The stock market is one of the best places you can invest your money. However, it can get quite risky, especially for beginners. That is why it is crucial to educate yourself about the best online brokers for the best results. That said, if you are looking for a cheap online broker, look no further. In this article, we’ve discussed the most affordable online brokers of April 2021.
Founded in 2005, Ally Investments has grown into one of the most popular online brokers. Its competitive pricing structure, excellent customer support, and incredible bonuses are just a few things that have made the platform popular.
Typically, Ally Investments allows you to trade for a $0 trading fee. Their mutual funds’ transaction fee is $9.95. Since their minimum amount to have in your account is only $1.00, it shouldn’t be an issue for you to open an account with them. You can open an account and test if they are good enough for you.
However, it will do you a great favour if you invest with them. Ally Investments offer incredible bonuses, going up to $3500! You will need to invest at $10,000 to enjoy the bonuses, though.
That said, there are a few things that don’t sit right by many people with Ally Investments. First, they charge a $35 annual fee to use a debit card. Given that many online brokers allow their customers to use debit cards for free, that’s something Ally Investments should purpose to fix.
Then, their low-priced stocks commission is slightly high. It can get super expensive if you decide to buy low-priced stocks in bulk. Nevertheless, Ally Investments is one of the cheapest online brokers.
Fidelity Investments combines top-notch research with affordability and usability; the platform is excellent for traders of all skill levels. You can open an account with them for as low as $1.00, given that their minimum account balance is $0.00.
They allow their customers to get mutual funds for $0, something you won’t find with many online brokers. What’s more, they allow you to access a wide array of markets, allowing you to trade in 25 different markets.
One thing that makes Fidelity Investments stand out is the fact that they allow traders to buy fractional shares. What does this mean? It means you can buy, for example, 0.2 shares of Amazon or Facebook. Finally, they have a very effective mobile app available on both Android and iOS.
The only complaint with Fidelity Investments is that they charge a contract fee of $0.65. Also, their margin rates are high for inactive traders. The platform may not be ideal if you don’t plan to trade regularly.
eOption is, without a doubt, one of the best low-cost online traders. The platform allows you to trade for just $0.10 per contract. Their research is top-notch, and they offer trading courses to inexperienced traders. Their mobile app is excellent, and it offers an experience that is pretty much the same as the desktop site. The minimum account balance is $0.00, so you can start investing from as low as $1.00.
However, eOption does not offer many trading options like its competitors. For example, you can’t forex trade or buy futures. Their mutual funds are slightly expensive given that the transaction cost is a $5 flat rate. Still, it is an excellent platform for anyone looking for a cheap online broker.
Tastyworks might be new in the market, but it is definitely one of the best low-cost online traders. In a span of three years, it has impressed thousands with its great educational materials, low trading fees, and excellent research tools. They don’t charge inactive fees, and the withdrawal cost is $0.00. Like many great online brokers, Tastyworks does not have a minimum account balance.
That said, their product selection is limited, and they could do with more deposit and withdrawal options. Still, Tastyworks is an excellent choice for anyone looking for a top-notch low-cost online broker.