How We Review and Rate the Best Online Brokers and Trading Platforms

Investopedia’s list of the best online brokerage platforms is based on in-depth research into and robust data from 27 companies that offer trading and investing services. We reviewed each broker’s research amenities, trading technology, range of offerings, and much more. This guide explains the categories and criteria we used to evaluate each company’s offerings and our scoring process for determining the best online trading and investing platforms.

Our editors and researchers independently evaluate all recommended products and services to help our readers understand which companies are best suited for their goals and experiences, whether they are long-term investors or active traders. If you click on the links we provide, we may receive compensation. Our advertising partnerships are not a factor in how we evaluate products, though they may affect the order of products you see listed in our articles.

How We Research Online Brokerages

To provide the best information to consumers looking for an online broker that best fits their needs, we developed a comprehensive ranking methodology based on a variety of factors that are crucial to evaluating the offerings and usability of these platforms. 

By combining industry research, subject matter expertise, and investor survey data, we developed a proprietary scoring methodology that allowed us to grade these often complex platforms based on 11 major categories and 105 weighted criteria. You can trust that Investopedia is providing you with an unbiased and comprehensive review of the top online brokers because of this all-encompassing methodology.

To collect the data, we researched 120 criteria, with 105 of these being weighted as part of our scoring model. The 15 remaining responses were also used for editorial purposes. In addition, we had our team of researchers and editors verify the data and collect any missing data points by conducting online research and contacting each company directly.  

Data Collection and Scoring

Based on a combination of investor survey data and subject matter expertise, we developed the following category weights:

Online Broker Evaluation Categories
Research Amenities	12.80%
Trading Technology	11.90%
Range of Offerings	11.59%
Costs	10.13%
Platform Experience	10.12%
Educational Material	8.96%
Mobile App Usability	8.95%
Portfolio Analysis and Reports	7.67%
Customer Service	6.98%
Account Amenities	6.20%
Security	4.96%

Online Broker Evaluation Criteria

These categories were then broken down into 105 weighted criteria, resulting in 2,835 data points that comprise our scoring rubric.

Number of Weighted Criteria by Category
Costs	19
Range of Offerings	15
Platform Experience	15
Trading Technology	15
Research Amenities	15
Account Amenities	11
Portfolio Analysis and Reports	6
Mobile App Usability	3
Security	3
Educational Material	2
Customer Service	1

Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of the top online brokers.

Data Scoring 

• Each company was scored using our “Investopedia’s Rating” scale of 0.00 to 5.00.
• We scored all data points on a 0.00 to 1.00 scale.
• Binary criteria were scored on a scale of 0 or 1.
• Continuous criteria were scored so that the minimum data value was re-scaled to 0.00 and the maximum value was re-scaled to 1.00.
• Scaled criteria were scored using values that correspond to its scale, but remain within a 0.00 to 1.00 range. For example a 5-point scale could be re-scaled to 0.00, 0.25, 0.50, 0.75, 1.00.
• Any data point that was not disclosed by a company was given a score of 0.

Research Amenities

For traders and investors who are active in managing their finances, conducting research is a critical step in making buying and selling decisions. By studying and evaluating key elements such as price action and industry fundamentals, individual investors can make more informed investment choices. 

The best online brokers provide both proprietary and third-party research, making it easy for investors to screen for key technical and fundamental criteria while helping them research the growth prospects of a wide range of companies and industries.

This entire section accounts for 12.80% of the total weighted score in our evaluation.

Research Amenities Criteria Weights
Available Chart Types	1.03%
Screener Categories	0.94%
Customizable Screeners	0.94%
Technical Indicator Screens	0.94%
Saved Custom Screens	0.94%
Screen-to-Watchlist Conversion	0.94%
Fundamental Indicator Screens	0.94%
Trade Idea Generator	0.94%
Daily Market Research Reports	0.94%
Third-Party Fractional Share Reinvestment Provider	0.88%
Proprietary Research Access	0.69%
Chart Profiles	0.68%
Streaming TV	0.68%
Proprietary Streaming Network	0.68%
Third-Party Research Access	0.66%

Available Chart Types 

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the largest selection of chart types (line, bar, candle, vertex line, etc.) received a high score and companies with the smallest selection received a low score.

Screener Categories 

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the largest selection of screeners (ESG/SRI, stocks, ETFs, options, mutual funds, fixed income, crypto) received a high score and companies with the smallest selection received a low score.

Customizable Screeners

This category was scored based on a binary scale. We gave brokers that allow users to build custom screens a score of 1, while brokers lacking this feature received a score of 0.

Technical Indicator Screens

Brokers that give users the ability to screen based on technical indicators were given a score of 1, while brokers without this feature received a score of 0 (binary scale).

Saved Custom Screens

On a binary scale, we gave brokers that allow users to save custom screens a score of 1, while brokers lacking this capability received a score of 0.

Screen-to-Watchlist Conversion

Brokers that offer users the ability to turn screen results into a watchlist were given a score of 1, while brokers without this ability received a score of 0 (binary scale).

Fundamental Indicator Screens 

For this category, we scored based on a binary scale. Brokers that give users the ability to screen based on fundamental indicators were given a score of 1, while brokers without this feature received a score of 0.

Trade Idea Generator

Brokers that provide users with tools that generate trade ideas were given a score of 1, while brokers without this feature received a score of 0 (binary scale).

Daily Market Research Reports

Brokers that provide users with daily market research reports were given a score of 1, while brokers without this item received a score of 0 (binary scale).

Third-Party Fractional Share Reinvestment Provider

We evaluated this criterion on a continuous scale, where companies that offered the most third-party fractional share reinvestment providers received a score of 1.00. The company that had the fewest providers was given a score of 0.00.

Proprietary Research Access 

We scored this item on a binary scale of 0 or 1. Companies that provide proprietary, in-house research received a 1, and companies without this feature received a 0.

Chart Profiles

For this criterion, we looked into whether users could save chart profiles that they’ve created. We scored this using a binary scale, giving companies that had this option a 1.00 and companies that did not a 0.00.

Streaming TV

To score this criterion, we evaluated whether companies had the ability to stream live TV directly on their website. We scored this on a binary scale. Companies that had this option scored a 1.00 and companies that did not scored a 0.00.

Proprietary Streaming Network

We scored this criterion on a binary scale of 0.00 or 1.00. Companies that had their own proprietary streaming financial news network received a score of 1.00, while those that did not were given a score of 0.00.

Third-Party Research Access

For this criterion, we scaled the responses (0.00, 0.50, 1.00) and awarded companies with free access to third party providers the highest score of 1, while companies that charge extra for this research were given a score of 0.50, and companies offering no third-party research at all were given the lowest possible score of 0.

Trading Technology

Having the right trading technology in place helps investors identify actionable market inefficiencies and high-probability trade ideas, all while being able to execute these trades in a manner that is efficient and fair. 

This entire section accounts for 11.00% of the total weighted score in our evaluation.

Trading Technology Criteria Weights
Trading Strategy Backtesting	1.18%
Order Routing Control	1.18%
Algorithmic Demo Account	0.98%
Equity Net Price Improvement	0.98%
Available Platforms	0.84%
Automated Trading Strategies	0.84%
Algorithmic Trading	0.84%
Backtest Data	0.84%
Algorithmic Trading Order Types	0.84%
Options PFOF	0.84%
Options Net Price Improvement	0.84%
Equity PFOF	0.48%

Trading Strategy Backtesting 

Brokers that offer the ability to backtest trading strategies were given a score of 1, while brokers without this feature received a score of 0 (binary scale).

Order Routing Control 

Brokers that offer the ability to route orders were given a score of 1, while brokers without this feature received a score of 0 (binary scale).

Algorithmic Demo Account

We scored this on a binary scale, giving brokers that provide an algorithmic trading demo account a score of 1, while companies that lack this feature received a score of 0.

Equity Net Price Improvement  

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the best net price improvement per share received a high score and companies with the worst net price improvement per share received a low score.

Available Platforms 

For this criterion, we scaled the responses (0.00, 0.50, 1.00) and awarded companies with the widest selection of trading platforms (website portal, desktop, mobile app) the highest scores. Conversely, companies with the fewest platforms received the lowest scores. 

Automated Trading Strategies 

Brokers that provide users a way to automate trading strategies were given a score of 1, while brokers lacking this item received a score of 0 (binary scale).

Algorithmic Trading

We scored this on a binary scale, giving brokers that provide algorithmic trading capabilities a score of 1 and companies that lack this feature a score of 0. 

Backtest Data 

We scored this on a binary scale, giving brokers that provide historical backtest data a score of 1, while companies that lack this information received a score of 0. 

Algorithmic Trading Order Types

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the largest selection of algorithmic trading order types (market, limit, stop limit, one-cancels-the-other (OCO), good-til-cancelled (GTC), good-til-date (GTD), day, etc.) received a high score and companies with the smallest selection received a low score.

Options Payment for Order Flow (PFOF)

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the lowest PFOF per option contract ($0) received a high score and companies with the highest PFOF ($0.60) received a low score.

Options Net Price Improvement 

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the best net price improvement per options contract received a high score and companies with the worst net price improvement per options contract received a low score. 

Equity Payment for Order Flow (PFOF)

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the lowest PFOF per share ($0) received a high score and companies with the highest PFOF ($0.755) received a low score.

Range of Offerings

All of the brokers we reviewed offer customers a platform on which to trade stocks and ETFs, but that’s where most of the similarities end. In addition to these two popular asset classes, the best brokers also allow investors to place orders in mutual funds, fixed income, certificates of deposit (CDs), options, futures, currencies, and cryptocurrencies. 

In addition, investors have the potential to invest with a global reach. However, you’ll find that these companies vary greatly in the global markets they allow you to access, as well as the countries in which they offer support. There’s also the question of whether a company allows you to make fractional share trades and fractional dividend reinvestments, and what types of accounts you’ll be permitted to open, such as individual brokerage accounts, individual retirement accounts (IRAs), Roth IRAs, 401(k)s, or something else.

This entire section accounts for 11.59% of the total weighted score in our evaluation.

Range of Offerings Criteria Weights
Supported Trading Countries	1.98%
Assets Available (Mobile)	1.43%
Assets Available (Website)	1.38%
Assets Available (Desktop)	1.38%
Maximum Options Legs	0.73%
Algorithmic Trading Assets	0.68%
Event Contracts	0.60%
International Assets (Website)	0.53%
International Assets (Desktop)	0.53%
International Assets (Mobile)	0.53%
Easy-to-Borrow List Size	0.53%
Number of International Exchanges	0.53%
Fractional Share Trading	0.53%
Number of Stocks for Algorithmic Trading	0.53%
Available Account Types	0.53%
Fractional Dividend Reinvestments	0.38%

Supported Trading Countries

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the greatest access to international support (200 countries) received the highest score and companies with the fewest supported countries (1) received the lowest score.

Asset Classes Offered Across Website, Desktop Software, and Mobile Trading Platforms

We scored these items on a continuous scale of 0.00 to 1.00. Companies with larger selections of tradable and investable asset classes (stocks, mutual funds, ETFs, bonds, CDs, options, alternative investments) received a higher score and companies with smaller selections (stocks, ETFs, bonds, options) received lower scores.

Maximum Option Legs

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the greatest number of option legs (6) received a high score and companies with the smallest number (1) received the lowest score.

Algorithmic Trading Assets

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the largest selection of asset classes available for algorithmic trading (stocks, ETFs, options, futures, futures options, and Treasury products) received the highest score. Conversely, companies without this feature received a score of 0.

Event Contracts

We scored this criterion on a binary scale from 0 to 1. Companies that allowed users to bet on certain results, such as elections or economic indicators, were given a score of 1. Companies that did not have this option received a score of 0.

International Assets Offered Across Website, Desktop Software, and Mobile Trading Platforms

We scored these items on a continuous scale of 0.00 to 1.00. Companies with the most international exchanges (93) received the highest score and companies with the fewest exchanges (0) received the lowest score.

Easy-to-Borrow List Size

We scored this item on a continuous scale of 0.00 to 1.00. Companies with larger numbers of stocks on the "easy to borrow" list (21,332) received higher scores and companies with smaller or the smallest number (0) received lower scores.

Number of International Exchanges

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the most available international exchanges received the highest score and companies with the fewest exchanges received the lowest score.

Fractional Share Trading

For this criterion, we scaled the responses (0.00, 0.50, 1.00) and awarded companies that allow customers to buy and sell fractional shares of both stocks and ETFs the highest score of 1.00. Companies that allow fractional trading in just one of these two assets were given a score of 0.50, as were companies that only offer the ability to liquidate fractional shares. Finally, companies lacking fractional share trading in stocks or ETFs were given a 0.00. 

Number of Stocks Available for Algorithmic Trading

For this criterion, we scaled the responses (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies with the largest selection of stocks (no limitations) the highest scores. Companies without this feature received a score of 0.

Available Account Types

We scored this item on a continuous scale of 0.00 to 1.00. Companies with access to the largest variety of account types (individual brokerage account, IRA, Roth IRA, UTGMA, and more) received a high score and companies with the smallest selection (just individual brokerage accounts) received a low score.

Fractional Dividend Reinvestments

We scored this item on a binary scale. Brokers that provide users with the ability to make fractional dividend reinvestments were given a score of 1, while brokers without this item received a score of 0.

Costs

There are two types of brokerage firms: full-service and discount. The differences between the two and the fees they charge are significant. So, how much does a broker cost? Our research takes into account costs and fees that are typical of both to properly compare these companies directly to one another.

This entire section accounts for 10.13% of the total weighted score in our evaluation.

Costs Criteria Weights
Inactivity Fees	0.72%
Base Commission for Stocks and ETFs	0.72%
Price Per Options Contract	0.72%
Account Closure Fees	0.72%
Account Transfer Fees	0.72%
Wire Fees	0.72%
Check Fees	0.72%
Volume-Based Options Trading Discounts	0.58%
Price Per Future Contract	0.58%
Base Commission for Penny Stocks	0.39%
Penny Stock Restrictions	0.39%
Penny Stock Trading Access	0.39%
No-Load Mutual Funds Offered	0.39%
Recurring Investment Fees	0.39%
Base Commission for Options	0.39%
Capped Options Trading Fees	0.39%
Broker-Assisted Fees	0.39%
IRA Annual Fee	0.39%
IRA Closure Fee	0.39%

Inactivity Fees

We scored this item on a binary scale. Brokers that do not charge inactivity fees were given a score of 1, while brokers that do charge these fees received a score of 0.

Base Commission for Stocks and ETFs 

We scored this item on a binary scale. Brokers that give users the option of having no base commissions on stocks and ETFs were given a score of 1, while brokers that lack this option received a score of 0.

Price Per Options Contract

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the lowest costs per options contract ($0.00) received the highest score, and companies with the highest costs ($1.25) received the lowest score.

Account Closure Fees

We scored this item on a binary scale. Brokers with no account closure fees were given a score of 1, while brokers with such fees received a score of 0.

Account Transfer Fees 

This consideration was scored on a binary scale. Brokers with no transfer fees were given a score of 1, while brokers with these fees received a score of 0. 

Wire Fees

We scored this item on a binary scale. Brokers that charge no wire fees were given a score of 1, while brokers with wire fees received a score of 0.

Check Fees 

This fee was scored using a binary scale. Brokers that do not charge any fees for writing checks were given a score of 1, while brokers that do charge for this service received a score of 0.

Volume-Based Options Trading Discounts

We scored this feature on a binary scale. Brokers that offer discounted fees on options trades upon meeting a certain threshold were given a score of 1, while brokers without this benefit received a score of 0.

Price Per Futures Contract

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the lowest prices per futures contract ($0.55) received a high score, and companies with the highest prices ($2.25) received a low score.

Base Commission for Penny Stocks

We scored this criterion on a binary scale. Brokers that offer the option of having no base commissions on penny stocks were given a score of 1, while brokers that lack this option received a score of 0.

Penny Stock Restrictions

We scored this item on a binary scale. Brokers that do not put volume or any other restrictions on penny stock trading were given a score of 1, while brokers that do impose restrictions received a score of 0. 

Penny Stock Trading Access

This feature was scored on a binary scale. Brokers that do not restrict access to trading penny stocks on any platforms where other stocks can be traded were given a score of 1, while brokers that do restrict access on certain platforms received a score of 0.

No-Load Mutual Funds Offered

We scored this item on a binary scale. Brokers that offer no-load mutual funds were given a score of 1, while brokers without this product received a score of 0.

Recurring Investment Fees

We scored this criterion on a binary scale. Brokers with no recurring investment fees were given a score of 1, while brokers that do charge such fees received a score of 0.

Base Commission for Options

This item was scored on a binary scale. Brokers that don’t charge base commissions on options were given a score of 1, while brokers that charge a base commission received a score of 0.

Capped Options Trading Fees

We scored this item on a binary scale. Brokers that capped fees on options trades upon meeting a certain threshold were given a score of 1, while brokers without this benefit received a score of 0.

Broker-Assisted Fees

We scored this criterion on a continuous scale of 0.00 to 1.00. Companies with the lowest fees for placing broker-assisted trades ($0) received the highest score, and companies with the highest fees ($45) received the lowest score.

IRA Annual Fee

We scored this item on a continuous scale. Brokers with the lowest IRA annual fee received the highest score of 1.00, while brokers that have the highest IRA annual fee were given the lowest score of 0.00.

IRA Closure Fee

We scored this criterion on a continuous scale. Brokers with the lowest IRA closure fee received the highest score of 1.00, while brokers that have the highest IRA closure fee were given the lowest score of 0.00.

Platform Experience

Whether you're a passive investor with a fairly hands-off approach to your investing or a more active trader who is constantly looking to speculate in daily market swings, there's a broker that fits your needs. This section covers the critical features that will help make for the best experience when you are ready to place an order and set risk parameters around it.

This entire section accounts for 10.12% of the total weighted score in our evaluation.

Platform Experience Criteria Weights
Real-Time Quotes (Website)	0.78%
Real-Time Quotes (Desktop)	0.78%
Real-Time Quotes (Mobile)	0.78%
Multi-Platform Real-Time Quotes	0.64%
Pre-Order Tax Lot Selection	0.64%
Order Types (Website)	0.64%
Order Types (Desktop)	0.64%
Order Types (Mobile)	0.64%
Features Offered (Website)	0.64%
Features Offered (Desktop)	0.64%
Features Offered (Mobile)	0.64%
Platform Outages (Past 4 Years)	0.64%
Simultaneous Quotes	0.64%
Device-Independent Real-Time Quotes	0.64%
24-Hour Trading	0.59%

Real-Time Streaming Quotes Across Website, Desktop Software, and Mobile Trading Platforms

We scored this item on a binary scale. Brokers that offer real-time stock streaming on each available trading platform were given a score of 1, while brokers without this capability received a score of 0.

Simultaneous Real-Time Streaming Quotes on Multiple Platforms

We scored this feature on a binary scale. Brokers that provide users with simultaneous real-time stock streaming on multiple platforms (desktop software, website portal, mobile app) were given a score of 1, while brokers without this functionality received a score of 0. 

Pre-Order Tax Lot Selection

This item was scored on a binary scale. We gave companies with the ability to select a tax lot before placing an order a score of 1, while companies without this capability received a low score of 0.

Order Types Offered Across Website, Desktop Software, and Mobile Trading Platforms

We scored these items on a continuous scale of 0.00 to 1.00. Companies with the largest selection of order types offered (limit, market, stop, stop limit, MOC, LOC, MOO, LOO, trailing stop, and more) received a higher score and companies with the smallest selection (market, limit, stop, stop limit) received a lower score.

Features Offered Across Website, Desktop Software, and Mobile Trading Platforms

This item was scored using a continuous scale of 0.00 to 1.00. Companies with the largest selection of additional features offered (ability to stage orders for later entry, trade directly from the price chart, customize the platform, and customize the price chart) received a higher score and companies with the smallest selection of features (ability to customize price chart) received a lower score.

Platform Outages in the Past Four Years 

We scored this item on a binary scale. Brokers with no record of any serious platform outages in the last four years, which is generally considered to be the average length of a business cycle, were given a score of 1. Conversely, brokers that have reported serious platform outages over this same period received a score of 0.

Platforms With Simultaneous Quotes

We scored this criterion on a continuous scale. Brokers with the most platforms in which real-time stock quotes are streamed simultaneously were scored with a 1.00. Brokers that had the least were scored 0.00.

Device-Independent Real-Time Quotes

We looked into whether users have the ability to stream real-time quotes on multiple devices simultaneously without having to qualify for access and scored this on a binary scale. Brokers that provided this option received a score of 1.00 and brokers that did not were given a score of 0.00.

24-Hour Trading

We evaluated whether brokers had 24-hour trading available for users. We scored this criterion on a binary scale and if brokers did have 24-hour trading, they received a score of 1. If not, they were given a score of 0.

Educational Material

Markets are complex, and trading and investing in them is no easy task. It’s essential to have an understanding of how markets work and how to use the countless tools and calculators available to grow your assets.

The best online brokers provide a wide range of educational material across several mediums, such as articles, videos, seminars, and webinars.

This entire section accounts for 8.96% of the total weighted score in our evaluation.

Educational Material Criteria Weights
Investor Education Resources	5.98%
Life Stage Planning Tools	2.98%

 Investor Education Resources

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the largest selection of educational content (articles, videos, webinars, virtual learning environment, online topical events, live and on-demand webinars, in-platform education) received the highest score and companies with the smallest selection (just articles) received the lowest score.

 Life Stage Planning Tools

This criterion was scored using a binary scale. Brokers that offer life stage planning tools were given a score of 1, while brokers without this feature received a score of 0.

Mobile App Usability

The conversations we’ve had with many of the companies we review confirmed that interest in mobile trading continues to grow. Most brokers have robust desktop platforms, but mobile trading platforms have become powerful tools that are loaded with features critical to investing and trading.  

The best online brokers allow their mobile users to access the same tools and amenities available on their desktop apps and websites and at similar speeds.

This entire section accounts for 8.95% of the total weighted score in our evaluation.

Mobile App Usability Criteria Weights
Mobile Order Type Parity	2.98%
Mobile Asset Class Parity	2.98%
Mobile Charting Drawing Tools	2.98%

Mobile Order Type Parity 

We scored this item on a binary scale. Brokers that provide users with access to the same order types on mobile as the desktop or web platform version were given a score of 1, while brokers without this functionality received a score of 0. 

Mobile Asset Class Parity

We scored this criterion on a binary scale. Brokers that offer access to the same asset classes on mobile as the desktop or web platform version were given a score of 1, while brokers without this feature received a score of 0.

Mobile Charting Drawing Tools

This item was scored on a binary scale. Companies that provide users the ability to draw trend lines and other overlays on mobile app-based charts received a score of 1 while companies lacking this capability received a score of 0.

Portfolio Analysis and Reports

To be a successful investor, there is so much more to monitoring your account than simply checking your balance from time to time. For example, you should have an understanding of whether you are over- or under-exposed to certain sectors, or if there are any major tax implications with your investments.

The availability of expert assistance in these matters is a service that not all brokers offer. Not only will the best online brokers provide you with the proper tools and services to help keep your account on the right track, but they'll also allow you to sync your external accounts for a holistic view of your finances.

This entire section accounts for 7.67% of the total weighted score in our evaluation.

Portfolio Analysis and Reports Criteria Weights
Real-Time Portfolio Reporting	1.98%
Portfolio Tracking Features	1.98%
Live Support From a Licensed Broker	1.37%
Live Support From a Licensed Financial Advisor	1.37%
Trading Journal	0.98%

Real-Time Portfolio Reporting

We scored this item on a binary scale. Brokers that offer portfolio reports in real-time were given a score of 1, while brokers without this feature received a score of 0.

 Portfolio Tracking Features

We scored this criterion on a continuous scale of 0.00 to 1.00. Companies offering the largest selection of portfolio tracking features (a sector allocation monitor, a sector allocation interpreter that alerts users to being under or over exposed to certain sectors, ability to sync a user's external accounts for consideration in his portfolio analysis) received a higher score and companies with the smallest selection (none) received a lower score.

 Live Support From a Licensed Broker

This item was scored on a binary scale. Brokers that provide users with the ability to communicate with a live, licensed broker were given a score of 1, while brokers without this feature received a score of 0.

Live Support From a Licensed Financial Advisor

We scored this item on a binary scale. Brokers that provide users with the ability to communicate with a live, licensed financial advisor were given a score of 1, while brokers without this feature received a score of 0.

Trading Journal 

We scored this feature on a binary scale. Brokers that provide users with the ability to maintain a trading journal were given a score of 1, while brokers without this item received a score of 0.

Customer Service 

This category evaluates the services provided to customers when they need help with their account or trading experience. This section accounts for 6.98% of the total weighted score in our evaluation.

Customer Service Criteria Weights
Customer Service	6.98%

Customer Service Options

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the largest selection of customer service options (email, live chat, in-person branch, phone, FAQs page, live broker) received a higher score and companies with the smallest selection received a lower score.

Account Amenities

In this section, we look at the supplemental services that the brokerage offers beyond standard trading and investing features. Services like interest earned on uninvested cash and retirement tools are key components when it comes to making both tactical and long-term investment decisions. 

This entire section accounts for 6.20% of the total weighted score in our evaluation.

Account Amenities Criteria Weights
Cash Interest Rate Minimum Balance	0.98%
Interest Earned on Uninvested Cash	0.68%
Automatic Cash Sweep	0.58%
Portfolio Margin Access	0.58%
Stock Loan Program	0.58%
Automatic Cash Sweep Frequency	0.58%
IRA Minimum	0.58%
Roth IRA Minimum	0.58%
Apple Watch App	0.53%
Banking Features	0.53%

Cash Interest Rate Minimum Balance

This item was scored on a continuous scale of 0.00 to 1.00. Brokers that require the lowest account balance ($0) to earn interest on uninvested cash were given the highest score, while brokers requiring the highest balance ($100,000) received the lowest score.

 Interest Earned on Uninvested Cash 

We scored this item on a continuous scale of 0.00 to 1.00. Brokers that allow customers to earn the highest interest rate on uninvested cash were given the highest score, while brokers providing the lowest interest rate on cash balances received the lowest score.

 Automatic Cash Sweep

We scored this item on a binary scale. We gave brokers that offer users the option to automatically sweep uninvested cash into a money market fund a score of 1, while brokers without this item received a score of 0. 

Portfolio Margin Access

We scored this item on a binary scale. Brokers that make portfolio margin available were given a score of 1, while brokers without this item received a score of 0.

Stock Loan Program

We scored this feature on a binary scale. Companies offering users the ability to choose and offer shares held long to a loan program received a score of 1 while companies lacking this feature received a score of 0. 

Automatic Cash Sweep Frequency

For this criterion, we scaled the responses (0.00, 0.25, 0.50, 0.75, 1.00) and awarded companies with the most frequent sweep activity (daily) the highest scores. Conversely, companies with less frequent sweep activity received the lowest scores.

IRA Minimum

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the lowest balance requirement for opening an IRA ($0) received a higher score and companies with the highest requirement ($10,000) received a lower score. 

 Roth IRA Minimum

We scored this item on a continuous scale of 0.00 to 1.00. Companies with the lowest balance requirement for opening a Roth IRA ($0) received a higher score and companies with the highest requirement ($10,000) received a lower score. 

Apple Watch App

We scored this criterion using a binary scale. Brokers that have an Apple Watch app were given a score of 1.00, while brokers that do not have an Apple Watch app received a score of 0.00.

Banking Features

We scored this item on a continuous scale from 0.00 to 1.00. Companies that offer the most banking accounts, such as checking, savings, CDs, and mortgage loans, received the top score of 1.00. Companies that offered the fewest were given the lowest score of 0.00.

Security

This category was evaluated based on the broker’s security features and the level of commitment the broker shows in keeping its clients’ sensitive information secure. While most of the brokers we reviewed offer biometric login procedures, that's where the similarities end.

This entire section accounts for 4.96% of the total weighted score in our evaluation.

Security Criteria Weights
Two-Factor Authentication Login	1.65%
Mobile Biometric Login	1.65%
Data Breaches (Past 4 Years)	1.65%

Two-Factor Authentication Login

For this criterion, we scaled the responses (0.33, 0.67, 1.00) and awarded companies offering two-factor authentication across the most platforms (website, desktop software, mobile app) the highest score of 1. Companies offering two-factor authentication across two platforms earned a score of 0.67. Companies providing this security measure on just one platform received a score of 0.33, while companies lacking this security measure on all platforms were given a score of 0.

Mobile Biometric Login

We scored this item on a binary scale. Brokers that offer either fingerprint or face-scan-based biometric logins on the mobile app were given a score of 1, while brokers without this feature received a score of 0. 

Data Breaches (Past 4 years)

We scored this item on a binary scale. Brokers that did not suffer any data breaches in the past four years, which is generally considered to be the average length of a business cycle, were given a score of 1, while brokers that have experienced a serious data breach received a score of 0.  

Articles That Use Our Methodology

The investment industry is always evolving, with innovative trading tools and new account amenities emerging. Online brokers and trading platforms are at the forefront of this dynamic landscape, which is why we’ve written extensively on the subject.

The research conducted and data collected to create this methodology have been used to compile the following list of recommendations:

• Best Online Brokers
• Best Options Trading Platforms
• Best Brokers for International Trading
• Best Investment Apps
• Best Day Trading Platforms
• Best Roth IRA Accounts
• Best IRA Accounts
• Best Online Brokers for Beginners
• Best Discount Brokers
• Best Brokers for ETFs
• Best Brokers for Penny Stocks
• Best Brokers for Crypto Trading

All Investopedia articles that review the online brokerage companies that make up our list of the best, such as Interactive Brokers and Charles Schwab, are based on the research, data, and grading process described in this methodology, along with subjective insights from our editors and industry experts.

Meet the Research Team!