Are you looking for the best stock broker? Not just a platform where you can trade CFDs, but an intermediary that allows you to buy real shares and keep them in your portfolio for a medium-long period. Do they really exist?
Most of the brokers to invest from home offer stocks, forex and cryptocurrencies in CFD versions. There is nothing wrong with contracts for difference, but they are not suitable for those who want to buy stocks and hold them for several years.
If you want to do this you don't need a CFD broker, but one of the best brokers to buy real shares. Forget bank trading accounts if you do not want to pay high commissions to banks: today there are reliable stock brokers in the US at very low costs, sometimes zero.
Who are the best US stock brokers of 2022? Let's see it together.
Why a stock broker and not CFD?
When investing in the financial markets, you can adopt different strategies and different time horizons. There are those who trade various assets a day, buying and selling on price changes and those who prefer to bet on stock and wait for it to grow over time.
For simplicity we distinguish between:
- trader, one who speculates on the daily price change;
- investor, someone who buys a stock and expects it to pay off with dividends or an increase in value.
Choosing the right broker is essential to achieving your goals. Some platforms are better suited to traders, others to medium to long-term investors.
CFD is more suitable for those who want to trade online. You buy and sell quickly, without commission, and they can also be traded with leverage or on the downside.
Contracts for difference, however, are derivative instruments that have a short or very short duration. Those who want to keep a CFD position open for several days (or weeks) are forced to pay an overnight spread every evening plus an additionally increased spread over the weekend.
An investor, therefore, needs a broker to buy real shares, that is, to hold the underlying asset in his portfolio for the entire period he needs, without having to pay to maintain the position.
What is the Best Stock Broker in the USA?
What are the recommended platforms for buying and selling real stocks? We analyze the pros and cons of each broker by examining the offer, costs, and opinions of users.
Can you trust these online brokers? All the intermediaries you find in the ranking are regulated by the SEC or FINRA.
eToro is one of the most famous brokers in the United States. The online trading platform is conceived as a social network, where people can easily exchange information and opinions or automatically copy the best investors, through the innovative copy trading function.
eToro allows you to buy a selection of US stocks at zero commissions, both as an underlying asset and as a CFD version. The platform allows you to choose whether to trade with real shares or trade derivative contracts, with leverage or short positions.
Using the eToro trading platform is simple and beginner-friendly. To practice, you can use a demo account with virtual $100,000 and simulate your investments from home.
Having a dollar account is an advantage for anyone who trades in US stocks. Please note that if you deposit money into your eToro account in euros you will pay a fee for the currency conversion. To prevent this from happening, you can use a service like Transferwise, which converts currency at real exchange rates, and then move the money to the eToro account.
For the rest, buying US stocks is completely free of commission. A $5 fee is required when you want to withdraw the money. On eToro you can also buy the underlying asset of some ETFs
Pros and Cons
- Simple platform
- Free demo account
- US stock selection
- 0 commissions
- Copy trading
- $5 withdrawal fee
With zero commissions and no minimum required, plus a solid selection of trading features, and sterling customer service, Ally Invest stands out as the best US stock broker for both new and experienced traders.
Ally Invest is regulated by the US SEC and FINRA and offers a wide range of trading opportunities. You can trade stocks, Forex, ETFs, indices, as well as binary yield derivatives.
This relatively new stockbroker has its roots in a highly regarded service called TradeKing. Publicly traded company Ally Financial Inc. bought TradeKing in 2016 and renamed it Ally Invest. TradeKing was well known as one of the low cost investment platforms. Since taking over the hugely successful investment platform, Ally has added her own features and benefits and has canceled fees on most trades.
Ally Invest now serves more than 250,000 client accounts. It holds more than $4.7 billion in assets.
Pros & Cons
- Commission-free trades
- No account minimum
- Strong web-based platform
- Robust research and tools
- You can trade only on US markets
Launched in 2015, M1 is a robo-advisor and a traditional stockbroker based in Chicago, IL. It is a registered broker regulated by FINRA, licensed to do business in all fifty states and three territories. They have over 500,000 investors using the platform after only seven years of operation.
M1 Finance is designed for long-term strategic investors and is not aimed at active traders. The platform helps people invest and put their money to work - without fees or spending a lot of time.
Unlike many other robo-advisors, M1 Finance gives you the option to invest in whole shares or fractional shares. This robo investor service offers more than 6,000 stocks and funds to choose from, while M1 calls it "pies".
M1 Finance has high marks from consumers and investors. The company has a Better Business Bureau rating of “A+”, the highest on the A+ to F scale.
Pros and cons
- Access more than 4,000 stocks and nearly 2,000 ETFs
- M1 Finance does not charge commissions for trading
- Combines automated investment management with individual stock selection.
- Buy fractions shares
- Can't invest in mutual funds
We conclude the list of the best stock brokers with Revolut, a highly developed account card for investments, Bitcoin trading, and commodities. With the Revolut app, you can buy a list of stocks on the financial market and keep them in your portfolio.
Revolut allows you to buy over 750 shares, almost exclusively listed on Wall Street and NASDAQ. Being a matching Mastercard card payment account, the Revolut trading platform is absolutely essential and not suitable for a trader.
However, for drawer investors, focused on the US market, Revolut can be the simple intermediary and within reach of a smartphone suitable for their needs.
Regarding costs, Revolut charges a fee of $1.00 per transaction and requires 0.01% per year on the assets held in the portfolio for management expenses. There is also a maximum limit to transactions on the stock exchange, which cannot exceed $1,000 per transaction.
Pros and Cons
- US stocks
- Simple trading
- Basic platform
- Limit of $1,000 per transaction
Are you looking for the best US stocks to buy?
Now that you know which are the best US stock brokers to buy shares on the stock market, all you have to do is start investing your savings by creating your own equity portfolio.
Not sure where to start? You can take a look at today's best stocks and evaluate which of these companies is right for you.
The undisputed king of the stock markets: Amazon. The giant of Jeff Bezos continues to grind profits, turnover and above all continues in its unstoppable bullish trend.
Many analysts speak of a stock split of the minimum lot of Amazon, in any case, this will not affect the performance of the AMZN stock.
Logistics, entertainment, and more, now Amazon has tentacles everywhere and is without a doubt one of the best stocks to buy ever!
Why is it worth betting on Tesla Motors? Certainly because of the business opportunities that exist in the electric car sector.
This segment is still largely unexplored and Elon Musk's company starts from an advantageous situation in terms of market positioning and know-how.
The first split has already taken place and after a few months, there is already talk of a second one, with the TSLA stock continuing its bullish trend that seems unstoppable from 2020.
A leader in the renewables sector (in terms of electric cars), buying Tesla shares is a highly recommended choice by numerous analysts.
Years go by but Apple is still one of the most attractive stocks for investors around the world. Warren Buffett himself composed his portfolio with a predominant weight of AAPL.
The company has been able to reinvent itself even after the death of Steve Jobs and continues to offer high quality products, also relying on a well-loyal clientele.
In less than 24 months the stock has tripled its value, going from $50 to almost $150 per share: a clear sign of the bullish trend that has recently involved the Cupertino company.
Among the best US stocks to buy we include Pfizer due to the boom in turnover due to sales of the anti Covid-19 vaccine.
Even if the stock has not yet taken a clear direction, we are still talking about a pharmaceutical company among the best in the world and with balance sheets that will be settled by the revenues generated by the vaccine.
Based in New York, Pfizer is an excellent stock to include in the portfolio also with a view to professional and well-structured diversification.
We place Nvidia in the Top 10 of the best US stocks because in the last 12 months the stock has had extraordinary performances on the stock market.
The value of a single share has quadrupled and the Target is now $1,000, with forecasts for the two-year period 2021/2022 marked upwards.
A well-known tech company all over the world, Nvidia is undoubtedly a stock to be included in the portfolio to optimize returns.
One of the best startups of the last 20 years, here is Facebook Inc. Stock listed on the Nasdaq, has a historical chart marked upwards.
Those who invested in FB shares at the time of landing on the stock exchange, to date have seen their value increase tenfold. The company led by Mark Zuckerberg plays a dominant role in the "social" world thanks to the acquisitions of Instagram and Whatsapp.
The title is now solid and very profitable, with no particular weaknesses. That's why investing in Facebook is still a great idea today.
After a long wait for the landing on the stock exchange, certainly, Airbnb did not choose a good time to go public on the Nasdaq given that a few weeks later the world fell into the Lockdown caused by the Coronavirus.
However, precisely for this reason, we are placing Airbnb among the best US stocks thanks to the immense potential for development and inevitable growth in the coming months, with the return to normality.
In addition, the Californian company has diversified its business, also focusing on "experiences" and other types of services that can be purchased through its platform. That's why betting on ABNB can be a really winning choice!
After being little more than a Penny Stock for many years, in 2014 Netflix began grinding hits into series.
Its business based on “on-demand ” video content has revolutionized the way we view television. Even today it is clear that the growth margins are evident and Netflix plays this game from a dominant market position.
Despite stiff competition from Dinsey +, huge growth is expected for Netflix, which remains the full-fledged industry leader. No doubt analysts recommend a BUY for the NFLX title, even for the next three years.
Alphabet (the owner of Google ) is no less impressive. Its search engine could best be called a "money engine". This is what happens when you have a 90% market share worldwide.
Furthermore, YouTube is the number 1 video platform in the world while Android is the number 1 mobile operating system. Google is involved in everything from driverless cars to virtual reality, from drones to artificial intelligence.
Among the best technology stocks in the world, Google is a guarantee for its (many!) Investors.
10. Exxon Mobil
Here is the oil giant of the legendary John Rockefeller: Exxon Mobil. Formerly known as Standard Oil, it is one of the best US stocks in the oil sector. Investors love XOM for its stability, which is great for diversifying the equity portfolio.
After the pandemic, Exxon shares will likely return to pre-crisis levels, so there will also be room for a good recovery in its shares.
In this guide, we have analyzed in detail the best US stock brokers, with 10 best US stocks to buy in 2022 that are ready to bear fruit in the very short term.
To trade these shares we suggest using eToro, one of the best stock brokers on the market: low spreads and competitive commissions, a perfect solution for investing.