A stockbroker is a financial professional who executes orders in the market on behalf of clients. A stockbroker may also be known as a registered representative (RR) or an investment advisor. Most stockbrokers work for a brokerage firm and handle transactions for several individual and institutional customers. Stockbrokers are often paid on commission, although compensation methods vary by employer.
Key Takeaways
- A stockbroker is a financial professional who buys and sells stocks at the direction of clients.
- Most buy and sell orders are now made through online discount brokers. This automated process reduces fees.
- Wealthy individuals and institutions continue to use full-service brokers who offer advice, portfolio management services, and complete transactions.
Understanding the Role of a Stockbroker
Buying or selling stocks requires access to one of the major exchanges, such as the New York Stock Exchange (NYSE) or the NASDAQ. To trade on these exchanges, you must be a member of the exchange or belong to a member firm. Member firms and many individuals who work for them are licensed as brokers or broker-dealers by the Financial Industry Regulatory Authority (FINRA).1
Until recent years, getting access to the stock markets was prohibitively expensive. It was cost-effective only for high net-worth investors or large institutional investors, such as the managers of pension funds. They used full-service brokers and could pay hundreds of dollars for executing a trade.
Here’s a list of some of the top stock brokers in the USA, along with their overview, location, contact information, and website links.
List of Top Stock Brokers in the USA
1. Charles Schwab
- Location: San Francisco, CA (Headquarters)
- Contact: +1 866-855-9102
- Website: Charles Schwab
- Overview: Charles Schwab is one of the largest and most reputable brokerage firms in the USA. They offer a wide range of investment products, including stocks, ETFs, options, and mutual funds, with competitive pricing and a robust trading platform.
2. Fidelity Investments
- Location: Boston, MA (Headquarters)
- Contact: +1 800-343-3548
- Website: Fidelity Investments
- Overview: Fidelity is known for its comprehensive range of investment products, research tools, and excellent customer service. They offer commission-free trading for stocks and ETFs and have a strong emphasis on investor education.
3. TD Ameritrade
- Location: Omaha, NE (Headquarters)
- Contact: +1 800-669-3900
- Website: TD Ameritrade
- Overview: TD Ameritrade offers a powerful trading platform with a wide range of investment options. Known for its Thinkorswim platform, it caters to both beginners and advanced traders. It was recently acquired by Charles Schwab.
4. E*TRADE
- Location: Arlington, VA (Headquarters)
- Contact: +1 800-387-2331
- Website: E*TRADE
- Overview: E*TRADE is a well-established broker that provides an easy-to-use platform for trading stocks, options, and ETFs. They offer robust research tools, educational resources, and a mobile app for on-the-go trading.
5. Robinhood
- Location: Menlo Park, CA (Headquarters)
- Contact: Support via the app or website
- Website: Robinhood
- Overview: Robinhood is popular among younger investors and beginners due to its user-friendly app and commission-free trading on stocks, ETFs, options, and cryptocurrencies. It has revolutionized the brokerage industry by making investing accessible to everyone.
6. Interactive Brokers
- Location: Greenwich, CT (Headquarters)
- Contact: +1 877-442-2757
- Website: Interactive Brokers
- Overview: Interactive Brokers is known for its advanced trading platform, low fees, and a wide range of investment products. It caters to both retail and institutional investors, offering access to global markets and professional-level tools.
7. Merrill Edge
- Location: Charlotte, NC (Headquarters)
- Contact: +1 888-637-3343
- Website: Merrill Edge
- Overview: Merrill Edge is a subsidiary of Bank of America and offers integrated banking and investing services. They provide commission-free trading on stocks and ETFs, along with personalized investment advice and research.
8. Vanguard
- Location: Valley Forge, PA (Headquarters)
- Contact: +1 877-662-7447
- Website: Vanguard
- Overview: Vanguard is renowned for its low-cost index funds and ETFs. While they offer brokerage services, their focus is on long-term, passive investing. Vanguard’s platform is ideal for investors looking to build a diversified portfolio.
9. Ally Invest
- Location: Charlotte, NC (Headquarters)
- Contact: +1 855-880-2559
- Website: Ally Invest
- Overview: Ally Invest provides commission-free trading on stocks, ETFs, and options, along with a user-friendly platform and no minimum account requirements. It’s an excellent choice for both active traders and beginners.
10. Tastyworks
- Location: Chicago, IL (Headquarters)
- Contact: +1 773-819-9200
- Website: Tastyworks
- Overview: Tastyworks is a brokerage firm designed by traders for traders, focusing primarily on options trading. They offer a competitive pricing structure, advanced trading tools, and a strong community of traders.
Conclusion
These stock brokers offer a variety of services and platforms tailored to different types of investors, from beginners to seasoned traders. Whether you’re looking for commission-free trades, advanced trading tools, or comprehensive research and education resources, this list provides options for various investment needs in the USA.
