Details on the 8 best free stock trading apps in 2022 along with the pros and cons of free stock trading have been shared here for you.
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| Best Free Stock Trading Apps in 2022 |
Trading stocks has never been easier. From the days of The Wolf on the Wall Street, we’ve come to a place where newbies can start trading the very day they decide to. Almost all of the major brokerage firms no longer have commissions on stock trades and the actual buying and selling of stocks has become really simple.
A major factor in this is the plethora of commission-free stock trading apps available out there and their easy accessibility.
Here are some of the best stock trading apps from the top stock brokers you will require to get started on your stock market journey today. We’ll also list some factors to keep in mind while choosing which app would be the best for you.
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TD Ameritrade
TD Ameritrade offers a lot other than commission-free stock and ETF trading despite being a free stock trading app. It will allow you to invest in a variety of stocks on the go.
This app’s capabilities are top-notch, and the services they offer are way above what you’d expect to find in such a scenario. They have amazing customer service, a line-up of investment vehicles, an array of account types, etc. The trading platform is a robust and active one.
Of course, nobody is perfect. TD Ameritrade does not include the option to trade or invest in fractional shares or cryptocurrency. If that’s what you want, you’d have to try something else out.
TD Ameritrade’s iOS rating is 4.5/5 and its Android rating is 3.5/5.
Robinhood
Robinhood allows for trading in stocks, options, and cryptocurrencies (yes, that means Bitcoin). As a user, you have access to a feature of cash management that lets you have an interest in cash balances. If you are interested, then you can access the $5/month Robinhood Gold premium version of this app.
This premium account will let you have $1000 of interest-free margin plus Morningstar stock research reports. A big advantage of Robinhood is the $0 options commissions combined with the no-fee per contract feature. You heard that right. Even the top brokers have a fee per contract. But not Robinhood. These guys are true ‘Robinhoods.’
Also, the app itself is user-friendly. And unlike the previous entry, this app allows fractional share investing.
But even Robinhood had some bad qualities. Not many educational tools and resources are available. There are also no IRAs or mutual funds or Robo-advisory services. And of course, you won’t get those research reports unless you are subscribed to a premium account. All this indicates that this app was made with traders in mind, not long-term investors.
Robinhood’s iOS rating is 4.1/5 and its Android rating is 3.8/5.
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SoFi Invest
SoFi, short for Social Finance, is relatively new in free stock trading apps yet has a plethora of financial products in its arsenal other than the actual investing part.
With SoFi Invest, you can invest actively, which is stock trading, or you can opt for automated investing services, which are Robo-advisory ones. There is also the option of trading cryptocurrencies. Plus, with SoFi, you get traditional and Roth IRAs, something that not a lot of other apps offer. And each of these functions, which are lending, investing, saving, etc, are available at your fingertips through one app, namely SoFi Invest.
SoFi was designed to act as a one-stop solution for all your investing problems. So you also get personal loans on the SoFi app. In addition, mortgages, private student loans, credit cards, and high-yield savings accounts are also available. However, surprisingly, there are no options for mutual fund trading. Also, there are no research reports or advanced tools of any sort.
SoFi Invest’s iOS rating is 4.8/5 and its Android rating is 4.4/5.
E*TRADE
Much like SoFi Invest, E*TRADE is reputed to offer solutions to all the problems that an investor would face. To this end, E*TRADE incorporates two apps, both of which are free: the regular E*TRADE app and the Power E*TRADE app designed keeping in mind more active traders.
If you are a general investor and you do it just as a side business, then E*TRADE would have more than enough features for you. You can place trades on an intuitive platform, manage and handle your account, get regular updates about what’s going on in the stock market, and do stock research and screening.
However, if you are a hardcore and active trader, then you’d want to go for the Power E*TRADE app. Here you get real-time technical analysis of stocks, advanced options trading features, futures trading options, and some amazing charting capabilities. The app stores’ reviews suggest that there are some glitches in the Android version of the app, so you might want to go for the iOS version.
However, neither of the E*TRADE apps has cryptocurrency, forex, or fractional share trading. As mentioned, there is some futures trading, but that’s it. Also, you do not have access to international exchanges in this app, something to keep in mind if you are interested in that area.
E*TRADE’s iOS rating is 4.6/5 and its Android rating is 4.2/5. Power E*TRADE’s iOS rating is 4.5/5 and its Android rating is 3.7/5.
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Webull
Webull is another best free stock trading app that give its user more features and options than most of its rivals.
It’s a mobile-based stock trading platform where you don’t have to pay any commissions at all, and also there are no account minimums. If you something who uses margin, here you’d get some of the lowest rates anywhere. Webull’s ‘Paper Trading’ feature has as its target audience newbies, which is a virtual trading simulator for learning and practicing investing without actual money, and hence without any risk.
Traditional IRAs are available here, and you can also trade cryptocurrencies. Options trading is also an option.
Unfortunately, Webull doesn’t support fractional share trading, and neither can you trade mutual funds and OTC stocks. Educational tools and resources are scanty here, plus most of the market research reports and data would need premium membership for access.
Webull’s iOS rating is 4.7/5 and its Android rating is 4.4/5.
Merrill Edge
If you are a Bank of America customer, then you can say that the Merrill Edge app was tailor-made for you. Of course, this is not to say that you shouldn’t or couldn’t use this best free stock trading app if you are not a BoA customer. However, Merrill Edge does integrate amazingly with Bank of America’s banking app.
This stock broker app has brokering offerings in addition to the investing capabilities and features that it boosts. This is the place to be if you want all your investing and banking needs to be taken care of in one go. You can choose from a variety of account types, and there’s also a preferred Rewards program in this app.
However, you won’t find support for cryptocurrency investing here. And for that matter, the trading platform is not the very best either. But all in all, this is a great app.
Merrill Edge’s iOS rating is 4.7/5 and its Android rating is 4/5.
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Fidelity
Fidelity has a high rating for both its Android and iOS versions. The app’s trading platform is user-friendly and highly customizable. You can have your own customized news feed, look at stock research, deposit checks and pay your bills as well.
Fidelity allows for fractional share investing, but only on S&P 500 stocks. This app happens to be the highest-rated app among brokers that don’t have mobile-based apps. Also, this is one of the few places where you’d get to trade on international stock exchanges.
However, Fidelity’s margin rates are high in comparison to its competitors. The options commissions are on the higher end of the spectrum. If you are interested in crypto trading, then you’d have to look elsewhere.
Fidelity’s iOS rating is 4.8/5 and its Android rating is 4.4/5.
Ally Invest
Ally Invest is also on our list of best free stock trading apps as it offers more than the usual trading of stocks, ETFs, options, and mutual funds.
You get the Managed Portfolios Robo-advisory service, high-yield savings accounts, checking accounts, CDs, mortgages, auto loans, personal loans, and a lot more. In terms of functionality, Ally Invest is an awesome app. This is where you get to trade stocks and keep your checking and savings accounts in the same place. The mutual fund commissions you’d see here are one of the lowest you’d find anywhere. IRAs for retirement savings are also available.
However, the trading platform might not prove to be adequate for serious traders. Plus, there is no option for NTF (no-transaction-fee) mutual funds.
Ally Invest’s iOS rating is 4.7/5 and its Android rating is 4.1/5.
Factors to look for while choosing the best free stock trading apps for you
The essential part of the heading above is the last two words. See, your needs and desires would dictate what type of app suits you the best. There would hardly be a free app that offers all of what every investor would want.
With that said, here are some factors that you might want to keep in mind when looking for the top stock trading app for you.
- Trading of fractional shares of stocks
- Commission-free trading
- Cryptocurrency trading
- Access to educational tools and stock market research
- User-friendly app
- Options trading
- Mutual funds (with no transaction fees)
- Support for many account types like IRAs, custodial accounts for minors, joint accounts, etc
- Tools for active investors
- Reasonable margin rates
Pros and cons of free stock trading apps
Pros
If you have internet, then you can trade stocks with the snap of a finger, or the click of a button. For newbies, and also for seasoned players, this feature is a boon.
Cons
You won’t ever get as much functionality in free stock trading apps as you would in desktop-based trading platforms. Features like stock research and educational tools are rare at best.
What’s the capital needed for stock trading?
Brokerages could have a deposit requirement. However, most online brokerages don’t. You could purchase fractional shares of stock with a few dollars in most stock trading apps. If you are planning to buy a full stock, then the cost would be whatever the cost of that stock is barring any commission paid to the brokerage.
However, for a diversified portfolio, we suggest the purchase of a minimum of 10 stocks.
Investments available for purchase in free stock trading apps
The types of investments you’d be able to make depends totally on what your trading app offers. Some apps allow trading of OTC (over-the-counter) stocks, and some don’t. In others, you can buy stocks directly on foreign stock markets in addition to the US barters.
Some only offer stock trading, while others have options for trading options and mutual funds. Some have provisions only for stock trading. There are also apps that offer automated investing, or Robo-advisory services, as it is known. These services make and maintain an investment portfolio for you.
What all this means is that you should look at the investment selections of various apps before deciding which one to go with.
Choosing a stock trading app as a beginner
- Account minimums: Take into consideration the deposit you’d need to make if an app requires it. Many apps don’t, but some require as much as $500 as a deposit.
- Cost structure: Look out for any monthly fees or commission charges on stock trading.
- Features and supports: If you are a newbie, you’d especially benefit from educational tools and stock research. Even if you are an experienced investor, these are required to widen your knowledge.
- Variety of funds: Apps that invest in no-fee mutual funds or exchange-traded funds (ETFs) are great for beginners. This way, you need not be an expert on the stock market to make wise investment choices.
Investing in stocks as a beginner
- Choose how you want to invest: If you want, you could select individual stocks. Or you could be more interested in Robo-advisory services for managing your portfolio. Maybe you are the middle person, choosing to work with a broker with low-effort index funds.
- How much will you invest? Here’s a thumb for you. If you want the money you invest back within five years, forget investing. Short-term investments are highly volatile, and the investments are not supposed to act as liquid funds. Make sure you have kept aside emergency funds, vacation savings, educational expenditures, and other such funds you’d need within five years.
- Open an investment account: All the discussion above should help you decide which brokerage account to choose. Choose one, and open an account that requires the least amount of investment.
- Diversify the stocks: In the beginning, you want to play it safe. In the beginning, you should pick individual stocks, called investing in a self-directed account, from companies that you understand from all the industries available. Don’t go after high-volatility stocks. To just bypass the choosing process, choose an ETF or index fund.
- Keep at it: This is more a life lesson than an investment one. Continue your investments and hold on to them for the long term. This way, you’d be sure to get the most profitable returns possible on your investments.
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