What is a discount broker?

Since discount brokers focus on executing client trades and generally operate online with no physical offices, these brokers can have lower commissions than full-service brokers and may provide more robust trading platforms to help investors analyze investments themselves. Sign up for stock news with our Invested newsletter. ]

Should you use a discount broker or a full-service broker?

Whether an investor opts for a discount broker or a full-service broker depends on their investing knowledge, market experience, financial goals, and current financial status. Since commissions typically take a healthy chunk out of investment and trading returns, some individuals opt to go for products offered by discount brokers instead.

What do investors look for when comparing online brokers?

Pricing is one of the first things investors look at when comparing brokers. Since most online brokers now offer ‘commission-free’ trading, it can be difficult to tell which brokers are actually the least expensive. We look at brokerage fees like memberships and subscriptions, commissions, hidden fees, and bonus offers.

Do discount brokers charge commissions?

The discount brokers below charge no commissions and low or no account fees. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.