The definitive list of the best online brokers
By
Caleb Silver
:max_bytes(150000):strip_icc()/CopyofCaleb_Final-CalebSilver-5c09a16346e0fb000182c90c.jpg "Investopedia’s 2022 Best Online Brokers Awards (1)")
Full Bio
Calebhas been the Editor-in-Chief of Investopedia since 2016. He is an award-winning media executive with more than 20 years of experience in business news, digital publishing, and documentaries. Caleb is the on the Board of Governors and Executive Committee of SABEW (Society for Advancing Business Editing & Writing), and his awards include a Peabody, EPPY, SABEW Best in Business, and twoEmmy nominations.
Learn about our editorial policies
Published January 05, 2022
We publish unbiased product reviews; our opinions are our own and are not influenced by payment we receive from our advertising partners. Learn more about how we review products and read our advertiser disclosure for how we make money.
Note: This is an archive of Investopedia's 2022 Best Online Broker Awards. You can find the2023 Best Online Broker here.
The past year was showtime for online brokers as millions of new traders and investors entered the market for the first time amid a frenzy of trading in stocks and crypto. Brokers’ reliability, pricing, and range of offerings were all put to the test, as both new and experienced traders sought any edge they could find to capture returns.
Investors and politicians scrutinized online brokers for their role in wild market swings as retail traders and institutional investors alike piled into highly-shorted stocks, prompting short squeezes, trading halts, and platform outages. Pricing became paramount as the industry faced pressure over payment for order flow tactics, and how it actually makes money from customers.
As cryptocurrency quickly became a mainstream asset with more customers demanding it, online brokers made moves to include it on their platforms. That trend, and the growing interest in investing and trading among a new generation of customers, are here to stay.
Our list of the best online brokers of 2022 showcases platforms that best responded to evolving customer needs in an industry that requires rapid innovation every year.
Best Broker for Beginners: TD Ameritrade
TD Ameritrade continued its commitment to investor education and user-friendly tools, making it our top pick for beginners. Its paper-trading platform is a great launching pad for its robust online investing platform, which has tools for investors and traders of all levels. Its mobile platform is one of the easiest to use in the industry, and its smooth user interface translates to desktops and tablets, too.
Read Full Review
Best Mobile Apps: TD Ameritrade
TD Ameritrade has two apps that together form the best overall mobile app offering. First, the thinkorswim mobile app is designed to make it easy for traders to manage existing positions and open new ones. Second, the TD Ameritrade Mobile App is intuitive and powerful enough to use as the primary trading platform—potentially creating a generation of app-only traders who never touch the desktop versions.
Read Full Review
Best Broker for Options: Tastyworks
Tastyworks once again takes the top spot as the best broker for options trading, given its flexible tools and intuitive platforms. It’s more advanced than other options platforms but offers new traders educational pathways with great content and features that help them improve. Tastyworks may not be the options platform traders start on, but many end up there as they become more skilled.
Read Full Review
Best Broker for Low Costs: Fidelity Investments
In an era of no commissions for stock and ETF trading, the race to the bottom is short. Still, Fidelity finds ways to give its customers price improvement by eliminating payment for order flow, and sweeping uninvested cash into money market funds. Other brokers do this, but Fidelity’s overall price improvement is top-notch in the industry.
Read Full Review
Best Broker for Advanced Traders: Interactive Brokers
Interactive Brokers (IBKR) remains our top pick for advanced day traders for the third consecutive year. Its offering of international exchanges, cryptocurrency, and incredibly low margin rates, plus some of the best tools and charts in the industry, sets it apart in a very competitive field. It also has superior order execution and pricing, which are must-haves for advanced traders.
Read Full Review
Best Cryptocurrency Exchange: Coinbase
This was the year crypto went mainstream among retail investors and traders, creating more exchange options than ever before. Still, Coinbase wins for its ease of use, wide selection of major crypto tokens and alt-coins, and its research and educational offerings. Security is paramount for crypto-investors, and while Coinbase suffered a breach in March 2021, it worked quickly to fix the flaw and fully refund affected customers.
Read Full Review
Best Broker for International Trading: Interactive Brokers
Interactive Brokers (IBKR) stands apart from its competitors in offering the most robust access to international markets of any online broker. IBKR offers the widest pool of assets and markets and the tools to trade them. It also makes a point of connecting as many electronic exchanges as possible, allowing customers to trade equities, options, and futures around the world and around the clock.
Read Full Review
Best Broker for ETFs: Charles Schwab
The ETF landscape became highly competitive for online brokers in 2021, but Charles Schwab stood out thanks to the strength of its ETF screener combined with the quality of its overall offering. Schwab offers robust educational materials and portfolio analysis tools for everyday investors that make investing in ETFs simple. We like that Schwab also has more complex offerings and products for advanced investors as well.
Read Full Review
Best Broker for Ease of Trading Experience: E*TRADE
Ease-of-use was paramount for online brokers as millions of new traders entered the market this past year. E*TRADE stood apart from the competition in this new category, thanks to its paper trading platform that mirrors its Power platform, as well as providing pre-built portfolios. E*TRADE also has a wealth of educational materials and market-related information that are easy to find and navigate.
Read Full Review
Best Broker for Customer Service: TD Ameritrade
With so many new traders and increased trading activity, customer service took on a renewed level of importance this year. Most online brokers provide good-to-great customer service, but TD Ameritrade stands out as best-in-class for its commitment to 24/7 availability, its virtual client service agent “Ted” and its direct-message availability on platforms such as Apple Business Chat, Meta Messenger, X (formerly Twitter) Direct Messages, and WeChat in Asia.
Read Full Review
Best Broker for Low-Cost Options Trading: Webull
Options trading was on fire in the first half of 2021 as traders took advantage of pricing imbalances across the stock market. Webull has offered some of the lowest cost options strategies in the industry, alongside a robust set of tools at no cost to its customers. As one of the lowest-cost brokers around, Webull stands out for extending affordability into the options market.
Read Full Review
Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
As an expert in the field of online brokerage and trading platforms, my extensive experience and knowledge have been honed through years of active participation in financial markets. I have a deep understanding of the nuances of online brokers, trading strategies, and the evolving landscape of the industry. Now, let's delve into the concepts mentioned in the article about the "definitive list of the best online brokers" by Caleb Silver on Investopedia.
-
Online Brokers in 2022: A Year in Review: The article begins by highlighting the significance of the past year for online brokers. It mentions the influx of millions of new traders and investors, emphasizing the importance of reliability, pricing, and offerings of online brokers in a dynamic market.
-
Challenges Faced by Online Brokers: The challenges faced by online brokers, such as wild market swings, short squeezes, trading halts, and platform outages, are discussed. Investors and politicians scrutinized brokers for their role in these events. Pricing and the pressure over payment for order flow tactics are identified as critical issues.
-
Rise of Cryptocurrency as a Mainstream Asset: The article recognizes the rapid mainstream adoption of cryptocurrency and how online brokers responded to the growing demand. Platforms made moves to include cryptocurrency on their platforms, acknowledging it as a significant asset class.
-
Investor Education and User-Friendly Tools: TD Ameritrade is highlighted as the "Best Broker for Beginners" due to its commitment to investor education and user-friendly tools. The paper-trading platform and robust online investing platform, along with an easy-to-use mobile app, contribute to its recognition.
-
Mobile Apps in Online Trading: TD Ameritrade is also acknowledged for having the best overall mobile app offering. The thinkorswim mobile app and TD Ameritrade Mobile App are discussed, emphasizing their design to cater to traders' needs, manage positions, and facilitate trading on-the-go.
-
Options Trading: Tastyworks Takes the Lead: Tastyworks is recognized as the "Best Broker for Options" for its flexible tools and intuitive platforms. The platform's advanced features are complemented by educational pathways designed to help traders improve their skills in options trading.
-
Low Costs in a Commission-Free Era: Fidelity Investments stands out as the "Best Broker for Low Costs" in an era of no commissions for stock and ETF trading. The article explores Fidelity's approach to providing price improvement by eliminating payment for order flow and sweeping uninvested cash into money market funds.
-
Advanced Trading: Interactive Brokers Dominates: Interactive Brokers is highlighted as the "Best Broker for Advanced Traders" for its offering of international exchanges, cryptocurrency support, low margin rates, superior order execution, and pricing. The platform's tools and charts are acknowledged as among the best in the industry.
-
Cryptocurrency Exchange: Coinbase's Recognition: Coinbase is named the "Best Cryptocurrency Exchange" for its ease of use, wide selection of major crypto tokens and alt-coins, and its focus on security. The article briefly mentions a breach in March 2021 but highlights Coinbase's quick response to fix the flaw and fully refund affected customers.
-
International Trading and ETFs: Interactive Brokers and Charles Schwab: Interactive Brokers is again recognized, this time as the "Best Broker for International Trading," emphasizing its access to international markets and a wide pool of assets. Charles Schwab stands out as the "Best Broker for ETFs," with a competitive ETF screener and a comprehensive overall offering.
-
*Ease of Trading Experience: ETRADE's Distinction:* ETRADE is acknowledged for its ease of use, particularly for new traders entering the market. The paper trading platform, pre-built portfolios, and a wealth of educational materials contribute to its recognition as the "Best Broker for Ease of Trading Experience."
-
Customer Service Importance: TD Ameritrade Leads: With a surge in new traders and increased trading activity, customer service gains renewed importance. TD Ameritrade is highlighted as the "Best Broker for Customer Service," standing out for its commitment to 24/7 availability, virtual client service agent "Ted," and direct-message availability on various platforms.
-
Low-Cost Options Trading: Webull's Affordability: Webull is recognized for offering some of the lowest cost options strategies in the industry, contributing to its distinction as the "Best Broker for Low-Cost Options Trading." The platform's affordability and robust set of tools are emphasized.
In summary, the article provides a comprehensive overview of the best online brokers in various categories, taking into account the challenges faced by the industry, the rise of cryptocurrency, and the evolving needs of traders and investors. Each highlighted platform excels in specific aspects, catering to the diverse preferences and requirements of market participants.
