Top Commission-Free Stock Trading Platforms for 2025

Investing has become increasingly accessible, particularly for beginners. With the rise of free stock-trading platforms, potential investors can now get started with very little financial burden. Many well-regarded brokerages are catering to this new demographic by offering zero-commission trading and eliminating account minimums, thereby making investing affordable for everyone. CNBC Select has researched and compiled a list of the leading brokers that provide these perks across various categories. The criteria for our evaluation considered several factors, including account features, investment options, educational resources, and overall user satisfaction.

Top Free Stock-Trading Platforms

When deciding which platform to choose, it’s crucial to evaluate your individual goals, such as whether you prioritize education, ease of use, or breadth of investment options. Below is an exploration of some of the best free stock-trading platforms available today.

Best for Streamlined Trading: Robinhood

Robinhood pioneered the concept of zero-commission trading, allowing investors to buy and sell stocks without worrying about commissions. The platform is particularly favored for its ease of use and mobile-first design, making it attractive for novice investors.

  • Account Requirements: No minimum deposit is needed to open an account or begin trading.
  • Fees: Users benefit from commission-free trading, though regulatory transaction fees may be incurred.
  • Investment Options: Investors can trade stocks, ETFs, options, and even fractional shares. Additionally, Robinhood allows access to cryptocurrencies and IPO shares, depending on the user’s location.

Pros and Cons:
Pros include the simplicity of the platform, the ability to begin trading immediately, and a welcoming bonus of a free stock once users link their bank accounts. However, potential drawbacks include the absence of mutual funds and bonds, as well as limited educational resources for less experienced traders.

Best For: Robinhood is ideal for investors seeking a straightforward platform to start trading with minimal upfront costs.

Best for Joint Banking and Investing: Ally Invest

Ally Invest offers a unique combination of banking and investment services, making it a top choice for those looking to manage multiple financial needs through one platform.

  • Account Requirements: Invest in a self-directed account with no minimum deposit; however, a $100 minimum is required for Robo portfolios.
  • Fees: Stock and ETF trades incur no commission, while options trades are charged a modest fee per contract.
  • Investment Options: The platform accommodates stocks, bonds, ETFs, options, and forex trading.

Pros and Cons:
Ally Invest shines in its user-oriented resources like articles that enhance understanding of investment strategies. However, its Robo portfolios require a minimum deposit, which could be a barrier for some.

Best For: This platform is great for those who appreciate having their banking and investment tasks intertwined into one seamless experience.

Best for Fractional Shares: Charles Schwab

Charles Schwab allows investors to purchase fractional shares, which is particularly appealing for those looking to diversify their portfolio without committing a large sum of money.

  • Account Requirements: There’s no minimum deposit for active investing. However, automated investing through Schwab Intelligent Portfolios requires a $5,000 minimum.
  • Fees: The Schwab One® Brokerage Account has no account fees or commissions for stock and ETF trades.
  • Investment Options: Provides access to stocks, bonds, mutual funds, and ETFs. Schwab’s Stock Slices initiative lets investors buy fractional investments in top S&P 500 companies for as little as $5.

Pros and Cons:
With extensive tools for retirement planning and real-time market data from noteworthy financial media, Schwab stands out for active investors. The potential downside includes that specific transactions may involve fees, particularly with mutual funds.

Best For: Ideal for those who want to dip into fractional investing and explore a wide array of investment strategies.

Best for Educational Resources: E-Trade

E-Trade provides unparalleled educational content, making it an excellent choice for individuals looking to learn while they invest.

  • Account Requirements: No minimum required to open an account, but a $500 minimum applies for Core Portfolios.
  • Fees: Users enjoy zero commissions on trades and zero transaction fees on funds.
  • Investment Options: Offers a broad range of assets, including stocks, bonds, mutual funds, and ETFs.

Pros and Cons:
E-Trade’s educational library is extensive, featuring in-depth articles and resources which are beneficial for novice investors. However, navigating the website may be cumbersome for some, and it does not support forex transactions.

Best For: Those eager to expand their investing knowledge while managing their portfolio will find E-Trade appealing.

Best for Mutual Funds: J.P. Morgan Self-Directed Investing

J.P. Morgan allows investors to delve into a robust selection of mutual funds at competitive prices without burdensome fees.

  • Account Requirements: No minimum is needed to open an account, making it accessible for new investors.
  • Fees: Commission-free investing in U.S. securities, along with no minimum balance requirements.
  • Investment Options: Offers stocks, ETFs, mutual funds, options, and fixed-income products, highlighting a broad choice in investment vehicles.

Pros and Cons:
J.P. Morgan’s strong stock screening tools help investors identify and filter stocks based on specific criteria, a plus for analytical traders. Yet, it may not offer as many educational resources compared to some other platforms.

Best For: Investors primarily interested in mutual funds and looking to leverage professional advice in stock management.

Best for Customer Service: Fidelity Investments

Fidelity has consistently garnered recognition for its customer support, making it a reliable choice for investors needing assistance.

  • Account Requirements: No minimum deposit to open a Fidelity Go® account; $10 minimum for a fully invested robo-advisor account.
  • Fees: Features zero commissions on trades across many asset classes and no transaction fees on 3,400 mutual funds.
  • Investment Options: Offers a wide variety of investment opportunities including stocks, ETFs, bonds, options, and fractional shares.

Pros and Cons:
Fidelity’s extensive educational tools and research capabilities provide valuable resources for both novice and experienced traders. However, some specific mutual funds may have requirements that could dissuade investors with limited capital.

Best For: Investors prioritizing top-notch customer service and a variety of investment avenues.

Best for Uninvested Funds: Vanguard

Vanguard is renowned for its low-cost investment options and suitability for long-term investors focusing on mutual funds and ETFs.

  • Account Requirements: No minimum to open; however, specific mutual funds may require a $1,000 minimum deposit.
  • Fees: Vanguard offers commission-free trades for stocks and ETFs, with options available at a low transaction fee.
  • Investment Options: Investors can access a wide array of investment products, including stocks, bonds, and mutual funds.

Pros and Cons:
Vanguard automatically directs uninvested funds into a money market fund, enhancing potential returns. However, the basic trading platform lacks the advanced features seen in other platforms.

Best For: Investors looking for a long-term strategy and a focus on low-cost investments.

How to Choose the Right Investing App

Selecting the right investing app involves weighing various factors like fees, required minimums, investment types, user interface, and customer support. Look for platforms that emphasize low commissions, a broad selection of investment vehicles, and educational resources tailored to your financial goals.

Key Considerations When Using an Investing App

Investing inherently carries risks, so it’s vital to commit only money you’re comfortable losing. Assess the types of trading the app allows, be it active self-trading or automated robo-advisory services. Also, ensure you’re aware of any associated fees, including transaction fees and management fees.

FAQs

  1. What is zero-commission trading?

    • Zero-commission trading refers to a broker not charging fees on executed trades. However, be alert for potential third-party fees that may apply.
  2. What fees should I watch for when trading?

    • Key fees include per-contract fees (especially for options), management fees, and transfer fees when moving investments between brokerages.
  3. What are expense ratios?

    • Expense ratios are annual fees paid by investors to cover operating costs for funds, expressed as a percentage that reduces your investment returns.
  4. Can I start trading with just $1?
    • Many platforms, such as Robinhood and Charles Schwab, allow entry into the market with minimal investment, even as low as $1 in some cases.

Conclusion

Investing is more accessible than ever, thanks to the plethora of free stock-trading platforms. By considering individual financial goals and preferences, investors can find a brokerage that aligns with their specific needs—whether prioritizing educational resources, customer service, or investment variety. Always evaluate each platform carefully, considering any fees, available features, and support services. In an evolving financial landscape, knowledge coupled with strategic investing can lead to long-term growth and financial empowerment.