Stock Brokers 2023
There are a huge number of online stock brokers and platforms on the market, so finding the best one for your strategy can be challenging. In this review, we cover the top 10 things traders should be looking for, including fees, online platforms, worldwide regulation and more. Use our guide to find the right stock broker for you.
Best Stock Brokers
#1 - Forex.com
Forex.com offers access to thousands of US, EU and UK stocks, with spreads of just 1 point. Speculate on household names as well as new IPOs. US stocks are available from just 1.8 cents per share.
Forex.com is excellent for forex traders with over 80 currency pairs, tight spreads, low commissions and powerful platforms. The brand is also heavily regulated while its parent company is listed on the NASDAQ, giving it a high trust score.
- DayTrading Review Team
- Demo Account: Yes
- Regulator: CySEC, IIROC, NFA, CFTC, FCA, CIMA
- Platforms: MT4, MT5, TradingView
- Min. Deposit: $100
- Automation: Yes
- Bonus: None
CFD Trading
Go long and short on a range of popular financial markets with intuitive platforms and reliable execution. 99.76% of trades are executed in less than a second with an average speed of 0.02 seconds.
Forex Trading
Forex.com is a leading FX broker. The brand offers a huge range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.2 with a $5 commission per $100k.
Crypto Trading
Trade major cryptos against USD, EUR, GBP and AUD. All traded with tight spreads. No virtual wallet is required, just a trading account. Cryptos are not available in the US, UK or Canada.
About Forex.com
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they offer a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
Pros
- Multiple account currencies including USD, EUR and GBP
- The broker’s parent company, StoneX, is listed on the NASDAQ
- Leading trading tools, including Trading Central, SMART Signals and MetaTrader 4
Cons
- $15 inactivity fee
- No copy trading tool
- Tools and platform access varies between countries
#2 - eToro USA Securities
Trade US stocks from the country's largest exchanges.
- Demo Account: Yes
- Regulator: SEC, FINRA
- Platforms: Own
- Min. Deposit: $10
- Automation: Yes
- Bonus: Invest $100 and get $10
Crypto Trading
eToro US leads the way in cryptocurrency trading. 1% fee for buying or selling crypto added to the spread (from 0.75% for BTC), with their own wallet service and the largest number of cryptos to trade in the market. eToro copy trading is only for cryptos. Crypto asset investing is highly volatile and unregulated. No consumer protection. Tax on profits may apply.
About eToro USA Securities
eToro is a social investing platform that offers stocks, ETFs, options, and crypto. eToro securities trading is offered by eToro USA Securities, Inc.
Pros
- Copy trading
- Low minimum deposit
- Demo account
Cons
- No MT4 integration
#3 - OANDA
Over 1600 shares are available from leading stock exchanges. There are also no commissions on US stocks and traders benefit from free expert insights and market reports.
We recommend OANDA for traders seeking a user-friendly platform with premium market research and a straightforward joining process. OANDA is a particularly good pick for US traders with authorization from local regulators and a secure trading environment.
- DayTrading Review Team
- Demo Account: Yes
- Regulator: CFTC, NFA
- Platforms: MT4, TradingView
- Min. Deposit: $0
- Automation: Yes
- Bonus: $5,000 welcome bonus with a deposit of $500
Forex Trading
OANDA offers over 70 forex pairs, more than many alternatives. The broker's in-house platform also offers impressive execution speeds and a suite of advanced charting and analysis tools.
Crypto Trading
Speculate on the world's biggest cryptos by market cap. Commissions are lower than many peers starting at 0.25%. Users can also trade digital currencies in a few taps through the iOS and Android mobile app.
About OANDA
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is authorized by leading regulators, including the CFTC/NFA. Around the clock support is available, alongside flexible contract sizes and automated trade executions.
Pros
- Transparent pricing structure with no hidden charges
- Wide selection of instruments including 70+ forex pairs
- Low minimum deposit for beginners
Cons
- Stock trading not available in all countries
- Customer support not available on the weekend
#4 - NinjaTrader
Take positions on large public companies and household names.
- Demo Account: Yes
- Regulator: NFA, CFTC
- Platforms: Own
- Min. Deposit: $50
- Automation: Yes
- Bonus: None
Forex Trading
Trade currencies, including pairs with the USD
Crypto Trading
Trade micro Bitcoin with low fees
About NinjaTrader
NinjaTrader offer investors futures and forex trading. Use auto-trade algorithmic strategies and configure your own platform while trading with the lowest costs.
#5 - IG Group
IG offers 13,000+ shares, with more listed firms than most competitors. Fees are low with no commission on US stocks. Extended hours trading is also available alongside ultra-fast execution speeds of 0.014 seconds.
IG offers a superb all-round package. Beginners will appreciate the user-friendly web platform and secure trading environment while established investors will rate the 18,000+ markets and top-tier market research.
- DayTrading Review Team
- Demo Account: Yes
- Regulator: FCA, ASIC, MAS, FSCA, JFSA, FMA, CFTC, NFA, BMA, DFSA, FINMA, BaFin
- Platforms: MT4
- Min. Deposit: £250
- Automation: Yes
- Bonus: None
CFD Trading
IG offers an impressive suite of 18,000+ CFD instruments. Negative balance protection ensures accounts cannot drop below zero while custom price alerts and the IG Academy enhance the trading experience.
Forex Trading
IG offers currency trading on its award-winning web platform and mobile app. Comprehensive charts and forex analysis tools are also available through ProRealTime.
Crypto Trading
11 popular cryptos are available, plus two crypto crosses. A crypto index is also offered, following the value of the top 10 digital currencies by market cap. All cryptos are available via CFDs.
About IG Group
IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
Pros
- Opening an account takes less than 5 minutes
- IG is an LSE-listed company with a transparent financial history and a great track record
- Share dealing and ISAs are available for longer term investing
Cons
- No copy trading platform
- Inactivity charge
#6 - Videforex
Videforex offers trading on major exchanges such as the FTSE.
- Demo Account: Yes
- Regulator:
- Platforms: TradingView
- Min. Deposit: $250
- Automation: Yes
- Bonus: 20% to 200% Deposit Bonus
CFD Trading
A suite of CFDs are available across popular markets with high leverage.
Forex Trading
Videforex offers leveraged trading on major, minor and exotic currency pairs.
Crypto Trading
Start trading on cryptos against fiat currencies and other alt coins.
About Videforex
Videforex accepts deposits in a range of cryptos and fiat currencies. Payouts reach 98% per trade.
Pros
- Demo account
- Full range of investments
- Copy trading
Cons
- No MT4 integration
- Weak regulatory oversight
#7 - Empower
Empower offers opportunities on a range of sectors spanning major US stock exchanges.
- Demo Account: No
- Regulator: SEC, FINRA
- Platforms: Own
- Min. Deposit: $1 (Cash), $100,000 (Robo Advisor)
- Automation: Yes
- Bonus: None
About Empower
Empower is a robo-advisor platform with a suite of free financial planning tools.
Pros
- Strong regulatory oversight
Cons
- Narrow range of investments
- No MT4 integration
- No demo account
#8 - Nadex
Speculate on 8 global indices via binary options contracts.
- Demo Account: Yes
- Regulator: CFTC
- Platforms: Own
- Min. Deposit: $250
- Automation: Yes
- Bonus: None
Forex Trading
Speculate on the price movement of 11 currency pairs with binary options contracts.
About Nadex
The leading US trading Exchange. Nadex offer genuine exchange trading to global clients on Binary Options. Fully regulated by the CFTC.
Pros
- Extensive educational resources
- Proprietary mobile app
- Free demo account
Cons
- No welcome bonuses or financial incentives
- No MT4 or MT5 platform integration
#9 - Zacks Trade
Trade stocks and shares on major companies in US markets and speculate on some of the world's largest indices.
- Demo Account: Yes
- Regulator: FINRA
- Platforms: Own
- Min. Deposit: $2500
- Automation: Yes
- Bonus: None
Crypto Trading
Trade popular cryptocurrency coins with low fees.
About Zacks Trade
Zacks Trade is a US based brokerage, built for the active trader. Trade stocks, ETFs, bonds, mutual funds and more on a proprietary trading platform.
Pros
- Demo account
- Multiple account currencies
Cons
- Few payment methods offered
- High minimum deposit
- No copy trading
#10 - Just2Trade
A wide array of equities spanning multiple industries
- Demo Account: Yes
- Regulator: CySEC, NFA, FINRA, Bank of Russia
- Platforms: MT4, MT5
- Min. Deposit: $100
- Automation: Yes
- Bonus: Up to $2,000 for professional accounts
CFD Trading
Leveraged CFD trading is available on major financial markets
Forex Trading
Speculate on key currency pairings, including with the USD
Crypto Trading
Cryptocurrency trading is only available to clients from Asia
About Just2Trade
Just2Trade offer high-tech trading on stocks and options with some of the lowest prices in the industry.
What Are Online Stock Brokers?
Online stock brokers offer the ability to purchase company stocks and shares or related derivatives via the internet. Instead of talking to a trader who will sell you a stock they believe will do well, you typically do the research yourself. The brokers will have connections to the stock market and will purchase the stock on your behalf. Trades can be executed at the click of a button, in real-time via their online investing platforms.
How To Compare Online Stock Brokers
No comparison of online stock brokers would be complete without considering the following criteria.
Fees
Almost all the highest rated online stock brokers will charge a fee for their service. Those that are free will usually make money through other means. For example, by offering stock at a price above the market rate.
When selecting an online broker, traders should look for brokers with low fees to maximise profitability. Some stock broking platforms also offer discounts on charges for limited periods as a promotional technique. But the cheapest service isn’t always the best, so it’s important to consider several other factors in the selection process.
Bonuses and Promotions
Some brokers offer a reward for signing up and/or actively trading with them. These trading promotions are also called bonus offers, depending on the specifics of the promotion in question. Trading bonuses are mostly offered by smaller brokers, as the big brands don’t have to entice traders to try them out.
A bonus offer can benefit traders who are willing to try a lesser known brand, but the terms and conditions are important to be aware of. Some trading promotions are not nearly as good as they first appear, when the small print is taken into account.
Fractional Shares
When institutional traders purchase shares on a stock exchange, the minimum order size is usually one share. However, for online traders looking to invest in the likes of Google or Amazon where the price of a single share is worth thousands of dollars, this can be difficult to achieve.
To counter this issue, many of the largest online trading brokers offer fractional shares. This means a trader can purchase less than one share, at the value they’re comfortable with.
Stock platforms with fractional shares allow traders with low capital to diversify their portfolio.
Penny Stocks
Another option for traders with less capital is investing in penny stocks (also known as pink sheets or OTC stocks). Online penny stock brokers offer shares worth less than $1. OTC listings are for businesses that do not meet the strict requirements for floating on a stock exchange. These companies tend to be riskier than larger companies, but can also yield higher profit margins. They’re a great option for traders looking to build a diverse portfolio.
Stock Exchanges
Another important factor to consider when comparing online stock brokers is whether they offer access to global stock exchanges. Stock market trading is centralised, meaning that shares in most large companies are sold through national exchanges, such as the London Stock Exchange (LSE), New York Stock Exchange (NYSE), or NASDAQ. Companies will not be listed on all exchanges, therefore, traders should look for a broker with a global reach.
Platforms
To compare online stock brokers, investors should look for those offering a platform that suits their needs. There are several factors to consider:
- Mobile app – Does the broker offer a mobile app or are you happy to trade exclusively via desktop? Many of the top providers now offer a top-tier mobile application offering direct market access and seamless integration with desktop terminals.
- User interface – Is the platform intuitive? This is where you’ll be staking your investments, so it’s important to feel you can navigate it easily.
- Charts, graphs and indicators – For day traders, a platform that offers enough charts and indicators for technical analysis is crucial. If you’re looking to hold stock over the long term, this may not be necessary.
- Automated investing – For those interested in algorithmic trading, the functionality to support expert advisors (EAs) is vital. Some popular platforms, such as MetaTrader 4 (MT4) and MetaTrader 5 (MT5), provide a codebase with free and paid-for EAs to choose from.
Leverage
Many of the top online stock brokers offer the ability to maximise positions using leverage trading. Leverage allows you to multiply the results of a trade. The leverage caps on stocks tend to be much lower than for forex, usually around 1:2 or 1:3. This is a great option for more experienced traders and those with a limited pool of capital.
Contracts For Difference (CFDs)
Most major online stock brokers will offer a mixture of products based on stocks. One of the most popular options is CFD trading. CFDs are a derivative of stocks, meaning you do not own the underlying asset. Instead, you own a contract for the difference in value between the buy and sell price. This may have advantages. In some cases, fees may be lower and the tax implications on profits may be different. Consider whether this is what you’re looking for when selecting an online stock platform.
Deposits & Withdrawals
Most online stock brokers have minimum deposit requirements. For example, Interactive Brokers has a high minimum balance of 2,000 USD (or equivalent currency), whereas, for eToro, it is just 50 USD (or $200 for non-US residents). Some online stock brokers have no minimum deposits, so it can be useful to shop around. Select a platform that meets your requirements, rather than stretching your budget to meet a minimum account threshold.
Payment Methods
The best online stock market brokers accept a selection of payment methods. Traders should look out for the following popular options:
- Payment service providers, e.g PayPal, Apple Pay
- Credit cards and debit cards
- Bank wire transfer
- E-wallets, e.g Neteller, Skrill
Some platforms also accept payment in cryptocurrency. However, this service is limited among those currently selling stocks and shares. It’s also worth looking out for online stock brokers offering instant deposits for same-day trading.
Regulation
The most reputable online stock brokers will be regulated by the relevant national authority. Before investing, traders should check the broker is authorised by one of the top regulators in the list below:
- Monetary Authority of Singapore (MAS)
- Financial Conduct Authority (FCA) in the UK
- Financial Markets Authority (FMA) in New Zealand
- Canadian Securities Administrators (CSA) in Canada
- Securities and Exchange Commission (SEC) in the USA
- Securities and Exchange Commission (SEC) in Hong Kong
- Dubai Financial Securities Authority (DFSA) in Dubai and UAE
- Australian Securities and Investments Commission (ASIC) in Australia
- Any European body, examples include Cyprus’ CySEC, BaFIN in Germany and MFSA in Malta. European Union laws mean that if a broker is regulated with one authority, they can typically operate across the whole of Europe. Therefore, if a broker is regulated by the CySEC, traders in Ireland, Greece, Netherlands and Norway etc will also be covered.
- In most of Asia, brokers are not usually required to be regulated by their relevant authority, so traders in the Philippines, Sri Lanka, Pakistan, India, and many other Asian countries, should look out for regulation in any reputable authority as an indication of legitimacy.
- Similarly, in Africa, many of the regulatory authorities do not require brokers to be regulated with them. As a result, traders in African nations such as South Africa, Nigeria, Ghana, Kenya and Zimbabwe should look out for regulation with any respected authority.
Each regulator has its own set of rules that a broker must abide by. These are designed to protect retail investors from undue risk. This means that an online stock broker’s offering may differ around the globe. Examples of regulator rules that differ globally include:
- Cash bonuses or prizes are restricted in the UK and Europe
- Cryptocurrency trades are restricted by the SEC in the US
- Cryptocurrency derivatives are restricted in the UK by the FCA
- European brokers must display a risk warning to all traders when stock CFDs are offered
- Negative balance protection is required on all regulated margin accounts in the UK, Europe and Australia
- Leverage restrictions on different stock assets vary globally
- Day trading is subject to restrictions in the US
Therefore, a stock platform may accept day trading clients in the UK, but not for US citizens. If you’re shopping around for a service that is restricted in your jurisdiction, you could end up selecting an unregulated broker.
Demo Accounts
The best online stock brokers for beginners will usually provide a demo account. These allow traders to practise and refine a strategy before investing real money. They simulate real-life market conditions, but any orders placed are with ‘paper money’.
Company History
A quick look at an online stock broker’s history can usually reveal a lot about their legitimacy. If there is no information about when a broker started, or it is linked in some way to a previously blacklisted company, this should serve as a red flag to traders. The top 5 online stock brokers will often have a strong presence on the web and will have filed tax returns with the relevant authority. Do your research on a company before buying through any stock platform.
Stock Broker Scams
Unfortunately, there are some online stock brokers out there that are operating a service that is not in line with what they promise. And even worse, others are designed purely to scam investors. The good news is, it can be easy to tell which these are. Look out for the following red flags:
- How did you find out about this broker? Were you cold-called or sent an email or text message out of the blue? These are not the marketing practices of legitimate brokers.
- Offers of ‘making money fast’ or ‘passive income’ are often unrealistic promises. Making sensible investments takes research. These ‘get rich quick’ schemes should serve as a warning to stock traders. Consider why they would be selling their service to you if they have the secret to making money without a time commitment.
- All good online stock brokers will be registered with some form of regulatory authority. They’ll provide you with a broker number (usually at the bottom of their homepage) which will allow you to verify this using the regulator’s register. You can also use the BrokerCheck from the Financial Industry Regulatory Authority (FINRA). This reveals whether there are any outstanding legal actions against the firm.
Read more about scams and how to protect yourself on our trading scams page.
Final Word On The Best Stock Brokers & Platforms
A thorough comparison of online stock brokers is a crucial step in creating a solid investment portfolio. Luckily, much of this research can be done via the internet, without having to talk to a broker face-to-face. Stock platforms that are regulated, with low fees and a solid selection of graphs and indicators are a great place to start. Traders with low capital should look for fractional shares or even penny stocks. While reading a review or ranking can be a useful start, selecting a broker is a personal choice based on your unique requirements.
FAQs
Are Online Stock Brokers Safe?
Online stock brokers can be safe to trade with, as long as you look out for some key capabilities. In particular, stockbrokers should be regulated with a reputable authority such as the SEC, ASIC or FCA. Technology advancements in recent years mean that retail traders can safely and easily enter the market, where previously this was exclusively reserved for institutional investors.
How Do Online Stock Brokers Make Money?
Online stock brokers make money through fees and commission. Many charge an annual account fee, for example, this might be 1% of your total investment value but is usually less. On top of this, there may be an initial charge on the purchase. Some brokers are also ‘market makers’ meaning they create liquidity by taking the other side of a trade. Sometimes, brokers can make money this way if a trader makes a loss.
How Do You Switch Online Stock Brokers?
Similar to switching banks, there’s a service that enables you to move your investments between brokers without selling. You’ll need to provide your new broker with your old account details (account number and type of investment, NOT passwords). Then fill out an Automated Customer Account Transfer (ACAT) form. Your new online stock broker will then guide you through the switching service.
What Should You Look For In An Online Stock Broker?
First and foremost, any online stock broker should be regulated by a reputable body. Traders should also look for those offering a service that meets their capital requirements. In particular, look at the fee structure, minimum account balance, option for fractional shares, and selection of derivatives.
What Are The Best Stock Platforms For Beginners?
The best online stock platforms for beginners are those that offer the option to practise on a demo account. This enables traders to test their strategies beforehand. Beginners may also want to consider fractional shares or ETFs.