With several stock brokers that have been seen over the past years, choosing the right online stock broker to suit your specific needs is crucial. Whether you’re a seasoned investor or a complete beginner, this platform will be your gateway to the market.
In this article, you will see how you can spot the best stock broker online. Paycape has researched the top stock brokers online to help you choose the best of the best. We’ve considered factors like fees, educational resources, and customer support which is especially for beginners.
What Does an Online Stock Broker Do?
Firstly, let’s briefly discuss what online stocker brokers do, at least for the sake of the beginners here. Stock brokers are usually individuals or firms that buy and sell stocks, and other securities through the market exchange. What online stock brokers simply do is that they ease the burden of having to walk into a firm. With your smart gadgets, you can choose an online stock broker from the comfort of your home and invest in the stock of your choice.
Online stock brokers also often charge less for their services, at least for their basic service plan. This plan usually includes a robo-advisor that automates the buying and selling process, free educational resources, etc.
If you are wondering why you can’t buy stocks directly for yourself from your desired firm, it is because you need access. Buying or selling stocks requires one to have access to one of the major exchanges, such as the New York Stock Exchange (NYSE). It is also important that you are a member of the exchange to enable you to trade.
That being said, let us look at some of the best online stock brokers in 2024 that are best suited for all types of investors, based on key factors like customer support, account minimums, and educational resources.
What are the Best Online Stock Brokers?
After doing thorough research for the best online stock brokers, the following are the top stock brokers to use in 2024.
- Fidelity Investment
- Interactive Broker
- Charles Schwab
Fidelity Investment
From our research, we did not only find Fidelity Investment as a top online stock broker but also widely used and highly rated by several users. Fidelity Investment is a user-friendly web-based trading platform where you will likely find all the tools you will need, such as screeners, wide-ranging educational content, and in-house and third-party research.
When it comes to fees, they often skip several charges that you will often see in other brokers. Additionally, order flow – the process by which brokers route your orders to market centers in exchange for a referral fee – does not accept payment. Their customer service is also very prompt, 24/7.
You can read more about Fidelity Investment on their website.
Interactive Broker
Following Fidelity Investment is the Interactive Broker. Interactive Brokers is a long-time favorite to many traders because of its rock-bottom commissions and fees, a staggering range of tradable products, and powerful platform and tools. They offer their Lite pricing plan with more than 19,000 no-transaction-fee mutual funds available.
Interactive Brokers comes with a pack of educational resources that include how-to articles, webinars, and a training course. As regards their customer service, you can get questions answered over the phone or through a chat system 24/7, Monday through Friday, and limited hours on Sunday.
One other major strength is its access to global markets, it allows you to trade in 150 markets in 200 countries. You can read more about them on their website.
Charles Schwab
Charles Schwab is another discount broker that comes with a full range of features, making it easy to grow from a beginner into a confident investor. Besides its great educational material for beginners to learn the fundamentals of investing, it also offers stock reports. Their report includes Morningstar reports and news from Reuters.
Schwab offers up to a $1,000 bonus with a referral code from a friend and a qualifying deposit. Additionally, the broker offers fractional shares through Schwab Stock Slices, which lets you buy partial shares of stock for as low as $5.
Schwab customer service through chat and email support is, like others, reliable, with fast and helpful responses. You can read more about them on their website.
You can check out other great online stock brokers, such as:
- E*TRADE
- J.P.Morgan
- Ally Invest®
- Robinhood
- XTB: for EU plus US stock. You can also invest in cryptocurrency.
What Online Stock Broker Should I Pick?
The brokerage you choose depends upon your own investment needs and goals. When it comes to online stock brokers, there’s no one-size-fits-all approach. You can always do your research to know which one best suits you.
For instance, you might want to try online brokerages like Fidelity or Charles Schwab if you’re searching for personalized assistance. However, E*Trade or Robinhood might be your best option if all you’re looking for is an easy-to-use broker.
We all have different approaches to handling our money and our investment approaches differ as well. These factors include our future and even present goals, the time we have until retirement, and our lifestyle expectations.
And lastly, you must consider certain other factors when choosing your online stock broker. Factors like the money you have to invest, the assets you are looking to buy, your technical needs, how many services you’ll need, etc.
How Do I Get Started With Online Stock Brokers?
After you have selected your preferred stock broker online, then you are ready to get started. You can follow the steps below to get started:
- Open an account: Choose a platform that best fits your needs, visit their official website, and create a profile. Ensure you correctly fill in all details required of you.
- Fund your account: Once you create an account and its approval, deposit funds into it, either through your bank or any other accepted means.
- Get familiar with the platform: If the platform provides a demo account, you can use that to get acquainted with the platform. Get acquainted with its features, such as stock, charting capabilities, and order types. You can use the educational resources and tutorials too.
- Research and select stocks: We advise that before buying a stock, ensure you do your research about it. Check for company fundamentals and trends, and recommendations by experts.
- Place an order: When you are sure about the stock, enter the symbol of the company you wish to buy, select the number of shares, and choose the order type.
After following the steps above and your order is carried out, you then become a shareholder of the company. Make sure you monitor your investments and remain up to date on market events that could impact your stock holdings.
Bottom Line
The online stock brokers on this list are excellent choices whether you’re a novice investor or an experienced trader looking to minimize commission costs and increase your return on investment. Each offers unique features, from user-friendly platforms to comprehensive educational and rock-bottom commissions.
With the details on each platform mentioned, coupled with your research, you are good to begin your investment ride. For other online investment strategies, you can check our article on how you can invest in Gold and real estate or how you can make money online without any investment.
However, if you’re looking for a more gamified approach to learning about the stock market, just for the fun of it, you can check out our article on investing in the in-game stock market of Grand Theft Auto 5. Check out our guide to GTA 5 Stock for tips and tricks to maximize your returns in-game
Frequently Asked Questions
Which broker is best for stock trading in Nigeria?
There are several brokers that you can use for stock trading in Nigeria and choosing the best might be a little tussle. Some of the best ones are Exness, FBS, VoyaFX, and Pepperstone.
You can also check the Nairametrics lists of stockbrokers that deal with the Nigerian stock exchange.
How much money do I need to open an online brokerage account?
With most of the platforms, you don’t need to break the bank to open a brokerage account. Online brokerages have made it easy and affordable to get started with minimal capital. You can always check out any brokerage you are interested in for their minimum capital amount.
Now you can create an account, deposit a few bucks, and purchase a fraction of a share of stock. You can also practice investing without spending any money by using a broker that offers virtual trading, often known as paper trading.
What is a paper trading account?
A paper trading account is a demo investing account that allows customers to select investments without risking their real money. The account monitors the general market and shows users how their money would have been if they had invested.
