How We Rate and Compare Brokers
We evaluate and compare a wide selection of brokerage firms so our readers can fully understand all their features and services. To provide the clearest picture possible, we follow a consistent approach and use the same set of metrics for every broker listed on our site.
Broker Rating Categories
These are the categories we consider when we analyze the leading stockbrokers in the U.S.
Prices (35%)
Pricing is among the first factors that investors check when comparing brokers. Because many online brokerages now promote ‘commission-free’ trading, it can be tricky to identify which ones really offer the lowest costs. We review fees like memberships, subscriptions, commissions, hidden charges, and bonus deals.
Trading Tools (15%)
Brokers provide trading technology designed to fit the needs and interests of their clientele. A reliable broker should supply the tools necessary for effective market participation. We check each broker’s offerings, including mobile integration, advanced charting, fast order execution, robo-trading, and more.
Range of Products (15%)
Some firms present a basic lineup of securities, such as stocks and ETFs, while others support a more diverse choice of investment options. We examine which products are on offer and how effectively each broker handles them.
Research Amenities (15%)
Research features can vary a lot across different brokers. For this category, we focus on the presence of tools like screeners, heatmaps, social sentiment, detailed stock and sector reports, backtesting, corporate action calendars, and more.
Customer Service (8%)
Anyone who has ever had to reach support knows how crucial it is to get help from a customer service agent. In this category, we assess the usefulness of the FAQ, the availability of live chat, response speed, and overall courtesy.
Beginner Friendliness (6%)
As more first-time traders enter the market, it is essential for a broker to support newcomers. We evaluate how difficult it is to learn charting and trading systems, plus how simple it is to reach and comprehend the broker’s tools and services.
Education (6%)
A broker’s educational resources matter to many traders. The level of knowledge needed to invest profitably can be quite high. For this category, we analyze each firm’s learning materials, the existence of any courses, and the possibility of attending live webinars.
Assessment Criteria Logic and Weighting
Our method for assigning weight to each category is straightforward. The most popular features have higher influence, while less critical factors affect the final ratings to a lesser degree.
Brokerage costs, incentives, bonuses, and transfer reimbursements are very competitive areas in the online brokerage field. The move to zero-commission trading and appealing cash incentives has ushered in a new era of low-cost investing, attracting many new traders. That is why we give the Pricing category the highest weight.
When looking at a broker’s trading activity and how it meets clients’ investing demands, we place great emphasis on trading tools, available securities, and market research features.
Customer support, user-friendliness, and educational content are also vital parts of a broker’s offerings. However, these factors usually become important after customers have opened their accounts. This is why these categories have a lower weight.
Top Brokers
You will naturally want to pick a broker that has the specific features and services you need. Here are a few of our favorites.
Some brokers earn high scores in every area. Although each one has its own quirks (see our reviews for more details), selecting a top-rated broker from our list guarantees a ‘complete package’ according to our assessment metrics. Webull, Fidelity, Charles Schwab, Firstrade, and M1 Finance have our top rating.
Other brokers perform well across most categories but may fall short in one aspect or another. For instance, Robinhood, Interactive Brokers, E*TRADE, and TradeStation deliver strong offerings, though some traders might dislike certain elements.
Online Brokerage Comparison Recommendation
Keep in mind that every broker we evaluate has been thoroughly examined. Each one stands out in its own way, offering a unique mix of services, features, pros, and cons. You will probably do well with any of our highest-ranked brokers, but it’s wise to review details about the one you choose before you commit. Sometimes, a broker’s rating might not align perfectly with your personal needs.
Updated on 4/4/2025.
Arthur Chachuna is a professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 25 years, and has a background in both applied math and programming.
|