Take a look at our rankings which shows the top ten most reputable and regulated brokers suitable for new traders in the USA. What we considered are testing with real trading accounts and other operational requirements.
When looking for an American broker, newcomers have plenty to choose from. This makes it hard to find a good broker that is safe and suitable for one’s investing strategies.
To protect yourself from scams and untrustworthy brokers, the most important measures are conducting thorough research, analysis and finding out information about the broker’s security.
To make things easier for you, we’ve compiled a list of the top 10 brokers and what types of trading they are best for. This is followed by feature comparisons, reviews and frequently asked questions.
Best beginner brokers in USA
| Rank | Broker | Score | Best For |
| 1 | eToro | 4.8 | Best for Beginners Overall. Low trading fees. Social trading available. |
| 2 | Robin Hood | 4.7 | Best trading conditions. Great trading platform. Fast account opening. |
| 3 | Zack’s Trade | 4.6 | Best for Stocks and ETFs. Low trading fees. Very good customer service. |
| 4 | Webull | 4.6 | Best Trading platform. Fast account opening. Low trading fees. |
| 5 | moomoo | 4.5 | Best for Options and Futures. Excellent educational services. Great trading conditions. |
| 6 | Charles Schwab | 4.4 | Best for research. Great customer service. Very low trading fees. |
| 7 | Tradestation | 4.4 | Best for Mobile trading. High quality research tools. Great educational materials. |
| 8 | TradeZero | 4.3 | Best educational materials. Great customer support. Social trading available. |
| 9 | Merrill Edge | 4.2 | Best account opening process. Very low trading fees. Strong parent company. |
| 10 | Alpaca Trading | 4.1 | Best for active trading. Great charting tools. Very low trading fees. |
Safety and regulation overview in USA
The United States has regulatory bodies that govern the securities market and endeavour to protect investors and promote transparency. Some of the key regulatory bodies are:
- Commodity Futures Trading Commission (CFTC)
The CFTC is in charge of the regulation of futures and options markets. It also aims to safeguard investors and the financial system.
- Securities and Exchange Commission (SEC)
The SEC is responsible for overseeing the securities markets, brokers and mutual funds. It ensures compliance and protects investors from fraudulent activities.
- Financial Industry Regulatory Authority (FINRA)
FINRA supervises broker-dealers and implements legislation aimed at protection of investors in the securities markets.
- Federal Reserve System (Fed)
The Fed supervises and controls banks and promotes the stability of the financial system. These include provisions connected with the trading and investment services.
- Investor Protection Funds (SIPC)
The SIPC guarantees the trader no loss of cash and securities in case a broker faces bankruptcy or dissolution.
Tier-1 International Regulators
For those U.S. traders who would like to work with an international broker, they should look for Tier-1 regulators. There are several such regulators, including FCA in the UK, ASIC in Australia and SEC in the US. Choosing brokers which are regulated by these bodies ensures that traders deal with platforms that have an adequate level of investment protection policy in place.
As a result, all US traders have the requisite tools and cover to commence trading activities locally and with brokers outside the country.
Safety and regulation comparison for top brokers
Below are some of the key areas that determine the trustworthiness of a broker: What regulators do they have, what degree of investor protection they provide, or any history of scandals and legal troubles. The table below has the information broker down for you.
| Broker | eToro | Robin Hood | Zack’s Trade | Webull | moomoo | Charles Schwab | Tradestation | TradeZero | Merrill Edge | Alpaca Trading |
| Top -tier Regulators | FCA (UK), ASIC (Australia), SEC (USA) | SEC and FINRA (USA), FCA (UK) | SEC and FINRA (USA) | SEC and FINRA (USA) | SEC and FINRA (USA), CIRO (Canada), ASIC (Australia), FSA (Japan) | SEC and FINRA (USA) | SEC and FINRA (USA) | SEC and FINRA (USA), CIRO (Canada) | SEC and FINRA (USA) | SEC and FINRA (USA) |
| Trusted Broker | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Year of Foundation | 2007 | 1988 | 1978 | 2016 | 2018 | 1971 | 1982 | 2015 | 2010 | 2015 |
| Investor Protection | £85k to UK, €20k to EU, $500k (cash up to $250k) to US clients | $500k (cash up to $250k), £85k to UK | $500k (cash up to $250k) | $500k (cash up to $250k) to US, 500 000 HKD to Hong Kong | $500k (cash up to $250k), 1M CAD to Canadian clients, 10M JPY to Japanese clients | $500k (cash up to $250k) | $500k (cash up to $250k) | $500k (cash up to $250k), 1M CAD to Canadian clients | $500k (cash up to $250k) | $500k (cash up to $250k) |
| Involved in Scandal | Clean track record: no major regulatory incidents or fines | In 2024 paid a $7.5 million fine for violating the Massachusetts Uniform Securities | Clean track record: no major regulatory incidents or fines | In 2023 paid $3 Million for Options Customer Approval Violations | Clean track record: no major regulatory incidents or fines | In 2022 agreed to pay $187 million to settle an SEC investigation into the firm’s robo-advisor, Schwab Intelligent Portfolios. | In 2022 paid a fine for failing to register its Crypto lending product | In 2024 paid a $250,000 fine because it failed to adequately oversee the content posted by online influencers the firm paid to promote its service. | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines |
Fees compared
The table below compares the fees of selected platforms. eToro does not charge any commission fees on US stocks, while RobinHood does not charge fees on US stock index options.
| Broker | eToro | Robin Hood | Zack’s Trade | Webull | moomoo | Charles Schwab | Tradestation | TradeZero | Merrill Edge | Alpaca Trading |
| US Stock | $0 | $0 | $0.01 per share with $1 min | $0 | $0 | $0 | $0 for first 10000 shares per trade with flat $5 after that | $0.99 flat fee for orders up to 200 shares, $0.005 per share above that | $0 | $0 |
| UK Stock | $0 | – | 0.3% with £12 min | – | – | – | – | – | – | – |
| German Stock | $0 | – | 0.3% with €12 min | – | – | – | – | – | – | – |
| EURUSD spread | 1.0 | – | – | 1.0 | – | 1.4 | – | – | – | – |
| US Stock Index Option | – | $0 | $1 for first + $0.75 for each additional contract | $0.55 per contract | $0.50 per contract | $0.65 per contract | $1 per contract | $0.59 per contract | $0.65 per contract | – |
| Mutual Funds | – | – | $27.50 | – | $49.95 | $14.95 | – | $19.95 with more than 800 free to trade | – | |
| US Treasury Bond | – | – | – | – | – | $0 | $50 | – | $0 | – |
Comparing non-trading fees
Non-trading fees such as deposit and withdrawal fees and account fees are compared in the table below. eToro does not have any deposit fees, while Webull does not have any inactivity fees.
| Broker | eToro | Robin Hood | Zack’s Trade | Webull | moomoo | Charles Schwab | Tradestation | TradeZero | Merrill Edge | Alpaca Trading |
| Account fee | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Deposit fee | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Withdrawal fee | $5 | $0 | $0 | $0 | $0 | $0 | $0 | $15 | $0 | $0 |
| Inactivity fee | $10/mo after 1y | $0 | $15 per month for accounts below $25000 | $0 | $0 | $0 | $10 per month for accounts below $5000 or for less than 10 transactions in 3mo | $0 | $0 | $0 |
Comparing Deposit, credit card and account opening
The table below compares the deposit, creditor debit card availability, and account opening speed of selected platforms. Charles Schwab has the fastest account opening speeds(about a day), while eToro allows Credit/Debit card.
| Broker | eToro | Robin Hood | Zack’s Trade | Webull | moomoo | Charles Schwab | Tradestation | TradeZero | Merrill Edge | Alpaca Trading |
| Minimum deposit | $50 | $0 | $0 | $0 | $0 | $0 | $0 | $250 | $0 | $0 |
| Time to open account | 1 day | 1 day | more than 3 days | 1 day | 1-3 days | 1 day | 1-2 days | 1 day | 1 day | 1 day |
| Credit/Debit Card | Yes | No | No | No | No | No | No | No | No | No |
| 24/5 support | No | No | No | No | Yes | Yes | No | Yes | No | No |
| Market research | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No |
| Educational materials | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Comparing Mobile, desktop and web trading platforms
The table below compares trading platforms. RobinHood has scored the best for its mobile app, while Webull ranked best for their trading platform.
| Broker | eToro | Robin Hood | Zack’s Trade | Webull | moomoo | Charles Schwab | Tradestation | TradeZero | Merrill Edge | Alpaca Trading |
| Trading platform score | 4.8 | 3.7 | 4.0 | 5.0 | 4.5 | 5.0 | 4.9 | 4.1 | 4.3 | 4.2 |
| TradingView | Yes | No | Yes | Yes | Yes | Yes | Yes | No | No | Yes |
| Demo account | Yes | No | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Mobile app score | 4.9 | 5.0 | 4.5 | 5.0 | 4.9 | 4.7 | 5.0 | 4.4 | 4.7 | 4.5 |
Comparing Product selection, markets and financial assets
The table below has available financial products from brokers. eToro provides the biggest selection of cryptocurrencies. Zack’s Trade provides the widest variety of stock markets.
| Broker | eToro | Robin Hood | Zack’s Trade | Webull | moomoo | Charles Schwab | Tradestation | TradeZero | Merrill Edge | Alpaca Trading |
| Stocks (markets) | 20 | 5 | 90 | 5 | 5 | 4 | 5 | 3 | 4 | 5 |
| ETFs | 680 | 2300 | 13000 | 3300 | 6000 | 2300 | 3000 | 600 | 2300 | 4000 |
| Mutual Funds (providers) | – | – | 550 | – | 2 | 600 | 54 | – | 100 | – |
| Bonds | – | – | 38321 | – | – | 60000 | 630 | – | 8300 | – |
| Options (exchanges) | 1 | 6 | 34 | 6 | 5 | 8 | 10 | 10 | 5 | 5 |
| Futures (markets) | – | – | – | 5 | 5 | 8 | 11 | – | – | – |
| Forex | 55 | – | – | 13 | – | 82 | – | – | – | – |
| Cryptos | 130 | 20 | 4 | – | – | – | – | – | – | 56 |
Comparing User base of top beginner brokers in USA
The table below provides the number of clients for each broker. Charles Schwab has the most users while eToro is a close second.
| Broker | eToro | Robin Hood | Zack’s Trade | Webull | moomoo | Charles Schwab | Tradestation | TradeZero | Merrill Edge | Alpaca Trading |
| Number of clients | 35M | 24.3M | N/A | 20M | 23.2M | 35.6M | 220k | N/A | 3.5M | N/A |
Finding the best beginner broker in the USA
Choosing the right broker is essential for new traders. Here how the most appropriate options have been evaluated.
- Safety and Regulations
Brokers that are regulated by the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), the Commodity Futures Trading Commission (CFTC) and trusted authorities are prioritized. Falling under the regulation of these trusted bodies ensures that the broker is secure and complies with trading laws in the U.S.
- Fees
We have selected brokers that prioritise offering competitive fees for both domestic and international trading. This includes low or zero commissions, transparent fee structures customized to U.S. clients and tight spreads. This is particularly important for trading global stocks, forex and ETFs.
- Non-trading fees
We evaluate brokers based on hidden costs. These include inactivity charges, withdrawal fees and account maintenance. We prefer brokers who have minimal or no non-trading fees. Those who plan on trading in multiple currencies should consider currency conversion fees.
- Deposit/withdrawal, account opening
Brokers that offer quick account setups and secure deposit /withdrawal methods that follow U.S. financial regulations are rated higher. U.S. clients prefer brokers who provide local payment options like direct bank transfers, PayPal, and credit cards.
- Mobile app/trading platforms
User-friendly platform, such as those with features like seamless order execution, advanced charting tools and real-time price alerts are prioritized. U.S. clients benefit most from brokers that support trading across, stocks, forex, ETFs and other asset classes.
Taxation for beginners trading in the USA
Traders should understand the implications of taxation on trading.
- Short-term capital gains: The government taxes profits from assets held for less than a year according to the individual’s ordinary income tax rate.
- Long-term capital gains: Profits made after 1 year of holding an asset are taxed at a lower rate of 0, 15 and 20 even if the holder has reported a higher amount of taxable income.
- Dividend income: Profits derived from U.S dividends fall under the U.S dividend tax category which can range from 0 percent to 20 percent depending on the payer’s tax bracket. However, dividends of firms from other countries might still come under taxation in the respective country where it originated from. Relief is available under the U.S. Foreign Tax Credit to avoid double taxation.
- Currency conversion: The government taxes profits earned in foreign currencies, which have to be reported in USD. The tax amount to be paid can vary depending on currency fluctuations.
- Interest income: Interest received from savings accounts and bonds are classified and taxed as ordinary income.
Beginners should get the help of a tax advisor to understand these rules. They can provide customized advise that takes your individual financial circumstances and trading activities into account.
Investing in Stocks from the USA for Beginners
Follow these small steps to start trading:
- Choosing a broker: Always go for brokers that have a good reputation and are regulated by tier-1 authorities such as SEC and FINRA and offer services that follow U.S. laws.
- Opening an account: The majority of brokers make setting up an account easy by offering a digital onboarding process. Traders typically need their Social Security number (SSN), driver’s license or passport, and proof of address to get started.
- Funding your account: Use accepted methods like e-wallets, credit cards and bank transfers to deposit funds into your account. Take note of any fees charged for deposits or currency conversion of trading in foreign markets.
- Start trading: You can now begin trading on your chosen platform. To better grasp the concepts of market dynamics and trading strategies, you can access educational tools and resources in the app.
- Monitoring and managing risks: Always protect yourself from market volatility and reduce potential losses. To do this, constantly monitor your investments and use risk management strategies such as diversification and stop-loss orders.
Types of trading legal in the USA
There are various authorities that regulate trading in the USA. These include the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) who ensure fairness and safety for investors. The types of trading available legally in the USA include the following:
- Stock trading
Stock trading refers to buying and selling shares of companies. These are listed on major U.S. stock exchanges like NASDAQ and New York Stock Exchange (NYSE).
- Derivatives trading
Derivatives trading involves trading in futures and options. These include options on exchanges like the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME).
- Forex trading
U.S. trading allows trading of a broad range of currency pairs through platforms regulated by the CFTC and the National Futures Association (NFA).
- Commodity trading
Traders can engage in physical commodities trading like gold, silver, crude oil and agricultural products on exchanges like the Chicago Board of Trade (CBOT) and the New York Mercantile Exchange (NYMEX).
- Mutual funds and bonds
It is possible to invest in mutual funds or trading bonds through brokers or directly from issuers. These include government and corporate bonds.
These trading activities are considered legal in the United States. However, certain activities like sports betting and online gambling are restricted or illegal in many states. Make sure that your broker is registered and regulated with the appropriate U.S. regulatory bodies like the CFTC, SEC and FINRA.
Top beginner brokers in USA reviewed
eToro
| Broker | eToro |
| Minimum deposit | $50 |
| Time to open account | 1 day |
| Demo account | Yes |
| US Stock fee | $0 |
| EURUSD spread | 1.0 |
| Inactivity fee | $10/mo after 1y |
| Market research | Yes |
| Mobile app score | 4.9 |
eToro is a popular broker which offers crypto and stock trading from a single platform. It has a CopyTrader feature which enables traders to copy trades from experienced investors. It has an intuitive platform which simplifies trading for beginners. eToro also enables traders to trade in fractional stocks. This makes it possible for traders to access valuable stocks with less capital. It provides educational resources like webinars and tutorials for learning, thus making it suitable for newcomers.
Pros
- eToro has a transparent fee structure which helps in avoiding shocks
- It does not have any minimum deposit for US clients
- It offers commission free trading on US stocks.
- It offers options with minimum risks, along with fractional shares and demo accounts.
Cons
- eToro does not have much tools for transforming to advanced trading
- It does not have any mutual funds for diversification.
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Robin Hood
| Broker | Robin Hood |
| Minimum deposit | $0 |
| Time to open account | 1 day |
| Demo account | No |
| US Stock fee | $0 |
| EURUSD spread | – |
| Inactivity fee | $0 |
| Market research | Yes |
| Mobile app score | 5.0 |
| US Stock Index Option | $0 |
Robin Hood is a broker which offers commission free trading on ETFs, options, stocks and crypto. It also enables traders to invest in fractional shares starting from $1. It also has a simple mobile app customized for new investors. Traders can deposit immediately in order to get quick access to funds. It also provides a cash management account wit debit card ad interest.
Pros
- It does not offer account minimums for easy entry
- It provides extended trading hours for flexibility
- It has in-app educational tools which help in boosting financial knowledge.
Cons
- Their customer service may respond slowly
- It does not have mutual funds and bonds for diversification
Zack’s Trade
| Broker | Zack’s Trade |
| Minimum deposit | $0 |
| Time to open account | more than 3 days |
| Demo account | Yes |
| US Stock fee | $0.01 per share with $1 min |
| EURUSD spread | – |
| Inactivity fee | $15 per month for accounts below $25000 |
| Market research | Yes |
| Mobile app score | 4.5 |
| UK Stock | 0.3% with £12 min |
| German Stock | 0.3% with €12 min |
Zack’s trade provides advanced platforms with specialized tools to the traders. It provides the traders with the opportunity to trade internationally on 91 exchanges in 19 countries. It also offers complimentary trades assisted by brokers.
Zack’s trade provides the traders with free access to over almost 20 research reports. It also offers competitive margin rates for leveraged trading.
Pros
- Traders have the opportunity to do paper trading for minimizing risks
- It has a responsive customer support system with access to live broker
- It offers fractional shares which makes valuable stocks accessible for traders.
Cons
- Zack’s trade does not have commission free stock or ETF trades.
- The monthly inactivity fee for accounts is below $25,000
Webull
| Broker | Webull |
| Minimum deposit | $0 |
| Time to open account | 1 day |
| Demo account | Yes |
| US Stock fee | $0 |
| EURUSD spread | 1.0 |
| Inactivity fee | $0 |
| Market research | Yes |
| Mobile app score | 5.0 |
| US Stock Index Option | $0.55 per contract |
Webull provides commission free trading on US stocks, ETFs as well as options. It enables traders to invest in fractional shares, thus making investments quite affordable. It has a customized mobile app which has been designed for new investors. It also offers extended pre-market and after hours trading.
Pros
- It does not provide any account minimum, thus enabling easy access
- It provides support to cryptocurrency trading for diversification
- It has in-app tools for increasing financial literacy.
Cons
- It does not provide bonds or mutual funds for diversification
- It does not offer any joint or custodial account options
moomoo
| Broker | moomoo |
| Minimum deposit | $0 |
| Time to open account | 1-3 days |
| Demo account | Yes |
| US Stock fee | $0 |
| EURUSD spread | – |
| Inactivity fee | $0 |
| Market research | Yes |
| Mobile app score | 4.9 |
| US Stock Index Option | $0.50 per contract |
Moomoo is a broker which has the latest charting tools with over 100 technical indicators. Its feature of free level 2 market data provides accurate information. It offers trading on US stocks, ETFs and options without any commission. It also provides the traders with some unique opportunities, such as extended pre-market and after hours trading.
Pros
- Moomoo does not contain account minimums thus helping in easy access
- It offers user-friendly mobile platform which helps in easy navigation
- It provides educational resources, such as market news and tutorials.
Cons
- The use of advanced tools may inundate new users
- It does not have retirement account options like IRAs
Charles Schwab
| Broker | Charles Schwab |
| Minimum deposit | $0 |
| Time to open account | 1 day |
| Demo account | Yes |
| US Stock fee | $0 |
| EURUSD spread | 1.4 |
| Inactivity fee | $0 |
| Market research | Yes |
| Mobile app score | 4.7 |
| US Stock Index Option | $0.65 per contract |
| US Treasury Bond | $0 |
Charles Schwab offers trading on US stocks, options and ETFs without any commission. It provides proper educational resources like workshops and webinars. Schwab starter kit begins at $101 for new investors. It offers customer support for 24 hours.
Pros
- It offers comprehensive research tools
- It provides fractional shares for affordable diversification
Cons
- It charges potential inactivity fees for traders who are not frequent
- It provides limited access to cryptocurrency markets.
Tradestation
| Broker | Tradestation |
| Minimum deposit | $0 |
| Time to open account | 1-2 days |
| Demo account | Yes |
| US Stock fee | $0 for first 10000 shares per trade with flat $5 after that |
| EURUSD spread | – |
| Inactivity fee | $10 per month for accounts below $5000 or for less than 10 transactions in 3mo |
| Market research | Yes |
| Mobile app score | 5.0 |
| US Stock Index Option | $1 per contract |
| US Treasury Bond | $50 |
Tradestation offers advanced platforms for desktop, web as well as mobile use. It offers various kinds of educational resources, such as webinars and tutorials. It provides specialized tools like RadarScreen and EasyLanguage.
Pros
- Tradestation provides the traders with in-depth research tools
- Its customer service system is always ready for assistance
Cons
- It charges inactivity fees for low-activity accounts
- Users may feel overwhelmed by advanced tools.
TradeZero
| Broker | TradeZero |
| Minimum deposit | $250 |
| Time to open account | 1 day |
| Demo account | Yes |
| US Stock fee | $0.99 flat fee for orders up to 200 shares, $0.005 per share above that |
| EURUSD spread | – |
| Inactivity fee | $0 |
| Market research | Yes |
| Mobile app score | 4.4 |
| US Stock Index Option | $0.59 per contract |
Tradezero provides access to advanced platforms with customizable interfaces as well as to those stocks which are difficult to borrow. It offers the opportunity to trade in US stocks and ETFs without any commission. It provides customer support for 24 hours through phone, email and chat.
Pros
- It provides access to user-friendly mobile platforms for easy trading
- Account setup is completed within a single day.
Cons
- It does not provide any bank card options for deposits and withdrawals.
- It is limited to ETFs, stocks and options.
Merrill Edge
| Broker | Merrill Edge |
| Minimum deposit | $0 |
| Time to open account | 1 day |
| Demo account | No |
| US Stock fee | $0 |
| EURUSD spread | – |
| Inactivity fee | $0 |
| Market research | Yes |
| Mobile app score | 4.7 |
| US Stock Index Option | $0.65 per contract |
Merril edge offers consolidation with Bank of America accounts. It offers robust research from proprietary and third-party sources. It also provides advanced tools with accurate data. It offers educational content, such as webinars and articles.
Pros
- It provides access to user-friendly web and mobile platforms.
- It does not have minimum accounts, thus enabling easy access.
Cons
- It is unable to access cryptocurrency markets.
- It does not have a fractional share in investing options
Alpaca Trading
| Broker | Alpaca Trading |
| Minimum deposit | $0 |
| Time to open account | 1 day |
| Demo account | Yes |
| US Stock fee | $0 |
| EURUSD spread | – |
| Inactivity fee | $0 |
| Market research | No |
| Mobile app score | 4.5 |
| Deposit fee | $0 |
| Withdrawal fee | $0 |
Alpaca trading is a broker which provides access to API-driven platforms for algorithm trading. It does not provide account minimums for easy access. It offers paper trading for risk-free practices.
Pros
- It simplifies trading by giving access to user-friendly platforms
- It is regulated by various regulatory bodies like SWC for investor protection
Cons
- It is limited to US stocks and ETFs
- API setup can be overwhelming for non-programmers.
Conclusion
As you can see from the table above, traders would be able to obtain an eToro account much faster and easier when compared to other alternative brokers. It can be said that eToro ranks as the best broker across many other comparative tests.
The reason why eToro is standing out is due to the large number of instruments, fair pricing and simple solutions they provide in the U.S. as well as international markets for trading. Also they are licensed by major United States agencies and provide assurance to the investors. All this put together gives eToro an added advantage of a secure environment. The company has a reputation of being safe and has everything that an American trader who is looking for a good broker needs.
| Rank | Broker | Score | Best For |
| 1 | eToro | 4.8 | Best for Beginners Overall. Low trading fees. Social trading available. |
| 2 | Robin Hood | 4.7 | Best trading conditions. Great trading platform. Fast account opening. |
| 3 | Zack’s Trade | 4.6 | Best for Stocks and ETFs. Low trading fees. Very good customer service. |
| 4 | Webull | 4.6 | Best Trading platform. Fast account opening. Low trading fees. |
| 5 | moomoo | 4.5 | Best for Options and Futures. Excellent educational services. Great trading conditions. |
| 6 | Charles Schwab | 4.4 | Best for research. Great customer service. Very low trading fees. |
| 7 | Tradestation | 4.4 | Best for Mobile trading. High quality research tools. Great educational materials. |
| 8 | TradeZero | 4.3 | Best educational materials. Great customer support. Social trading available. |
| 9 | Merrill Edge | 4.2 | Best account opening process. Very low trading fees. Strong parent company. |
| 10 | Alpaca Trading | 4.1 | Best for active trading. Great charting tools. Very low trading fees. |
FAQ
What is an online broker?
In the United States, an online broker is defined as any financial service provider that provides the capability of buying and selling financial instruments through an online platform. These instruments include stocks, mutual funds, ETFs, bonds, and derivatives.
An online broker lets you trade, monitor your portfolio and conduct market research as you please. It is crucial for trading on NYSE and NASDAQ, providing user-friendly platforms, customer support, low fees and access to global markets.
What should I look for when choosing a broker in the USA?
- Asset variety: Go for brokers that can provide a myriad of trading options which should include currencies, commodities, bonds and stocks.
- Trading platforms: Opt for brokers that have user-friendly platforms with a range of advanced trading tools.
- Fees: Always be on the lookout for transparent pricing, competitive fees, low withdrawal costs and low currency conversion costs.
- Regulation: Make sure the broker is registered with tier-1 regulatory bodies.
- Customer Support: Good customer support is at the core of effective trading. It should be able to resolve issues at the earliest.
Are brokers safe in the U.S.?
A broker is considered safe if it is regulated by CFTC, SEC or FINRA. They should provide additional protections like segregated accounts for client funds.
What documents do I require to trade in the USA?
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Valid ID such as a driver’s license or passport
- Proof of residence (utility bill or lease agreement)
- Bank account details
Can clients in the United States trade internationally?
Yes, US clients can trade internationally, provided the broker is compliant with U.S. regulations and adheres to international trading guidelines.
How do I manage risks when trading from the USA?
You can manage risks by using stop-loss orders, diversifying investments and being updated with the latest market conditions. Go for traders who offer negative balance protection.
What is negative balance protection?
Negative balance protection is feature that protects traders from losing more money than invested. It is crucial for those using leverage and to protect against market volatility.
What are ETFs, and why invest in them?
ETFs or Exchange Traded Funds track indexes, commodities or asset baskets. They are traded like stocks but offer diversification. They cost less than individual stocks.
How can I ensure security for my online trading?
Employ strong and unique passwords, use 2FA and trade through encrypted platforms to be secure. Check regularly for any unauthorized activity in your account.
What is day trading and is it suitable for me?
Day trading refers to buying and selling securities in the same day. It is not suitable for beginners, as it demands constant attention, quick decision making and carries risk.
What is a brokerage account and why do I need one in the United States?
With a brokerage account, you can trade and invest in various financial instruments. Brokerage accounts are necessary for trading U.S. stock exchanges like NASDAQ and the NYSE. They ensure secure trade execution, research tools access and regulatory compliance.
Are brokerage charges negotiable in the United States?
Charges for some, especially high-volume traders may be negotiable. Some brokers offer pricing based on tiers depending on trading volume and account size.
What is SIPC and why is it important?
The Securities Investor Protection Corporation or (SIPC) is responsible for protecting against the loss of cash and securities in brokerage accounts. The total amount covered is up to $500,000, which includes a $250,000 cash limit.
What is margin trading, and is it available in the USA?
One can buy more securities that normally possible with margin trading. It increases potential returns but also potential losses at the same time. Organizations as FINRA are entrusted with regulating them.
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