The Best Online Brokers, 2021

Online brokers are enjoying explosive growth as investors beat a path to their virtual doors. In fact, 2020 was a record year: More than 10 million new brokerage accounts were opened, many by first-time investors, according to market research firm J.D. Power, driven by the seemingly unstoppable bull market, commission-free trades and the pandemic lockdown all helped to break down investing barriers, both financial and emotional. And then there was the meme-stock frenzy (Game Stop, AMC Entertainment Holdings) that enticed hordes of eager investors to get in on the game.

The influx of new investors has put a spotlight on finding a good brokerage firm. In this year’s annual online broker survey, we review nine. Five are large brokers that offer something for almost every kind of investor: Charles Schwab, E*Trade, Fidelity, Merrill Edge and TD Ameritrade. (Schwab’s 2020 acquisition of TD Ameritrade has not resulted in changes to most of the services the firms offer, and it may not for at least another year.) The remaining four—Ally Invest, Firstrade, Interactive Brokers and J.P. Morgan Self-Directed Investing—are contenders in this area, but to some extent they target particular customers. 

Read on to see our rankings—and, at the end, more about our methodology, including our new approach to commissions and fees in an environment where fewer brokers levy those. Plus, a look at Robin Hood, Tastyworks and some other newer players.

Additional reporting for this article was provided by Michael Korsh, Adam Shell, Karee Venema and Michaela Wang.

#1 Fidelity

• Overall score: 91.8
• Commissions and fees: 2nd
• Investment choices: 1st
• Mobile app: 2nd
• Advisory services: 1st
• Tools: 1st
• Research: 3rd
• Customer service: 8th

Pick Fidelity for: Advice (especially if you're a newbie)

Being a giant helps Fidelity deliver a wide range of advisory services and win this category. Access to extensive advisory services with a variety of different outside firms is a hallmark. And an army of certified financial planners is just a phone call away—or available in the local branch office for face-to-face consulting. Brand-new investors can fund a Fidelity Go robo-advisory account for just $10. And