YES! is the quick response. You could expect to pay $50 to trade a stock not long ago, but in the early 2000s, "discount brokers," powered by internet platforms, brought prices down to $6-$10. With the introduction of free online stock trading, the sector has achieved yet another significant step forward. An excellent example of a free online stock trading platform is Robinhood. Still, traditional brokers such as M1 Finance have also entered the fray. Before we get started, keep in mind that none of these choices will work for you if you seek a free way to buy stocks online for day trading. Day trading is often prohibited or has built-in constraints to prevent it.
Robinhood is the best free stock trading broker.
Robinhood is a new investment software that allows you to purchase and sell stocks without paying commissions. In fact, you can use the platform to purchase and sell over 5,000 stocks and exchange-traded funds. You can even trade options and cryptocurrencies without paying any commissions.Features
The software is available on Google Play for Android 5.0 Lollipop and newer devices. On the App Store for iOS devices (10.0 and later). iPhone, iPad, iPod touch, and Apple Watch are all supported. Be aware that Robinhood has a premium edition if you open an account. The Robinhood Gold account is their margin account. You'll be charged a flat monthly fee as well as interest on significant sums borrowed. Another significant advantage of Robinhood is that there is no minimum account balance requirement, making it ideal for investors with limited funds.Limitations
With Robinhood, there are a few drawbacks to be aware of. The first is that day trading is expressly forbidden in the program. They might even mistake high-frequency trading for day trading and put your account on hold. While going with a commission-free investment app may seem like a perfect choice for a regular trader or day trader, it is often frowned upon. Another restriction is that not all securities can be traded. They don't allow dealing in the following items, for example: stocks from abroadOTC ( Over The Counter) stocks
equities that are favored, and foreign currency securities Like directly purchased stock programs, Robinhood may be suitable for long-term investors who wish to buy stocks and hold them for years. Due to the combination of no fees and no minimum initial commitment, they're also a good option for new and small investors. M1 Finance is a company that provides financial services to individuals and businesses. Another fee-free investment app is M1 Finance. There are no monthly management or advisory fees and no trading fees.Features
Rather than buying individual equities, you establish individual portfolios that include both stocks and ETFs (ETFs). These portfolios are referred to as "Pies" by them. M1 has over 60 pie shapes to pick from, but you can make as many different pies as possible. You can, for example, choose a pie based on investing in specific stocks, such as the FAANG stocks (Facebook, Apple, Amazon, Netflix, and Google), specific investment sectors, or a specific goal, such as socially responsible investing. You can specify not only which investments will be held in a pie but also what percentage of each will be allocated. You can acquire fractional shares on M1. You can make a fully diverse pie with a minimal amount of money in this manner. There is no minimum investment requirement, although they do recommend starting with $500 to get started. M1 enters Robo-advisor mode after establishing your pie and managing your portfolio for you. This includes dividend reinvestment and automated rebalancing. M1 is a combination of a Robo-advisor and self-directed investing because you may choose the precise investments in your pies and benefit from Robo-advisor management. Individual and joint taxable accounts and traditional Roth, rollover, and SEP IRAs are all available through M1. M1 Finance is a free app for iOS and Android devices that can be downloaded from Google Play or the App Store. Due to the use of pies in your portfolio, M1 is not appropriate for day trading or high-frequency trading, similar to Robinhood.Limitations
The most significant disadvantage of M1 is that you can't buy individual stocks on the platform; instead, you have to use the "pies" strategy outlined above. More information can be found in our M1 Finance review.Free Stock Trading Promotions from Brokers
Large, well-known brokerage businesses are unlikely to offer free stock trading on the internet. Many do, however, provide a limited amount of free trades as a promotional offer when you register a new account or meet other criteria. The practice has grown in popularity in recent years. While you may not be able to rely on a single broker to offer free trades on a constant basis, there are usually several at any given time. Just keep in mind that the lineup changes depending on the promotions available. Brokers that offer promotional free trades are typically better suited to more prominent investors that can meet the hefty minimum deposit requirements. Because at least some of the deals are continuing, they can also benefit frequent traders. The following are some of the current top brokers that offer free stock trading online:Fidelity
Fidelity is offering up to 300 commission-free trades over the course of two years. It's actually a two-tiered deal. You get 300 commission-free trades when you fund a new or existing qualifying account with $50,000 to $99,999. However, if you deposit $100,000 or more, you will receive 500 free trades. The free trades can be used over a two-year period, making it a semi-permanent offer. After all, two years is a long time to trade. Given that Fidelity is one of the most popular investment platforms accessible, this is a fantastic offer. Their standard compensation structure is $4.95 per trade, which places them near the bottom of the broker commission spectrum.Schwab Charles
Not to be surpassed by its primary competitor Fidelity, Charles Schwab now offers commission-free online trading. You must make a $100,000 net deposit into your Schwab account to be eligible. Schwab also charges only $4.95 per online equity trade on a daily basis.Invest with Ally
A combined bonus promotion of up to $3,500 is available from Ally Invest. Before you get too thrilled about the $3,500 cash incentive, keep in mind that its part of a tier system. There are seven bonus tiers, which are determined by the size of the deposit or transfer: For $2 million or more, $3,500 is the going rate. $1.99 million for $2,500 $1,200 for $500,000 to $999,900 $600 for $250,000 to $499,900 $300 for $100,000 to $246,900 $200 for $25,000 to $99,900 $50 for $10,000 to $24,900 Trades in stocks and exchange-traded funds (ETFs) cost nothing. Our Ally Invest review will tell you more.Edge of Merrill
The Preferred Rewards Platinum Program at Merrill Edge allows you to make up to 30 commission-free trades every month. However, their Platinum Honors Program allows you to make up to 100 commission-free trades each month.' A net new asset balance of $20,000 or more earns you a $150 cash incentive, with a net new asset balance of $200,000 earning you $900. You must have at least $50,000 in a qualified Bank of America personal checking account or $100,000 for the Platinum Honors two-year period to qualify for the Preferred Rewards Platinum program. For automated phone trades, non-promotional trades charge $6.95 per trade.TD Ameritrade, Inc.
For the next 60 days, TD Ameritrade is offering commission-free trading. The offer is the most accessible among the major brokerages since you may enjoy free trades with as little as a $3,000 deposit. However, TD Ameritrade, like the other brokerage platforms on this list, offers a cash reward of $100 for deposits of $25,000 or more, $300 for deposits of $100,000 or more, and $600 for deposits of $250,000 or more. Online equities, ETF, and options trading are all eligible for free trades. TD Ameritrade charges $0.01 for regular trading. In our TD Ameritrade review, we give you all the details on this platform.J.P. Morgan's "You Invest"
J.P. Morgan's You Invest, a brand new brokerage platform, launched only this summer. Over 100 commission-free online stock and ETF trades are available as an introductory offer. To begin, there is no minimum deposit, and after you've completed your free trades, regular trading fees are $2.95 per trade. According to the website, the commission-free deal will be available every year.Stockpile - Not completely free, but very close
Stockpile isn't a site where you can purchase and sell stocks for free. However, you may swap them for fees, making the platform almost accessible. Stockpile is a mobile app as well as an internet broker. Gift cards are maybe their most well-known product. You can buy one for a fixed amount or for a specific stock or exchange-traded fund. The gift cards can be redeemed on the Stockpile investment platform, as well as retained and finally sold. The central concept is that whereas you used to be able to present stock certificates as a gift, you can no longer do so. Gift cards are meant to take the place of stock certificates. Stockpile allows fractional shares because the gift cards may be for fixed quantities, such as $50 or $100. You can buy over 1,000 stocks and 100 ETFs with Stockpile. Brokerage accounts do not demand a minimum initial investment or a continuing account balance. There are no monthly costs to keep your account running. But first, let's get to the almost-free bit. Stockpile charges just 99 cents each trade to buy or sell a stock or an ETF. It makes no difference how many shares you buy or how much money you spend. A 99 penny commission on $10,000 worth of Apple shares would be imperceptible in the big scheme of things. Stockpile is not a full-service broker, which is something to keep in mind. They only sell stocks and ETFs, and only a small number of them. The site does not allow you to trade mutual funds, bonds, options, or other investments. There is no direct customer service, either by phone or by live chat. Vanguard and Fidelity have no free stocks, but they do have free ETFs. ETFs are funds that are made up of dozens or hundreds of equities. As a result, we've included free ETFs from Vanguard and Fidelity on this list. Vanguard offers commission-free online trading on about 1,800 ETFs from over 100 different fund issuers. Furthermore, this is not a limited-time offer. Vanguard does this all the time. Not to be outdone, Fidelity offers 265 commission-free ETFs from Fidelity (25 funds) and iShares that may be purchased online (240 funds). This is an ongoing offer, not a promotion, once again.Purchase Stocks Directly from the Issuer
Straightforward stock purchase plans are one of the most direct ways to acquire stocks online for free. Large corporations are more likely to provide them. Still, they allow you to acquire stock through their company, usually through the investor services department. When it comes time to sell, some (but not all) corporations that provide direct stock purchase programs will even repurchase stock. You'll be able to buy and sell individual company stocks without paying a commission in this manner. Also, organizations that provide direct stock purchase plans usually allow you to reinvest dividends in fresh stock automatically. Dividend Reinvestment Plans, or DRIPs for short, are the name of the schemes. You can use these programs to reinvest dividends in more stock and increase your stake in the firm without paying a fee. More than 600 significant corporations offer direct stock purchase programs, according to the website DirectInvesting.com. The majority of these businesses will be immediately identifiable and include:- Company 3M
- Bank of America is a financial institution based in the United States.
- Phillips Conoco
- Exxon Mobil Corporation
- Mills, General
- Honeywell
- Johnson & Johnson is a pharmaceutical company.
- Kellogg
- Morgan Stanley is a financial services firm.
- Raytheon
- Schwab, Charles
- Sherwin-Williams
- US Steel
- W.R. Grace
- Xerox
Final Thoughts on Stock Buying for Free
As you can see from this list, it is possible to buy stock for free, and most of these platforms are ideal for new investors. There is, however, no such thing as a free lunch. The best way to use these platforms is to buy and hold and cut your commissions. Not only can you buy stocks for free online, but you can also buy ETFs, options, and even entire portfolios without paying a commission. You must choose the right platform to locate what you seek. The main disadvantage of these free platforms is that few of them are appropriate for day trading or high-frequency trading. However, if you trade on a regular basis, any of these solutions will allow you to trade commission-free. Try one or more of these platforms if you only want to buy some stocks or ETFs without paying a commission and hold them for the long term. You may always do your high-frequency trading on other online stock broker platforms or even try your hand at day trading with some of the larger firms on this list who provide continuing free trades.