For most U.S. investors, Fidelity is the best commission-free trading brokerage overall.
Fidelity combines $0 online commissions for U.S. stocks, ETFs and options with no account minimums, $1 fractional investing, and a broad range of investment research, mutual funds and retirement accounts.
Charles Schwab suits active traders who want the thinkorswim platform. Robinhood fits investors who want a simple mobile app and recurring fractional investments. Interactive Brokers Lite is better for experienced investors who need wider international market access.
Best Commission-Free Brokerages at a Glance
| Brokerage | Best for | Stock and ETF commission | Fractional shares | Main advantage |
|---|---|---|---|---|
| Fidelity | Most investors and long-term portfolios | $0 online for U.S. stocks and ETFs | Starting at $1; more than 7,000 eligible U.S. stocks and ETFs | Low costs, research, retirement accounts and broad investment choice |
| Charles Schwab | Active traders and advanced tools | $0 online for listed stocks and ETFs | Most U.S.-listed stocks and ETFs, starting at $1 | thinkorswim and extensive trading education |
| Robinhood | Beginners, mobile users and recurring investing | Commission-free stocks, ETFs and their options | Starting at $1 on eligible securities | Simple app, recurring investments and no per-contract fee for stock and ETF options |
| Interactive Brokers Lite | Experienced U.S. investors and global traders | $0 for eligible U.S. stock and ETF trades | More than 10,500 eligible U.S. stocks and ETFs | Broad market access and advanced order-routing capabilities |
Fees, eligibility rules and product availability can change. Interactive Brokers Lite offers $0 U.S. stock and ETF pricing only to U.S. residents. Interactive Brokers Pro uses a separate commission schedule.
Why Fidelity Is the Best Overall Commission-Free Brokerage
Fidelity is the strongest default choice because it combines low trading costs with research, retirement accounts, mutual funds and fractional investing.
Fidelity Offers $0 Online Commissions and No Account Minimums
Fidelity lists $0 commissions for online U.S. stock, ETF and option trades. Investors can open a retail brokerage account without an account minimum or account-opening fee.
That combination works for occasional investors buying index funds as well as investors who trade more often.
Fidelity Has Broad Fractional-Investing Coverage
Fidelity lets eligible customers invest in U.S. stocks and ETFs with dollar amounts starting at $1. Fidelity says its fractional investing service covers more than 7,000 U.S. stocks and ETFs.
This can help investors make small recurring contributions. For example, a $50 investment can be divided among several securities even when the individual share prices are high.
Fractional trading is not available for every security. Fidelity also says fractional-share orders are marked "Not Held," which gives Fidelity time and price discretion when executing the order.
Fidelity Supports Long-Term Investing
Fidelity supports stocks, ETFs, options, mutual funds and retirement investing. Its platform also includes third-party research and educational resources. That makes it a fuller long-term investing platform than a brokerage chosen only for its mobile interface.
When Charles Schwab Is Better Than Fidelity
Charles Schwab is a better fit for investors who need advanced trading tools, options analysis or futures access.
Schwab charges $0 online commissions for listed stocks and ETFs. Online options trades have a $0 base commission plus a $0.65 per-contract fee. Schwab also lists $2.25 per contract for futures trades.
Its main difference is thinkorswim, Schwab's trading platform for desktop, web and mobile. The platform includes charting, technical analysis and customizable trading tools. Schwab also advertises 24/5 trading on more than 1,300 securities.
Schwab offers fractional trading in most U.S.-listed stocks and ETFs, with investments starting at $1. Availability can vary by security and order type.
When Robinhood Is the Better Commission-Free Broker
Robinhood is a better fit for investors who prioritize a simple mobile experience, recurring investments and small-dollar purchases.
Robinhood says its investing account is commission-free for stocks, ETFs and their options, with no fees to open or maintain the account. It also offers fractional stock and ETF trading from $1 on eligible securities.
The platform supports recurring investments in stocks and ETFs. These orders use dollar-based purchases, which commonly result in fractional shares.
Robinhood does not charge a per-contract fee for stock and ETF options, although regulatory, exchange and other fees can apply. Index options have separate contract and exchange charges.
One limitation is portability. Robinhood says fractional equity shares are illiquid outside Robinhood and cannot be transferred. That matters if you may move your portfolio to another brokerage later.
When Interactive Brokers Lite Is the Better Choice
Interactive Brokers Lite is better suited to experienced investors who need broad market access, advanced order types or international investing capabilities.
Interactive Brokers Lite charges $0 commissions on eligible U.S. stock and ETF trades for U.S. residents. Interactive Brokers Pro uses a different pricing model, including per-share commissions and minimum charges.
Interactive Brokers advertises fractional trading across more than 10,500 U.S. stocks and ETFs, with investments starting at $1. It also supports fractional trading across selected Canadian and European securities.
The trade-off is complexity. Interactive Brokers has more pricing models, order-routing choices and product settings than most beginners need. Commission-free trading also does not apply to every country, security or account type.
What "Commission-Free" Trading Does Not Include
A $0 commission does not make every trade free.
Bid-Ask Spreads
The bid-ask spread is the difference between the highest current buying price and the lowest current selling price. A broker or market maker may earn money through the spread even when the brokerage advertises $0 commissions.
The Securities and Exchange Commission says brokers may route orders to market makers, internalize trades or use other execution venues. Investors should consider execution quality alongside the advertised commission.
Regulatory Transaction Fees
Regulatory fees can apply to sell orders and options trades. Robinhood, for example, says it passes certain SEC and FINRA fees to customers, subject to specific exemptions and limits.
Options Contract Fees
A brokerage may charge no commission for stock and ETF trades while still charging per-contract, exchange or regulatory fees for options. Charles Schwab lists a $0.65 per-contract fee. Robinhood says stock and ETF options have no per-contract fee but can still incur regulatory and exchange costs.
Fund Expenses
An ETF or mutual fund can charge an expense ratio regardless of which brokerage holds it. The expense ratio is deducted from the fund's assets and is separate from the brokerage's trading commission.
Margin Interest
Borrowing money to trade creates margin interest costs. For an active trader who carries a balance, those costs can matter more than a $0 stock commission.
Which Commission-Free Brokerage Should You Choose?
Fidelity is the best starting point for most people because it balances low costs, investment choice, research, fractional shares and retirement investing.
Choose Charles Schwab if advanced tools, thinkorswim, options analysis or futures access are your priorities. Choose Robinhood if you want a simple app, recurring investments and easy fractional purchases. Choose Interactive Brokers Lite if you are an experienced investor seeking broad market access and U.S. commission-free trading.
Before opening an account, compare the broker's current fee schedule, order-execution disclosures, margin rates and fractional-share restrictions.