When it comes to investing, every dollar counts. Paying extra in commissions or account fees can eat into your returns, which is why so many people are turning to discount brokers. These online platforms allow trading with little to no fees while still offering useful tools, research, and customer support.
Not every broker is the same, though. Some stand out for low margin rates, others for options trading, and a few even reward you for leaving cash in your account. After looking closely at the top platforms, here are the best discount brokers of 2024 and why they might be right for you.
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Best overall: Fidelity
Account Minimum: $0
Fees: $0 for stock/ETF trades, $0 plus $0.65/contract for options trades
Fidelity has earned its spot as the top choice for most investors. It charges zero commissions on stock and ETF trades and just 65 cents per contract for options. What really makes Fidelity stand out is that it does not take payment for order flow, which means your trades can get better execution.
In addition to low costs, Fidelity offers investors a wide selection of investments, user-friendly platforms, in-person support, and ample research and education. It is especially strong for beginners who want guidance and tools to learn as they go.
The main downsides are that it still charges fees on some mutual funds and bonds, and it does not offer futures trading or a wide range of cryptocurrencies. For most people, though, it delivers an impressive mix of low costs and great service.
Best for low margin rates, fractional shares, and futures: Interactive Brokers
Account Minimum: $0.00
Fees: $0.00 commissions on stocks and ETFs on TWS Lite, or low-volume-based costs on TWS Pro; $0.65 per contract for options, with discounts for higher volume; $0.85 per contract for futures, also lower with more volume. Cryptocurrency trades cost 0.12%–0.18% depending on volume, with a $1.75 minimum per trade.
If you are a serious trader, Interactive Brokers is hard to beat. It has the lowest margin rates in the industry, and the bigger the balance you borrow, the lower your rate goes. It also offers the largest selection of fractional shares, so you can buy into high-priced stocks without needing thousands of dollars.
Another standout feature is futures trading. Most discount brokers avoid it, but Interactive Brokers lets you trade futures on more than 30 global markets with low contract fees.
The advanced Pro platform charges commissions, but it gives you access to SmartRouting, which finds the best prices across markets. If you prefer a simpler experience, there is also IBKR Lite, which offers commission-free trading but has fewer features.
This platform can feel overwhelming to beginners, but for active traders, it is one of the best tools available.
Best for options trading: Webull
Account Minimum: $0
Fees: $0 commissions for stock, ETF, and options
Webull is a younger platform that has grown quickly thanks to its easy-to-use app and zero-cost structure. It is especially attractive to options traders because it does not charge commissions or contract fees. You get access to a smooth trading experience, real-time data, and even advanced options strategies like Condors and Iron Butterflies without paying extra.
The trade-off is that Webull makes money from payment for order flow, which can affect execution quality for some trades. It also lacks mutual funds, fixed-income products, and more advanced portfolio management tools. Still, if your focus is on options, Webull is an excellent low-cost choice.
Best for high interest on cash: Moomoo
Account Minimum: $0
Fees: $0 commissions for stock, ETF, and options
Moomoo is one of the newest players in the discount brokerage world, and it has made a name for itself by paying high interest on uninvested cash. As of November 2024, users can earn 4.35% APY just for keeping money in their accounts. On top of that, new customers often get welcome bonuses, free stocks, or extra cash.
Like the other discount brokers on this list, Moomoo charges no commissions for U.S. stock, ETF, and options trades. It also offers solid research tools, decent margin rates, and a strong user experience.
The main limitations are account types and investment options. Moomoo only supports individual margin accounts, so there are no retirement or joint accounts, and its investment menu is limited compared to bigger brokers. It also charges higher fees for certain withdrawals, like wire transfers.
Even so, if you want to earn something extra while your money sits in your account, Moomoo is worth a look.
Discount brokerage vs. full-service brokerage
One of the first choices you will face as an investor is whether to use a discount brokerage or a full-service brokerage. The difference comes down to how much support you want and how much you are willing to pay for it.
At a full-service brokerage, you work directly with a financial advisor. That person helps you research investments, plan your strategy, and even place trades on your behalf. In some cases, the advisor manages your entire portfolio for you. This hands-on approach can be helpful if you want personalized guidance, but it usually comes with higher fees and account minimums.
Discount brokerages take a different approach. Instead of relying on a broker to walk you through every step, you are in charge of your own investing decisions. You do the research, decide what to buy or sell, and set up your trades. The platform provides the tools, but you stay in the driver’s seat. Because you take on more responsibility, discount brokers are much less expensive and often have little to no account minimum. This makes them accessible to beginners and investors with smaller portfolios.
The growth of online investing has made discount brokerages the go-to choice for many people. With easy-to-use digital platforms, investors can place trades instantly and keep costs low without sacrificing convenience.
That said, discount brokers are no longer the only option. Nearly every major firm now offers both full-service and discount platforms, giving investors the flexibility to choose what best suits them. Firms like Fidelity, J.P. Morgan, and Merrill still offer the traditional full-service experience, but they also compete in the discount space with robust online tools.
There is also a middle ground: robo-advisors. These platforms use technology and automation to create and manage portfolios at a fraction of the cost of human advisors. For investors who want more guidance than a self-directed account but do not want the high costs of a full-service broker, robo-advisors can be a practical compromise.
Final thoughts
Choosing the right discount broker depends on your goals. Fidelity is the best all-around choice with low fees, a wide investment selection, and excellent support. Interactive Brokers is the go-to for advanced traders who want the lowest borrowing costs, fractional shares, and access to global futures markets. Webull is perfect for options traders who want a streamlined and cost-free experience. Moomoo appeals to investors who like the idea of earning interest on idle cash along with welcome bonuses.
The bottom line is that low fees no longer mean low quality. Today’s best discount brokers combine affordability with powerful platforms and strong support, letting you invest smarter without spending more.