users at all levels.
• Futures and forex trading: For traders who want access to more than just stocks and ETFs, TD Ameritrade also supports futures and forex trading.

Drawbacks:

• High margin rates: While TD Ameritrade excels in many areas, its margin rates are slightly higher than some competitors.

4. E*TRADE

ETRADE is well-known for its versatile trading platforms and an easy-to-use interface that caters to both casual and active traders. With the Power ETRADE platform, the brokerage continues to offer a great mix of tools and features.

Key Features:

• Power E*TRADE platform: This platform is designed for more active traders, offering tools for technical analysis, options trading, and real-time data.
• Commission-free trades: Like other leading brokerages, E*TRADE offers free trades on U.S. stocks, ETFs, and options.
• Mobile app: E*TRADE’s mobile app is one of the best in the industry, making it easy to trade on the go.
• Extensive educational resources: E*TRADE provides a wealth of educational materials, including videos, articles, and webinars to help users improve their investing skills.

Drawbacks:

• Account fees: While trading fees have come down, E*TRADE has some fees for certain types of accounts that other platforms might not charge.

5. Interactive Brokers

Interactive Brokers (IBKR) is the go-to platform for professional traders and those who trade internationally. In 2024, it will continue to offer the lowest margin rates in the industry and a range of products that appeal to experienced traders.

Key Features:

• Lowest margin rates: IBKR is unbeatable when it comes to margin rates, which is a huge draw for traders who use leverage.
• International trading: IBKR offers access to markets in over 135 countries, making it the best platform for global traders.
• Advanced trading platform: The Trader Workstation (TWS) is designed for serious traders who need advanced charting tools, algorithmic trading, and more.
• Fractional shares: You can purchase fractional shares, allowing you to diversify with smaller amounts of capital.

Drawbacks:

• Complexity: Interactive Brokers’ platform is not beginner-friendly. TWS can be overwhelming for casual traders, and the interface isn’t as intuitive as other brokers.
• Inactivity fees: IBKR charges inactivity fees for certain account types, which could be a drawback for less active traders.

6. Robinhood

Robinhood revolutionized the brokerage industry by introducing commission-free trading back in 2013, and in 2024, it remains one of the most popular platforms for millennials and beginner investors. However, the app’s simplicity is both its biggest strength and its biggest weakness.

Key Features:

• Commission-free trading: Robinhood offers commission-free trading for U.S. stocks, ETFs, options, and even cryptocurrency, making it a great option for cost-conscious investors.
• Simple user interface: The app is incredibly easy to use, which makes it ideal for beginners who are just getting started with investing.
• Fractional shares: Robinhood offers fractional share trading, allowing users to invest small amounts in expensive stocks.
• Crypto trading: Robinhood is one of the few stock trading platforms that offers cryptocurrency trading.

Drawbacks:

• Limited research tools: While Robinhood is great for beginners, it lacks the robust research tools and educational resources found in more advanced platforms.
• Limited account types: Robinhood only offers taxable brokerage accounts and lacks the retirement account options that many competitors provide.

7. Merrill Edge

Backed by Bank of America, Merrill Edge provides a well-rounded brokerage service that’s particularly attractive to those already banking with BoA. In 2024, Merrill Edge continues to offer a solid platform with deep integration into Bank of America’s services.

Key Features:

• Commission-free trading: Like other top-tier brokers, Merrill Edge offers free trades on U.S. stocks and ETFs.
• Preferred Rewards program: Bank of America customers can benefit from the Preferred Rewards program, which offers higher interest rates on savings and lower fees.
• Research tools: Merrill Edge provides access to high-quality research from Bank of America’s Global Research division, Morningstar, and Lipper.
• Integration with BoA: If you already use Bank of America, the seamless integration between Merrill Edge and your banking services is a major perk.

Drawbacks:

• Limited features for active traders: While Merrill Edge is great for casual investors, active traders might find the platform lacking in advanced tools and order types.

Conclusion

The best online stock trading service for you in 2024 depends on your specific needs as an investor. If you’re a beginner looking for ease of use, Robinhood or Charles Schwab might be your best bet. For more advanced traders who need powerful tools, TD Ameritrade and Interactive Brokers are top choices. Fidelity and Merrill Edge are excellent for long-term investors who want access to retirement accounts and premium research.

Ultimately, the key is to choose a platform that aligns with your investing style, offers the features you need, and comes with transparent pricing. Happy trading!