[{"@context":"https:\/\/schema.org\/","@type":"Article","@id":"https:\/\/moneydoneright.com\/passive-income\/stock-investing\/best-online-brokerage-accounts\/#Article","mainEntityOfPage":"https:\/\/moneydoneright.com\/passive-income\/stock-investing\/best-online-brokerage-accounts\/","headline":"Best Online Brokerage Accounts of 2025","name":"Best Online Brokerage Accounts of 2025","description":"Table of Contents ToggleTD AmeritradeAlly InvestFidelityMerrill EdgeCharles SchwabE-TradeVanguardRobinhoodBest Online Brokerage Accounts ComparedEverything You Need...","datePublished":"2020-01-21","dateModified":"2025-03-07","author":{"@type":"Person","@id":"https:\/\/moneydoneright.com\/author\/stephanie-colestock\/#Person","name":"Stephanie Colestock","url":"https:\/\/moneydoneright.com\/author\/stephanie-colestock\/","identifier":32,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/442d6c6189f0b39f0b5a2095037d8c576284f3705ffef7d6098f21fa4289967e?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/442d6c6189f0b39f0b5a2095037d8c576284f3705ffef7d6098f21fa4289967e?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Money Done Right","logo":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","width":488,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/online-stockbrokers.jpg","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/online-stockbrokers.jpg","height":460,"width":1900},"url":"https:\/\/moneydoneright.com\/passive-income\/stock-investing\/best-online-brokerage-accounts\/","about":["Stocks"],"wordCount":2450,"keywords":["schema"],"articleBody":"Table of ContentsToggleTD AmeritradeAlly InvestFidelityMerrill EdgeCharles SchwabE-TradeVanguardRobinhoodBest Online Brokerage Accounts ComparedEverything You Need to Know About Online BrokeragesWhat Is a Broker?Online Brokerage vs. Robo-AdviserTypes of Investments Your Online Brokerage Can ManageHow Much Money Do You Need to Start Investing?3 Things to Keep in Mind If You Use an Online BrokerageFinding the Right Online BrokerageTD Ameritrade\t    \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tTD Ameritrade: Best Overall\t\t\t\t\t\tSign UpWe earn a commission on this offer.\t\t\t\tBasics: In voting for TD Ameritrade as the number one online brokerage, we weren\u2019t alone. In fact, the company is happy to brag about its No. 1 status across the board with stockbrokers.com, taking the top spot for education, platform and tools, and overall broker.Pros: Beyond being No. 1, zero is the key number with this broker. It sets no account minimums, no commissions on ETFs,\u00a0 stocks, or options, no annual fees, no account inactivity fees; and it offers more than 4,000 no-transaction-fee mutual funds to choose from. You can choose from more than 13,000 mutual funds total.Cons: The only real downside to TD Ameritrade\u2019s online brokerage accounts is that if you opt for broker-assisted trades, the cost can be pretty pricy, $25 per trade.\u00a0\t\t\t\t\t\t\tCommissions$0Transaction Fee\u2013free Funds4,000+Local BranchesYes\t\t\t\tAlly Invest\t    \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tAlly Invest: Best for Beginners\t\t\t\t\t\tSign UpWe earn a commission on this offer.\t\t\t\tBasics: Ally Invest is a fee-free online brokerage designed to make investing simple for anyone while also saving you money.Pros: Opening an account is easy and takes only a few minutes online. It requires no account minimums and charges $0 commissions on ETFs, stocks, or options. Investors can choose from more than 8,000 mutual funds, and Ally maintains a robust online resource center that makes it easy to learn more about investing.Cons: Ally doesn\u2019t offer any transaction-fee-free mutual funds, and it doesn\u2019t operate local branches you can pop into for face-to-face help.\t\t\t\t\t\t\tCommissions$0Transaction Fee\u2013free FundsNoneLocal BranchesNo\t\t\t\tFidelity\t    \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tFidelity: Best for Low Trading Fees\t\t\t\t\t\tSign UpWe earn a commission on this offer.\t\t\t\tBasics: Fidelity isn\u2019t the only online brokerage in this list to offer $0 commissions on ETFs, online stocks, and options trades. However, it is the first brokerage to introduce zero-expense-ratio target funds, in addition to removing all minimums from even its proprietary mutual funds.Pros: Fidelity has long been a respected name in the world of online brokerages. It charges no account minimums, no account fees, and no commissions on stocks, ETFs, or options. Fidelity doesn\u2019t even charge fees for account closures \u2014 something you can expect to pay around $50 for with other brokerages.Cons: While Fidelity offers more than 3,700 mutual funds with no transaction fees, quite a few brokerages offer even more options.\t\t\t\t\t\t\tCommissions$0Transaction Fee\u2013free Funds3,700+Local BranchesYes\t\t\t\tMerrill Edge\t    \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tMerrill Edge: Best for Low Account Minimums\t\t\t\t\t\tSign UpWe earn a commission on this offer.\t\t\t\tBasics: You can open an online brokerage account through Merrill Edge without any deposit minimum, making this an easy choice for investors who are just starting out, don\u2019t have much to invest, or want to test the waters before depositing all of their savings.Pros: Aside from the $0 account minimum, you\u2019ll enjoy more than 3,800 mutual funds to choose from, of which more than 3,200 are transaction-fee-free. Trades are only $2.95 per, though this fee is waived for Bank of America Preferred Rewards members. You\u2019ll also pay no annual account fees.Cons: Trade commissions are low, but the fees can still add up quickly if you are an active trader. Additionally, Merrill Edge charges $24.95 for domestic or international wires, $49.95 for account transfers, and $49.95 if you ever want to close your account.\t\t\t\t\t\t\tCommissions$2.95 but can be waivedTransaction Fee-free Funds3,200+Local BranchesYes\t\t\t\tCharles Schwab\t    \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tCharles Schwab: Best for Plenty of Investment Choices\t\t\t\t\t\tSign UpWe earn a commission on this offer.\t\t\t\tBasics: A respected name in banking and investing, Charles Schwab brokerage accounts are designed for discerning investors. The free accounts come with 24\/7 customer service support, more than 300 brick-and-mortar locations, and $0 commissions.Pros: Schwab has made many changes in the last couple of years. Now, you can enjoy $0 account minimums, $0 commissions on trades, $0 annual account fees, and a slew of investments to choose from to design the perfect portfolio.Cons: Most investors expect to pay a fee for broker-directed trades, but Charles Schwab also charges $5 for automated phone trading, which some customers might not expect to encounter.\t\t\t\t\t\t\tCommissions$0Transaction Fee-free Funds3,000+Local BranchesYes\t\t\t\tE-Trade\t    \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tE-Trade: Best for Active Trading\t\t\t\t\t\tSign UpWe earn a commission on this offer.\t\t\t\tBasics: Do you like to buy and sell, rather than let your portfolio sit stagnant? E-Trade might be right for you. With $0 commissions, no account fees or minimums, and a massive selection of investments to choose from, the site helps you build the portfolio you want.Pros: If you enjoy actively trading with $0 commissions, you\u2019ll appreciate what E-Trade has to offer. The platform offers a wide variety of investments \u2014 including more than 9,000 mutual funds, about half of which are transaction-fee-free \u2014 with a robust mobile app that makes trading easier than ever.Cons: While this brokerage offers three free online trading platforms and mobile apps, you might find it a bit less user-friendly than competitors.\t\t\t\t\t\t\tCommissions$0Transaction Fee-free Funds4,400+Local BranchesYes\t\t\t\tVanguard\t    \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tVanguard: Best for ETF Investors\t\t\t\t\t\tSign upWe earn a commission on this offer.\t\t\t\tBasics: Want to buy and sell some of the market\u2019s best ETFs with low expense ratios and without worrying about commissions or fees? Consider Vanguard.Pros: The brokerage offers a large selection of mutual funds, with Vanguard\u2019s own being some of the better performing and lower-cost available. There are no account minimums to get started.Cons: Unlike many of the online brokerages on this list, Vanguard does charge for trading \u2014 $7. You\u2019ll also pay a $20 annual fee on your brokerage account.\t\t\t\t\t\t\tCommissions$7 on stocksTransaction Fee-free Funds3,100+Local BranchesNo\t\t\t\tRobinhood\t    \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tRobinhood: Best for Educating Yourself\t\t\t\t\t\tSign UpWe earn a commission on this offer.\t\t\t\tBasics: A newer stock-trading app on the scene, Robinhood was founded in 2013. In only a few years, though, this commission-free platform has already grown to be one of the more respected names in the space.Pros: Robinhood offers a streamlined, technology-driven brokerage app that makes it easy to build a portfolio, see where you stand, and learn more about investing along the way. This brokerage is commission-free, doesn\u2019t have account minimums, and won\u2019t charge annual fees or fees for inactive accounts.Cons: Robinhood is app-based, so you won\u2019t find any local branches to pop into, and its customer service options are limited. The platform does not support mutual funds, bonds, or retirement accounts, limiting your portfolio to stocks and ETFs.\t\t\t\t\t\t\tCommissionsN\/ATransaction Fee-free FundsN\/ALocal BranchesNo\t\t\t\tBest Online Brokerage Accounts Compared.btn.btn-blue.dift:hover, .btn.btn-default.dift:hover {color: #5378eb;border-color: #5378eb;background: #fff !important;}\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tCommissions\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tTransaction Fee\u2013free Funds Available\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tMobile App\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tLocal Branches\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSign Up\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t$0Yes, 4,000+YesYes\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSign Up\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t$0NoYesNo\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSign Up\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t$0Yes, 3,700+YesYes\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSign Up\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t$2.95 but can be waivedYes, 3,200+YesYes\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSign Up\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t$0Yes, 3,000+YesYes\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSign Up\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t$0Yes, 4,400+YesYes\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSign Up\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t$7 on stocksYes, 3,100+YesNo\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSign Up\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tN\/AN\/AYesNo\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSign Up\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tEverything You Need to Know About Online BrokeragesWhat Is a Broker?A \u201cstock broker\u201d may refer to either a person or a firm who is licensed to buy or sell within the stock market on your behalf, helping you to build or adjust an investment portfolio as you see fit.These stock market exchanges aren\u2019t anything like what you see in old movies, with brokers answering calls on the New York Stock Exchange floor and yelling transactions at one another. Instead, most stock market transactions are conducted online, brokers buying or selling with a few simple clicks.Stock brokers can fall into one of two categories:Full-service brokers.Online discount brokers.Full-Service BrokersFull-service brokers are  a more complete brokerage. These providers will both facilitate your portfolio transactions, and advise you on specific stocks, keep an eye out for relevant activity in the market, and even create a long-term investment strategy for you.Full-service brokers are the pricier of the two broker types. In many cases, they may also require a minimum portfolio value to take you on as a client.Online BrokeragesWhile full-service brokers are generally humans \u2014 or a group of humans \u2014 assigned to help you with your investment transactions, online brokers are platform- or website-based.You may find an online broker that also offers wealth management services with a live adviser, the benefit of online brokerages is they are more affordable because they are digital.Online brokers don\u2019t typically provide investment advice, nor will they let you know when your favorite stock has dropped in price. Instead, their concerns primarily lie with buying and selling the investments you choose.If you need recommendations or portfolio management (such as rebalancing), you will need to either find an online brokerage offering robo-adviser or wealth advisory services, or hire a full-service broker to help.Why Use an Online Broker?The idea of a dedicated stock broker may sound great, but for many of us, an online broker is a better choice.A full-service broker is not usually worth the expense if you aren\u2019t investing large sums of money.Full-service providers can charge 1% to 2% (or more) of assets under management, meaning thousands of dollars a year in management fees alone for many investors. In contrast, online brokers are typically free, only charging for trades conducted.Additionally, the per-trade commissions charged by full-service brokers are often significantly higher than those charged by online brokers. Whereas an online broker may charge somewhere in the neighborhood of $3 to $7 per trade (if they\u2019re not free), a full-service brokerage may charge hundreds of dollars per transaction.Lastly, online brokerages won\u2019t charge you for services you don\u2019t need. If you aren\u2019t investing large sums of money, are opting for target date funds, or simply know what you want to do with your portfolio, a full-service brokerage would likely waste your money.With an online brokerage, you\u2019ll only pay for what you want: specific purchase or sale transactions.Online Brokerage vs. Robo-AdviserSome online brokerage companies also offer another automated investment product, called a robo-adviser. These platforms make certain trades on your behalf and configure and rebalance your portfolio over time.Robo-advisers typically charge a flat fee for services, either as a percentage of assets under management, or as a monthly or annual rate. They don\u2019t charge a fee per trade, however, and some of them are even free.With an online brokerage, you will initiate transactions and be responsible for the allocation of your portfolio. With a robo-adviser, you\u2019ll take a more hands-off approach as these platforms manage and rebalance a portfolio for you.A robo-adviser may not appeal to you if you\u2019re interested in active management. Very few robo-advisers allow you to buy or sell specific stocks that interest you.Types of Investments Your Online Brokerage Can ManageYou can use an online brokerage to manage any investments you\u2019d like in your portfolio. This includes:ETFs.Mutual funds.Stocks.Bonds.Index funds.Some online brokerages may also offer options, futures, cash accounts, and even access to safer, short-term investments like CDs.How Much Money Do You Need to Start Investing?Online brokerages usually have much lower investment minimums than full-service brokers. In fact, many online brokers have no account minimums, so anyone can open an account and get the ball rolling on investing.Typically, you can begin investing with around $500 to $1,000. This will grant you access to most mutual funds, and you can continue adding to your portfolio with regular contributions. It\u2019s not necessarily about how much you have when you start investing \u2014 just start as early as you can and commit to saving whenever possible.Many brokerages also offer a cash account, which you will use to buy and sell investments. Some online brokers offer competitive interest rates on these cash accounts, helping your money grow more even before you invest.3 Things to Keep in Mind If You Use an Online BrokerageInvesting with an online brokerage is, for many investors, an excellent decision. However, there are a few things you will need to remember along the way.Online Brokerages Are Not AutomatedThese platforms will not automatically invest your monthly contributions, nor will they rebalance your portfolio for you. You will need to do the research into your investments and portfolio allocations over time, and make the changes yourself through your brokerage.Online Brokerages Aren\u2019t ProactiveOnline brokerages aren\u2019t going to offer you personalized investment advice, like a full-service broker would. Sure, they often have excellent resource centers and they do a ton of research into specific investments so that you can make informed decisions.However, they won\u2019t call you up with recommendations when the market shifts, nor will they remind you when it\u2019s time to rebalance like a robo-adviser would.Online brokerages won\u2019t keep you on track when times get tough.It doesn\u2019t matter when, what, or how you invest. If you invest for a while, you\u2019re going to watch your portfolio dip at times. Stocks will take a dive, the market as a whole will go down\u2026 you never know what is going to happen.As long as you know this and plan ahead for the long game, you should be OK. However, if you\u2019re inclined to jump ship as soon as your investments lose value, an online brokerage might not be enough. It won\u2019t be there to convince you to ride out a dip in the markets or keep you on track with your investing goals when life threatens to get in the way.That confident voice on the other end of the line might be what you need to avoid a critical financial error.Finding the Right Online BrokerageTo pick the brokerage that\u2019s right for you, first know what kind of investor you are going to be. The online brokerage that\u2019s right for a very active trader is not necessarily the right one for a long-term-mutual-fund investor.Also pay attention to the fees and requirements a platform includes. If you want to get started with $100, don\u2019t pick a brokerage with a $1,000 account minimum. If you\u2019re planning to buy and sell stocks throughout the year in an attempt to time the market, don\u2019t pick one that charges $7 per trade.Take some time to browse each brokerage\u2019s website and go through the wealth of knowledge provided there. You will not only learn how that company will help grow your investment portfolio, but you might also learn something new about investing as a whole."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Passive Income","item":"https:\/\/moneydoneright.com\/passive-income\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Stock Investing","item":"https:\/\/moneydoneright.com\/passive-income\/\/stock-investing\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"Best Online Brokerage Accounts of 2025","item":"https:\/\/moneydoneright.com\/passive-income\/stock-investing\/best-online-brokerage-accounts\/#breadcrumbitem"}]}]