The personal finance site, NerdWallet.com has made its annual selection of the best discount brokers for the new year, 2019. Who is considered a discount broker? According to NerdWallet, it’s any online broker that offers low fees for trading stocks, mutual funds and exchange-traded funds and offers a low or no minimum dollar amount requirement to start their trading account.
Factors measured by NerdWallet in their five star ratings system includes the cost commission cost or cost per trade, the account minimum, the robustness of their research tools, their mobile app capabilities and their account fees if any.
You’ll also find with each discount broker rating a quick summary of each platform’s pros and cons and hints on the type of trader each online broker is best suited for.
NerdWallet rating: 5 out of 5 stars
Fees: $4.95 per trade
Account minimum: $0
Promotion: Up to $3,500 in cash bonus for a qualifying deposit
Pros
- Low commissions.
- No account minimum.
- Strong web-based platform.
- Robust research and tools.
Cons
- No no-transaction-fee mutual funds.
- No branches.
NerdWallet rating: 5 out of 5 stars
Fees: $6.95 per trade
Account minimum: $0
Promotion: 500 commission free trades for a qualifying deposit
Pros
- Large investment selection.
- Free research.
- High-quality trading platforms.
- No account minimum.
- Good customer support.
Cons
- Higher trade commission.
- Costly broker-assisted trades.
- High short-term ETF trading fee.
NerdWallet rating: 4 ½ out of 5 stars
Fees: $0.00
Account minimum: $0
Promotion: None
Pros
- No commissions on stock trades.
- No account minimum.
- Streamlined interface.
Cons
- No retirement accounts.
- No mutual funds or bonds.
- Limited customer support.
NerdWallet rating: 5 out of 5 stars
Fees: $4.95 per trade
Account minimum: $0
Promotion: $100 cash bonus with a qualifying deposit
Pros
- No inactivity fees.
- Two platforms with no minimum or fees.
- Above-average mobile app.
- Extensive research.
- Strong customer support.
Cons
- Higher trade commissions.
NerdWallet rating: 5 out of 5 stars
Fees: $0.01 per trade
Account minimum: $0
Promotion: None
Pros
- Low commissions.
- Quality trading platform.
- Advanced tools.
- Low margin rates.
- Wide investment selection.
Cons
- Inactivity fees.
- High minimum balance requirement.
- Complex pricing.
- Minimal educational resources.
NerdWallet rating: 3 1/2 out of 5 stars
Fees: $4.95 per trade
Account minimum: $0
Promotion: None
Pros
- Fractional shares.
- Portfolio trades of up to 30 stocks or ETFs.
- Theme- and values-based guidance.
Cons
- No dividend reinvestment.
- Minimal trading tools.
For complete reviews of each of the top discount brokers, visit the NerdWallet site.