Best Discount Brokers: Lowest Stock and ETF Trading Fee

By Pinyo, on July 4, 2011

The following is a list of top discount brokers with the emphasis on low cost online stock trading. These brokers are particularly well-suited for active traders. The list is sorted from the lowest commission fee to the highest for stock and ETF trades. If the fees are the same, we take into consideration other factors and rank the better broker above. In addition to the fees, we also list other special offers and features when appropriate.

Since brokers can change their offers at any given time, it’s highly recommend that you visit the site and review the most recent information carefully.

Stock Brokers with Lowest Stock Trading Fees

Broker	Notes
OptionsHouse	Open an account today and receive 100 commission-free trades. Multiple promotions available. Barron’s rated best for options traders for 2009 and 2010. $3.95 for all online stock and ETF trades. $5.00 for 5 contracts or $8.50 plus $0.15 per contract for all option trades. $9.95 fee for mutual fund trades.
Zecco Trading	$4.95 for all online stock and ETF trades. $4.95 plus $0.65 per contract for all option trades. $10.00 fee for mutual fund trades.
TradeKing	TradeKing earned 4-Star Rating in Barron’s 2012 Online Broker Survey for the sixth year in a row. $4.95 for all online stock and ETF trades. $4.95 plus $0.65 per contract. $14.95 fee for mutual fund trades.
Firstrade	Firstrade is currently offering 250 free trades for new accounts. $6.95 for all online stock and ETF trades. $6.95 plus $0.75 per contract for all option trades. $9.95 for online mutual fund trades with over 11,000 mutual funds.
Scottrade	Scottrade has over 500 local branch offices nationwide. $7.00 for all online stock and ETF trades. $7.00 plus $1.25 per contract for all option trades. $17.00 fee for mutual fund trades. Over 14,500 funds available.
TradeMONSTER	Get up to $250 for transferring your account to tradeMONSTER today. $7.50 for all online stock and ETF trades. $0.50 per contract. $12.50 minimum. $15.00 fee for mutual fund purchases. Free to sell.
Fidelity	Fidelity boasts a robust mix of investments, tools and banking services. $7.95 for all online stock and ETF trades. $8.95 plus $0.75 per contract for all option trades. $75 for online mutual fund trades. No transaction fee when trading over 1,400 Fidelity and non–Fidelity mutual funds.
Charles Schwab	Schwab has a well-rounded services and products portfolio, and offers more advice and research than many competitors. $8.95 for all online stock and ETF trades. $8.95 plus $0.75 per contract for all option trades. $49.95 for online mutual fund trades.No transaction fee when trading thousands of no-load, no-transaction-fee Mutual Fund OneSource® funds.
OptionsXpress	Open an account today and receive $100. $9.95 for all online stock and ETF trades. $1.25 per contract. $12.95 minimum. $9.95 fee for mutual fund trades.
ShareBuilder	Buy stocks for $4 with Automatic Investing. Open an account today and receive $50 new account bonus. $9.95 for all online stock and ETF trades. $1.25 per contract for all option trades. $19.95 fee for mutual fund trades. No Transaction Fee (NTF) program provides access to over 70 funds including the ING Mutual Funds.
E*Trade	E-trade is strong in research and trading tools. Open an account today and trade free for 60 days, and get up to $500 based on your deposit amount. $9.99 for all online stock and ETF trades. $9.99 plus $0.75 per contract for all option trades. $19.99 fee for mutual fund trades. Fees are lower for high volume traders.
TD Ameritrade	Open an account today and trade free for 60 days, and get up to $600 based on your deposit amount. $9.99 for all online stock and ETF trades. $9.99 plus $0.75 per contract for all option trades. $49.99 fee for mutual fund trades. No-transaction fee (NTF) funds available.

Investing Resources

In addition to the brokers listed above here are additional websites that might be of interest to you.

		Betterment is a simpler way to invest. Instead of doing your own investing, all you have to do is just answer a few questions about who you are and Betterment will automatically invest the money for you. Sign up today and get a $25 new account bonus.
		Morningstar offers free video reports, articles, data, and tools. Dig into their lineup of e-newsletters and investing classroom courses outlining sensible strategies for maximizing your investments. Premium membership includes analyst research, Portfolio X-Ray, investment picks, and more.

Pinyo is the owner of Moolanomy Personal Finance and an entrepreneur with over 20 years of business experience. He is interested in business management, investing and wealth management. He has written for many online publications, including American Express Currency and U.S. News Money. You can follow him on Facebook and Twitter.

Add Your Question or Comment (22 Comments)

1. Mr. Smith:

   August 15, 2009 at 11:16 pm

   We’ve been using E-Trade for our trading for the past few years now however we have been inactive for a little bit and are now being charged $40 a month. E-Trade calls it an “inactivity fee”.

   Pinyo, if you have one to choose from, which one would you use?
2. Pinyo:

   August 16, 2009 at 7:49 am

   @Mr. Smith – That’s not good. I don’t like paying fees. I have few brokerage accounts, but if I have to choose just one, I would choose TD Ameritrade because it’s most compatible with my finances. It is current my main brokerage account, I don’t trade that often (may be once a year) and I do a lot of transfers in and out (e.g., direct deposit, bill payments, etc.). There’s no fee whatsoever.

   But there are also a few negatives — i.e., the interest payment for cash is non-existent, margin interest is high, commission on non-no transaction fee is really expensive ($50). This is where high yield savings account and other brokerage accounts come in.
3. Jeremy:

   December 14, 2009 at 1:31 pm

   I think SOGOTRADE is pretty good. It only cost $3 to make a trade (unlimited shares). They have good online and phone support, quick execution and a good inventory of shares that you can short! Oh and you only need $500 to open your account. Can’t beat that.
4. Sam:

   January 6, 2010 at 8:43 pm

   I agree with Jeremy SogoTrade is pretty good.
5. Rockon:

   January 14, 2010 at 1:28 am

   The interest payment for cash is non-existent, margin interest is high, commission on non-no transaction fee is really expensive ($50). This is where high yield savings account and other brokerage accounts come in.
6. Anna Amed:

   May 13, 2010 at 10:39 pm

   OPTIONHOUSE.com so far is the best. $2.95 Flat rate for stocks. no inactivity fees. Great platform. I love it. Options are also cheap. They had a flat rate but now no more.
7. Sean:

   May 15, 2010 at 11:38 am

   Look guys, it’s best to go with the cheapest brokerage house on the net. At $2.50/trans, Just2Trade pretty much takes the cake. Any investor who needs a full-service house to supply research isn’t an investor at all.
8. jen:

   May 19, 2010 at 1:04 pm

   If you choose to open an account with Scottrade, you can get three free online trades (worth $21). Enter the code XEPG6413 in the box after selecting “received a promo code” on the application page.
9. hdj:

   August 10, 2010 at 5:36 pm

   I used Scottrade for some time until I started to get too many stop-losses that were not prosessed at the correct time. Each one lost me money that I should not have lost. Then Scottrade did not process one of my stop-losses I had set up days before and lost me $2600.00. My inquiry to the Scottrade Manager of the office I did business with was that the guy that handled was having trouble getting buyers at that time. The stock was Ford stock with millions in volume. What a terrible lame excuse. They refused any settlement, leaving no choice but to look for a new broker.

   I would never recommend Scottrade to anyone, period. They show no consideration for anyone, particularly, when its your money and their mistake.
10. Walt:

    October 17, 2010 at 8:19 pm

    Give Interactive brokers a look. $.01 a share $1.00 Minimum if less than 100 shares. $10.00 a month fee if no trades but all trades are subtracted from the $10.00.
11. Ahmed:

    November 28, 2010 at 8:32 am

    Try eOption
    Stock 3$ ( Unlimited Shares )
    Option 3$ + 0,10 per contract
    There is no minimum to open account.
12. jed:

    February 2, 2011 at 8:44 pm

    Great line up of price and explanations. My readers will love the brokers break down.
13. Bernz:

    July 6, 2011 at 7:28 am

    I have been using Scottrade for a minimum of 4 years now without any problem. My local Scottrade office have been very helpful in just about all the questions I may have for them. So far so good in fact I have transferred my IRA accounts from my bank to them just recently
14. D Johnson:

    September 26, 2011 at 8:38 am

    I like using Charles Schwab because I don’t want to manage my entire portfolio myself and they provide good money management options. I can also buy and sell on my own through their system, which I like to do as well. Overall, they have a good spectrum of options.
15. jennifer stilton:

    December 23, 2011 at 1:54 pm

    Nice thanks a lot for the list. Good to know that you approve of them as well cause its hard to tell when your just browsing through the search results, thanks!
16. Jessica Tammy:

    January 3, 2012 at 5:44 am

    Great list! I’m with eTrade, and they are great. I’ve also heard TradeKing has very low rates. Might be worth a mention too.
17. martin:

    January 29, 2012 at 4:21 am

    on 01-04-12 TRADEKING charge me $50 s an INACTIVITY FEE. Newyear New fashion. Its time to kiss TRADEKING godbye. i will be checking out option house, e options and SOGOTRADE
18. Pinyo:

    January 29, 2012 at 10:58 am

    @Martin – I think many of them do charge inactivity fee if you don’t trade enough or have enough money in there. I just checked my TradeKing accounts and they didn’t ding me, but I have automatic reinvestment activities, decently high balance, and these are retirement accounts. I am not sure which of these three factors helped. I also have several TD Ameritrade accounts with no trade activities, but not inactivity fee there either. Have you considered Scottrade or TD Ameritrade? They both have branches that you can walk into and discuss your situation with them more easily.
19. Floyd:

    March 2, 2012 at 12:20 pm

    I was in ShareBuilder for one year and I’m happy with the results.
20. Hank Hedleberg:

    March 12, 2012 at 5:58 pm

    Sharebuilder wasn’t what I was actually hoping it would be. I know it works well for some – it just wasn’t for me.
21. Wayne:

    March 18, 2012 at 8:39 am

    Cutting back on those fees is an important investing strategy. Fees have a large impast on retirement savings. Thanks for sharing brokers with low fees.
22. Ron Power:

    April 24, 2012 at 2:49 pm

    I use my RBC online account to trade. I do not do a lot of trades but they a for a fairly large amount of money. I pay a small fee because I am a “Good Customer”.