Who Are the Best Small Online Brokers?
Small online brokers like Robinhood have shaken up the market for the bigger players. How do they actually stack up?
Nellie S. Huang
Brokerage start-ups such as Robinhood, M1 Finance and SoFi are tiny compared with the trillions of dollars in brokerage assets at the likes of Schwab and Fidelity. But they've already made a big dent in the way things work: These small online brokers pioneered commission-free stock trading and fractional-share purchases, and now those services are standard fare at the bigger firms.
And that's one of the reasons we keep an eye on smaller brokerage firms – because they're shaking up the industry. If not for Robinhood, for instance, we might still be paying commissions on stock and ETF trades.
For investors who just want a handy phone app or online platform where they can trade stocks, exchange-traded funds, options or cryptocurrencies on the cheap, these brokers will do the trick. We refer to these firms as "smaller" shops for the sake of this article, but in terms of customer counts, that's not always the case anymore (we're looking at you, Robinhood).
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
These smaller firms don't qualify for our annual review of the best online brokers because they don't offer mutual fund or bond trading. But they may be worth a look by investors who want to be on the bleeding edge of innovative offerings at rock-bottom fees. We evaluated four firms: Moomoo, Robinhood, Tastytrade and Webull. (M1 and SoFi did not respond to our invitations.) Here is how the four stack up.
Best small online brokers for investment choices
None of these brokers offers mutual funds, corporate bonds or municipal bonds. Only Tastytrade allows you to buy and sell Treasury securities.
Robinhood and Tastytrade offered the broadest selection of investment choices, with the biggest inventories of fractional shares of stocks and ETFs, for example. They're the only two that trade cryptocurrencies – Robinhood offers 11; Tastytrade, four.
Moomoo pays the highest rate on its "sweep" account: 5.1%. Webull pays 5%.
Best small online broker for mobile apps and desktop tools
Most of the brokers here started with a mobile-first mindset, so there is little difference between their mobile and desktop functionality.
Moomoo and Webull's robust apps include stock and ETF screeners, chart-drawing tools and cost-basis calculators. Tastytrade has highly sortable lists rather than screening tools.
Best small online broker for advisory services
Webull's Smart Advisor is the only advisory service offered in this group. Its computer algorithms will create a portfolio of ETFs for an annual fee of 0.2% of your portfolio. You can choose among six options tailored to your risk appetite and goals.
Best small online broker for customer service
None of these brokers have brick-and-mortar locations, and all have limited customer service. Moomoo has humans answering chat requests. Robinhood says a staffer will call or email you back upon request. Tastytrade offers a chatbot that it says will eventually connect you to a human if you ask.
Best small online broker for fees
Robinhood, which launched the no-commission price war, charges no fees for options trading. It's experimenting with another pricing innovation: For $75 a year, investors can enroll in "Robinhood Gold," which entitles them to perks including 3% matching contributions to a Robinhood IRA and 5% interest on a sweep account.
Moomoo stands out for its $0 fees to trade options on stocks and $5 for 10 index option contracts.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Kim Clark is a veteran financial journalist who has worked at Fortune, U.S News & World Report and Money magazines. She was part of a team that won a Gerald Loeb award for coverage of elder finances, and she won the Education Writers Association's top magazine investigative prize for exposing insurance agents who used false claims about college financial aid to sell policies. As a Kiplinger Fellow at Ohio State University, she studied delivery of digital news and information. Most recently, she worked as a deputy director of the Education Writers Association, leading the training of higher education journalists around the country. She is also a prize-winning gardener, and in her spare time, picks up litter.
- Nellie S. HuangSenior Editor, Kiplinger Personal Finance Magazine
-
Four Essential Michael Jordan Quotes on Life in RetirementThe GOAT of basketball on how he spends his time and what he misses.
-
Three Critical Tax Changes Could Boost Your Paycheck in 2026Tax Tips The IRS predicts these tax breaks may change take-home pay in 2026. Will you get over $1,000 in tax savings?
-
The OBBB Ushers in a New Era of Energy Investing: What You Need to Know About Tax Breaks and MoreThe new tax law has changed the energy investing landscape with expanded incentives and permanent tax benefits for oil and gas production.
-
Dow Beats 334-Point Retreat on Tech Bite: Stock Market TodayInvestors, traders and speculators wonder whether this remains a Magnificent 7 market and how long this AI-driven bull run will last.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffet become people like Warren Buffet by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
Ten Ways Family Offices Can Build Resilience in a Volatile WorldFamily offices are shifting their global investment priorities and goals in the face of uncertainty, volatile markets and the influence of younger generations.
-
3M, GM, Blue Chips Lead to the Upside: Stock Market TodayThe S&P 500 followed the Dow Jones Industrial Average into green territory, but the Nasdaq lagged the other indexes because of its tech exposure.
-
Should Your Brokerage Firm Be Your Bookie? A Financial Professional Weighs InSome brokerage firms are promoting 'event contracts,' which are essentially yes-or-no wagers, blurring the lines between investing and gambling.
-
Supermarkets Have Become a Pickpockets' Paradise: How to Avoid Falling VictimSome stores regularly rearrange inventory with the aim of increasing purchases, and they're creating opportunities for thieves to steal from customers.
-
Dow Adds 516 Points on Broad Optimism: Stock Market TodayEasing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.