Online Brokers: Reviews

Updated March 2011

When choosing an online broker, it's important to look at both expert reviews and customer surveys to get the full picture, as we did. Experts say, as with regular banking, you should check for fees and minimums as well as security features. Surveys will shed light on customer service issues.

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Best online broker overall

Fidelity

*Est. $7.95 per trade Learn More

Fidelity offers a full range of services to online investors, from international trading to checking accounts. The firm is known for its large selection of investment products. Fidelity's easy-to-use website provides… expandeducation, planning and analysis resources to help you make the best choices. Fidelity eliminated its tiered commission structure in 2010 and charges $7.95 per online trade, with no account inactivity, handling or maintenance fees. There are no extra fees, and the minimum is $2,500 to open an account. Fidelity provides mobile applications, and you can check your accounts or make trades while on the go. collapse

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Expert & User Review Sources:

SmartMoney.com: SmartMoney magazine identifies the best online brokers in six categories.

Barron's: Barron's rates the top 22 online brokers for 2010 and summarizes the results in a table.

ConsumerReports.org: Seventeen brokerage firms are rated and ranked, based on a survey of online subscribers.

J.D. Power and Associates: More than 4,000 investors who make their investment decisions without the help of a financial adviser responded to the J.D. Power and Associates 2010 Self-Directed Investor Satisfaction Study.

Kiplinger.com: Kiplinger.com evaluates 14 brokerages by opening accounts and trying them out.

Forbes: Forbes.com awards Fidelity a Best of the Web award.

TopTenReviews.com: Detailed reviews of 18 brokers are provided by the editor of TopTenReviews.com, and a comparison chart summarizes data about each of them.

BetterTrades.com: Financial analyst Robert Stammers offers fairly short reviews of 11 online brokers.

Keynote Systems: Twelve online brokers are rated by Keynote Systems, based on how quickly they process a stock order and the success rate of order completion.

Epinions.com: Fidelity gets the best score of all the online brokers rated here by their customers.

Best discount broker

TradeKing

*Est. $4.95 per trade Learn More

TradeKing offers a combination of low costs and good customer service but a more limited range of investment products than Fidelity. This broker's $4.95 fee for any type of trade is one of the lowest available. There are… expandno hidden fees and no minimum required to open an account. Part of its well-regarded customer support is the online TradeKing Community, where investors interact with one another and with professionals. Since last year, this broker has also enhanced its education resources as well as its offerings and trading tools. TradeKing operates online only, so there's no in-person investment advice available. collapse

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Expert & User Review Sources:

SmartMoney.com: This annual broker survey ranks 17 brokers and names the best brokers in several categories, including commissions and fees, research and customer service.

Barron's: Barron's rates the top 22 online brokers for 2010 and summarizes the results in a table.

TopTenReviews.com: TopTenReviews.com reviews 18 brokers, ranking TradeKing third among them.

Stockbrokers.com: Stockbrokers.com names TradeKing one of the five best brokers in terms of commissions and fees.

StockTradingToGo.com: Blain Reinkensmeyer ranks TradeKing third of top five online brokers.

FiveCentNickle.com: This website is maintained by an anonymous individual who describes himself as a self-taught financial wizard.

Best for active traders

ThinkOrSwim

*Est. $9.95 per trade Learn More

Experts say ThinkOrSwim is the best broker for options traders and one of the best for frequent traders. That said, though it's geared toward active traders, ThinkOrSwim offers flat-rate stock trade commissions of $9.95,… expandregardless of how many trades you make. The first three mutual fund trades each month are free, but it takes $3,500 to open an account. With four trading platforms and the ability to access your account from virtually any mobile device, this broker appeals to tech-savvy beginners and seasoned traders alike. Cutting-edge trading and analysis tools and top-notch customer support are the icing on the cake, say reviewers. ThinkOrSwim was acquired by TD Ameritrade in 2009, but the two brokers continue to operate separately. collapse

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Expert & User Review Sources:

Barron's: Barron's rates the top 22 online brokers; the resulting rankings and category ratings are summarized in a table.

TopTenReviews.com: TopTenReviews.com offers detailed reviews and ratings of 18 brokers; data about them are summarized in a comparison chart.

StockTradingToGo.com: Blain Reinkensmeyer ranks ThinkOrSwim second of the top five online brokers.