Best Online Brokers 2024
In recent years, online brokers have become increasingly popular, as they offer a convenient and cost-effective way to trade stocks and other securities. However, with so many different brokers, it can be difficult to know which one is right for you. To help you make an informed decision, we've compiled a list of the best online brokers for 2023.
This article provides an overview of each broker, including their fees, commissions, features, and benefits. It also offers guidance on choosing the right broker for your needs. By comparing your options and understanding what each broker has to offer, you can make an informed decision about which one is right for you.
What Is an Online Broker?
As the name suggests, an online broker is a broker that facilitates trades online. Online brokers provide a platform for investors to buy and sell stocks, bonds, and other securities. They also offer research and analysis tools to help investors make informed decisions. Many online brokers charge commissions or fees for their services.
However, some do offer free services, either through advertisements or by providing only basic features. Some online brokers are better suited for beginners, while others are more suitable for experienced investors. When choosing an online broker, it's important to make some very crucial considerations, most of which we'll address in this article.
Top 7 Online Brokerage Accounts
RoboForex
RoboForex is a brokerage company that was founded in 2009. RoboForex is a leading software developer in the Forex industry and one of the best Forex brokers based on client reviews.
RoboForex is recognized as a reliable partner by the most respected financial market experts. The company has won numerous prestigious awards. The RoboForex group of companies has an international license to provide services from FSC Belize (license No. 000138/437).
eToro
The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA.
eOption
The eOption broker (eoption.com) is an American stockbroker headquartered in Glenview, Illinois. It has been operating since 2007 and is a member of FINRA (CRD#: 7297/SEC#: 8-21765) and SIPC. It specializes in options trading and also acts as an intermediary in trades involving the popular securities classes. The company offers low trading commissions, super-fast execution of orders, and modern platforms with an advanced set of analytical tools. In 2020-2021, eOption was recognized as the best options broker by several resources such as Investopedia, The Tokenist, Benzinga, Investormint, and NerdWallet.
DEGIRO
DEGIRO is a Dutch investment company operating since 2008. The broker has been providing online services since 2013. Today DEGIRO is headquartered in Amsterdam and has offices in 18 European countries. Its activities are controlled by the Financial Conduct Authority (FCA, 574048), as well as regulators in the Netherlands: Financial Markets Authority (AFM, 12048408) and Central Bank (DNB, R128868). DEGIRO was awarded over 86 international awards: financial publications of Germany, France, Denmark, and the Netherlands have repeatedly recognized the company as the best stock market broker. How to open a DEGIRO account
CapTrader
CapTrader is a Forex broker, which was founded in Germany in 1997. The company is headquartered in Dusseldorf. CapTrader is an Introducing broker to Interactive Brokers. The platform uses Interactive Brokers software, which is why the brokers have identical user accounts, trading platforms and products. CapTrader provides access to 7 categories of assets and trading instruments: Forex, commodities, stocks, ETFs, futures, options and CFDs. The company is regulated by the Federal Financial Supervisory Authority (BaFin, 10156708). In addition it is an introducing broker and the European licenses from the regulators of Ireland and the UK (208159) held by Interactive Brokers apply to it as well.
Revolut
Revolut is a British fintech company that has been providing investors with accounts for trading precious metals, cryptocurrencies, and stocks listed on U.S. exchanges since 2015. The broker offers its clients access to investing in stocks and ETFs on European stock exchanges. For organizations and private clients, the company offers a multi-currency account with the possibility of exchanging currencies at the current inter-bank exchange rate. Revolut is supervised by the Financial Services Authority (FSA).
Interactive Brokers
Interactive Brokers is among the best-known US investment companies, operating since 1977. The broker offers to trade currency pairs, but its basic instruments are stocks, CFD, indices, metals, ETF, futures, and other exchange market assets. The company is regulated by the US Securities and Exchange Commission (SEC), the US Financial Industry Regulatory Authority (FINRA), the UK Financial Regulatory Authority (FCA, 208159), and other international financial regulation commissions. In 2020, the broker was awarded the "Best Online Broker” (Barron's) and "Best Broker for Economical Investments" (NerdWallet) titles and got five stars in the Online Stock Trading for Traders category (Canstar). Also, the broker is popular in other countries. Here you can read reviews of Interactive Brokers in Canada, Singapore, Australia, Hong Kong, Ireland.
How to Choose the Best Online Trading Platforms?
Choosing an online trading platform can be a daunting task, especially for newcomers to the investing world. However, by keeping a few key factors in mind, you can narrow down your choices and find the platform that best suits your needs. Here are a few things to check when choosing an online trading platform:
Accessibility & Ease of Use
Many platforms nowadays offer mobile apps as well as web-based versions, so you can trade on the go. Make sure to check that the platform you're considering offers a version that will work for you. Another important factor is how easy the platform is to use. Some platforms are designed for experienced investors, while others are more user-friendly for beginners. Decide your experience level and choose a platform that matches your needs.
Smart Trading Tools
Look for a platform with robust trading tools. This includes features like charting and analysis tools, real-time quotes, real-time market data, news feeds, and order execution. These features will help you make informed decisions about when to buy and sell. Look for platforms that offer live market data, charts and analysis, and newsfeeds. Also, check out the platform's mobile app to see if it's user-friendly and offers all the same features as the desktop version.
Compliance With Regulations
One important factor to consider is regulation. All major financial bodies, such as the Securities and Exchange Commission (SEC) in the United States, and the Financial Conduct Authority (FCA) in the United Kingdom, regulate online brokerages to ensure that they are operating legally and fairly. This regulation helps to protect investors from fraud and abuse, so it is always worth checking that a reputable body regulates your chosen platform.
Fees and Commissions
Fees and commissions are important considerations when choosing an online trading platform. Make sure to compare the fees charged by different platforms before making a decision. In general, you should expect to pay a commission on each trade, as well as a monthly or annual fee for access to the platform. Some platforms also charge additional fees for certain features, such as real-time quotes or advanced charting tools.
Different Asset Types
When you're looking for the best online trading platform, it's important to consider the different asset types available. Stocks, bonds, and mutual funds are the most common, but there are also options, futures, and Forex. Each has its own strengths and weaknesses, so it's important to choose one that matches your investment goals.
For example, stocks might be the best choice if you're looking for long-term growth. Bonds might be a better option if you're more interested in income and stability. If you're willing to take on more risk for the chance of higher rewards, then you might want to consider investing in futures or Forex.
Passive Investment Options
Passive investing is a type of investing where you purchase an investment and hold it for a long period of time, regardless of what the markets are doing. The goal is to ride out the ups and downs while still making money in the long run. You must choose the right online trading platform to do this successfully.
The best platforms will offer additional features for passive investors, such as ETFs, mutual funds, and managed portfolios. For forex brokers, copy trading is also a valuable feature. By taking advantage of these tools, you can ensure that your passive investing strategy is on track.
What Are the Most Trusted Online Brokerage Companies?
You've probably heard horror stories about people who lost their entire life savings by investing with the wrong online brokerage company. While it's true that there are some less-than-reputable companies out there, there are also many highly trusted firms that have been in business for many years. To find the most trustworthy online broker, check out the few factors below.
History and Reputation
When it comes to choosing the best online broker, one of the most important factors to consider is trust. After all, you're entrusting your hard-earned money to this company, and you want to be confident that it will be safe and well-managed. So how can you evaluate a company's trustworthiness? One place to start is by looking at its history and reputation.
How long has the company been in business? What do past and present customers have to say about its level of service? These are all important questions to ask when trying to determine the best online brokerage company.
Financial Stability
Another factor to consider is the company's financial stability. Make sure to research its financials and see if there are any red flags that could indicate future problems down the road. After all, you're entrusting them with your hard-earned money, so you need to be confident that they'll be around for the long haul.
To get an idea of a company's financial stability, you can check out their rating with agencies like Standard & Poor's or Moody's. You can also look at their history of profitability and see how they've been faring in recent years. Another thing to consider is the safety of your money. Look for a member of the Securities Investor Protection Corporation, for instance. The SIPC protects investors against the failure of a brokerage firm, so you'll know your money is in good hands.
Customer Service
Another important factor to consider when choosing the best online broker is the level of customer service provided. A company that offers 24/7 customer support, live chat, and a robust FAQ section is more likely to meet your needs when you have questions or need assistance.
Furthermore, a company that provides detailed educational resources can help you become a more informed investor. When evaluating customer service, be sure to read online reviews and compare the offerings of different companies.
Cybersecurity Protection
Cybersecurity should be a top priority when choosing the best online brokers. With the rise in cases of identity theft and cyber fraud, you'll want to make sure your brokerage firm has robust security measures in place to protect your personal information.
Look for features like two-factor authentication and encryption, biometric logins, and facial ID to ensure that your data is safe from hackers. You should also check to see if the company has been the target of any major cyber attacks in the past. While no system is 100% secure, these steps can help you choose a firm that is less likely to be targeted by criminals.
Third-Party Reviews
One way to get an idea of how trustworthy a particular online trading platform is is to look at third-party reviews. Sites like Consumer Reports and the Better Business Bureau offer unbiased opinions on a variety of businesses, and they can be a great resource when you're trying to make a decision. You can also check out forums and message boards to see what other people are saying about their experiences with different firms.
When reading reviews, try to look for patterns and common themes. Are there certain complaints that keep popping up? Are there any companies that consistently receive high marks? This research can help you narrow down your options and choose a company that is more likely to be trustworthy.
Customer Reviews
Customer reviews are just as important. Customer reviews can give you insights into a company's level of customer service, the quality of its products, and its overall reliability. See what other people have to say about the company's customer service, ease of use, and overall experience. If you see a lot of complaints, that's a red flag. On the other hand, if you see mostly positive reviews, that's a good sign.
How to Choose a Broker?What are the Best Online Brokers for Beginners?
For beginners, finding the right broker can be difficult. However, there are a few key factors to consider that can help make the decision easier. Here are some of them.
Platform Experience
When it comes to choosing the best online broker, platform experience is an important consideration. For beginners, a platform with a user-friendly interface and clear, concise instructions can make a big difference. Look for a platform that has been designed with beginners in mind. It should be intuitive and straightforward.
The last thing you want is to be confused or overwhelmed when trying to execute a trade. Look for a broker that offers a free demo account so you can try out the features and get a feel for how the platform works before committing to a real account.
Welcome Bonuses
Many brokers offer these bonuses as a way to attract new customers. Welcome bonuses can vary widely, so it's important to compare different offers and find one that best suits your needs. Another thing to keep in mind is that some brokerages have minimum deposit requirements in order to qualify for the bonus. So, be sure to read the fine print before signing up.
Small Initial Deposit
The initial deposit is the amount of money you will need to open an account and begin trading. Many online brokers have high minimum deposit requirements, which can be out of reach for some beginning investors. However, some of the best brokers have low minimum deposit requirements, while others have no minimum deposit, making them more accessible for those just starting out.
Educational Resources
A good broker will offer a variety of resources, including videos, tutorials, webinars, blogs, and seminars. These resources can help you learn about the market and make informed trading decisions. Additionally, look for a broker that has an extensive FAQ section. This can be a valuable resource when you have questions about the platform or how to place trades.
Deposit and Withdrawal Methods
Make sure that the broker you choose offers a wide array of payment methods, including credit and debit cards, wire transfers, and e-wallets such as PayPal. This will give you flexibility when it comes to funding your account and withdrawing your profits.
How to Start Trading Online?
To start online trading, there are a few things you'll need to do. Here's a step-by-step guide on how to get started:
Find a reputable broker: You will want to find a broker that is well-established and has a good reputation. There are many different brokers available, so it is important to do some research to find one reputable broker that suits your needs.
Register an account: Once you have chosen a broker, you will need to create an account. Make sure to use accurate personal information, as this will be used for identity verification purposes. Most online brokers will require you to upload some form of ID, such as a driver's license or passport.
Fund your account: To start trading, you will need to deposit money into your account. This can typically be done via bank transfer or credit/debit card. Once the funds have been deposited, you will be able to view your account balance and start placing trades.
Choose what assets you want to trade: There are many different assets that you can trade online, including stocks, bonds, ETFs, and forex pairs. It is important to do some research beforehand to figure out which assets fit your investment goals and risk tolerance.
Start trading: Once you have chosen your assets, you can begin placing trades through your broker's online platform. Use the platform's features, such as real-time quotes and charting tools, to make informed trades. You can usually place trades with just a few clicks of the mouse.
Methodology
We took several criteria into account when ranking the best brokers. First, we looked at the level of regulation each broker is subject to. We believe that it is important for traders to know that their broker is operating within the law and that their money is safe.
Second, we looked at the fees charged by each broker and the level of customer support they offer. We believe that traders should have access to quality customer support in case they need help with their trading.
We also considered the availability of special educational resources, the minimum deposit required to open an account, and the ease of making deposits and withdrawals. We believe that it is important for traders to be able to start trading with a minimum deposit and to be able to easily withdraw their profits.
Summary
In conclusion, the best online broker for you in 2023 will depend on a number of factors. These include your investment goals, your experience as an investor, and your budget. If you're just starting out, look for a broker that offers low fees and easy-to-use trading tools. If you're more experienced, look for a broker that offers advanced trading tools and research resources. And finally, compare different brokers to find the one that best suits your needs. By doing your research and comparing different online brokers, you can be sure to find the best online broker for you in 2023.
FAQ
What is an online broker?
An online broker is a firm that enables investors to buy and sell securities over the internet. Online brokers offer a wide variety of services, including market research, portfolio management, and investment advice.
What factors should I look for when choosing an online broker?
When looking for an online broker, consider factors such as fees, account minimums, customer service, and the range of investment options offered.
How do I know if an online broker is reputable?
Checking reviews and researching a broker's background can help you determine if they are reputable.
What are the benefits of using an online broker?
Using an online broker can save you time and money by eliminating the need to visit a traditional brokerage firm. It can also provide you with greater flexibility when it comes to trading hours and account types.
Glossary for novice traders
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1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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Investor
An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.
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4
CFD
CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.
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Options trading
Options trading is a financial derivative strategy that involves the buying and selling of options contracts, which give traders the right (but not the obligation) to buy or sell an underlying asset at a specified price, known as the strike price, before or on a predetermined expiration date. There are two main types of options: call options, which allow the holder to buy the underlying asset, and put options, which allow the holder to sell the underlying asset.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.