Top Free Stock Trading Apps – August 2023

Top Free Stock Trading Apps - August 2023

The Best Free Stock Trading Apps: A Comprehensive Guide to Choosing the Right Brokerage

Investing in the stock market has never been easier with the rise of online brokerages. These platforms offer convenience, accessibility, and low-cost trading options for both beginners and experienced investors. In this comprehensive guide, we will explore the best free stock trading apps available, as recommended by our expert panel and Insider’s editors.

What to Look for in a Free Stock Trading App

When choosing a free stock trading app, there are several key factors to consider:

1. Account Minimums: The best online brokerages for free stock trading typically offer $0 account minimums or low minimum requirements, allowing investors of all budgets to get started.

2. Commission-Free Trading: Look for platforms that offer commission-free trading, as this can significantly reduce costs and maximize your investment returns.

3. Investment Education and Research: A good brokerage account should provide investment education and market research resources to help you make informed decisions.

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4. Flexible Customer Support: Consider the level of customer support offered by the platform. Look for companies that provide responsive and knowledgeable customer service to assist you whenever you need help.

Now, let’s dive into the top free stock trading apps available:

The Best Free Stock Trading Apps

1. Charles Schwab: Best overall
   • Features: Commission-free trading, low-cost automated accounts, diversified investment options, and expert market research and insights.
2. Fidelity Investments: Best for index funds
   • Features: Commission-free trading, unique Zero Expense Ratio Index mutual funds, extensive investment products, and access to investment research from leading sources.
3. Firstrade: Best for fee-free active trading
   • Features: Commission-free trading on stocks, ETFs, options, and mutual funds, international trading in over 65 regions, and a range of investment research and trading platforms.
4. SoFi Invest: Best robo-advisors and low-cost investing
   • Features: Commission-free trading, options for active trading, IRAs, and automated investment accounts, along with access to certified financial planner (CFP) support.
5. Webull: Best for options trading
   • Features: Commission-free trading, extended trading hours, Nasdaq-sponsored market data, and free access to real-time market quotes.
6. Robinhood Investing: Best for active trading
   • Features: Commission-free trading on stocks, ETFs, options, and cryptocurrencies, instant deposits for margin accounts, and a cash management account.
7. **E*TRADE: Best for all types of investors**
   • Features: Commission-free trading, access to thousands of no-load, no-transaction-fee mutual funds, and options trading with tiered pricing based on trading frequency.
8. Interactive Brokers: Best for advanced traders
   • Features: Commission-free trading, access to global markets, fractional shares, automated investing options, investment education, and research resources.

These top free stock trading apps have been selected based on their features, user experience, customer reviews, and overall reputation in the industry.

Expert Insights: Advantages and Disadvantages of Using Online Brokers for Free Stock Trading

To further inform our selections, we consulted three investing experts to gather their insights on the advantages and potential drawbacks of using online brokers for free stock trading.

Brian Fry, CFP:

Online brokers offering free stock trading provide greater savings for investors. They offer numerous options for DIY investors. However, it’s essential to consider how these companies make money, as it may not always provide a transparent investing experience. Free trades often encourage more trading instead of long-term investing.

Charlotte Geletka, CFP, CRPC:

Online brokerages are excellent for self-directed investors due to their low cost. However, they do not provide the same level of personalized financial advice as working with a financial advisor.

Kaysian Gordon, MBA, CFP, CDFA, CPA:

Using online brokers for free stock trading has numerous advantages, such as starting investing with little to no cost. As long as the brokerage offers guidance and research capabilities, investors can benefit from these platforms.

Who Should Consider Using a Broker that Offers Free Stock Trading?

According to our experts:

• Brian Fry, CFP: Investors with the time, interest, discipline, and experience to manage investments and ride out volatile markets are a good fit for using an online broker for free stock trading.

• Charlotte Geletka, CFP, CRPC: Online brokers are ideal for “fun money” or trading without risking retirement or substantial investment funds.

Before opening a commission-free brokerage account, our experts offer additional advice:

• Brian Fry, CFP: Proceed with caution when choosing a commission-free online brokerage account. Free isn’t always best. Consider the importance of long-term investing over short-term trading.

• Kaysian Gordon, MBA, CFP, CDFA, CPA: Do your comparisons. There are various great companies offering free stock trading services; do the research to find the best fit for your needs.

Methodology: How We Reviewed and Selected the Best Stock Trading Apps

To compile this comprehensive guide, we utilized Insider’s rating methodology for investing platforms, considering factors such as fees, investment selection, account types, investment research availability, and customer support. We also incorporated information on each brokerage’s Better Business Bureau rating for added credibility.

Each brokerage listed offers unique features, but they all share the common traits of $0 or low account minimums and commission-free trading.

Conclusion

Choosing the right free stock trading app can significantly impact your investing experience. By considering factors like account minimums, commission fees, investment education, and customer support, you can find a brokerage that aligns with your goals and preferences. Whether you’re a beginner or an experienced investor, the best free stock trading apps listed in this comprehensive guide provide diverse options to suit your needs.

Frequently Asked Questions

What is the best free stock trading app overall?

The best free stock trading app overall is Charles Schwab. With its commission-free trading, low-cost automated accounts, diverse investment options, and expert market research, Charles Schwab offers a well-rounded experience for investors.

Which free stock trading app is best for index funds?

Fidelity Investments is the best free stock trading app for index funds. Fidelity’s Zero Expense Ratio Index mutual funds, along with its wide range of investment products and access to investment research, make it an excellent choice for passive investors.

Which free stock trading app is best for active trading without fees?

Firstrade is the best free stock trading app for fee-free active trading. The platform offers commission-free trading on stocks, ETFs, options, and mutual funds, along with robust investment research and trading tools.

Which free stock trading app is best for low-cost trading and automated investing?

SoFi Invest stands out as the best free stock trading app for low-cost trading and automated investing. With its commission-free trading, options for active trading, and automated investment accounts, SoFi offers a comprehensive range of investment options.

Which free stock trading app is best for options trading?

Webull is the best free stock trading app for options trading. In addition to commission-free trading, Webull offers extended trading hours, market data, and free access to real-time market quotes.

Which free stock trading app is best for all types of investors?

ETRADE is the best free stock trading app for all types of investors. With commission-free trading, access to thousands of no-load mutual funds, and options trading with competitive pricing, ETRADE caters to investors with diverse needs and preferences.

Which free stock trading app is best for advanced traders?

Interactive Brokers is the best free stock trading app for advanced traders. With its wide array of trading tools, market research resources, investment education, and access to global markets, Interactive Brokers provides a comprehensive platform for experienced investors.

In addition to the featured best free stock trading apps, other notable options include Vanguard, Ally Invest, Merrill Edge, M1 Finance, TD Ameritrade, and tastytrade.

Now armed with this comprehensive guide, you can confidently choose the best free stock trading app that aligns with your investment goals and preferences. Happy investing!

Note: Our experts answer readers’ investing questions and write unbiased product reviews (here’s how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.

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