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| Costs Criteria Weights | |
|---|---|
| Inactivity Fees | 0.72% |
| Base Commission for Stocks and ETFs | 0.72% |
| Price Per Options Contract | 0.72% |
| Account Closure Fees | 0.72% |
| Account Transfer Fees | 0.72% |
| Wire Fees | 0.72% |
| Check Fees | 0.72% |
| Volume-Based Options Trading Discounts | 0.58% |
| Price Per Future Contract | 0.58% |
| Base Commission for Penny Stocks | 0.39% |
| Penny Stock Restrictions | 0.39% |
| Penny Stock Trading Access | 0.39% |
| No-Load Mutual Funds Offered | 0.39% |
| Recurring Investment Fees | 0.39% |
| Base Commission for Options | 0.39% |
| Capped Options Trading Fees | 0.39% |
| Broker-Assisted Fees | 0.39% |
| IRA Annual Fee | 0.39% |
| IRA Closure Fee | 0.39% |
Inactivity Fees
We scored this item on a binary scale. Brokers that do not charge inactivity fees were given a score of 1, while brokers that do charge these fees received a score of 0.
Base Commission for Stocks and ETFs
We scored this item on a binary scale. Brokers that give users the option of having no base commissions on stocks and ETFs were given a score of 1, while brokers that lack this option received a score of 0.
Price Per Options Contract
We scored this item on a continuous scale of 0.00 to 1.00. Companies with the lowest costs per options contract ($0.00) received the highest score, and companies with the highest costs ($1.25) received the lowest score.
Account Closure Fees
We scored this item on a binary scale. Brokers with no account closure fees were given a score of 1, while brokers with such fees received a score of 0.
Account Transfer Fees
This consideration was scored on a binary scale. Brokers with no transfer fees were given a score of 1, while brokers with these fees received a score of 0.
Wire Fees
We scored this item on a binary scale. Brokers that charge no wire fees were given a score of 1, while brokers with wire fees received a score of 0.
Check Fees
This fee was scored using a binary scale. Brokers that do not charge any fees for writing checks were given a score of 1, while brokers that do charge for this service received a score of 0.
Volume-Based Options Trading Discounts
We scored this feature on a binary scale. Brokers that offer discounted fees on options trades upon meeting a certain threshold were given a score of 1, while brokers without this benefit received a score of 0.
Price Per Futures Contract
We scored this item on a continuous scale of 0.00 to 1.00. Companies with the lowest prices per futures contract ($0.55) received a high score, and companies with the highest prices ($2.25) received a low score.
Base Commission for Penny Stocks
We scored this criterion on a binary scale. Brokers that offer the option of having no base commissions on penny stocks were given a score of 1, while brokers that lack this option received a score of 0.
Penny Stock Restrictions
We scored this item on a binary scale. Brokers that do not put volume or any other restrictions on penny stock trading were given a score of 1, while brokers that do impose restrictions received a score of 0.
Penny Stock Trading Access
This feature was scored on a binary scale. Brokers that do not restrict access to trading penny stocks on any platforms where other stocks can be traded were given a score of 1, while brokers that do restrict access on certain platforms received a score of 0.
No-Load Mutual Funds Offered
We scored this item on a binary scale. Brokers that offer no-load mutual funds were given a score of 1, while brokers without this product received a score of 0.
Recurring Investment Fees
We scored this criterion on a binary scale. Brokers with no recurring investment fees were given a score of 1, while brokers that do charge such fees received a score of 0.
Base Commission for Options
This item was scored on a binary scale. Brokers that don’t charge base commissions on options were given a score of 1, while brokers that charge a base commission received a score of 0.
Capped Options Trading Fees
We scored this item on a binary scale. Brokers that capped fees on options trades upon meeting a certain threshold were given a score of 1, while brokers without this benefit received a score of 0.
Broker-Assisted Fees
We scored this criterion on a continuous scale of 0.00 to 1.00. Companies with the lowest fees for placing broker-assisted trades ($0) received the highest score, and companies with the highest fees ($45) received the lowest score.
IRA Annual Fee
We scored this item on a continuous scale. Brokers with the lowest IRA annual fee received the highest score of 1.00, while brokers that have the highest IRA annual fee were given the lowest score of 0.00.
IRA Closure Fee
We scored this criterion on a continuous scale. Brokers with the lowest IRA closure fee received the highest score of 1.00, while brokers that have the highest IRA closure fee were given the lowest score of 0.00.
Platform Experience
Whether you’re a passive investor with a fairly hands-off approach to your investing or a more active trader who is constantly looking to speculate in daily market swings, there’s a broker that fits your needs. This section covers the critical features that will help make for the best experience when you are ready to place an order and set risk parameters around it.
This entire section accounts for 10.12% of the total weighted score in our evaluation.
| Platform Experience Criteria Weights | |
|---|---|
| Real-Time Quotes (Website) | 0.78% |
| Real-Time Quotes (Desktop) | 0.78% |
| Real-Time Quotes (Mobile) | 0.78% |
| Multi-Platform Real-Time Quotes | 0.64% |
| Pre-Order Tax Lot Selection | 0.64% |
| Order Types (Website) | 0.64% |
| Order Types (Desktop) | 0.64% |
| Order Types (Mobile) | 0.64% |
| Features Offered (Website) | 0.64% |
| Features Offered (Desktop) | 0.64% |
| Features Offered (Mobile) | 0.64% |
| Platform Outages (Past 4 Years) | 0.64% |
| Simultaneous Quotes | 0.64% |
| Device-Independent Real-Time Quotes | 0.64% |
| 24-Hour Trading | 0.59% |
Real-Time Streaming Quotes Across Website, Desktop Software, and Mobile Trading Platforms
We scored this item on a binary scale. Brokers that offer real-time stock streaming on each available trading platform were given a score of 1, while brokers without this capability received a score of 0.
Simultaneous Real-Time Streaming Quotes on Multiple Platforms
We scored this feature on a binary scale. Brokers that provide users with simultaneous real-time stock streaming on multiple platforms (desktop software, website portal, mobile app) were given a score of 1, while brokers without this functionality received a score of 0.
Pre-Order Tax Lot Selection
This item was scored on a binary scale. We gave companies with the ability to select a tax lot before placing an order a score of 1, while companies without this capability received a low score of 0.
Order Types Offered Across Website, Desktop Software, and Mobile Trading Platforms
We scored these items on a continuous scale of 0.00 to 1.00. Companies with the largest selection of order types offered (limit, market, stop, stop limit, MOC, LOC, MOO, LOO, trailing stop, and more) received a higher score and companies with the smallest selection (market, limit, stop, stop limit) received a lower score.
Features Offered Across Website, Desktop Software, and Mobile Trading Platforms
This item was scored using a continuous scale of 0.00 to 1.00. Companies with the largest selection of additional features offered (ability to stage orders for later entry, trade directly from the price chart, customize the platform, and customize the price chart) received a higher score and companies with the smallest selection of features (ability to customize price chart) received a lower score.
Platform Outages in the Past Four Years
We scored this item on a binary scale. Brokers with no record of any serious platform outages in the last four years, which is generally considered to be the average length of a business cycle, were given a score of 1. Conversely, brokers that have reported serious platform outages over this same period received a score of 0.
Platforms With Simultaneous Quotes
We scored this criterion on a continuous scale. Brokers with the most platforms in which real-time stock quotes are streamed simultaneously were scored with a 1.00. Brokers that had the least were scored 0.00.
Device-Independent Real-Time Quotes
We looked into whether users have the ability to stream real-time quotes on multiple devices simultaneously without having to qualify for access and scored this on a binary scale. Brokers that provided this option received a score of 1.00 and brokers that did not were given a score of 0.00.
24-Hour Trading
We evaluated whether brokers had 24-hour trading available for users. We scored this criterion on a binary scale and if brokers did have 24-hour trading, they received a score of 1. If not, they were given a score of 0.
Educational Material
Markets are complex, and trading and investing in them is no easy task. It’s essential to have an understanding of how markets work and how to use the countless tools and calculators available to grow your assets.
The best online brokers provide a wide range of educational material across several mediums, such as articles, videos, seminars, and webinars.
This entire section accounts for 8.96% of the total weighted score in our evaluation.
| Educational Material Criteria Weights | |
|---|---|
| Investor Education Resources | 5.98% |
| Life Stage Planning Tools | 2.98% |
Investor Education Resources
We scored this item on a continuous scale of 0.00 to 1.00. Companies with the largest selection of educational content (articles, videos, webinars, virtual learning environment, online topical events, live and on-demand webinars, in-platform education) received the highest score and companies with the smallest selection (just articles) received the lowest score.
Life Stage Planning Tools
This criterion was scored using a binary scale. Brokers that offer life stage planning tools were given a score of 1, while brokers without this feature received a score of 0.
Mobile App Usability
The conversations we’ve had with many of the companies we review confirmed that interest in mobile trading continues to grow. Most brokers have robust desktop platforms, but mobile trading platforms have become powerful tools that are loaded with features critical to investing and trading.
The best online brokers allow their mobile users to access the same tools and amenities available on their desktop apps and websites and at similar speeds.
This entire section accounts for 8.95% of the total weighted score in our evaluation.
| Mobile App Usability Criteria Weights | |
|---|---|
| Mobile Order Type Parity | 2.98% |
| Mobile Asset Class Parity | 2.98% |
| Mobile Charting Drawing Tools | 2.98% |
Mobile Order Type Parity
We scored this item on a binary scale. Brokers that provide users with access to the same order types on mobile as the desktop or web platform version were given a score of 1, while brokers without this functionality received a score of 0.
Mobile Asset Class Parity
We scored this criterion on a binary scale. Brokers that offer access to the same asset classes on mobile as the desktop or web platform version were given a score of 1, while brokers without this feature received a score of 0.
Mobile Charting Drawing Tools
This item was scored on a binary scale. Companies that provide users the ability to draw trend lines and other overlays on mobile app-based charts received a score of 1 while companies lacking this capability received a score of 0.
Portfolio Analysis and Reports
To be a successful investor, there is so much more to monitoring your account than simply checking your balance from time to time. For example, you should have an understanding of whether you are over- or under-exposed to certain sectors, or if there are any major tax implications with your investments.
The availability of expert assistance in these matters is a service that not all brokers offer. Not only will the best online brokers provide you with the proper tools and services to help keep your account on the right track, but they’ll also allow you to sync your external accounts for a holistic view of your finances.
This entire section accounts for 7.67% of the total weighted score in our evaluation.
| Portfolio Analysis and Reports Criteria Weights | |
|---|---|
| Real-Time Portfolio Reporting | 1.98% |
| Portfolio Tracking Features | 1.98% |
| Live Support From a Licensed Broker | 1.37% |
| Live Support From a Licensed Financial Advisor | 1.37% |
| Trading Journal | 0.98% |
Real-Time Portfolio Reporting
We scored this item on a binary scale. Brokers that offer portfolio reports in real-time were given a score of 1, while brokers without this feature received a score of 0.
Portfolio Tracking Features
We scored this criterion on a continuous scale of 0.00 to 1.00. Companies offering the largest selection of portfolio tracking features (a sector allocation monitor, a sector allocation interpreter that alerts users to being under or over exposed to certain sectors, ability to sync a user’s external accounts for consideration in his portfolio analysis) received a higher score and companies with the smallest selection (none) received a lower score.
Live Support From a Licensed Broker
This item was scored on a binary scale. Brokers that provide users with the ability to communicate with a live, licensed broker were given a score of 1, while brokers without this feature received a score of 0.
Live Support From a Licensed Financial Advisor
We scored this item on a binary scale. Brokers that provide users with the ability to communicate with a live, licensed financial advisor were given a score of 1, while brokers without this feature received a score of 0.
Trading Journal
We scored this feature on a binary scale. Brokers that provide users with the ability to maintain a trading journal were given a score of 1, while brokers without this item received a score of 0.
Customer Service
This category evaluates the services provided to customers when they need help with their account or trading experience. This section accounts for 6.98% of the total weighted score in our evaluation.
| Customer Service Criteria Weights | |
|---|---|
| Customer Service | 6.98% |
Customer Service Options
We scored this item on a continuous scale of 0.00 to 1.00. Companies with the largest selection of customer service options (email, live chat, in-person branch, phone, FAQs page, live broker) received a higher score and companies with the smallest selection received a lower score.
Account Amenities
In this section, we look at the supplemental services that the brokerage offers beyond standard trading and investing features. Services like interest earned on uninvested cash and retirement tools are key components when it comes to making both tactical and long-term investment decisions.
This entire section accounts for 6.20% of the total weighted score in our evaluation.
| Account Amenities Criteria Weights | |
|---|---|
| Cash Interest Rate Minimum Balance | 0.98% |
| Interest Earned on Uninvested Cash | 0.68% |
| Automatic Cash Sweep | 0.58% |
| Portfolio Margin Access | 0.58% |
| Stock Loan Program | 0.58% |
| Automatic Cash Sweep Frequency | 0.58% |
| IRA Minimum | 0.58% |
| Roth IRA Minimum | 0.58% |
| Apple Watch App | 0.53% |
| Banking Features | 0.53% |
Cash Interest Rate Minimum Balance
This item was scored on a continuous scale of 0.00 to 1.00. Brokers that require the lowest account balance ($0) to earn interest on uninvested cash were given the highest score, while brokers requiring the highest balance ($100,000) received the lowest score.
Interest Earned on Uninvested Cash
We scored this item on a continuous scale of 0.00 to 1.00. Brokers that allow customers to earn the highest interest rate on uninvested cash were given the highest score, while brokers providing the lowest interest rate on cash balances received the lowest score.
Automatic Cash Sweep
We scored this item on a binary scale. We gave brokers that offer users the option to automatically sweep uninvested cash into a money market fund a score of 1, while brokers without this item received a score of 0.
Portfolio Margin Access
We scored this item on a binary scale. Brokers that make portfolio margin available were given a score of 1, while brokers without this item received a score of 0.
Stock Loan Program
We scored this feature on a binary scale. Companies offering users the ability to choose and offer shares held long to a loan program received a score of 1 while companies lacking this feature received a score of 0.
Automatic Cash Sweep Frequency
For this criterion, we scaled the responses (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies with the most frequent sweep activity (daily) the highest scores. Conversely, companies with less frequent sweep activity received the lowest scores.
IRA Minimum
We scored this item on a continuous scale of 0.00 to 1.00. Companies with the lowest balance requirement for opening an IRA ($0) received a higher score and companies with the highest requirement ($10,000) received a lower score.
Roth IRA Minimum
We scored this item on a continuous scale of 0.00 to 1.00. Companies with the lowest balance requirement for opening a Roth IRA ($0) received a higher score and companies with the highest requirement ($10,000) received a lower score.
Apple Watch App
We scored this criterion using a binary scale. Brokers that have an Apple Watch app were given a score of 1.00, while brokers that do not have an Apple Watch app received a score of 0.00.
Banking Features
We scored this item on a continuous scale from 0.00 to 1.00. Companies that offer the most banking accounts, such as checking, savings, CDs, and mortgage loans, received the top score of 1.00. Companies that offered the fewest were given the lowest score of 0.00.
Security
This category was evaluated based on the broker’s security features and the level of commitment the broker shows in keeping its clients’ sensitive information secure. While most of the brokers we reviewed offer biometric login procedures, that’s where the similarities end.
This entire section accounts for 4.96% of the total weighted score in our evaluation.
| Security Criteria Weights | |
|---|---|
| Two-Factor Authentication Login | 1.65% |
| Mobile Biometric Login | 1.65% |
| Data Breaches (Past 4 Years) | 1.65% |
Two-Factor Authentication Login
For this criterion, we scaled the responses (0.33, 0.67, 1.00) and awarded companies offering two-factor authentication across the most platforms (website, desktop software, mobile app) the highest score of 1. Companies offering two-factor authentication across two platforms earned a score of 0.67. Companies providing this security measure on just one platform received a score of 0.33, while companies lacking this security measure on all platforms were given a score of 0.
Mobile Biometric Login
We scored this item on a binary scale. Brokers that offer either fingerprint or face-scan-based biometric logins on the mobile app were given a score of 1, while brokers without this feature received a score of 0.
Data Breaches (Past 4 years)
We scored this item on a binary scale. Brokers that did not suffer any data breaches in the past four years, which is generally considered to be the average length of a business cycle, were given a score of 1, while brokers that have experienced a serious data breach received a score of 0.
Articles That Use Our Methodology
The investment industry is always evolving, with innovative trading tools and new account amenities emerging. Online brokers and trading platforms are at the forefront of this dynamic landscape, which is why we’ve written extensively on the subject.
The research conducted and data collected to create this methodology have been used to compile the following list of recommendations:
All Investopedia articles that review the online brokerage companies that make up our list of the best, such as Interactive Brokers and Charles Schwab, are based on the research, data, and grading process described in this methodology, along with subjective insights from our editors and industry experts.
Meet the Research Team!
Matthew M Klammer
Research Analyst, Investing & Trading
Matthew Klammer has over a decade of experience fact-checking and performing research for investment and institutional topics. In his current role as a Research Analyst at Investopedia, he collects, analyzes, and verifies data within the investing and trading space.
Will Baker
Associate Editor
Will Baker is a full-time associate editor at Investopedia. He has over a decade of experience as a writer and editor, covering investing, trading, and other aspects of financial journalism. Before working at Investopedia, Will was the content writer for Simpler Trading. He is a U.S. Navy veteran and has a bachelor’s degree from the University of Central Florida.
Isaac Braun
Research Manager
Isaac Braun is the Research Manager for Investopedia. He has analyzed data for over a decade, with over five years in the digital media landscape, and he holds a degree in communication and culture from The Media School at Indiana University – Bloomington. Isaac believes it is paramount to provide the most accurate data-driven product recommendations to help readers make educated decisions.
Michael Sacchitello
Senior Editor, Investing and Trading Product Reviews
Michael is a full-time senior editor of investing and trading products for Investopedia. He has 20+ years of mutual fund, macro market research, institutional trading desk, and trading education experience. Michael holds a bachelor’s degree from West Virginia University and is a chartered member and subject matter expert (SME) for the industry-leading Chartered Market Technicians (CMT) Association.
