How to Pick a Broker (and Open an Account)

Step 1: Clarify what you actually need

Start with your use-case. The right broker for an automated index investor is not the same as for an options day trader.

• Time horizon: long-term investing, short-term trading, or a mix?
• Style: mostly index funds and ETFs, or frequent single-stock/options trades?
• Account types: do you need retirement accounts, taxable only, or both?
• Country/eligibility: make sure the broker actually accepts residents from your country.

Step 2: Filter by fees and account structure

Fees compound against you. The default is “low-cost or skip it.”

• Prefer $0 stock/ETF commissions where available.
• Use low expense-ratio index funds/ETFs as your core holdings.
• Watch for account fees, inactivity fees, or spreads that are obviously wider than competitors.
• If advice is bundled, know exactly what % of assets you pay for it.

The 0.03% vs 1% fee study on this site shows how much long-term drag costs can create.

Step 3: Match platform tools to your style

Too many tools are as bad as too few. You want “enough” functionality without a cockpit you never learn.

• Automated investing: look for auto-deposits, recurring buys, and easy model portfolios (M1-style pies).
• Active trading: you need decent charts, fast order entry, options support, and good fills (Webull/IBKR style).
• Research: basic screeners and data are enough for most investors; don’t overpay for research you never read.
• Mobile vs desktop: if you live on your phone, make sure the app is genuinely usable.

Step 4: Safety, support, and friction

You cannot control markets, but you can control who holds your assets.

• Prefer brokers supervised by a well-known regulator in your region.
• Check whether assets are held in segregated accounts and what protections apply if the broker fails (varies by country).
• Test support channels: can you reach someone when something breaks?
• Look for simple funding/withdrawal options with no weird delays or surprise fees.

Step 5: Build a short, realistic shortlist

Most beginners only need to compare a few concrete options, not ten.

• M1 Finance: best fit if you want automated pies, scheduled deposits, and long-term index investing.
• Webull: better if you want charts, options, and active trading on a phone-first platform.
• Interactive Brokers: makes sense if you want global markets, advanced order types, and can handle complexity.
• Fidelity / Schwab: large, non-affiliate US brokers with low-cost index funds and broad account types.

See the full comparison on the Broker Picks page.