Best Brokers of 2023 (split by asset class)
By Samantha Baltodano
Finding the best broker for your trading needs can be a daunting task.
There are many factors to consider, including regulation, fees, trading platform, customer support, and education and research resources.
To find the best broker for you, start by assessing your trading goals and preferences. Are you an experienced trader or a beginner? Do you prefer a specific trading platform or trading style?
Ultimately, finding the best broker for you requires careful consideration and research, but it can help ensure a successful trading experience.
That said, let’s break down the best brokers by asset class for 2023.
Stocks, Bonds, Futures, Options
Pros
- Two exceptionally designed mobile apps for investors with different interests
- Prebuilt portfolios and automated portfolio builder let users invest quickly
- Demo account offers ability to test platform and strategies before investing
- Excellent educational tools and content library
Cons
- Fractional shares are only offered through a dividend reinvestment plan (DRIP)
- Trading on international exchanges is not offered
Overview
- E*TRADE has been a leading broker since its founding in 1982, thriving as an innovative electronic platform with the evolution of the internet in the early ‘90s and building a reputation as a seamless, powerful trading service. In 2020, Morgan Stanley acquired E*TRADE for $13 billion. Morgan Stanley's ownership has been a net positive for E*TRADE, leading directly to E*TRADE eliminating all commissions for mutual funds on the platform in December 2022.
- E*TRADE has diligently worked on enhancing an already strong desktop and mobile experience, releasing more than a dozen app updates in 2022. These updates include enhancements from position details to site navigation optimization. Continuing improvements to educational material help investors move swiftly from research to investing.
- New investors can get started with ease due to straightforward site menus and research tools, although the platform is built for users of all backgrounds and experience levels. A wide range of pre-built portfolios and automated portfolio building tools let beginners enter the market without having to spend an exorbitant amount of time learning the ropes. The demo account option lets users experience the site and test trading approaches without putting real money in the market.
- Two mobile apps are offered that cater to investors of different experience levels and trading styles. The E*TRADE mobile app is intuitive, aesthetically pleasing, and geared towards users looking to stay in touch with their brokerage accounts while maintaining full feature parity. The Power E*TRADE mobile app builds on this by providing even more interactive charts and technical analysis to ensure investors have everything they need in the palm of their hand.
- User reviews focus on a continually enhanced, intuitive experience, and low or eliminated trading fees. Overall, E*TRADE is one of the most advanced mobile trading platforms, as it’s extremely well designed and offers a wide range of useful features.
Pros
- Zero commissions: TD Ameritrade offers zero commissions on stocks, ETFs, and options trading. This makes it a cost-effective option for investors who want to trade frequently.
- Large selection of investment products: TD Ameritrade offers a vast selection of investment products, including stocks, bonds, ETFs, mutual funds, options, and futures. This allows investors to diversify their portfolios easily.
- Advanced trading platforms: TD Ameritrade offers advanced trading platforms, including Thinkorswim, which provides real-time market data, customizable charts, and technical analysis tools. It also offers a mobile app that allows investors to trade on the go.
- Educational resources: TD Ameritrade provides a wide range of educational resources, including webinars, video tutorials, and articles. These resources can help investors learn about different investment products and strategies.
Cons
- Limited research tools: While TD Ameritrade provides some research tools, including third-party research reports, its research tools are not as extensive as those of some other brokers.
- High minimum deposit: TD Ameritrade requires a minimum deposit of $500 to open an account. This may be a barrier for some investors who want to start with a smaller amount.
- Limited customer service hours: TD Ameritrade's customer service is not available 24/7. This may be inconvenient for some investors who need assistance outside of regular business hours.
Overview
- TD Ameritrade is a long-standing brokerage firm with over 40 years of experience in the investment industry. As a comprehensive broker, TD Ameritrade offers a diverse range of investment products and services, including stocks, bonds, ETFs, mutual funds, options, and futures. In this blog, we'll explore why TD Ameritrade stands out as one of the best brokers for stocks and bonds in 2023.
- With its zero commission policy, investors can enjoy cost-effective trading, especially those who engage in frequent trades. TD Ameritrade's broad selection of investment products is also noteworthy, as it allows investors to diversify their portfolios effortlessly.
- Furthermore, TD Ameritrade's advanced trading platforms, such as Thinkorswim, provide real-time market data, customizable charts, and technical analysis tools. The firm's mobile app also enables investors to trade on the go.
- In addition to providing a range of investment products and services, TD Ameritrade offers educational resources, including webinars, video tutorials, and articles. These resources help investors learn about different investment products and strategies, making it an attractive option for those looking to expand their investment knowledge.
Pros
- Low commissions: Interactive Brokers offers some of the lowest commissions in the industry, making it a cost-effective option for frequent traders.
- Advanced trading platforms: IB provides advanced trading platforms with robust features, such as Trader Workstation (TWS), which offers a customizable interface, advanced charting tools, and real-time market data.
- Extensive range of investment products: IB offers a vast selection of investment products, including stocks, bonds, ETFs, mutual funds, options, futures, and more. This allows investors to diversify their portfolios easily.
- Margin lending: Interactive Brokers offers margin lending at competitive rates, allowing investors to borrow funds to invest in stocks and bonds.
Cons
- Not beginner-friendly: IB's advanced trading platforms and complex fee structures can be overwhelming for beginner investors.
- Inactivity fees: IB charges inactivity fees if an investor doesn't trade at least once per month, which can be a disadvantage for investors who only make occasional trades.
- Customer service: IB's customer service can be inconsistent, with some investors reporting long wait times or unresponsive support.
Overview
- Interactive Brokers is a global brokerage firm that has been in operation since 1978. With its low commissions, advanced trading platforms, and wide range of investment products, Interactive Brokers is an attractive option for investors looking to trade stocks and bonds.
- Interactive Brokers' low commissions make it a cost-effective option for frequent traders. The firm's advanced trading platforms, such as Trader Workstation (TWS), provide real-time market data, customizable charts, and advanced charting tools, which are especially useful for active traders.
- Furthermore, Interactive Brokers' extensive range of investment products, including stocks, bonds, ETFs, mutual funds, options, futures, and more, allows investors to diversify their portfolios effortlessly.
- In addition to these advantages, Interactive Brokers also offers margin lending, which allows investors to borrow funds to invest in stocks and bonds.
- However, Interactive Brokers' advanced trading platforms and complex fee structures may not be beginner-friendly. Additionally, the firm charges inactivity fees if an investor doesn't trade at least once per month, which can be a disadvantage for investors who only make occasional trades.
- Despite these potential drawbacks, Interactive Brokers remains an excellent option for investors looking for a broker that offers low commissions, advanced trading platforms, and an extensive range of investment products. With its long-standing history in the industry, Interactive Brokers has established itself as a top contender for the best brokers for stocks and bonds in 2023.
Forex
Pros
- Social trading features: eToro's unique social trading features allow users to see and copy the trades of successful traders, making it an excellent option for beginner traders who may not have a lot of experience in the forex market.
- User-friendly interface: eToro's platform is easy to navigate, making it simple for users to execute trades, monitor their portfolios, and access a wealth of educational resources.
- Wide range of investment products: In addition to forex, eToro offers trading in stocks, cryptocurrencies, commodities, and more, allowing users to diversify their portfolios.
- Low fees: eToro offers competitive spreads and low trading fees, making it an affordable option for forex traders.
Cons
- Limited research and analysis tools: eToro's research and analysis tools are relatively basic compared to other forex brokers, which may be a disadvantage for experienced traders who rely heavily on technical analysis.
- Limited customization options: eToro's platform offers limited customization options, which may be a drawback for traders who prefer to tailor their trading experience to their preferences.
Overview
- eToro is an online trading platform that has become increasingly popular in recent years due to its unique social trading features. In addition to offering traditional forex trading, eToro allows users to see and copy the trades of successful traders, making it a compelling option for both novice and experienced traders. With its user-friendly interface, competitive fees, and diverse range of investment products, eToro is one of the best brokers for forex in 2023.
- eToro's social trading feature is a standout benefit, providing users with access to successful traders' insights and trading strategies. This feature allows novice traders to learn from more experienced traders, while experienced traders can use it to diversify their portfolios and potentially boost their returns. The platform's user-friendly interface makes it easy for users to navigate the platform, execute trades, and monitor their portfolios. Additionally, eToro's low fees and competitive spreads make it an affordable option for forex traders.
- While eToro's research and analysis tools may be limited compared to other forex brokers, its social trading features more than make up for this. Additionally, eToro's platform provides a wide range of investment products, including stocks, cryptocurrencies, commodities, and more, allowing users to diversify their portfolios beyond forex trading.
- Overall, eToro's social trading features, user-friendly interface, low fees, and diverse range of investment products make it an excellent option for forex traders in 2023. With its innovative approach to social trading, eToro is quickly becoming one of the most popular forex brokers in the market today.
Pros
- Advanced trading tools: Forex.com offers a range of advanced trading tools, including customizable charts, technical analysis tools, and trading signals, making it an ideal choice for experienced traders.
- Competitive pricing: Forex.com offers competitive spreads and low commissions, making it an affordable option for forex traders.
- Regulatory oversight: Forex.com is regulated by multiple regulatory bodies, including the Financial Conduct Authority (FCA) in the UK and the Commodity Futures Trading Commission (CFTC) in the US, providing traders with peace of mind that their funds are secure.
- Wide range of trading instruments: In addition to forex, Forex.com offers trading in a wide range of instruments, including stocks, cryptocurrencies, and commodities, allowing traders to diversify their portfolios.
Cons
- Limited educational resources: Forex.com's educational resources are relatively limited, which may be a disadvantage for novice traders looking to learn more about forex trading.
- High account minimums: Forex.com requires a minimum deposit of $50 to open an account, which may be a barrier for traders with limited funds.
Overview
- Forex.com is a well-established forex broker with a strong reputation in the industry. Its advanced trading tools, competitive pricing, and strong regulatory oversight make it an ideal choice for forex traders in 2023. Forex.com offers a wide range of trading instruments, including forex, stocks, cryptocurrencies, and commodities, making it a comprehensive platform for traders of all levels.
- One of the standout benefits of Forex.com is its advanced trading tools. The platform offers a range of customizable charts, technical analysis tools, and trading signals, allowing experienced traders to fine-tune their strategies and optimize their trades. Additionally, Forex.com offers competitive pricing, including low spreads and commissions, making it an affordable option for forex traders.
- Forex.com is also highly regulated, with oversight from multiple regulatory bodies, including the Financial Conduct Authority (FCA) in the UK and the Commodity Futures Trading Commission (CFTC) in the US. This regulatory oversight provides traders with peace of mind that their funds are secure.
- While Forex.com's educational resources may be relatively limited, the platform offers a wide range of trading instruments, allowing traders to diversify their portfolios beyond forex. However, Forex.com does require a minimum deposit of $50 to open an account, which may be a barrier for traders with limited funds.
- Overall, Forex.com is a reliable and trusted forex broker that offers advanced trading tools, competitive pricing, strong regulatory oversight, and a wide range of trading instruments, making it an excellent choice for forex traders in 2023.
- See above
Like what you read? Check out the rest of our content!
