The best in investing

Interactive Brokers took the top spot in Bankrate’s annual awards for a variety of reasons: a variety of high-powered trading platforms, the ability to trade in dozens of stock exchanges around the world, more than 19,000 no-transaction-fee mutual funds and a much-improved account management page. The broker regularly offers some of the best margin rates in the industry and some of the best cash interest rates, while an in-depth ESG screener can help you find the companies that mesh with your values. You’ll also be able to purchase fractional shares. 

While it’s been a haven for professional traders and investors for years, Interactive Brokers has made significant strides in recent years to create a better offering for newer investors, too. Those efforts have culminated in the broker being named Bankrate’s top broker pick for 2024.

Fidelity Investments appeals to many different kinds of investors but beginners will find it meets their needs well. Fidelity is a one-stop shop for investing, offering low trading costs, a wide selection of no-transaction-fee (NTF) mutual funds, a deep bench of research and education and the ability to buy fractional shares, a nice boon for starting investors. On top of all this, Fidelity won’t hit you with the fees that many brokers charge for the usual services.

Fidelity is also amazing at customer support, getting you quickly to a real person who can actually answer your questions and resolve your issue. Perfect for new investors.

Interactive Brokers should be on the short list for advanced traders on the hunt for a new broker. IB offers its flagship Trader Workstation as well as GlobalTrader, a mobile app that gives access to 90 worldwide markets. If you’re looking for ESG stocks, then its IMPACT mobile app can help you sift. Clients will be able to trade almost anything that’s public, from core offerings such as stocks and funds to options, futures, forex and even cryptocurrency (through Paxos). The broker also has some of the lowest margin rates in the industry, starting at just 1.5 percentage points above the benchmark rate, helping traders who run with some leverage to keep costs down.

Interactive Brokers has a well-constructed offering for research and education, providing a solid complement to the broker’s other strengths such as its robust trading platforms and vast selection of tradable securities. Those on the hunt for research will find analysis and commentary from almost 100 experts, including both free and paid services. IB also offers webinars and a podcast, giving those looking to power up their knowledge and trading game plenty of resources. The broker’s Traders' Academy can get clients up to speed on economics, investing and its own tools and platforms, all in an easy-to-navigate path.

Whether you’re an individual or a business, Fidelity probably has a retirement account for you, from the basics such as traditional and Roth IRAs to solo 401(k) plans and SEP IRAs. With Fidelity running so many 401(k) plans, too, you may be able to consolidate your retirement plans here. The broker offers lots of research on mutual funds and exchange-traded funds, making it a great fit for retirement accounts, where funds are a popular choice. Fidelity offers thousands of mutual funds without a transaction fee, so you can get started without those annoying extra costs.

Tack on Fidelity’s strong customer support and otherwise low costs, and you have a broker that’s great for retirement investing.

Schwab Intelligent Portfolios presents a compelling offer with its robo-advisory offering, not only for its lack of management fee but also its low-cost, unlimited access to human advisors in its premium tier. True, it will take more money to get started – $5,000 for the basic tier and $25,000 for the premium offering – but you’ll end up with so much more here. Schwab builds portfolios from more than 50 funds, one of the industry’s widest selections, and offers automated tax-loss harvesting, a premium feature that can save you real money. Finally, Schwab offers one of the largest selections of account types for a robo-advisor, giving you a lot of flexibility here.

Schwab Intelligent Portfolios offers a professionally built portfolio at an investor-friendly price.

Wealthfront provides so many features in one little app that you’ll be left wondering how they packed it all in. You get sophisticated portfolio management that builds a portfolio for you using low-cost investment funds, including socially responsible funds and cryptocurrency funds, and the option to add in stocks, too. Wealthfront also adds in premium features such as tax-loss harvesting and a versatile cash management account that typically offers some of the highest interest rates around as well as automated bill paying. The app’s solid financial planning tool can help you visualize your decisions and what they can earn (or cost) you over time.

You get so much at Wealthfront for what other robo-advisors charge the same or more for.

SoFi Automated goes “all in” on low costs – whether that’s no management fee, low-fee exchange-traded funds or access to certified financial planners for no extra charge. Add up your total costs here and you could easily pay just one-third or even one-quarter as much as you would at rival robo-advisors. Clients of the robo-advisor can access various discounts on other SoFi products such as loans, and this financial warehouse may have clients quickly expanding their relationship to its other products and services, all available on one online dashboard.

One of Betterment’s strongest suits is portfolio management, with the robo-advisor offering a wide array of low-cost funds and premium features such as tax-loss harvesting for all clients. In addition to the core funds on offer, the robo-advisor tees up socially responsible funds, a smart beta fund, cryptocurrency portfolios and a strategy focused on innovative technology, among others. If you want to step up to Betterment’s premium tier (with a $100,000 account minimum and a higher advisory fee), then you’ll get unlimited access to certified financial planners, who can offer even more detailed management and suggestions. On top of it all, you get the robo’s robust cash management account, which pays some of the top interest rates on cash.

As one of the largest financial advisors, Charles Schwab is doing a lot right for investors, and is well regarded as an investor-friendly outfit. With an advisor account, clients can access a range of services, including financial planning, investment management, retirement planning, estate planning and tax planning, among others. Account minimums start at $500,000 – higher than many key rivals – but Schwab charges less overall for its services. Schwab’s range of services at a fair price make it Bankrate’s top pick for online financial advisor for 2024.