8 Best Free Stock Trading Apps for July 2024 | The Motley Fool (2024)

Free stock trading apps make it easy to trade. But the best of them let you do all your trading on your phone, including advanced trades. You can sign up in minutes, buy on the go, and check how your stock is doing at a glance.

We've researched over 45 brokers to bring you this list of the best free stock trading apps. See our picks below:

2 Featured Picks From Our Best Free Stock Trading Apps

We've highlighted a short list of free stock trading apps below, in case you're short on time:

• SoFi Active Investing: Exceptional brokerage for keeping all your financial accounts in one place
• E*TRADE: Great brokerage for both active traders and long-term investors

Why is E*TRADE one of our best free stock trading apps? E*TRADE was one of the pioneers of online stock trading, and while it is best known for its desktop and web-based platform, it also offers one of the best trading apps among the full-featured brokers. It offers excellent research and screening tools, as well as a top-rated advanced trading platform (Power E*TRADE) that is available as a separate app and is free to use for E*TRADE customers.

E*TRADE has not only one, but two, excellent free mobile trading platforms. Its main app is great for most investors, but there's also the free Power E*TRADE app that has an excellent advanced trading platform.

You can open up most account types through E*TRADE, including individual and joint brokerage accounts, traditional, Roth, SEP, SIMPLE IRAs, and many others. Additionally, many other free trading apps don't allow for mutual fund or bond trading, but E*TRADE does.

Why is Robinhood one of our best free stock trading apps? Robinhood was a pioneer in the free trading app industry, and still shines today. It remains one of the only places to trade not only stocks, but options and cryptocurrencies, with no commissions, and fractional share trading is offered on the platform. It also offers a $5 per month subscription product that unlocks some great features, including a high APY on uninvested cash and preferable margin rates.

Some of the rare perks Robinhood offers include retirement benefits. Not only does Robinhood offer IRAs, but it offers unique features such as a 1% match on contributions (more for Robinhood Gold members).

Robinhood also features commission-free stock, option, and cryptocurrency trading, a rare trio among free trading apps.

Why is Webull one of our best free stock trading apps? Webull is designed to be the best free app-based platform for active and experienced stock traders, and it does a good job of it. It offers some advanced trading tools that other free mobile-first platforms don't, and it is one of the few platforms where you can trade options completely free with no per-contract fees. It offers IRA investing for retirement and has a few cryptocurrencies available for trading on the platform.

Webull offers $0 commission trading, even on options, where it doesn't charge a per-contract fee. And unlike some of the free app-based investment platforms, Webull offers traditional and Roth IRAs. Webull also offers Bitcoin, Bitcoin Cash, Ethereum, Litecoin, as well as several others through its Webull Pay App.

Why is Fidelity one of our best free stock trading apps? Fidelity offers one of the highest-rated free stock trading apps among the full-featured online brokers. It has few account fees, the ability to trade on 25 different international stock markets, fractional share investing, and more. Its app offers live streaming quotes, charting tools, and additional features.

As a full-featured brokerage, Fidelity offers a variety of account types that can be opened for free through its app, including individual, joint, retirement, custodial, and trust accounts.

Why is Merrill Edge® Self-Directed one of our best free stock trading apps? Merrill Edge® Self-Directed is one of our top free stock trading apps for a few reasons, and that's especially true if you're already a Bank of America customer (Merrill Edge's parent company).

The platform offers stocks, ETFs, options, mutual funds, bonds, and CDs. You can open up most major investment account types to buy stocks with Merrill Edge® Self-Directed's free trading app, including individual brokerage accounts, IRAs, SEP and SIMPLE IRAs, custodial accounts, small business accounts, and more. Additionally, Merrill Edge® Self-Directed customers can get a debit card to access their money for free at any Bank of America ATM.

Finally, Bank of America's Preferred Rewards loyalty program is the gold standard in banking relationship programs, and Merrill Edge accounts can help you qualify for certain benefits.

Why is Ally Invest one of our best free stock trading apps? Ally Invest is one of our top free trading app choices for a few reasons. It not only offers commission-free stock trades, but offers mutual fund investing through its app, and with no commissions whatsoever. Ally Invest also offers a top-rated robo-advisor platform through its app, which can be a great choice for investors who want to automate some or all of their investments.

Ally Invest doesn't have many active trading tools, but it does offer access to in-depth stock research reports, which many free trading apps don't have. And while investing on margin isn't always a good idea, Ally Invest offers some of the lowest margin interest rates on our radar among free trading apps.

Lastly, Ally Invest's free app offers all of its investment and banking services in the same place, which could make it a great choice for stock traders who like keeping their finances in one place.

Why is Charles Schwab one of our best free stock trading apps? Charles Schwab is one of the largest and most well-known brokers in the world. While its free trading app isn't quite as easy to use as some of the mobile-first trading platforms, it makes up for this in features. It also offers virtually every type of account you might need, and has a top-rated robo-advisor.

Charles Schwab's platform offers stocks, ETFs, bonds, options, mutual funds, foreign exchange, futures, and CDs for investors, all in one free trading app. And in addition to standard brokerage accounts and traditional and Roth IRAs, Schwab offers SEP and SIMPLE IRAs, Solo 401(k)s, college savings accounts, custodial accounts, and several other types.

Charles Schwab is also one of the few free trading apps that allows customers to trade stocks on foreign markets, with more than 30 global markets currently available.

How do I choose a free stock trading app

There are a few things we like to look for when comparing free stock trading apps:

• Diverse investment options: Some free investment apps only invest in ETFs. Others offer an array of options, including stocks, bonds, options, and mutual funds.
• Affordable account minimum: Certain free investment apps let you open an account with as little as $1, while some require an initial deposit of $500 or $1,000.
• Educational resources: It's nice if the app offers resources like third-party research and stock analysis to help you learn to be a better investor.
• User-friendly platform: Online and app-based products should be reliable and easy to use! Check reviews for an app before you sign up to make sure users are happy with their experience.

The exact process of opening an account through a free stock trading app depends on the specific app. But the general process is as follows:

1. Fill out the new account application: This is usually a simple form that includes information about you and the type of account you want to open (individual, joint, retirement, etc.). In most cases, the application takes just a few minutes.
2. Make a deposit: The easiest way to deposit money into a stock trading app is to link a checking or savings account and make a deposit electronically. Alternatively, you could potentially mail a check or wire money.
3. Start trading: That's it! Once your deposit has been posted to your new account, you're ready to start trading stocks.

Many free stock trading apps offer both self-directed investing (where you choose your own stocks) and automated investing, where the app automatically allocates your money into an appropriate investing portfolio. In some cases, you can do both on the same platform.

The right choice for you depends on your investment goals and risk tolerance, as well as the amount of time you want to spend researching investments and monitoring your portfolio. If you don't have the time, knowledge, and desire to research stocks, there's nothing wrong with automating the process.

Aside from the obvious (stocks), there are other investments you may be able to buy in a free stock trading app. Depending on the app, these can include mutual funds, ETFs, futures, cryptocurrencies, and more. Some stock trading apps also offer banking products like high-yield savings accounts, CDs, and checking accounts.

Some free stock trading apps also offer automated investing (robo-advisor) services in addition to the ability to buy and sell individual investments.

This depends on the particular app and its policies. Most of the free trading apps we like don't have any minimums to start trading, although you might need a certain amount -- such as $5 -- before it is practical to make an investment.

However, some stock trading apps have minimums. If an app has a minimum, it is typically in the $100 to $1,000 range, although higher minimums are possible, especially among automated investing (robo-advisor) apps.

Free stock trading apps are safe in the sense that your investments are generally protected by SIPC insurance in the event that the app or brokerage fails. And many have protections against unauthorized trading activity, so you're protected if your account gets hacked.

However, it's important to realize that the investments you choose in a free stock trading app can be volatile. Depending on what you invest in, and how the overall economy and stock market performs, it's possible to lose money. For this reason, it's important not to invest any money in stocks that you'll need in the next few years, and not to invest any money at all in speculative investments that you can't afford to lose.

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