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Writer's pictureAlexis Gonzalez

The beginning: Brokers

Updated: Feb 12, 2023


Throughout history, financial assets such as stocks, bonds, commodities, and currencies have witnessed alternating cycles of rising and falling prices. These fluctuations represent market opportunities for traders and investors seeking profits.


A crucial step in maximizing the financial markets is finding an online broker that best fits your personality and financial goals. Today, most online brokers offer $0 trades on stocks and ETFs, and many also offer $0 commissions on other asset classes


Online brokerage platform
Online brokerage platform

The best trading platforms offer low fees in a transparent manner, with limited gaming tactics that promote excessive trading. They also provide extensive fundamental and technical research, a wide range of investment options, cutting-edge trading tools, excellent customer service, solid mobile capabilities, and a wealth of easily accessible educational materials, all on powerful mobile and desktop platforms.


At TradES, we primarily use the following brokers.



TD Ameritrade


TD Ameritrade is the best broker for beginners and for mobile devices due to its intuitive platform, comprehensive educational offering, and excellent mobile analysis options, research services, and trading tools. They have a continuous commitment to providing investors with easy access to some of the best educational content, mobile trading tools, and research services in the industry.


Minimum account opening: $0.00


Fees:

  • Stocks/ETFs: $0.00

  • Options contract: $0.65

  • Futures contract: $2.25


Founded in 1975 and bought by Charles Schwab in 2019, TD Ameritrade is one of the top full-service online brokers. True to form, the company continues to implement new product improvements, such as updates to its already impressive charting functionality and a portfolio summary feature announced in 2022.


TD Ameritrade's ThinkorSwim platform
TD Ameritrade's ThinkorSwim platform

The prestigious TD Ameritrade thinkorswim® trading platform is powerful yet intuitive. The development of personal trading strategies is facilitated by access to solid backtesting tools, while implementation of these strategies can be practiced using the platform's capable paper trading function.


When it comes to functionality, accessibility, and flow across mobile, desktop, and web platforms, TD Ameritrade offers an experience that is as consistent as possible.


Advantages

Disadvantages

Wide range of product offerings

Some account fees are relatively high

Magnificent educational content

Does not offer fractional shares

First-class trading technology and options analysis on all platforms

Cryptocurrency trading through OTC trusts, ETFs, mutual funds, and Bitcoin futures only

Very competitive paper trading platform


Strong customer support


TD Ameritrade simply offers the best overall mobile package. This overall solidity is due to the wider range of available asset classes, access to a highly-regarded customer service, top-notch research, powerful screening features, backtesting-capable calculators, and tools to evaluate your overall financial situation, all without balance requirements and transparent pricing.



Interactive Brokers


It is the best broker for advanced traders and international transactions. With its competition still far behind in these two categories, Interactive Brokers (IBKR) is the best broker for advanced day traders and international traders, due to its wide range of global assets and advanced analytical and calculatory tools.


Minimum account opening requirement: $0.00


Fees:

  • Stocks/ETFs: $0.00

  • Option contract: $0.65

  • Futures contract: $0.85


Interactive Brokers TWS Software
Interactive Brokers TWS Software

There is no other broker that combines a broad range of investable global assets, advanced trading technology, and research capabilities. With 1.92 million customer accounts and $2.17 billion in daily traded values, IBKR is a solid and well-financed broker that is also publicly traded (NASDAQ: IBKR).


The company was founded in 1978 by its current chairman, Thomas Peterffy, and was originally named T.P. & Co. The company was a pioneer in using computers in trading, but it wasn't until 1993 that Interactive Brokers became a US securities broker. It is now one of the most comprehensive brokers in the industry. With access to 150 markets and trading allowed in stocks, options, futures, currencies, bonds, funds, cryptocurrencies, and more in 200 countries, and funding methods available in 24 currencies, there is no doubt that IBKR is the best international broker.


To maintain its edge over the competition, the company is always innovating. Some of the most notable recent enhancements include a market interest rate paid on uninvested cash, the IBKR GlobalTrader mobile app, and the ability to make fractional trades in European stocks and ETFs.



Advantages

Disadvantages

Superior order execution

IBKR's SmartRouting is not available to IBKR Lite clients

Contingent orders for any imaginable scenario

TWS can be difficult to learn

An unmatched range of foreign and international investable assets

Fees are tiered and can be a bit confusing

Low interest rates

No backtesting of custom trading algorithms or automated trading

Trader Workstation (TWS) is very powerful and highly customizable


International traders can access financial markets and all assets through desktop, web, and mobile versions, including the IBKR Mobile and IBKR GlobalTrader apps. TWS is a beautifully designed platform that combines technical analysis, social sentiment, fundamental research, and financial calculators in a way that enables users to take advantage of market inefficiencies better than any other platform.




Tastyworks



Tastyworks is the best broker for options due to its intuitive delivery of the best combination of industry-focused tools and content for options. It was created in 2017 by the same people who created and developed the prestigious TD Ameritrade thinkorswim® application.



Tastyworks trading platform
Tastyworks trading platform

Tastyworks offers very competitive rates for options trading, with standout features such as commission caps for large lots, as well as the absence of closing position fees. Fortunately, for Tastyworks users, these low fees do not come with a platform that offers deficient option analysis, an inefficient platform workflow, or slow trade execution. In fact, the platform brings all these elements together in a way that is among the best of all companies.


Advantages

Disadvantages

Limited commission structure for options

Limited investment options

Highly regarded tools for option analysis and monitoring

Few investment and retirement resources

Magnificent specific content options and educational material

Weak portfolio analysis

Recent improvements in the dashboard

No news or fundamental analysis

The Follow Feed function allows users to follow Tastyworks TV celebrities' trades


Tastyworks has responded to the demand of customers for social trading capabilities by allowing users to follow individual traders in real-time and allowing them to view and replicate the strategies used by other traders. While Tastyworks still provides a first-level customer service, a limited fee structure in option transactions and excellent educational and trade-related content options, they have room for improvement with the lack of key research features and limited mobile charting capabilities.



If you wish to learn more, review the content of our blog and review our training options.



You can read our Disclaimer.


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