In the dynamic world of finance, long-term investing stands as a reliable strategy for accumulating wealth and securing one’s financial future. To start this path with confidence, you must choose the best broker to be a financial partner that acts as a solid link between your financial objectives and the wide range of market prospects.
In this article, we will take you on a thorough search to identify the best broker for long-term investing. We will explore the key features of brokerage services, such as fees, tools, trading platforms, reliability, and other factors you must consider when trying to find a broker who can help you build a prosperous future.
Regardless of your level of experience or where you are in your financial journey, keep on reading this article as we present and compare the five best brokers for long-term investing for 2023.
|Broker||Minimum Deposit||Products||US stocks fees||Regulators|
|Interactive Brokers||$0||Stocks, Options, ETFs, Futures, Forex, Cryptocurrencies, Commodities, Bonds, and Funds||Free for US investors; International investors: Tiered plan: $0.0035/ share
Min: $0.35 Max: 1% of trade value.
|SEC, FCA, ASIC, IIROC, CSSF, CBI, CBH, HKSFC, MAS|
|Fidelity||$0||Stocks, Mutual Funds, ETFs, Options, Bonds, CDs, Commodities||$0||SEC|
|TD Ameritrade||$0||Stocks, Options, ETFs, Mutual Funds, Futures, Forex, Bonds, and CDs||$0||SEC, FINRA, CFTC, MAS, HKSFC|
|E*TRADE||$0||Stocks, ETFs, Mutual Funds, Options, Bonds, Future and Crypto||$0||SEC, FINRA|
|Saxo Bank||€/$2,000||Stocks, Forex, ETFs, Bonds, Mutual Funds, Options, Futures, CFDs, and Crypto||Classic Acc: $0.02/share (min. $5)
Platinum Acc: $0.015/share (min. $4)
VIP Acc: $0.01/share (min. $1)
|FSA, FCA, FSMA, NBB, MAS, HKSFC, FINMA, ASIC, ACPR, AMF, DNB|
#1 Interactive Brokers
Interactive Brokers at a glance
Interactive Brokers is one of the best brokers globally with its Trader Workstation (TWS) that caters to more professional investors (beginners will be suited with IBKR GlobalTrader). It provides a wide range of global assets and advanced technical and fundamental trading tools. The company is a well-capitalized and publicly traded broker that offers access to 150 markets and is available in more than 200 countries.
Interactive Brokers is one of the top options available for long-term investors aiming to build a diversified investment portfolio with the vast array of products available that include Stocks, Options, ETFs, Futures, Forex, Cryptocurrencies, Commodities, Bonds, and Funds. In addition, with its $0 inactivity fee, this company is ideal for buy-and-hold investors.
- No minimum amount is required to open a trading account
- Low stock and ETF commission structure
- Global market access and diversified instruments that include futures, forex and mutual funds
- Wide range of no transaction-fee funds
- Powerful trading platform with advanced features such as the volatility lab that provides an overview of a stock’s past and future volatility parameters
- Advanced technical analysis tools with more than 120 indicators
- Strong research and education tools
- No inactivity fee
- The trading platform is complex and not 100% user-friendly
- The trader workstation (TWS) can be hard to learn
- Long and a bit complicated account opening process
- Slow customer support
Fidelity at a glance
Fidelity allows you to create a diversified portfolio by mixing various financial instruments such as mutual funds, exchange-traded funds (ETFs), stocks, bonds, and more.
In addition, the actively managed mutual funds offered by Fidelity are well-known in the market. A wide range of Fidelity funds with various investment goals and approaches are available to long-term investors who prefer professional management.
As for retired investors, Fidelity offers a range of retirement accounts, including IRAs and 401(k)s, and places a heavy emphasis on retirement planning. They offer resources and calculators to aid in retirement planning, which is crucial for long-term investors.
Fidelity has low trading fees, including $0 commission on US Stock trading. You can trade Index funds, ETFs and Bonds with minimal costs, and no inactivity fee is charged to your account.
- No minimum amount is required to open an investment account
- $0 commission on US Equity and ETFs
- No inactivity fee
- Top-rated mobile application that includes real-time quotes, accounts management tools, articles and research offerings, and multi-leg Options trading
- Customizable trading platform with “Active Trader Pro” option that has intuitive shortcuts and advanced tools
- Strong customer support with over 200 branches and 24/7 phone and chat support
- Online learning centre to provide customers with learning and educational tools
- No Futures trading
- Crypto trading is limited to Bitcoins and Ethereum with a 1% spread markup
- Relatively high fee of USD 32.95 for Rep-Assisted trades
- Available only in the US
#3 TD Ameritrade
TD Ameritrade at a glance
Long-term investors have historically regarded TD Ameritrade as a solid choice for several reasons. It provides access to a variety of investment products, such as stocks, bonds, options, ETFs, mutual funds, and more. In addition, extensive educational resources are made available by the company, including articles, webinars, videos, and interactive tools. TD Ameritrade presents a competitive pricing and low fee structure with $0 commission on US equity and ETFs and no inactivity fees.
As for the trading platform, 2 options are available for investors. Both are user-friendly, well-designed and available on desktop, web and mobile apps. You can either use the TD Ameritrade platform, which covers all the tools you need to research, analyse and trade (including a good variety of order types) or use the highly regarded trading platform “Thinkorswim”. The latter is one of the best trading platforms in the market, mostly known for its customizability, trading support functions, learning materials and easy-to-use tools and features.
- No minimum deposit is required to open an account
- Commission-free US Stock and ETF trades and $0.65 per contract for Options
- Thinkorswim advanced and user-friendly trading platform
- Large investment selection from stocks to futures and forex
- Good customer support available 24/7. You can expect fast and relevant answers via phone or chat support
- No inactivity fee
- No fractional shares
- No direct access to cryptocurrencies, but you can trade crypto-based products
- Accounts with TD Ameritrade will automatically migrate to Schwab by the end of 2024
E*TRADE at a glance
E*TRADE is one of the largest US brokers that offers a wide range of financial products, including stock, options, funds, futures, and more. The company is renowned for its competitive pricing and straightforward fee structure. It charges $0 commission on stocks and ETFs, $0.65 per option contract. Some Mutual Funds and Bonds are also free. There is no account or inactivity fee allowing you to buy and hold assets. Deposits and withdrawals are also free of charge.
The company also offers good education and research materials, including educational video tutorials, articles, webinars, and more. As for the trading platform, Power E*TRADE is an intuitive and easy-to-use platform that includes sophisticated tools and features. It is available on web, desktop, and mobile apps.
- No minimum amount is required to open an account
- Low trading fees and $0 fees on stock and ETF trading
- User-friendly trading platform that offers a good variety of order types
- No inactivity fee and no deposit and withdrawal fee
- Good research tools (Interactive charts, fundamental analysis, etc)
- Fully digital and easy account opening process
- No Forex
- No Fractional Shares
- Limited customizability for the trading platform
#5 Saxo Bank
Saxo Bank at a glance
A wide selection of investment products, including equities, bonds, ETFs, mutual funds, and more, are available through Saxo Bank. Thanks to this diversification, long-term investors can create well-rounded portfolios customised to their financial objectives and risk tolerance. The bank provides access to International Financial Markets, helping investors seize opportunities in various sectors. In addition, Saxo Bank provides research reports, analysis, and educational materials for traders trying to make well-informed long-term investing decisions.
Saxo Bank has a track record of innovation in the financial sector. They keep developing their platforms and services, which might be advantageous for long-term investors who desire access to the newest equipment and machinery. Finally, by providing low Forex and Fund fees, Saxo Bank is great for Forex traders, with around 200 currency pairs available and the MetaTrader 4 platform.
- Low Forex and Fund Fees
- Fast and user-friendly account opening process
- High-quality trading platform with advanced yet easy-to-use features
- Global market access and diversified instruments that include futures, forex, and mutual funds
- Good research services for technical and fundamental analysis
- Specifically-tailored services to institutional clients, including banks, brokers, and asset managers
- Free deposit and withdrawal
- Relatively high Inactivity fee ( charged when your account is inactive for 6 months or more) and Bonds fee ( 0.15% p.a.)
- 0.15% p.a. custody fee charged on accounts with stock, ETFs or Bond positions
- Customer Service is not available 24/7
- Not available in the US
The bottom line
To summarize, here’s the list of “Best Brokers for long-term investing”:
Choosing the ideal broker for long-term investment is a decision that will have a significant impact on your financial destiny. You must know that the choice is not just about fees and features but a careful examination of one’s specific goals, risk tolerance, and personal preferences.
We hope we have helped you search for the best broker for long-term investing. Take the time to assess the available options and open a demo account to test the platform’s features before opening an account.