Deep discount stockbroker

Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Best Discount Brokers - NerdWallet

The list of brokerage firms is seemingly endless, so when you're ready to open a brokerage accountit's almost certain that there is a broker that almost perfectly matches your expectations. From commissions to investment availability and research, there's a lot to ponder when choosing a broker. Today, we'll simplify the comparison to just two popular brokerages, Robinhood and Charles Schwab.

These two offer very different services, but let's see how they stack up for the buy-and-hold investor. Robinhood is a deep-discount broker that does not charge commissions, but offers fewer investment choices as a result.

Charles Schwab charges commissions, but opens up more investment opportunities to investors. Here's how their standard commission prices compare. Importantly, trades through Robinhood are free, but the platform is limited to stocks and ETFs.

Schwab clients can trade options and mutual funds in addition to stocks and ETFs, but will pay a commission on every trade. Remember that the average investor typically pays a lower commission than the standard rate table. There are several reasons for this. First, some brokers have fee-free funds and ETFs, which do not incur transaction charges. Second -- and this is worth further investigation -- brokers frequently provide special offers for opening new brokerage accountsas well as IRA accounts.

As mentioned above, many brokers allow for commission-free trading in select ETFs and mutual funds. Keep on the lookout for funds labeled as "commission-free ETFs" or "no-transaction-fee NTF " mutual funds -- these are the freebies.

Robinhood has the advantage on free ETF trades, given that every stock and ETF trade is free on its platform. However, when it comes to mutual funds, Charles Schwab's selection of more than 3, NTF mutual funds takes the column.

Importantly, there's more to picking a broker than the availability of fee-free funds.

After all, which funds make the fee-free list is inevitably more important than how many funds are on the fee-free list. However, where these criteria intersect, you can certainly save big. Neither Robinhood nor Charles Schwab has an account minimum, so you can open a brokerage account at either firm with some spare change you found between your couch cushions.

Realistically, though, you'd probably want to start with a little more than just a few singles. Although neither broker striker9 valuing binary options system review that you make a minimum deposit to open an account, you'll need at least enough money to buy a single share of a stock, mutual fund, or ETF to actually make an investment.

We're obsessed with long-term investing here at The Motley Fool. We buy stocks to hold them for years, if not decades. We tend to think that, much like the choice for the best comic book hero, preference for a trading platform tends to be rooted in personal preferences and biases. With that in mind, we'd encourage you focus forex rich dad try them out for yourself.

There is one thing to keep in mind, though. Robinhood's platform is mobile-only phones and tabletswhereas Schwab offers mobile and desktop trading. If you'd prefer to use a computer rather than a phone or tablet, this may be important to you.

Charles Schwab is one of the few brokers that offers access to foreign stock markets. Generally speaking, most online brokers offer the ability to invest in foreign companies, with varying limitations. Charles Schwab and Robinhood differ pretty significantly here, as the table below uncovers. American depositary receipts ADRs. Some foreign companies have American tickers known as American depositary receipts ADRs.

These can be freely traded at Charles Schwab, but Robinhood customers' choices are more limited. Robinhood does not support over-the-counter OTC stocks, which include many ADRs. If you'd like to trade directly on international stock exchanges, only Charles Schwab can help you here. Schwab allows for online trading in 12 markets, whereas its Global Services desk can process trades in 30 foreign markets. Depending on the role that foreign stocks play in your portfolio, the differences may be more or less important to you.

Importantly, Schwab is one of just a handful of discount brokers that allow you to trade deep discount stockbroker international markets. As a general rule, investors can benefit from access to research to help them find good investments. At the worst, most research is provided as a free feature, so you won't have to feel bad if you don't use it.

Again, the two brokerages diverge here. Charles Schwab offers a number of screening tools, in addition to proprietary research from Schwab analysts. Robinhood doesn't currently offer research to its clients, which is a trade-off that investors have to weigh against the benefit of commission-free trading. As long as you can connect to the internet with your phone or tablet, you can make a trade through mobile trading apps provided by Robinhood and Charles Schwab.

Top Discount Stock Brokers for

Here's how each broker's users and clients rated its iOS and Android apps as of Dec. Depending on your needs, you could make the case for either brokerage. Robinhood's commission-free trades may help it win over investors who are particularly cost-conscious and prefer low costs to supplemental features. Charles Schwab may win over some investors with its ability to route trades to international markets, or because of its exhaustive list of no-transaction-fee mutual funds.

The point is that there is no "best" broker for everyone, as they all cater to different types of investors. The Motley Fool does not endorse any particular broker, but we can help you find one that is right for your needs.

If retirement accounts are top of mind, Fool. Jordan Wathen has no position in any stocks mentioned.

The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Jordan is a value investor who believes incentives matter. Moats, floats, and compelling valuations.

Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services. Stock Advisor Flagship service. Rule Breakers High-growth stocks. Income Investor Dividend stocks. Hidden Gems Small-cap stocks. Inside Value Undervalued stocks. Learn How to Invest. Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards.

Mortgages Compare Mortgage Rates Get Pre-Approved How Much House Can I Afford? Taxes How to Reduce Your Taxes Deductions Even Pros Overlook Audit-Proof Your Tax Return What Info Should I Keep?

Helping the World Invest — Better. How to Invest Learn How to Invest. Personal Finance Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards. Jan 4, at Broker Apple App Store Google Play Robinhood 4.