Choosing the right online broker in 2025 matters more than ever. Commissions on U.S. stocks and ETFs have mostly gone to $0, but platform features, order execution, margin pricing, options and futures support, research, mobile experience, and customer service are where brokers meaningfully differ. Below you’ll find a detailed comparison, a clean table for quick scanning, and a deep dive into the strengths/weaknesses of the top brokers for different trader profiles. Sources for fee and platform claims are linked in the footnotes so you can verify current rates. NerdWallet+2Fidelity+2
At a glance — quick verdict
- Best for long-term investors & research: Fidelity — low costs, excellent research and retirement tools. Fidelity+1
- Best overall for all types (retail + active): Charles Schwab — broad product set, thinkorswim legacy, strong service. Schwab Brokerage+1
- Best for active/professional traders with global access: Interactive Brokers (IBKR) — extremely low execution costs, institutional tools, low margin tiers for some balances. Interactive Brokers+1
- Best mobile/nascent retail crowd: Robinhood — simplest onboarding, new advanced desktop tools and expanded derivatives/futures in 2024–25. Robinhood+1
- Strong low-cost alternatives: Webull, E*TRADE (Morgan Stanley), Vanguard, TradeStation, Ally Invest — each has particular strengths (mobile UI, options pricing, passive investor focus, futures trading, or bank integration). Ally+4Webull+4us.etrade.com+4
How I picked these brokers (methodology)
I focused on the features most investors care about in 2025: commission structure, per-contract options fees, margin interest guidance, trading platforms (desktop + mobile), order types, advanced tools (level II, algos, direct market access), crypto/futures availability, fractional shares, research/education, and customer service. For fee figures and platform claims I referenced primary broker pages and recent reviews. Key fee claims below link to the broker or reputable reviews. Fidelity+2Schwab Brokerage+2
Comparison table — side-by-side (concise)
| Broker | US stocks/ETF commission | Options per-contract (typical) | Margin guidance / notable | Best for |
|---|---|---|---|---|
| Fidelity | $0 for US stocks & ETFs. Fidelity | $0.65 per contract (retail disclosures). Fidelity | Margin rates advertised as “among the most competitive — as low as ~8.25%” (varies by tier). Fidelity | Long-term investors, research |
| Charles Schwab | $0 for US stocks & ETFs. Schwab Brokerage | $0.65 per contract standard. Schwab Brokerage | Base margin rate examples ~10–11% (subject to change). Schwab Brokerage | All-rounder, thinkorswim users |
| Interactive Brokers | $0 or ultra-low depending on product & routing; global markets access. Interactive Brokers | Complex (tiered/volume pricing), generally low; consult IBKR pricing. Interactive Brokers | Very low margin tiers for some clients (examples show single-digit % for some balances). Interactive Brokers+1 | Active/pro traders, global access |
| Robinhood | $0 for stocks/ETFs; mobile-first. Robinhood | Options: $0 for base but contract fees may apply (fee docs show per-contract charge for some accounts; see fee schedule). cdn.robinhood.com+1 | Margin (Gold) competitive for casual users; not targeted at institutional margin traders. Robinhood | Beginner & mobile traders |
| Webull | $0 for US stocks & ETFs. Webull | Some index options carry $0.50 per contract or similar; check product. Webull+1 | Margin reduction via Webull Premium; otherwise standard retail rates. Webull | Mobile + active retail traders |
| E*TRADE (Morgan Stanley) | $0 for US stocks & ETFs. us.etrade.com | $0.65 per contract (or $0.50 with high activity). us.etrade.com | Margin competitive for active traders; integrated with Morgan Stanley advisory products. MarketWatch | Broad services, strong options platform |
| Vanguard | $0 for US stocks & ETFs (but options $1 per contract typical). NerdWallet+1 | $1.00 per contract (under typical retail tiers). personal1.vanguard.com | Focus on buy-and-hold; margin less of a selling point. NerdWallet | Passive, low-cost investors |
| TradeStation | $0 for many stock/ETF trades; options contract fees vary ($0.60 or $1 index). NerdWallet+1 | $0.60 per contract (equity); index options $1.00. NerdWallet | Good for futures & active strategies; specialized margin/pricing for pro traders. Investopedia | Futures / active traders |
| Ally Invest | $0 for stocks/ETFs above $2; options $0.50 per contract. Ally+1 | $0.50 per contract. NerdWallet | Good bank+broker integration; margin rates competitive for retail. MarketWatch | Bank customers, casual active traders |
Table notes: many brokers charge regulatory/exchange fees that are passed through; some have tiered/volume pricing and special offers that can change quickly — always check the broker’s pricing page before opening an account. Sources above include broker pricing pages and recent reviews. Fidelity+2Schwab Brokerage+2
Deep dives — who’s best and why
Fidelity — the research & retirement champion
Fidelity remains the go-to for investors who want institutional-quality research without sacrificing low costs. Fidelity advertises $0 online trades for U.S. stocks and ETFs and competitive margin rates (their published materials mention margins “as low as” the low single digits in certain tiers and commonly advertise aggressive margin promos). Their platform provides excellent stock/ETF screens, fundamental research, and retirement planning calculators that cater to long-term investors and advisors. If you want best-in-class mutual fund/ETF selection plus strong trade tools for occasional active trading, Fidelity is a top pick. Fidelity+1
Pros: deep research, strong customer service, fractional shares, retirement tools.
Cons: desktop platform is good but active traders sometimes prefer thinkorswim or IBKR for ultra-advanced order routing.
Charles Schwab — best all-rounder, thinkorswim heritage
Schwab combines scale, strong customer service, and the acquired TD Ameritrade/thinkorswim features for active options and derivatives trading. Schwab’s standard pricing is competitive: $0 commissions for U.S. stocks/ETFs, with common per-contract option charges. It’s also positioned as a top pick for investors who want both DIY and advisory services under one roof. Schwab’s acquisition of TD Ameritrade has folded many of TD’s tools (notably thinkorswim) into Schwab’s ecosystem — a major win for traders who liked thinkorswim’s analytic depth. Schwab Brokerage+1
Pros: robust tools, strong execution, excellent service, thinkorswim features.
Cons: margin rates can be higher than IBKR for some loan sizes.
Interactive Brokers (IBKR) — for pros & global traders
If you trade international stocks, trade frequently, or need API/algos and very low borrowing costs, IBKR is built for you. Their pricing and products are unmatched for global market access (hundreds of markets) and low per-trade costs. For active traders who care deeply about margin/finance costs, IBKR often wins on borrow and lending spreads. That said, IBKR’s array of account types and complex pricing can be overwhelming to beginners. Interactive Brokers+1
Pros: global markets, low costs, advanced algos, professional toolset.
Cons: steeper learning curve; interface not as friendly for casual users.
Robinhood — simplicity + recent push to advanced tools
Robinhood changed retail trading with a mobile-first, zero-commission model. In 2024–2025 the firm broadened its product set — launching a desktop platform and adding futures/index options — pushing into territory previously dominated by incumbents. For beginners who want a frictionless experience and for mobile traders focused on U.S. listed stocks & ETFs, Robinhood remains attractive. Be aware that Robinhood’s revenue model and product limits (e.g., margin tiers, advanced order types) differ from full-service brokers. Robinhood+1
Pros: easy onboarding, clean mobile app, newly added advanced tools.
Cons: customer support and research offerings generally lighter than full-service brokers.
Webull — mobile + low cost for active retail
Webull competes closely with Robinhood on the mobile front but often leans more toward active traders, offering advanced charting, paper trading, and a premium subscription that reduces margin rates. Webull is a frequent choice for traders who want a middle ground between beginner simplicity and active trader functionality. Webull+1
E*TRADE (Morgan Stanley) — strong options + advisory integration
E*TRADE remains a favorite for options traders because of its mature options platform and robust desktop tools. Standard U.S. equity trading is commission-free; options fees are competitive and may drop with high activity. The Morgan Stanley tie gives additional advisory paths for larger investors. us.etrade.com+1
Vanguard — low cost for buy-and-hold
Vanguard’s strength isn’t day trading — it’s ultra-low expense index funds and a buy-and-hold philosophy. Vanguard’s broker arm charges competitive pricing for pure stock/ETF trading, but options fees are higher than some discount peers, and the feature set is more oriented to long-term investors. Vanguard’s fee reductions in 2025 (fund expense cuts) reinforce their low-cost edge for passive investors. Reuters+1
TradeStation & Ally — niche strengths
- TradeStation: excellent for futures and algorithmic traders; competitive pricing for active and intraday strategies. NerdWallet+1
- Ally Invest: good integration with bank products, simple pricing and a friendly platform for casual active traders. Ally+1
Practical guidance — match broker to your goals
- If you’re a buy-and-hold investor focused on retirement: Fidelity, Vanguard, or Schwab. They give strong research, low cost index funds, and trusted retirement tools. Fidelity+1
- If you trade options/frequently use derivatives: Schwab (thinkorswim), TradeStation, or E*TRADE — solid options analytics and execution. Schwab Brokerage+1
- If you’re an active day/prop trader or need global access: Interactive Brokers for the lowest execution/margin costs and global market reach. Interactive Brokers+1
- If you want mobile simplicity and fast onboarding: Robinhood or Webull — both are user-friendly and cost-effective for small accounts. Robinhood+1
- If you want bank integration & slightly simpler pricing: Ally Invest or Merrill Edge (if you’re a Bank of America customer) offer convenience and reasonable pricing. Ally+1
Hidden costs & red flags to watch
- Options per-contract fees, clearing/SEC/regulatory fees — these are typically small but add up. Always check the broker’s fee schedule before placing large options or frequent trades. Fidelity+1
- Margin financing and stock loan programs — advertised “as low as” margin rates often apply to specific balances or securities; read the fine print. IBKR and Fidelity publish tiered margin schedules. Interactive Brokers+1
- Payment for order flow (PFOF) — some brokers receive PFOF from market makers; this can influence execution quality for tiny trades. Execution speed and fill quality matter more for active traders. (See broker policy pages and execution quality reports.)
- Platform limitations — some low-cost brokers restrict order types, direct market access, or advanced algos. If you rely on advanced order types, confirm availability. Interactive Brokers+1
Example: how fees change a real trade
If you buy 100 shares of a $50 stock (a $5,000 order) at a commission-free broker (Fidelity/Schwab/Robinhood), you pay $0 commission. If you buy a 10-contract options position, a per-contract fee of $0.50–$1.00 could add $5–$10 in fees depending on broker. For frequent options traders these per-contract fees are the primary cost driver — not the $0 stock commissions. Always calculate per-trade and per-contract costs for your typical trade size. Fidelity+1
Final recommendations & checklist before you open an account
- List your priorities (active trading vs. retirement; options or futures; international access; bank integration).
- Compare the real costs: commissions (usually $0), options per-contract, margin rates, wire/ACAT/outgoing transfer fees. Fidelity+1
- Try the platform: demo/paper trading (Webull, TradeStation, IBKR offer paper trading). If you’re an active trader, test order entry, hotkeys, and charting. Interactive Brokers+1
- Check execution quality reports and disclosures — these are publicly available for major brokers and show how often orders get price improvements.
- Confirm margin & pattern day trading rules if you plan frequent intraday trades.
- Re-verify pricing on the broker’s official pricing page at account opening time — pricing updates do happen.