If you want to become an active trader, one of the first things you need to do is find the right broker. Currently, numerous firms offer a wide array of trading software and services. Whether you want to go into day trading or trade only a few times a year, you can find a trading platform that fits you perfectly. Discover the top five online trading firms in this comprehensive guide.
What Is an Online Trading Platform?
Basically, an online trading platform is a type of software used for trading stocks and other investment products through a financial middleman such as a broker. A broker may or may not charge a fee for providing a trading platform or maintaining your trading account. While its main purpose is to enable you to place trades and monitor your account from anywhere, an online trading platform also offers features such as real-time quotes, news feeds, charting tools, and research tools.
There are basically two types of online trading platforms: retail trading platforms and prop trading platforms. Retail brokerage firms require you to trade with your own cash, while prop firms allow you to use their money as leverage. Some trading platforms specialize in specific financial instruments, such as stocks, options, currencies, or futures.
Prop trading firms used to provide more advantages for traders. However, the modern technology involved in these online trading platforms has given retail traders additional resources, making it a more tempting choice when it comes to trading.
Top Online Trading Firms
Online trading firms can differ significantly, but some brokerage firms are generally regarded as capable of delivering a better overall trading experience. Here is a list of the top-rated online trading firms:
- TD Ameritrade: If you’re a beginner trader, TD Ameritrade is probably the best option. It’s a well-rounded trading platform that offers low pricing, no minimum deposit, excellent trading platforms, dependable customer service, and industry-leading educational resources for beginners. This broker also has an extensive selection of zero-commission ETFs.
- Fidelity: Fidelity is a popular option among everyday investors and beginners. There are many good reasons to choose this value-driven trading firm, including zero-commission trades, no minimum deposit, user-friendly trading tools, an intuitive mobile app, industry-leading research, and comprehensive retirement services.
- Charles Schwab: Charles Schwab is one of the oldest and most trusted brokerage firms. Besides commission-free trades, this platform also provides investors with top-quality trading tools, outstanding research, and professional financial planning. It’s the leader in retirement services, offering both human and robo advisors.
- E*TRADE: E*TRADE is one of the first online trading platforms in the United States. Its highlights include zero-dollar trades, two feature-rich mobile apps, and the Power E*TRADE platform that comes with great trading tools. This broker offers a fantastic options trading experience.
- TradeStation: TradeStation features an award-winning desktop platform for active traders and a web-based platform for casual traders. It also has a mobile app that delivers a great all-around experience for traders as well as zero-commission trades and no minimum deposit.
When you’re choosing an online trading platform, you should take several things into consideration, including the fees, the available tools and resources, and your trading strategy.
