5 Best Discount Brokers of 2024

Discount brokers offer low-cost and commission-free trading options, making investing more accessible. In 2024, these were the best discount brokers because of their unique features, competitive fees, and advanced trading tools.

Fidelity Investments

Fidelity Investments has robust research capabilities and a wide range of investment options. It is popular among mutual fund investors. The platform offers commission-free trading on stocks and ETFs.

Pros

• Extensive research from over 20 third-party providers, including market analysis, ETF reports, and mutual fund fact sheets.
• A vast selection of mutual funds, stocks, ETFs, bonds, and more.
• Reliable customer service with options for in-person meetings.
• Real-time analytics and a customizable trading experience on the Active Trader Pro platform.

Cons

• Charges of $32.95 for broker-assisted trades can be costly for some investors.
• The mobile app is sleek, but the website interface can feel dated and cumbersome.
• Non-invested cash earns minimal interest. Not ideal for some investors.

Interactive Brokers (IBKR Lite)

Interactive Brokers offers low-cost trading and a comprehensive platform for active traders. It caters to professional traders and serious investors with its powerful Trader Workstation and extensive research tools.

Pros

• The industry’s lowest margin rates. 
• Numerous research tools, including advanced scanners and customizable trading options.
• You should have multiple tradable assets for a diverse investment portfolio, such as stocks, options, mutual funds, futures, forex, and more.
• Commission-free trades on stocks and ETFs.

Cons

• Due to various tiers and conditions, the fee structure can be confusing, particularly for new investors.
• The powerful Trader Workstation may be too complex for novice investors.
• Some users have reported unreliable customer support experiences.

Robinhood

Robinhood has a commission-free trading model. It provides an intuitive mobile app. The platform supports trading stocks, ETFs, options, and cryptocurrencies without commission fees.

Pros

• Unlimited commission-free trades on stocks, ETFs, options, and cryptocurrencies, significantly reducing trading costs.
• It is an easy-to-use app that is ideal for beginners and mobile-first investors.
• Fractional shares are available to invest in high-priced stocks with smaller amounts of money.
• Supports the trading of over 15 cryptocurrencies with no fees.

Cons

• Limited advanced trading tools and features unless users upgrade to Robinhood Gold.
• There is no free phone customer support; it is only available through the app.
• The business model is reliant on earning interest from uninvested cash.

Charles Schwab

Charles Schwab offers numerous investment services and tools. It offers commission-free trades on stocks and ETFs. The platform has extensive market research and superior customer service.

Pros

• Multiple investment options, including stocks, ETFs, mutual funds, and bonds.
• In-depth research and analysis to enhance investment decisions.
• Fractional share investing to buy portions of expensive stocks.
• Round-the-clock phone support and over 300 physical offices for in-person assistance.

Cons

• Minimal interest on uninvested cash.
• Some premium features and services require additional fees.

SoFi Invest

SoFi Invest offers commission-free trading on stocks, ETFs, and options. It also provides unique features such as access to financial advisors and IPO investments.

Pros

• Commission-free trades on stocks, ETFs, and options that save costs.
• Fee financial advisors offer personalized financial advice and planning.
• Opportunity to invest in IPOs, which is relatively rare among discount brokers.
• Fractional shares are available to invest.

Cons

• Low interest rates on uninvested cash.
• Limited advanced tools than other brokers.

Conclusion

Selecting the right discount broker significantly impacts your investment experience. All the platforms have their pros and cons. Assess your needs and choose the broker that aligns with your goals.

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