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2022 Rankings

Online Stock Trading Sites

Last updated on December, 22

Are you looking for a new way to invest? Using online stock trading stesis an easy and convenient way to buy stocks. You can trade from the comfort of your own home, at any time of day. Try one platform today!

Online Stock Trading Sites illustration

41 services ranked

Our ranking methodology

#

1

IQ Option logo

IQ Option

4.95

5,020 reviews

Custom

Licensed and Regulated

No Accounts Minimum

Real-Time Quotes

Standard Watchlist

Trade Alerts

News Alerts,

Technical Alerts,

Price Alerts,

Economic Alerts

#

2

Fidelity logo

Fidelity

4.42

5,400 reviews

Custom

Licensed and Regulated

No Accounts Minimum

Real-Time Quotes

Standard Watchlist

Trade Alerts

Price Alerts

#

3

Wealthsimple Trade logo

Wealthsimple Trade

4.41

5,000 reviews

Custom

Licensed and Regulated

No Accounts Minimum

Real-Time Quotes

Standard Watchlist

Trade Alerts

News Alerts,

Technical Alerts,

Price Alerts,

Economic Alerts

#

4

SoFi logo

SoFi

4.37

5,174 reviews

Custom

Licensed and Regulated

No Accounts Minimum

Real-Time Quotes

Standard Watchlist

Trade Alerts

News Alerts,

Technical Alerts,

Price Alerts,

Economic Alerts

#

5

Webull logo

Webull

4.3

5,419 reviews

Custom

Licensed and Regulated

No Accounts Minimum

Real-Time Quotes

Standard Watchlist

Trade Alerts

News Alerts,

Technical Alerts,

Price Alerts,

Economic Alerts

#

6

Ally logo

Ally

4.24

5,400 reviews

price starts:

$ 1.00

per bond

Visit Website

price starts:

$ 1.00

per bond

Licensed and Regulated

No Accounts Minimum

Real-Time Quotes

Standard Watchlist

Trade Alerts

News Alerts,

Technical Alerts,

Price Alerts,

Economic Alerts

#

7

Schwab logo

Schwab

4.19

5,400 reviews

Custom

Licensed and Regulated

No Accounts Minimum

Real-Time Quotes

Standard Watchlist

Trade Alerts

News Alerts,

Technical Alerts,

Price Alerts,

Economic Alerts

#

8

eToro logo

eToro

4.12

5,348 reviews

Custom

Licensed and Regulated

No Accounts Minimum

Real-Time Quotes

Standard Watchlist

Trade Alerts

Price Alerts

You’re seeing 8 of 41 Online Stock Trading Sites

Frequently Asked Questions on Online Stock Trading Sites

What are online stock trading sites?

Now in the digital era, you could turn to online and digital platforms for stock trading. An online Stock Trading Site is an internet-based proprietary trading platform that facilitates the buying and selling of stocks and equity securities. Also known as an online stock brokerage, it provides you trading tools, security, and resources on its websites.

Why do you need an online trading site?

Stock trading is one of the best ways to earn a passive income. Traditionally, you would have to make a lengthy call to brokerage firms before any trade is made. Luckily today, you can easily proceed with the trading without going through this lengthy process. More so, here are the reasons to trade online today.

Make Smart Investments

As cash is laid out on the table, you would want to make the most of your investment. Getting access to online tools will allow you to make more informed decisions in trading stocks.

Trade Anytime

You can seal deals while on-the-go. Stock orders can also be placed even when the market is closed. With any of the best online stock trading sites, time is in your hands, and trades are a few taps away.

Monitor Investments in Real-Time

Sit in front of a screen and see your investments grow. Top online stock trading sites will allow you to track the growth of your investments in real-time. With this, you can act fast and make timely investing decisions.

What are the core features of online stock trading sites?

Before you proceed with your trade, you want to make sure you choose the right trading platform. Plus, you would wish to have access to all the tools you can use. So, here’s a guide to help you select the best online stock trading site today.

Easy-To-Use Trading Platform and Tools

The trading platform is where the magic of buying and selling takes place. No matter how comprehensive and advanced the platform and tools are, working with a maze is a waste of time. What matters is that you should be able to do what you want with user-friendly online stock trading sites.

Multi-platform Access

Many online trading sites are optimized for web or browser format. Going beyond that, a downloadable mobile app and desktop app increases the accessibility of the stock trade along with trading tools.

Updated Quotations

An up-to-date quotation on market prices makes all the difference in making timely investment decisions. There are a few trading sites that give real-time quotes. More common is the use of manual refreshes to see newer quotations that are delayed for less than an hour.

Watch lists and Alerts

If you are an active trader, the chances are that you prefer to have a watch list to stay on top of stock trades that meet a set of criteria. Alert notifications that can be sent through text or email are also a good feature for immediate information.

Charting Features

You might be an advanced trader who would prioritize looking for a charting feature that allows you to customize graph types, plot data, and take notes. The chart may be saved for later reference and future analysis.

Back testing and Paper Trading

Back testing is a trade simulation of selected security where predictions are based on historical information. Paper trading lets you do trading with zero money involved. Back testing and paper trading are both used to test the waters of the market before laying cash on the table. They both come with zero risks and serve as good avenues for learning and practice.

Convenient Fund Management

Depositing, withdrawing, and settling funds are convenient on an online trading site, especially since platforms know how traders want seamless trading transactions. Many online trading sites accept checks, wire transfers, or credit cards. With this, you don’t have to worry much about your funds.

Internet Security Measures

Protecting your account information and investment data from cybercrimes and internet fraud is a must. As money is involved, security poses a serious concern for you. Features that provide security and account protection are something that a reputable online stock brokerage should have. It allows you more confidence in letting these sites get a hold of your assets.

Insurance Coverage

It is good to check if the company behind the brokerage adheres to Customer Protection Laws and is a member of Federal or National Insurance Corporations. This is especially the case for trading sites that also offer deposit accounts. Insurance would serve as a contingency in case a company you invested in fails or goes bankrupt.

Guarantee of Protection against Fraud

A trading site may not guarantee profits, but client protection is a must. The online brokerage should reimburse fraud-related losses. Check out terms and conditions for further details, fulfill the requirements, and place precautions to protect yourself from fraud.

Government Regulation

There are disclosures written in the footer of a trading website or in the terms and conditions whenever making an account. Such disclosures are used to verify whether stock trading sites are compliant with laws and are regulated by a securities exchange commission. With regulation and compliance, these assure you that transactions are legitimate.

In-depth Research and Educational Resources

A good online trading site would do well to educate you through online resources, expert coaching, and technical assistance. This would show how dedicated the online brokerage is to the success of every trader and investor like you. Not all traders are aficionados in the art of trading. You might be a novice who would like to try your hand at becoming an active day trader.

Investment Advisors

It is often said that an hour with a mentor does so much more than days of learning in books. When an online trading site gives you access to their in-house experts, this will allow you to gain more input and practical insight on technical know-how and decision-making.

Technical Support Team

There will be instances where you could get overwhelmed by technical issues that you could not resolve on your own. This is when a technical support team would provide comely customer service and assistance. Having them available 24/7 will allow you to get immediate solutions and get straight back to trading.

Reasonable Rates

Different online stock trading site fees have become increasingly competitive in terms of rates and pricing. You could even search for the lowest fees of online stock trading sites. Then again, it is not enough to judge based on rates alone. Some sites charge a premium but compensate with high-end trading tools. Others price cheaper but offer less.

What are the types of online stock trading styles?

There are various types of online stock trading sites on the internet today. But, you have to understand how each one of them works so you’d find the perfect one for you. Here are the different types of online stock trading sites, including their pros and cons.

Day Trading Sites

Active day traders often do strategies that entail buying and selling stock securities on the same day. Day trading is often practiced by professionals and highly experienced. However, with the increase in information and research provided by online stock trading sites, novices have started to dabble with this type of trading scheme as well.

Position Trading Sites

Long-term investors and traders buy and hold stocks for longer periods of time. Position trading requires long-term strategies that are backed by extensive research and precise projections on market trends spanning weeks or months. In this type of trading, it is best to make the buy when the trend picks up momentum. As the trend reaches its peak that would be a high time to sell the stocks.

Swing Trading Sites

A trend is not a straight line because, more often than not, there are volatile price swings that occur. This is what swing trading takes advantage of. Swing traders look at the lifecycle of a particular trend, buy at the onset of its momentum, and sell at its peak. It also requires comprehensive research using data that spans more than a few days.

Scalp Trading Sites

Scalpers find opportunities in the differences between bidding and asking prices and order flows. Scalping involves buying stocks and only selling them when the asking price is higher than the buying price.

Contracts-For-Difference (CFD) Trading Sites

Speculation has become an increasingly popular means of trading. In CFD Trading, you do not own the stocks. Rather, what you have is the right to speculate on the market price of a certain stock.

Who needs online stock trading sites?

Novice Traders

Traditional stock brokerages may not be accessible to everyone. If you are a beginner, you could find it more costly and intimidating. This is why you could turn to online brokerages because of how accounts are easier to open, and the required initial deposit is less. They could also make much use of risk-free mock trading’s and educational resources that are made available on these types of sites.

Professional Traders

More experienced professional traders usually make a living out of stock trading as they make frequent transactions within a day. With an online trading site, the stock exchange would just be a few taps away. The tools available on the site adds to the appeal, which is much to the taste of professional traders. This type of traders tend to make their own analysis of market data, and charting tools would just be exactly what they need.

Finance and Business Students

If you are a finance or business student, you would also make use of online trading sites for research and educational purposes. You could use paper trading and backdating to understand how the market works and how different investment strategies could affect the portfolio overall. Such students may also soon join the ranks of novice traders, especially when their means allow them to do so.

What are the steps on how to jumpstart online stock trading?

Step 1: Select an Online Stock Trading Site

The first step is to do your research and compare online stock trading sites. A beginner might look for the cheapest online stock trading sites or the best online stock trading for beginners. An expert or professional would look for the best-rated online stock trading sites or top 5 online stock trading sites.

Step 2: Open a Trading Account

Once you have made your pick of a suitable online stock trading site, you may now open a trading account. You would also have to consider what types of accounts you will be opening. It could be the conventional account for normal trades. It could be a mutual fund for the benefit of someone else. It could even be a retirement account to serve as a guarantee when you reach that stage in life.

Step 3: Understand the Tools and Platform

Understand the platform and tools that are available for you to use. These could help you make smarter investment decisions along the way. Also, take advantage of educational resources and financial advisers that are offered by the site.

Step 4: Build an Online Portfolio

Only after much preparation and sufficient understanding would building an online portfolio be wise. Do take note that it is important to diversify your portfolio through different trading styles and stock orders. A risk-averse investor will never go all-in in the game of trading.

Step 5: Continue Learning

Furthermore, it would not hurt to continuously learn as you delve deeper into the business of trading. New strategies and market trends always emerge, which is why you need to keep up with current events. Other than that, feel free to try out new things as each trade is a learning experience.

What are stocks?

Stocks refer to the ownership shares of a company, and buying stocks makes you a part-owner of that specific company. As the company grows, you get to earn a portion of their profits for being a part-owner. However, if the company does not perform beyond market expectations, you’ll also experience losses along with them.

Are online stock trading sites safe?

With safety measures and regulations in place, these online brokerages are safe. However, this does not mean that there are no threats at all. As a careful trader, it pays to set up your own precautionary measures to keep yourself safe. Comparing online stock trading sites will give you an idea of which one would give you the security that you need.

What are the security measures used in online stock trading sites?

Two-factor Authentication

Other than the password, additional features could be opted for by the investor to increase account security. Security questions could be asked upon logging in. Another is to receive a unique one-time password (OTP) through text or email.

Encryption and Cookies

It would be good to check if an online stock trading site makes use of encryption and cookies to protect account information. You could check in the URL if cookies are sent only through a secured hypertext transfer protocol (HTTPS).

No Information Selling to Third Parties

Any online trading site should never sell customer information to third parties such as advertisers and marketers. Not only is this a violation of the right to data privacy, but it is also an exposure to fraudsters and hackers.

What are the requirements for opening an online trading account?

Online trading sites would usually require documents to prove that you are a legitimate person. There are also additional measures to prevent identity theft and fraudulent activities.

a. Filled-up Form of Required Information

b. Government-issued IDs and Taxpayer Identification Numbers (TIN)

c. Proof of Billing Statements

d. Video Call Confirmation

e. Email Confirmation

f. Initial Deposit

How will stocks affect my tax bill?

This will largely depend on national or federal regulations. Most countries charge different taxes for capital gains, long-term holdings, short-term holdings, and interest rates. It would be best to contact an accountant or a tax practitioner before you make any big investment decision.

What are the types of stock orders that I could make?

Market Order

As the simplest and most common stock trade, the market order is carried out by placing an order to buy and sell stocks at the current market price.

Limit Order

The limit order takes place when you place an order to make a trade when it meets your maximum buying price or minimum selling price. Do take note that this order may never be executed when your criterion is not met.

All-or-None Order

Stocks may not be available right away, and what happens is that you pay different prices for different portions of the order. An all-or-none order requires a trade fulfilled when there are sufficient stocks. Otherwise, the trade is simply not done.

Fill-or-Kill Order

As a strict type of order, the fill-or-kill order requires that a transaction meets the criterion and is wholly executed immediately, or else the whole order is canceled.

Immediate-or-Cancel Order

It is a close cousin of fill-or-kill. The difference lies in the fact that immediate-or-cancel order allows partial execution as long as the criterion is met. When succeeding portions fail, the remaining order is cut and canceled.

Stop Order

Once the stop price is met, the stop order is converted to a market order. This means that a transaction is executed at the current market price.

Stop-Limit Order

Almost like the former, a stop-limit order is converted to a limit order once the stop price is met. Thus, the trade is carried out when it meets the minimum selling price or the maximum buying price.

Short Sell Order

Selling a short stock is done when you think the stock price will fall. A certain stock may be temporarily inflated, so you borrow a number of such stocks and sell it at the inflated price. When the price falls, you do the next type of trade—buy to cover order—to complete the short sale.

Buy to Cover Order

This is done in tandem with the previous type of order. When the price does fall, you now have to return the borrowed shares and purchase them. The money left over from selling them at the inflated price is your profit.

Day Order and Week Order

This type of order pertains to when a trade can be executed. A trade is a day order when it is only good until the end of the regular day. If not executed by then, it is canceled. Similarly, the week order is executable for a week.

Good-Til-Canceled Order

This is another order type that pertains to when a trade takes place. A good-til-canceled order remains executable unless it is done or it is canceled. The risk of this is that you might forget about it. Plus, you pay more trade fees if it is partially done on different days rather than when it is completed in a single day.

Trailing Stop Order

This is similar to the stop order, except that the stop price is expressed as a spread of different points or a percentage of the current market price.

Bracketed Order

A bracketed order is just like the trailing stop order but it goes further by setting an upper limit as well. When the upper limit is met, the stock is sold.

What are the learning resources offered by online stock trading sites?

Trading Basics and Advanced Modules

Online trading sites could make educational offerings that are made up of basic manuals, videos, podcasts, forums, and blog posts. These materials could talk about how to start an account, fundamental analysis, portfolio diversification, and how to interpret charts. It would give all the things needed to know before you start with trading.

Comprehensive Glossaries

A comprehensive glossary lists investment jargon that is practically used when trading. It sheds light on what these terms mean and how these terms are relevant in trading strategies. This is great because some terms are jarringly unfamiliar and intimidating if you don't have much background in finance and investment.

Comprehensive Research

There are two types of research and analysis that are important in trading. These are fundamental research and technical research. Each has its focal points, but it would be more effective and prudent to consider both in making investment decisions. Online stock trading sites provide these in-house research materials that are accomplished by credible finance and market experts.

Fundamental Research

Corporate financial statements are the starting point of every fundamental research and analysis. It sheds light on the intrinsic and fair market value of a particular stock. By making use of ratio, it will give you a glimpse of the financial position and performance of a stock corporation. This is important for long-term investors and traders.

Technical Research

Technical research and analysis take on a different approach. It analyzes the value of a stock based on charts, patterns, trends, and predictions. Data could change on a daily basis, and frequent analysis of such data would suit the preference of short-term investors and traders.

What are profitability, liquidity and solvency, and valuation ratios?

Profitability Ratio

You may get a glimpse of how profitable the operations of a firm are. A positive rate is a green signal that lets you know the company is thriving well and can give promising returns to your investment.

Liquidity and Solvency Ratio

As most investments are made with the long term in mind, these types of ratios are worth a second look. The liquidity ratio shows how a firm can keep up with current obligations. You may see it in how current assets are greater than current debts. The solvency ratio gives you an idea if the firm could be up and running for years to come. Debt has to be relatively lower than equity.

Valuation Ratio

You will likely want to know if you are investing in stocks that are worth your money. Look your way into various types of valuation ratios as they can tell you the value you paid in exchange for future profit, cash flow, and sales. They will also indicate overall the expectations of a company's future situation.

What are the fees that I have to note when trading?

Initial or Minimum Deposit

Many online trading sites would require you to deposit an initial amount of sum before you could open a trading account. The amounts differ per online brokerage. It may also depend on the type of accounts you are making.

Stock Trade Fees

Typically, the bulk of trading comes from the stock exchange. Thus, it is important to know what is per contract fee for online stock trading sites. Especially for short-term traders, a relatively lower stock trade fee is highly desirable as exchanges are more often made.

Option, Bonds, Futures, and Other Securities Trade Fees

Online stock trading sites also offer other types of investment securities. A prudent trader and investor would more often seek more diversification in their investment portfolio. Depending on the type of investments you are planning to make, it would be great to factor in these rates as well.

Commission-Free ETFs

The majority of online stock brokerages offer commission-free exchange-traded funds (ETFs). This means that you can make a trade without any transaction fees. This is particularly great because this would save you lots of bucks from buying and selling stocks.

Isn’t stock trading risky?

Of course, stock trading has its risks. However, risk will always be present whenever you’re investing. That’s why it’s crucial that you are aware of how you should manage and strategize your trades to reduce your chances of having losses. It’s also why most stock trading sites offer consultation services to their traders.

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