Best Cheap Stock Brokers 2026 — Low Fee Brokerage Accounts

A low-cost broker saves you money every year, and those savings compound over decades. Stock and ETF commissions are $0 at all major US brokers, so the real cost differences are in margin rates, options fees, fund expense ratios, and account fees. This page identifies the brokers that minimize each type of cost and explains which cost profile fits different investors.

True Cost Comparison

Broker	Stock/ETF	Options/Contract	Margin Rate	In-House Fund Min ER	ACAT Fee	Best For
Fidelity	$0	$0.65	~8.0%	0.00%	$0	Buy-and-hold ETF investors
Interactive Brokers	$0	$0.65	~6.0%	N/A	$0	Margin users, active traders
Robinhood	$0	$0	~7.75%	N/A	$100	Casual options traders
Webull	$0	$0	~7.75%	N/A	$75	App-based, options
Charles Schwab	$0	$0.65	~8.5%	0.03%	$50	All-around low cost
Vanguard	$0	$0.65	~9.5%	0.03%	$0	Index fund investors
E*TRADE	$0	$0.65	~8.5%	N/A	$75	Options + low cost

Lowest Cost by Category

Lowest Total Cost for Buy-and-Hold Investors: Fidelity

Fidelity offers zero-expense-ratio index funds (FZROX, FZILX, FNILX), $0 stock/ETF commissions, $0 account minimum, and no account fees. An investor who buys one Fidelity Zero fund and holds it pays literally $0 per year in broker or fund costs.

Lowest Margin Rates: Interactive Brokers

IBKR's margin rates are typically 2-3 percentage points below competitors. On a $50,000 margin loan, this saves $1,000-$1,500 per year relative to brokers at the higher end. For margin users, this is the single largest cost difference among brokers. See the margin rates comparison for the full table.

Lowest Options Costs: Robinhood and Webull

Both charge $0 per options contract. For a trader executing 100 contracts per month, this saves $780 per year compared to the standard $0.65 per contract. Note: $0 per-contract fees mean revenue comes entirely from payment for order flow, which can affect execution quality.

Lowest International Trading Costs: Interactive Brokers

IBKR converts currency at near-interbank rates (approximately 0.002% markup), while most competitors charge 0.5% to 1.0%. On a $10,000 FX conversion, IBKR costs approximately $0.20 while a 1%-markup broker costs $100. For frequent international traders, this gap dominates all other costs.

Costs That Matter and Costs That Don't

Costs that matter:

• Margin rates if you use margin: can save thousands per year by choosing the right broker
• Options per-contract fees if you trade options: $0 vs $0.65 adds up with volume
• Currency conversion spreads if you trade internationally: differences can be 99%+
• Fund expense ratios if you hold funds long-term: 0.03% vs 1.00% compounds to tens of thousands over decades

Costs that don't matter for most investors:

• Stock/ETF commissions: $0 everywhere, not a differentiator
• Wire fees if you use ACH transfers instead (free at all brokers)
• Paper statement fees if you use electronic statements (free everywhere)
• Inactivity fees: eliminated by most major brokers

How to Calculate Your Annual Cost

1. Estimate your annual trade count by type (stock, options contracts, etc.)
2. Multiply by per-trade/per-contract cost
3. Add margin interest if you use margin (average margin balance × margin rate)
4. Add fund expense ratios (portfolio value × weighted average expense ratio)
5. Add any unavoidable account fees

Example: An options trader executing 200 contracts per month at Robinhood ($0) pays $0 in options commissions. The same trader at Schwab ($0.65) pays $1,560. This difference is real and recurring.

Example: A buy-and-hold investor with $100,000 in a 0.03% expense ratio fund pays $30 per year. The same portfolio in a 1.00% fund pays $1,000 per year. The $970 difference, compounded over 30 years at 7%, exceeds $90,000.

Frequently Asked Questions

Which broker has the absolute lowest total cost? For buy-and-hold investors, Fidelity (zero-expense-ratio funds, $0 commissions, $0 account fees). For margin users and active traders, Interactive Brokers (lowest margin rates, tightest FX spreads). For options traders, Robinhood or Webull ($0 per contract).

Is a zero-commission broker really cheaper? Not necessarily. Payment for order flow means $0-commission brokers earn revenue on your trades through slightly different execution prices. The difference is typically fractions of a cent per share and is often smaller than the explicit commission it replaced. For most retail investors, the net effect of PFOF is small. However, the broker's margin rate and cash sweep yield may cost more than a broker with explicit commissions but better rates on those items. See our hidden fees guide.

Are there brokers with truly no fees at all? No. Every broker has costs embedded somewhere — in PFOF, margin rates, cash sweep yields, or spread markups. A broker advertising "$0 fees" is earning revenue through less visible channels. The question is not whether the broker makes money, but how much it costs you in total.

Do I need to switch brokers to save on fees? Possibly. If your current broker charges significantly more on a cost that matters to you — margin rates, options fees, or an expensive fund lineup — switching can save meaningful money. ACAT transfers typically cost $50-$75 from the outgoing broker, and the incoming broker may reimburse you.

What is the most overlooked cost? Currency conversion spreads. Most investors who trade international stocks do not realize they are paying 0.5% to 1.0% per conversion — which can exceed all other costs combined for frequent international traders.

Where to Start

Compare at least three brokers on the cost categories that apply to your trading. Use our fee comparison pages for detailed breakdowns. Check your current broker's full fee schedule — not just the commission page. Read the broker reviews for the complete assessment that includes costs alongside platform, safety, and product range.

Investing involves risk. The value of investments can go up as well as down and you may receive back less than your original investment. This page contains affiliate links.