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Best Stock Brokers 2026

We’ve rigorously tested hundreds of stock trading platforms, pinpointing the top brokers based on market access, reliability, costs, tools and user experience.

Author Image Written By
Royston Wild
Fact Checker Image Fact Checked By
Tobias Robinson
Editor Image Edited By
James Barra
Updated
February 26, 2026
Your capital is at risk. Trade only with funds you can afford to lose.
Tested with a live trading account
Accept traders from USA
Brokers With:
Stocks
Showing 5 of 7 matching brokers
  1. 1
    Trust Platform Assets Fees Accounts Research Education Mobile Support 4.3

    IBKR offers a vast selection of equity products from 24 different countries. If you want to increase your capital, earn dividends, or have voting rights, you can invest directly in stocks. On the other hand, if you want to trade based on price movements, you can do so through CFDs, futures, and over 13,000 ETFs. Moreover, in 2024, IBKR expanded its European equity derivatives by including trading on CBOE Europe Derivatives (CEDX).

    Stock Exchanges

    Interactive Brokers offers trading on 18 stock exchanges:

    • Abu Dhabi Securities Exchange
    • Borsa Italiana
    • CAC 40 Index France
    • Chicago Mercantile Exchange
    • Euronext
    • IBEX 35
    • Japan Exchange Group
    • Korean Stock Exchange
    • London Metal Exchange
    • London Stock Exchange
    • Nairobi Stock Exchange
    • Nasdaq
    • Nasdaq Nordic & Baltics
    • New York Stock Exchange
    • Russell 2000
    • Shenzhen Stock Exchange
    • Tadawul
    • Toronto Stock Exchange
    Fractional Shares
    Yes
    Stock Baskets
    No
    Automation
    Yes
    Demo Account
    Yes
    Minimum Deposit
    $0
    Minimum Trade
    $100
    Leverage
    1:50 (major forex pairs), 1:2-1:4 (equities)
    Copy Trading
    No
    Regulator
    SEC, FINRA, CFTC, NFA, CIRO, FCA, CBI, ASIC, SFC, SEBI, JFSA, MAS
    Instruments
    Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, Cryptocurrencies, CFDs Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, Cryptocurrencies
    Platforms
    Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower
    Account Currencies
    USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF
  2. 2
    Trust Platform Assets Fees Accounts Research Education Mobile Support 3.4

    eToro US allows you to trade over 3000 renowned US stocks and ETFs without any commissions. You also have the option to trade with fractional shares. The broker is especially suitable for novice traders due to its extensive eToro Academy and easy-to-use stock market research tools.

    Stock Exchanges

    eToro USA offers trading on 3 stock exchanges:

    • Dow Jones
    • New York Stock Exchange
    • S&P 500
    Fractional Shares
    Yes
    Stock Baskets
    No
    Automation
    Yes
    Demo Account
    Yes
    Minimum Deposit
    $50
    Minimum Trade
    $10
    Leverage
    No
    Copy Trading
    Yes
    Regulator
    SEC, FINRA
    Instruments
    Stocks, Options, ETFs, Crypto
    Platforms
    eToro Trading Platform & CopyTrader
    Account Currencies
    USD
  3. 3
    Trust Platform Assets Fees Accounts Research Education Mobile Support 4.5

    You can trade stocks using the NinjaTrader platform with supported brokers. The company also offers various index futures through regular and micro contracts, such as the E-Mini S&P 500 Index Futures and E-Mini Russell 2000 Index Futures.

    Stock Exchanges

    NinjaTrader offers trading on 2 stock exchanges:

    • Chicago Mercantile Exchange
    • New York Stock Exchange
    Fractional Shares
    No
    Stock Baskets
    No
    Automation
    Yes
    Demo Account
    Yes
    Minimum Deposit
    $0 (live trades must meet intraday margin minimums, e.g., $50 to trade micro contracts)
    Minimum Trade
    0.01 Lots
    Leverage
    $50 intraday margins for Micro contracts and $500 for popular E-mini contracts
    Copy Trading
    No
    Regulator
    NFA, CFTC, CySEC
    Instruments
    Futures, Forex, Stocks, Options, Commodities, Futures, Crypto (non-futures depend on provider)
    Platforms
    NinjaTrader Desktop, Web & Mobile, eSignal
    Account Currencies
    USD, EUR, GBP, CAD, AUD
  4. 4
    Trust Platform Assets Fees Accounts Research Education Mobile Support 4.5

    FOREX.com offers numerous US, EU, and UK stock CFDs with tight spreads starting from 1 point. You can trade in well-known companies as well as upcoming IPOs, promoting variety in your stock portfolio. You can access US stocks for a minimal cost of 1.8 cents per share.

    Stock Exchanges

    FOREX.com offers trading on 14 stock exchanges:

    • Australian Securities Exchange (ASX)
    • Borsa Italiana
    • CAC 40 Index France
    • DAX GER 40 Index
    • Dow Jones
    • Euronext
    • FTSE UK Index
    • Hang Seng
    • Hong Kong Stock Exchange
    • IBEX 35
    • Japan Exchange Group
    • Nasdaq
    • S&P 500
    • SIX Swiss Exchange
    Fractional Shares
    No
    Stock Baskets
    No
    Automation
    Yes
    Demo Account
    Yes
    Minimum Deposit
    $100
    Minimum Trade
    0.01 Lots
    Leverage
    1:50
    Copy Trading
    No
    Regulator
    NFA, CFTC
    Instruments
    Forex, Futures and Options on Metals, Energies, Commodities, Indices, Bonds Forex, CFDs, Stock CFDs, Indices, Commodities, Futures, Options, Crypto
    Platforms
    WebTrader, Mobile, MT4, MT5, TradingView
    Account Currencies
    USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN
  5. 5
    Trust Platform Assets Fees Accounts Research Education Mobile Support 3.5
    Crypto.com is a leading cryptocurrency exchange focused on advancing DeFi technologies. It provides token lending, prepaid cards, NFTs, and more. Founded in Hong Kong in 2016, it serves 150 million users.

    Stock Exchanges

    Crypto.com offers trading on 0 stock exchanges:

    Fractional Shares
    No
    Stock Baskets
    No
    Automation
    Yes
    Demo Account
    Yes
    Minimum Deposit
    Varies by payment method
    Minimum Trade
    $1
    Leverage
    No
    Copy Trading
    No
    Regulator
    SEC, FCA, MAS, AMF, CySEC, CBI, ASIC, FINTRAC, CIMA, VARA, OAM, HCMC, CFTC, OSC, KoFIU
    Instruments
    Crypto, Stocks, ETFs, Prediction Markets and Strike Options (US only)
    Platforms
    Own, TradingView
    Account Currencies
    USD, EUR, GBP, CAD, AUD, NZD, ZAR, TRY, SEK, NOK, DKK, CHF, HKD, PLN, CZK, AED, SAR, HUF, BRL, KES

Top Stock Trading Brokers Comparison

Broker
United States
USD Account
Fractional Shares
Share Baskets
Extended Hours
Interactive Brokers
eToro USA
NinjaTrader
FOREX.com
Crypto.com
Broker
United States
USD Account
Fractional Shares
Share Baskets
Extended Hours

Broker Details Comparison

Broker
Demo Account
Minimum Deposit
Minimum Trade
Leverage
Assets
Platforms
Interactive Brokers $0 $100 1:50 (major forex pairs), 1:2-1:4 (equities) Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, Cryptocurrencies, CFDs Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, Cryptocurrencies Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower
eToro USA $50 $10 Stocks, Options, ETFs, Crypto eToro Trading Platform & CopyTrader
NinjaTrader $0 (live trades must meet intraday margin minimums, e.g., $50 to trade micro contracts) 0.01 Lots $50 intraday margins for Micro contracts and $500 for popular E-mini contracts Futures, Forex, Stocks, Options, Commodities, Futures, Crypto (non-futures depend on provider) NinjaTrader Desktop, Web & Mobile, eSignal
FOREX.com $100 0.01 Lots 1:50 Forex, Futures and Options on Metals, Energies, Commodities, Indices, Bonds Forex, CFDs, Stock CFDs, Indices, Commodities, Futures, Options, Crypto WebTrader, Mobile, MT4, MT5, TradingView
Crypto.com Varies by payment method $1 Crypto, Stocks, ETFs, Prediction Markets and Strike Options (US only) Own, TradingView
Broker
Demo Account
Minimum Deposit
Minimum Trade
Leverage
Assets
Platforms

Safety Comparison

Compare how safe the Best Stock Brokers 2026 are.

Broker
Trust Rating
Guaranteed Stop Loss
Negative Balance Protection
Segregated Accounts
Interactive Brokers
4.5
eToro USA
4.0
NinjaTrader
4.3
FOREX.com
4.9
Crypto.com
3.8
Broker
Trust Rating
Guaranteed Stop Loss
Negative Balance Protection
Segregated Accounts

Mobile Trading Comparison

Compare the mobile trading features of the Best Stock Brokers 2026.

Broker
Mobile Apps
iOS Rating
Android Rating
Smart Watch App
Interactive Brokers iOS & Android
4.3
4.5
eToro USA iOS & Android
4.3
4.0
NinjaTrader iOS & Android
3.0
3.2
FOREX.com iOS & Android
3.6
3.8
Crypto.com iOS & Android
4.7
4.5
Broker
Mobile Apps
iOS Rating
Android Rating
Smart Watch App

Comparison for Beginners

Compare how suitable the Best Stock Brokers 2026 are for beginners.

Broker
Demo Account
Minimum Deposit
Minimum Trade
Education Rating
Support Rating
Fractional Shares
Demo Competitions
Interactive Brokers $0 $100
4.3
3.0
eToro USA $50 $10
3.0
3.0
NinjaTrader $0 (live trades must meet intraday margin minimums, e.g., $50 to trade micro contracts) 0.01 Lots
4.0
4.0
FOREX.com $100 0.01 Lots
4.5
4.3
Crypto.com Varies by payment method $1
3.8
2.5
Broker
Demo Account
Minimum Deposit
Minimum Trade
Education Rating
Support Rating
Fractional Shares
Demo Competitions

Comparison for Advanced Traders

Compare how suitable the Best Stock Brokers 2026 are for advanced or professional traders.

Broker
Automated Trading
VPS
API
AI
Pro Account
Leverage
Low Latency
Extended Hours
Interactive Brokers Capitalise.ai, TWS API 1:50 (major forex pairs), 1:2-1:4 (equities)
eToro USA
NinjaTrader NinjaScript or via Automated Trading Interface $50 intraday margins for Micro contracts and $500 for popular E-mini contracts
FOREX.com Expert Advisors (EAs) on MetaTrader 1:50
Crypto.com DCA Auto-Staking
Broker
Automated Trading
VPS
API
AI
Pro Account
Leverage
Low Latency
Extended Hours

Accounts Comparison

Compare the trading accounts offered by Best Stock Brokers 2026.

Broker
Demo Account
Interest on Cash
Islamic Account
Joint Account
Managed Account
PAMM
MAM
LAMM
Pro Account
Interactive Brokers USD: 3.14%, GBP: 3.24%
eToro USA USD: 4.05%
NinjaTrader
FOREX.com
Crypto.com USD: 5%
Broker
Demo Account
Interest on Cash
Islamic Account
Joint Account
Managed Account
PAMM
MAM
LAMM
Pro Account

Detailed Rating Comparison

Compare how we rated the Best Stock Brokers 2026 in key areas.

Broker
Trust
Platforms
Assets
Mobile
Fees
Accounts
Research
Education
Support
Interactive Brokers
4.5
3.3
4.7
4.4
4.3
3.5
4.4
4.3
3.0
eToro USA
4.0
3.5
2.9
4.2
3.4
3.0
3.5
3.0
3.0
NinjaTrader
4.3
4.5
3.5
3.1
4.3
3.3
4.0
4.0
4.0
FOREX.com
4.9
4.6
4.3
3.7
4.6
4.0
4.8
4.5
4.3
Crypto.com
3.8
4.0
4.0
4.6
3.3
3.8
3.8
3.8
2.5
Broker
Trust
Platforms
Assets
Mobile
Fees
Accounts
Research
Education
Support

Fee and Cost Comparison

Compare the cost of trading with the Best Stock Brokers 2026.

Broker
Cost Rating
Fixed Spreads
Inactivity Fee
EUR/USD Spread
Crypto Spread
Interactive Brokers
4.3
$0 0.08-0.20 bps x trade value 0.12%-0.18%
eToro USA
3.4
$10 BTC 0.75%
NinjaTrader
4.3
$35 1.3 Floating
FOREX.com
4.6
$15 1.2 BTC 1.4%, ETH 2%
Crypto.com
3.3
$5 0.075% (spot), 0.034% (derivatives)
Broker
Cost Rating
Fixed Spreads
Inactivity Fee
EUR/USD Spread
Crypto Spread

Broker Popularity

See how popular the Best Stock Brokers 2026 are in terms of number of clients.

Broker Popularity
Crypto.com
150,000,000
Interactive Brokers
4,300,000
eToro USA
3,200,000
NinjaTrader
1,800,000
FOREX.com
450,000

Why Trade With Interactive Brokers?

Interactive Brokers is ideal for seasoned traders due to its robust charting platforms, updated data, and adaptability, especially with the IBKR Desktop application. Its exceptional pricing and advanced order features appeal to traders, and its variety of stocks remains unmatched in the market.
Christian Harris
Review Author

Pros

  • Interactive Brokers has introduced a single platform combining prediction markets from Kalshi, CME Group, and ForecastEx. Users can trade yes/no contracts on political, economic, and climate events, with a fixed $1 payout per contract, 24/6 market access, and interest on qualified positions.
  • The TWS platform is designed for intermediate to advanced traders. It includes over 100 order types and a dependable real-time market data feed that rarely experiences downtime.
  • The new IBKR Desktop platform combines the advantages of TWS and adds unique tools like Option Lattice and Screeners with MultiSort to make trading accessible and impressive for traders of all levels.

Cons

  • In 2025, IBKR was fined $11.8 million by the US OFAC for offering services in restricted areas. It also faced a $125,000 fine from FINRA in 2025 for failing to disclose municipal bond information.
  • TWS's platform may be difficult for beginners to grasp because of its complexity - we were overwhelmed during our initial tests by the sheer volume of tools, features and widgets.
  • Customer service may take time to respond, and there may be delays in fixing problems based on tests. It could be difficult to reach the customer service promptly.

Why Trade With eToro USA?

eToro is a top choice for traders due to its top-notch social investing and copy trading services. The broker caters well to new traders with its low deposit requirement, commission-free trading, and user-friendly platform.
James Barra
Review Author

Pros

  • The broker's Academy provides extensive educational resources for traders, ranging from beginners to advanced levels.
  • eToro USA Securities is a reliable broker that's regulated by the SEC, part of FINRA, and a member of SIPC.
  • Traders can use Smart Portfolios for a simpler approach, covering multiple sectors and markets like renewable energy and artificial intelligence.

Cons

  • eToro USA was fined $1.5 million by the SEC in 2024 for unregistered crypto offerings.
  • Traders used to third-party charting tools won't find MetaTrader 4 platform integration.
  • The exclusive terminal does not accommodate trading bots and lacks extra equity market analysis tools.
Go to eToro USA
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk. https://www.daytrading.com/ is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.

Why Trade With NinjaTrader?

NinjaTrader consistently satisfies active futures traders with its low-cost service and high-quality analysis tools. It offers superior charting features, including hundreds of indicators and over 10 chart types.
James Barra
Review Author

Pros

  • Nano contracts, which are one-hundredth the size of standard contracts, let traders adjust positions precisely and manage risks on a smaller scale. This is beneficial for those who build positions gradually.
  • 's ecosystem offers traders access to thousands of add-ons and applications from developers in over 150 countries. These include indicators, strategies, and custom tools that extend the platform's native features.
  • The market replay feature lets you download tick-by-tick historical data, go back to any date, and interact with it as if trading live. It's useful for strategy testing and real-world practice.

Cons

  • NinjaTrader was fined $250,000 in 2025 for not implementing a sufficient anti-money laundering program and for supervisory failures.
  • Traders who need fundamental data research must find other sources, as the platform mainly focuses on technical analysis and lacks information on company or macro fundamentals.
  • Intraday margin requirements can increase up to four times in the 15 minutes before major economic news releases and may remain high for several minutes after volatility decreases. This can surprise unprepared traders at critical times.

Why Trade With FOREX.com?

FOREX.com is a top-tier brokerage suitable for forex traders of all skill levels. It offers more than 80 currency pairs, has small spreads starting from 0.0 pips, and features low fees. The platform provides powerful charting tools that include over 100 technical indicators and multiple research aids.
Christian Harris
Review Author

Pros

  • FOREX.com provides top-tier forex pricing beginning at 0.0 pips. They also offer competitive cashback rebates up to 15% for dedicated traders.
  • The in-house Web Trader is a top platform for new traders, featuring a sleek design and over 80 technical indicators for market analysis.
  • Numerous educational materials such as tutorials, webinars, and a comprehensive YouTube channel are available to assist you in learning about the financial markets.

Cons

  • Demo accounts have a limited time duration of 90 days, which may not be sufficient for thoroughly testing trading strategies.
  • US clients do not have negative balance protection, so you can potentially owe more than your original account deposit.
  • FOREX.com's MT4 platform provides around 600 instruments for trading, which is considerably less than the 5,500+ options accessible on its other platforms.
Go to FOREX.com
75% of retail accounts lose money with this provider.

Why Trade With Crypto.com?

Crypto.com is ideal for new crypto traders looking to buy, sell, and trade over 400 digital tokens. Its strike options and prediction markets cover financial, economic, election, sport, and cultural events. As a CFTC-regulated platform, it provides a secure choice for US traders interested in binary-style contracts using an easy-to-use app.
Jemma Grist
Review Author

Pros

  • The Crypto.com Exchange platform provides advanced bots like Dollar Cost Averaging (DCA), Time-Weighted Average Price (TWAP), and Grid Trading bots. Traders can automate strategies, including leveraged perpetual trades, reducing manual work and slippage.
  • Crypto.com uses a cold wallet system with multi-signature technology and geographic distribution to improve security. This method ensures strong protection of user assets with secure offline storage.
  • The platform offers unified tracking for cryptocurrencies, stocks, ETFs, and prediction markets within one interface, making multi-asset management simpler and providing combined insights.

Cons

  • The app has high bid-ask spreads on many coins, which can be expensive for traders using market orders. Wide spreads mean the buying price is significantly higher than the selling price, reducing profits, especially in low-volume trades.
  • Customer support mainly uses chatbots and email, with limited reliable phone support from our testing. This may cause delays in solving urgent issues like account access or transaction problems, which can be frustrating for crypto traders needing quick help.
  • Fees apply to crypto and fiat withdrawals, which can be significant for active traders making smaller transfers. The minimum withdrawal limits are also high, limiting flexibility in managing smaller portfolios or immediate liquidity needs.
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How We Chose the Best Stock Brokers

We conducted an in-depth evaluation of each stock broker, assigning overall ratings and sorting providers by this. Here’s what our analysis included:

  • Quantitative Metrics: We examined over 200 data points across eight key areas. This included assessing the range of stock exchanges and equity indices each broker provides, the spreads on popular stocks like Apple, and whether commission-free trading, which is increasingly popular, is available.
  • Qualitative Insights: Our hands-on testing provided valuable insights into the overall stock trading experience. We also evaluated whether brokers went above and beyond by offering features like share baskets, sustainable stocks, and extended trading hours, that impact traders’ access to markets and cost efficiency.

BrokerListings.com Broker Testing Methodology

What to Consider When Searching For a Stock Broker

After years of evaluating stock brokers and personally using the services of various providers to buy, sell and trade individual stocks, we know the quality among firms can vary dramatically.

However, we’ve whittled it down to these five critical considerations:

1. Regulatory Status

This should be at the top of the list for any trader and investor. Increasing levels of online fraud, often targeted through social media, mean it’s important to check the regulatory status of a brokerage before depositing any cash or handing over personal details.

The protection that investors enjoy can range greatly across regions. So it’s a good idea to use a company that’s licenced by a reputable financial authority in a well-developed financial location.

Examples include the Financial Conduct Authority (FCA) in the UK, or the Securities and Exchange Commission (SEC) in the US.

Pro tip: You should be able to find the regulatory status of a brokerage on most regulators’ websites. Alternatively, check BrokerListings.com’s pick of the top regulated brokers.

Some highly trusted stock brokers, such as Plus500, are themselves listed on stock exchanges (PLUS), ensuring a high degree of financial transparency.

2. Trading Platform

There can be vast differences in the platforms, trading apps, and research tools that different brokerages offer. Ask yourself:

  • How easy is it to navigate the platform and execute stock trades quickly, especially during market volatility?
  • Does the platform offer real-time news feeds, economic calendars, and other relevant resources to help you make informed trading decisions?
  • How fast does the broker execute stock orders, and does the platform offer reliable execution during high-volume periods?
  • What risk management tools are available, such as guaranteed stop-loss orders or margin alerts, to help protect your positions and maximize potential gains?
  • Does the broker integrate with third-party trading tools, such as MT4, MT5, TradingView, or cTrader, for advanced charting and analysis?
  • What security measures are in place to protect your account and personal data, such as two-factor authentication (2FA)?

Some platforms also allow individuals to ‘trade’ using virtual cash, known as demo trading accounts. This is a facility you can use to refine your trading strategy and get up to speed with the stock markets when starting out.

eToro‘s brilliant web platform and smartphone app makes it a popular broker with stock traders. Both new and experienced traders, myself included, like its community chat function which can provide fresh ideas spanning everything from penny stocks to blue chips.

eToro's web platform showing a Nvidia stock chart

3. Stock Market Access

Look at the breadth of exchanges, indices and sectors you can access. Most firms we’ve evaluated offer US stocks, while the good ones also provide opportunities in European, UK, Asian, Australian and other global markets.

IG‘s trading platform offers a wealth of trading opportunities. You can buy and sell a whopping 3,000+ global equities on established exchanges (like the London Stock Exchange and NASDAQ) as well as exotic ones in emerging markets.

Pro tip: Some brokers allow experienced individuals to trade stocks with derivative products like contracts for difference (CFDs). These instruments facilitate financial market speculation without the need for an individual to hold any underlying shares.

4. Fees and Charges

Choosing a stock broker is about more than just the platform – it’s about minimizing costs, especially if you’re a frequent trader where transaction costs can mount.

Pay close attention to trade commissions, management fees, and bid-offer spreads on the equities you plan to trade such as Tesla, Microsoft and Nvidia, as high costs can quickly eat into your profits.

Also, consider whether you’re getting bang for your buck. Features like commission-free trading, share baskets, and extended hours on US equities offer added flexibility and access to a broader range of opportunities.

Equally, analysis of the stock markets by a brokerage’s experts and customizable stock screeners can elevate the experience, and might be worth paying more for.

IC Markets provides a superb balance of low costs and premium tools, with spreads on stocks as tight as 0.02, and access to Trading Central and Autocharist for market insights.

5. Leverage

Many brokers allow customers to place trades with borrowed money. This is known as trading on margin, and is a popular – but high-risk – way in which individuals try to maximize profits by controlling larger positions.

The amount of leverage available will differ across brokerages, as will the level of collateral a trader will put down. Plus500, for instance, offers leverage of 1:5 for trading share CFDs. This means I can control a position of $50 for every $10 I invest.

Pro tip: Risk management is vital if you intend to trade stocks with leverage. While the level of leverage provided is generally lower than markets like forex and crypto, it remains a high-risk way to trade.

Placing a leveraged stock trade on Plus500's platform

FAQ

What Is a Stock Broker?

Stock brokers facilitate the dealing of shares and other financial securities on behalf of buyers and sellers.

Once these intermediaries have received a trading instruction from a customer, they will get in touch with a market maker – institutions which hold a variety of assets on account – to complete the deal.

The range of services offered by stock brokers can vary significantly. Broadly speaking, these fall into two categories:

  • Full-service stock brokers, which provide additional services (such as investment advice and portfolio management) alongside trade execution.
  • Execution-only stock brokers, which facilitate a basic trading-only function in exchange for a lower cost.

Some financial services providers act as both brokerage and market maker. This can have advantages for traders like us, such as faster trade execution and tighter bid and ask spreads.

However, reduced transparency and potential conflict of interest are key considerations for investors using such companies.

How Do Stock Brokers Make Money?

Stock brokers often earn by charging a commission, which is often a fixed fee per trade.

However, some brokers like Moomoo are increasingly providing commission-free trades and make money off the spread – the difference between the buy and sell price of a stock.

Some brokers also act as market makers, earning even if you lose on a trade.

Article Sources

Plus500 – London Stock Exchange Listing