So you’re considering trading stocks for a living? It’s less exciting and glamorous than seen in movies like Boiler Room, The Wolf of Wall Street, or Trading Places.
In reality, it’s more like being a professional poker player. When you play for fun or with friends, making memories is often as enjoyable as making money. But when you play for a living, it’s not a recreational game — it’s a multi-hour grind requiring lots of quick math and sound decisions.
You can’t sit out by the pool with a drink and a smartphone and think you’ll have long-term stock trading success. Trading stocks for a living means parking yourself in front of a screen for long hours, not just to trade but to review charts, backrest theories, and comb through company news and financial data.
Unlike poker players who rely solely on their wits, stock traders have a diverse arsenal. However, choosing the best stock broker is the key to unlocking these tools. Not all brokers offer the same features, so it’s crucial to identify the tools that align with your unique skill sets and investment goals.
Here are five brokers that make sense if you want to test your mettle trading stocks for a living. Now, I don’t recommend having an account with five different brokers. Still, these five have a diverse enough array of features, offerings, and account types that traders of all kinds should be able to find one.
Interactive Brokers
Active traders looking for a powerful platform should consider Interactive Brokers. This company caters specifically to day and swing traders, offering a combination of features that help them navigate the market precisely.
Trader Workstation (TWS) is the jewel of Interactive Brokers’ offerings, providing sophisticated tools for advanced traders. The platform goes beyond basic charting with over 100 technical indicators and pro features like Options Strategy Builder and Exit Strategy. TWS also provides customizable screeners that allow traders to filter and identify opportunities based on their specific strategies. Advanced order types also will enable them to react quickly to changing market conditions and execute complex strategies.
Beyond the platform, IBKR has a nearly unmatched assortment of available asset classes. Active traders can trade options, stocks, futures, currencies, bonds, and cryptocurrencies from a unified platform. Building a diversified portfolio and implementing complex trading strategies that combine different asset classes won’t be easier at any other brokerage. It’s important to note that IBKR has a steeper learning curve than simpler platforms. However, for active traders who prioritize in-depth analysis, precise execution, and a host of tradable assets, Interactive Brokers offers unparalleled control and flexibility.
Moomoo
While not as well known as the others on this list, Moomoo has created a terrific stock trading platform with an instinctive mobile app, a wide range of available assets, and plenty of technical trading tools. Additionally, the company is running a very generous set of promotions, including a free stock giveaway and deposit bonus.
Moomoo offers commission-free stock and ETF trading, free equity options trades and reduced fees for index options. The platform resembles Robinhood but has far more advanced charting tools, including over 100 technical indicators. The app is available on smartphones, tablets, and desktops, and users can trade during the full range of pre- and post-market hours (4 a.m. to 8 p.m.)
The cash sweep program pays 5.1% on uninvested capital, and margin rates are competitive at 6.8%. Users can trade stocks, ETFs, and options, but Moomoo does not currently support cryptocurrencies, futures, bonds, or mutual funds. It’s a well-rounded brokerage platform for traders of various experience levels, but it’s a newer company that lacks the recognition of the four other choices. Use the paper trading feature if you want to test drive before buying.
Webull
Webull is a cost-effective platform with advanced tools. Like most brokers, Webull offers commission-free trades on stocks and ETFs. It also provides zero-commission options trading and early access to certain IPOs. Beyond saving money, Webull empowers traders with robust charting tools featuring a variety of technical indicators to help identify precise entry and exit points. Advanced order types and customizable screeners further equip traders to make informed decisions based on market movements.
Webull has an intuitive mobile app and desktop trading platform, so users can easily trade from their smartphones, tablets, or laptops. In particular, the mobile platform shines compared to more superficial apps like Robinhood, where charting tools are scarce, and the gamification is ramped up significantly. Users can set up alerts, monitor holdings, deposit or withdraw money, and execute multi-leg trades on their smartphones without a steep learning curve.
One negative is the uncompetitive margin rates. Webull’s starting rate of 9.74% is higher than most competitors, including Robinhood’s 6.75%. To receive rates competitive with Robinhood, Webull users would need to borrow more than $3 million, which isn’t feasible for most traders. Webull also lacks some of the more in-depth analyst reports you would find at traditional brokerages; you’ll see more of a news aggregation feed instead of detailed reports from analysts at top firms.
Charles Schwab
Thanks to the acquisition of TD Ameritrade, Charles Schwab has emerged as a strong contender for active traders. Combining their own strengths with the powerful tools of the Ameritrade platform has created a world-class trading experience with significant benefits for full-time stock traders.
The recently acquired Thinkorswim platform provides traders with robust analysis tools. You’ll find more technical indicators and backtesting capabilities than most competitors, and while the platform can be intimidating, it’s also one of the most powerful trading machines in the industry. Additional features like screeners and advanced order types provide even more comprehensive trading.
If you’re looking for a more basic setup, Schwab’s mobile app allows traders to monitor markets, analyze charts, and execute trades from anywhere. While you won’t get the full suite of tools from Thinkorswim, you can link your accounts, move money around, review charts, and execute trades from any device.
Schwab has competitive margin rates and a wide range of account types. Suppose you’re saving for a specific goal like retirement, a child’s education, or health expenses. In that case, you’ll find tax-advantaged accounts at Schwab like traditional and Roth IRAs, 529 Plans or Education Savings Accounts (ESAs), Health Savings Accounts (HSAs), trusts and beneficiary accounts, plus a full suite of banking and mortgage borrowing services.
Robinhood
When it launched in 2013, Robinhood triggered the commission cascade, forcing most other brokers to follow suit. Now, commission-free stock and ETF trading is the norm at most brokerage platforms, but Robinhood still has plenty to offer active traders.
While the commission-free aspects of the app remain (stocks, ETFs, and options), Robinhood has launched a premium service that carries a $5 monthly fee. But Robinhood Gold gets you access to the highest rates on uninvested cash (5.5% APY), a 3% IRA match, and a 1% boost on brokerage deposits. Traders also get Level 2 market data and Morningstar research reports. Robinhood also has lower margin rates (starting at 6.75%) than the Robinhood-like Webull platform.
The app is simplistic and intuitive but feels more gamified than the other brokerage apps. The colors are bright, the interface is sleek, and you get a little congratulations message every time you make a trade. However, if you’re just starting, no app has less of a learning curve. Opening, funding, and executing trades in your account requires very little navigation and even the most novice traders should have the hang of it within a few minutes.
But the app remains very basic, with minimal charting and technical analysis tools, so if you want to trade using complex strategies, you’ll likely be more comfortable elsewhere. Only moving averages, RSI, MACD, and Bollinger Bands are available, and chart data only goes back five years.
