[Last updated: June 27, 2016]
Best Overall: OptionHouse
Overview: A fantastic choice for both the casual options trader and die hard stock investors. OptionHouse has a $0 account minimum, no inactivity fees, and one of the lowest stock trade fees on the market.
Summary: Out of all of the trading platforms, OptionHouse walks away with our best overall. Low fees and no account minimums make it a great choice for the fee conscious, but it also packs some valuable trade tools. It’s no doubt the best choice for experienced options traders and advanced level investors looking to search for great stocks, shorts and calls. Casual traders will enjoy not having an inactivity fee. You can trade when you want and let the cash sit while you don’t. $4.95 for stocks and only .50 cents/contract on options (plus $4.95 for the trade) are rock bottom prices. It’s not for everyone, though. Forex traders will want to take a pass due to the lack of currency trading, and long haul investors looking to take advantage of mutual funds and EFT’s may want to look elsewhere. That said, if you enjoy trading in the shorter term with options and stocks, there isn’t a better option.
Read our full OptionHouse review here.
Best for Beginners: ETrade
Overview: Definitely the most well known online trading platform. ETrade is also the best option for beginners you can find. The site is easy to navigate and all of the tools are intuitive and simple to understand.
Summary: ETrade has made a unique system that caters to both beginners and fast-paced investors. The educational materials and customer support are better for newbie investors than any of their competitors. If you want to get into DIY investments, this is probably your option. It’s $9.99/trade for stocks and ETF’s (lower rates for 150+ trades a quarter). You will also enjoy ETrade if you want powerful tools to help you buy and sell stocks at the right time. The “360” and “Pro” dashboards come with some impressive tools to help you figure out your timing. However, this may not be the best platform if you’re looking for a bargain on commissions or don’t have a lot to invest initially. The most powerful tools and best rates are reserved for 6-figure accounts and very high volume investors.
Read our full ETrade review here.
Best for Long-Term Investors: TD Ameritrade
Overview: Not everyone wants to be a day-trader. TD Ameritrade has created a tool that is great for investors of any experience level who prescribe to the buy and hold methodology.
Summary: If your goals are a little more Warren Buffet and not so much Michael Douglas from Wall Street, TD Ameritrade could be the best option for you. Commission-free ETFs and no-fee mutual funds are perfect for anyone wanting to roll over an IRA into your own hands. Stock and option trades are $9.99 (plus .75 cents per option contract) are Investors starting out will enjoy no account minimums and some easy to use tools to help you make your first trade. Options trading is available, but this isn’t the best platform for high volume future trading. Short term trading fees on ETFs and higher commissions on stocks may make fast traders nervous. However, if you want to start and keep a good portfolio of winners (including Forex), TD Ameritrade is worth a look.
Read our full TD Ameritrade review here.
Number 4: Charles Schwab
Overview: Excellent customer service and the largest selection of commission free ETFs of any other platform push Charles Schwab toward the top of our list.
Summary: Putting your cold hard cash into the digital world of stocks can be nerve-racking. Charles Schwab is the perfect choice for the weary due to their excellent customer support. This platform is for those who want to put a little back all the time. There is a hefty account minimum unless you direct deposit $100/mo. This setup, along with their impressive ETF and mutual fund selection helps attract the tortoise investors looking to preserve their nest eggs. If that’s you, you’ll love the low fees associated with those investment options as well as the tools provided to help you grow your money safely. Stocks are only $8.95/trade, but there are cheaper options. If you aren’t looking for these trading vessels, you may find the fees and commissions a bit too high.
Read our full Charles Schwab review here.
Number 5: TradeKing
Overview: TradeKing is for people who love to buy and sell equities. Some of the lowest fees in the game and extremely clear-cut pricing make them a favorite.
Summary: This platform is quickly becoming a favorite among fast-paced investors. There isn’t a better option for the fee conscious and the pricing is very easy to understand. Their pricing is for equities, ETFs and options to make it that much more appealing at $4.95/ trade for stocks and options (.65 cents per option contract). The software itself is browser based, making it faster and more capable than some of the competition. The research tools have everything you need to make that quick decision and pull off your trades without hesitation. TradeKing may not be the option for less active traders. Mutual Funds and ETF’s still have the fees (commissions and maintenance) that others don’t. If your account doesn’t perform at least one trade per year, you’ll also be charged a hefty inactivity fee. If you plan on investing regularly, this could be the right fit for you.
Read our full TradeKing review here.
Number 6: Fidelity
Overview: Fantastic for the researcher who wants to know everything about a companies past to help you determine their future trading price. The research tools are perfect for long-term retirement investors and short-term traders alike.
Summary: Fidelity is better known for their retirement accounts. While they may fly under the radar of other trading platforms, they’ve developed some of the most powerful research tools of their competitors. Investors can even get a summary and score to determine to value of certain equities before pulling the trigger. If you want to trade futures or are looking for a low account minimum, there are better, lower cost options out there. If you are a lower volume trader, it may be a pass at $7.95/trade. Some of the features are only available for 36 trades or more in a 12 month period. Although, if you need a great place to pour over the data to find the best trades for your next market move, this could be the tool for you.
Read our full Fidelity review here.
Number 7: ScottTrade
Overview: Another great choice for beginners with an extensive knowledge center. High-fees may keep you away for certain trades, but a solid choice for several types of investors.
Summary: ScottTrade was created with the “average Joe” investor in mind. Easy to use and packed with educational materials, this platform may suit beginners and less fancy traders. There are four different levels to attract a wide array of investors including: Scottrade, Scottrader, Scottrade Elite and OptionsFirst. All of these levels make it a easy to step up to the next level when your trading game has improved. Fees are reasonable ($7/trade) and there is a low minimum starting deposit of $500. If you want something a little more focused or powerful, there are other choices that may be better. If you need something that can help you get started and become a better investor over time, ScottTrade could be it.
Read our full ScottTrade review here.
Number 8: Options Express
Overview: If you dabble in all types of investing, Options Express can help you trade with a variety of options. Great for “diversified” investors looking to spread their money out.
Summary: Most online trading platforms tend to focus on a particular trading method or investor type. There are only a couple of tools that allow traders to fully take advantage of multiple vehicles for their money. Forex, stocks, options, futures, ETF’s you name it and it’s there. Another useful feature is the ability to implement pre-programmed strategies to automatically invest in certain patterns. There is also a powerful tool that allows you to create your own strategy and have your money move the way you want it to in a more “hands-off” way. The fees aren’t the lowest, and with all of the options, the site can be a bit cumbersome for newer investors. However, if you want the power and options that most other platforms don’t offer, Options Express is worth a look.
Read our full Options Express review here.
Number 9: First Trade
Overview: Simple to view and understand with a clearly laid out dashboard. A great option for the late-night trader with extended trading hours not offered by other platforms.
Summary: First Trade has one of the best interfaces of any other trading platform. Organized into a simple two column layout that clearly shows you account balances, and any trade status. You’ll also be able to see your performance base on several metrics. An added bonus to their dashboard is the drag-and-drop feature that allows you to prominently place the numbers that matter most to you right where you can see them. If you work a 9-5, it can be difficult to place investments during the week. First Trade offers investors the ability to buy and sell before and after the trading hours, making it a great option for the professionals who are looking to invest wisely. Trade fees aren’t middle of the road ($6.95/trade) and the educational materials newer investors need simply aren’t there. That said, if you know what you’re doing and want an easy to understand option, take a deeper look at First Trade.
Read our full First Trade review here.
Number 10: Trade Station
Overview: May be a great option for extremely fast paced traders, but the long players will want to sit this one out. Trade Station has some great features and tools for active investors.
Summary: Rounding out our list this year is Trade Station. The platform itself is extremely useful and well laid out. There are a bunch of neat gizmos, reports and tickers that can be maneuvered around to suit your needs and many of them are incredibly valuable. Even though they have one of the better dashboards, they do come with hefty commission tiers that are geared for a large number of trades and even charge a “per share” fee of .01. The lowest-priced tier comes with at least 200 trades per month which is the highest volume of any other platform. Day traders and large options investors wouldn’t have a problem with that, but average and even heavy investors would struggle to hit that mark. If you are a day trader who wants some great tools and an easy to read dashboard, it’s worth further research. Most others will want to take a pass.
Read our full Trade Station review here.
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