Brokerage and robo-advisor review methodology

We look at trading fees for stocks, ETFs, options and mutual funds. We also consider other miscellaneous costs, such as inactivity fees, account termination fees and transfer-out fees, The best brokers offer $0 commissions on stock and ETF trades, provide a variety of no-transaction fee mutual funds, offer options trading at $0.65 or less per trade and keep miscellaneous fees to a minimum.

We look at how many types of accounts a broker offers, including retirement accounts. We examine which securities investors can trade (such as stocks, ETFs, bonds, mutual funds, futures and options). We also consider whether a broker offers fractional share investing and the functionality of a broker’s trading platform.

Brokers are rewarded for having strong research and educational offerings. We consider access to screener tools, as well as the availability of third-party research from firms like Morningstar and CFPA. We also look at the depth and breadth of educational offerings, including articles, webinars, podcasts and more.

We examine the strength of a broker’s mobile app. We consider how easy it is to use the app, and if it includes the same functionality as the broker’s desktop website for all account types.

We consider the communication methods a broker offers to clients, including phone calls, email and live chat support. We also look at the hours of availability for customer support. The best brokers provide a variety of communication options for customers with extended hours of operation for customer support.

Annual management fees and miscellaneous account fees are considered (including transfer-out and close-out fees). We also look at the average expense ratio for portfolios to determine if customers have access to low-cost investment options.

We look at the funds available, account minimum and whether fractional shares are used to build portfolios. The best robo-advisors offer a diversified mix of ETFs and/or stocks with low or no account minimums.

The types of accounts available (such as individual, joint and custodial)  are considered as well as if retirement accounts (such as Roth IRAs and SEP IRAs) are offered. We also examine the features and functionality of a robo-advisor’s cash management account (if applicable).

We look at a robo-advisor’s tax strategy and features, including automatic tax-loss harvesting, tax-coordinated portfolios and automatic portfolio rebalancing. We examine unique features offered by the robo, such as calculators and goal-based planning tools. Finally, we consider the quality of educational resources on the platform as well as access to human advisors for personalized planning.

We consider the customer support options available to clients including the hours of availability and method of communication. The best robo-advisors provide a variety of communication options for customers with extended hours of operation for customer support.