The trend of commission-free online trading platforms makes investing more accessible to more people, especially as account minimums disappear.
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It’s important to understand that when an online broker offers commission-free trading, it really just means they don’t charge their own fee for helping execute the trade. There might still be other fees involved. Remember too that exchange-traded funds and mutual funds come with expense ratios, and those fees are still charged even if there isn’t a commission for buying or selling the fund.
As with any investment, it’s vital to know what you’re getting into, understand the terms and ensure you’re prepared for potential losses. If you’re looking for a commission-free online broker for your investment needs, here are 10 that don’t charge trading fees:
| COMMISSION-FREE BROKER | U.S. NEWS & WORLD REPORT RATING | U.S. NEWS & WORLD REPORT REVIEW |
| Charles Schwab | 4.8 out of 5 | Read Charles Schwab Review |
| Fidelity | 4.8 out of 5 | Read Fidelity Review |
| Firstrade | 4.2 out of 5 | Read Firstrade Review |
| Interactive Brokers | 4.7 out of 5 | Read Interactive Brokers Review |
| Merrill Edge | 4.4 out of 5 | Read Merrill Edge Review |
| Vanguard | 3.9 out of 5 | Read Vanguard Review |
| Webull | 4.1 out of 5 | Read Webull Review |
| Public | 4.2 out of 5 | Read Public Review |
| Cash App | 4.1 out of 5 | Read Cash App Review |
| Tastytrade | 4 out of 5 | Read Tastytrade Review |
Charles Schwab
A well-known discount broker that dropped its trading commission to zero in 2019, Charles Schwab Corp.’s (ticker: SCHW) free trading applies to ETFs, stocks, fractional shares and Schwab mutual funds. Options trades also have no commission, but there is a 65-cent fee per contract. There is no account minimum for self-directed accounts, so opening an account and funding it is relatively easy. Schwab also offers several research tools and educational materials. On top of that, the broker has an automated investing platform, Intelligent Portfolios, for those interested in a robo-advisor product, although you’ll need at least $5,000 to get started. But once you do start, there’s no advisory fee for the service, which is an impressive deal. Read U.S. News & World Report’s review.
Fidelity
You probably think of Fidelity Investments mainly in terms of retirement account management. That’s certainly the company’s bread and butter, but Fidelity also has its own discount online trading platform that doesn’t come with an account minimum. There are no fees for maintaining the account, nor for if and when you decide to close your account. On top of that, you can trade U.S. stocks, ETFs and options without paying commissions, although a 65-cent-per-contract fee applies to options. All of the firm’s proprietary mutual funds also trade for free along with many non-Fidelity mutual funds.
Because it’s Fidelity, it’s no surprise there are many investment education and research tools you can use to help make informed investing decisions. These include free research reports from more than 20 independent analysts. Read U.S. News & World Report’s review.
Merrill Edge
For Bank of America Corp. (BAC) customers, the natural choice for a commission-free broker may be Merrill Edge. The Bank of America subsidiary allows you to link your Bank of America bank account with your Merrill Edge brokerage account so you can view and manage everything from one platform. The platform also offers commission-free trading online for stocks and ETFs to complement a fairly robust suite of research tools. Options also trade free, but come with the familiar 65-cent-per-contract fee.
With no account minimum for self-directed accounts, it’s easy to get started. (There’s a $1,000 minimum to use Merrill Guided Investing.) New clients who open an individual retirement account or cash management account can even qualify for a $600 sign-up bonus. Read U.S. News & World Report’s review.
Vanguard
Known for low-cost investing, Vanguard’s large fund selection makes it a great option for long-term investors. The broker also offers commission-free trading online for stocks, ETFs and many mutual funds. Options may also trade free, but with a $1 per-contract fee. You may incur a $25 account service fee if you don’t opt into e-delivery of account documents. And once you go Vanguard, you may not want to go elsewhere because they’ll charge you a $100 processing fee to close your account and transfer your assets.
The company caters more to buy-and-hold investors and provides a lot of tools and calculators for long-term investing. It also doesn’t list leveraged ETFs on its platform, which can involve considerably more risk. The platform does provide digital advice in both purely robo form through its Digital Advisor and hybrid form with Vanguard Personal Advisor. You’ll need at least $100 to use Digital Advisor and $50,000 for Vanguard Personal Advisor. Read U.S. News & World Report’s review.
Firstrade
From the first page of Firstrade, you know you’re getting a solid commission-free brokerage. The platform charges no commissions on stocks, ETFs, mutual funds or options. There’s also no per-contract fees for trading options. Its straightforward platform also makes it a great choice for investors who don’t want a large learning curve with a new online broker. Novice and experienced investors alike can appreciate its stock screeners, which integrate with Morningstar so you’re sure to get top-end research. What you won’t get through Firstrade is personalized financial advice, because the firm has no financial advisors. That said, the customer service team is quite knowledgeable. Read U.S. News & World Report’s review.
Interactive Brokers
Interactive Brokers Group Inc. (IBKR) made its name as an options-trading website, but it’s possible to trade stocks, ETFs and many mutual funds without paying a commission on the IBKR Lite plan. There is no account minimum, so getting started is fairly simple. This broker offers an interesting range of tools designed to analyze your portfolio and options choices, including the ability to use “what-if” scenarios, which let you create a hypothetical portfolio based on your actual portfolio so you can see how changes may affect your results. On top of that, the index arbitrage meter is an interesting tool you can use to determine whether futures prices on indexes are fair value. Just be aware that bonds, options and futures trades are not commission-free on the platform. Read U.S. News & World Report’s review.
Webull
A newer addition to the online brokerage industry, Webull has proven itself to be a great option for commission-free trading. With no fees to trade stocks or ETFs or account minimums, it’s an easy choice for beginning investors. Options may incur a 55-cent-per-contract fee. As an added bonus, the company currently offers new customer promotions, including 20 to 75 free fractional shares, depending on your deposit amount. It also provides charting tools and a customizable layout, making it a great choice for active traders as well as newbies. Read U.S. News & World Report’s review.
Public
Another newer online broker on the block is Public. Founded in 2019 as a commission-free fractional investing platform, it has since expanded to include stocks, ETFs, Treasurys, crypto and alternative asset classes. Only stocks and ETFs are commission-free, however. There’s no fee to trade U.S.-listed stocks and ETFs during market hours, but after-hours trading incurs a $2.99 commission for nonpremium members. Premium membership requires a $8-per-month subscription fee. Unlike most other brokers, Public does not charge contract fees for options trades. So if it’s free options trading you’re after, this could be the platform for you. Just make sure you stay active on the platform or keep at least $70 in your account to avoid the $3.99 monthly inactivity fee. Read U.S. News & World Report’s review.
Cash App
You may think of Cash App as, well, an app for managing cash, but the platform also offers investing. And if you don’t need all the research bells and whistles, it could be a good place to get started. The app charges no commissions, and there’s no minimum account balance requirements or maintenance fees. You can trade stocks and ETFs for as little as $1 with fractional shares. You won’t find any mutual funds, bonds, leveraged ETFs, penny stocks or microcap stocks here. But you can buy Bitcoin on the app. All investments are covered by Securities Investor Protection Corp. insurance for up to $500,000, just as you’d get from larger brokerage firms. Read U.S. News & World Report’s review.
Tastytrade
Active traders who do like bells and whistles may prefer Tastytrade. Built by former trading floor professionals, the platform caters to experienced traders with its claim to provide one of the fastest and most reliable trading platforms in the world. You can trade stocks, ETFs, options, futures, cryptos and commodities on the site. However, only stocks, ETFs and crypto trade commission free. There’s no minimum to open an account, but if you deposit at least $2,000 you can currently earn a cash bonus of $50 and up to $5,000 for depositing more (a promotion that ends Dec. 31, 2024). If you want to trade on margin, you’ll need at least $2,000 in your account. Read U.S. News & World Report’s review.
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10 Brokers That Offer Commission-Free Trading originally appeared on usnews.com
Update 09/26/24: This story was previously published at an earlier date and has been updated with new information.
