In this article, I will discuss the Best Platforms for Direct-To-Consumer Investing, highlighting top choices that offer commission-free trading, automated investing, and advanced tools.
Whether you’re a beginner or an experienced investor, selecting the right platform is crucial for maximizing returns and managing risk efficiently. Let’s explore the best platforms tailored to various investing needs.
Key Points & Best Platforms For Direct-To-Consumer Investing List
| Platform | Key Features |
|---|---|
| Robinhood | Commission-free trading, crypto, options |
| Fidelity Investments | Low-cost mutual funds, research tools |
| Charles Schwab | Wide investment options, strong research |
| Webull | Advanced trading tools, options, crypto |
| Betterment | Robo-advisory, automated investing |
| Acorns | Micro-investing, automated round-ups |
| Wealthfront | Robo-advisory, tax-loss harvesting |
| ETRADE | Trading tools, options, futures |
| SoFi Active Invest | Commission-free stocks, fractional shares |
| M1 Finance | Automated investing, customizable portfolios |
10 Best Platforms For Direct-To-Consumer Investing
1.Robinhood
By providing fee-less trades and a mobile app, Robinhood has made stock market investment available to people who did not consider participating.
Their average user is around 30 years old. They trade stocks, ETFs, Options, and even Cryptocurrencies without any minimum required deposit. Novice level investors can easily access the financial market.
The new sophisticated features such as futures and index options, as well as the web based Robinhood Legend platform, have made it easier for advanced traders to take advantage of added features. Robinhood stands to benefit the most with newer investors who want an advanced trading experience that is easy to use.
| Feature | Details |
|---|---|
| Founded | 2013 |
| Headquarters | Menlo Park, California, USA |
| Key Offerings | Commission-free trading of stocks, ETFs, options, and cryptocurrencies |
| Platform Accessibility | Mobile app (iOS & Android), Web platform |
| Target Audience | Beginner to intermediate investors |
| Unique Selling Point | Democratizes finance with no account minimums and user-friendly interface |
| Revenue Model | Transaction-based revenues, subscription fees, and net interest income |
| Security Features | Multi-factor authentication, data encryption, and account protection |
| Customer Support | 24/7 availability |
| Additional Services | Cryptocurrency wallets, cash management, and educational resources |
2.Fidelity Investments
Fidelity Investments is an investment platform catered to consumers. The company also manages a brokerage firm that deals in mutual funds, retirement services, and even wealth management. Fidelity covers a wide array of investments ranging from stocks, cryptocurrencies, ETFs, and even mutual funds.
The Fidelity Go® robo-advisor platform allows for effortless management of money. Clients with an account below 25,000 are charged no advisory fees while clients with accounts over 25,000 are charged a nominal annual fee of 0.35%.
The company has focused on providing exceptional customer service through various networks and engagement in investor forums. For direct-to-consumer users wishing to invest, these services offered are unrivaled making Fidelity the most optimal choice.
| Feature | Details |
|---|---|
| Founded | 1946 |
| Headquarters | Boston, Massachusetts, USA |
| Key Offerings | Mutual funds, ETFs, stocks, bonds, and retirement accounts |
| Platform Accessibility | Mobile app (iOS & Android), Web platform |
| Target Audience | Beginner to advanced investors |
| Unique Selling Point | Low-cost index funds and comprehensive retirement planning tools |
| Revenue Model | Management fees, advisory fees, and interest income |
| Security Features | Two-factor authentication, encryption, and fraud detection systems |
| Customer Support | 24/7 availability with live chat and phone support |
| Additional Services | Wealth management, financial planning, and tax-efficient investing |
3.Charles Schwab
Charles Schwab is a popular online investing platform that provides an all-in-one service which includes brokerage accounts, retirement accounts, and even wealth management services. The platform accommodates new and seasoned investors by allowing investment in stocks, bonds, ETFs, options, and mutual funds.
Schwab.com and the Schwab Mobile app provide users with sophisticated tools for account management and trading within a user-friendly interface. The firm’s commitment to customer service is evident through 24/7 support and a network of over 400 branches nationwide.
It is also important to note that Charles Schwab was awarded the Best Investing Platform Overall by U.S. News & World Reports, and had the best rating on fees, product offerings, customer service, and research tools.
| Feature | Details |
|---|---|
| Founded | 1971 |
| Headquarters | Westlake, Texas, USA |
| Key Offerings | Stocks, ETFs, mutual funds, options, futures, and fixed income products |
| Platform Accessibility | Mobile app (iOS & Android), Web platform, and thinkorswim® suite |
| Target Audience | Beginner to advanced investors |
| Unique Selling Point | Comprehensive tools, $0 commission on online equity trades, and robust research resources |
| Revenue Model | Transaction fees, advisory fees, and interest income |
| Security Features | Two-factor authentication, encryption, and fraud detection systems |
| Customer Support | 24/7 availability with live chat, phone support, and physical branches |
| Additional Services | Wealth management, financial planning, and tax-efficient investing |
4.Webull
Webull is a commission-free investing platform, that allows anyone to trade stocks, ETFs, and even options with no account minimums. This makes Webull accessible to a wide range of users. The platform has real-time market data, advanced charting tools, and even permits extended trading hours. This is great for novice and veterans alike.
Webull is regarded as one of the best trading platforms for beginners because its easy-to-use interface, along with abundant educational material for support.
Users can trade seamlessly on the mobile app, web, and desktop version allowing for a consistent experience across all devices. These features allow Webull to consistently support direct-to-consumer investors in need of a free and powerful trading platform.
| Feature | Details |
|---|---|
| Founded | 2017 |
| Headquarters | New York, USA |
| Key Offerings | Commission-free trading of stocks, ETFs, options, and cryptocurrencies |
| Platform Accessibility | Mobile app (iOS & Android), Web platform, and Desktop application |
| Target Audience | Beginner to advanced investors |
| Unique Selling Point | Advanced charting tools, extended trading hours, and paper trading |
| Revenue Model | Transaction fees, margin interest, and optional subscription services |
| Security Features | Two-factor authentication, encryption, and SIPC protection |
| Customer Support | 24/7 availability with live chat and email support |
| Additional Services | Real-time market data, customizable layouts, and educational resources |
5.Betterment
Directly dealing with consumers, Betterment stands out as a good Betterment is a leading investing platform that offers automation via low-cost ETF powered expert-built portfolios. Service comes with features like tax-loss harvesting, automatic rebalancing, and financial coaching, making it suitable for all levels of investing from novice to expert.
Investors can select options that include socially responsible and innovative technology portfolios enabling them to match investments with their passions. It’s simple and efficient fee structure alongside its user-friendly interface makes Betterment a prominent platform for people searching for effective wealth management.
| Feature | Details |
|---|---|
| Founded | 2008 |
| Headquarters | New York, USA |
| Key Offerings | Automated investing, tax-efficient portfolios, and retirement accounts |
| Platform Accessibility | Mobile app (iOS & Android), Web platform |
| Target Audience | Beginner to intermediate investors |
| Unique Selling Point | Robo-advisory services with tax-loss harvesting and goal-based investing |
| Revenue Model | Advisory fees based on account balance |
| Security Features | Two-factor authentication, encryption, and SIPC protection |
| Customer Support | Email and live chat support |
| Additional Services | High-yield cash accounts, socially responsible investing, and financial planning tools |
6.Acorns
Acorns is an investing platform that allows users to invest directly without third parties. The platform rounds up users’ spending to the next dollar and invests the leftover change in portfolios made of ETFs. Its micro-investing strategy is perfect for beginner investors. Acorns charges three tiers of subscriptions
Bronze ($3/month), Silver ($6/month), and Gold ($12/month), each offering unique investing and learning resources. However, micro accounts tend to be more expensive on Acorns when compared to other services that charge based on account balance. All in all, Acorns is perfect for anyone looking for a low-maintenance investment service.
| Feature | Details |
|---|---|
| Founded | 2012 |
| Headquarters | Irvine, California, USA |
| Key Offerings | Micro-investing, automated portfolios, and retirement accounts |
| Platform Accessibility | Mobile app (iOS & Android), Web platform |
| Target Audience | Beginner investors and those seeking passive investment options |
| Unique Selling Point | Round-Ups® feature that invests spare change automatically |
| Revenue Model | Subscription-based fees starting at $3 per month |
| Security Features | Two-factor authentication, encryption, and SIPC protection |
| Customer Support | Email and live chat support |
| Additional Services | Acorns Early (investment accounts for kids), financial education resources |
7.Wealthfront
Wealthfront is a leader in the DTA investment management service market, as it provides automated services to aid clients in building wealth over time. Customers are able to access up to 17 asset classes through diversified portfolios, which are customized based on the individual’s risk acceptance level and financial objectives.
The platform features tax loss harvesting, custom-financial planning tools, automated portfolio rebalancing, and more. Furthermore, clients can open a cash account with a $1 minimum balance to earn a high APY and get FDIC insurance of up to 8 million dollars through partner banks.
Wealthfront offers a well-rounded solution to new and seasoned investors who automate, or in some cases semi-automate complex investing strategies, supplemented with efficient service.
| Feature | Details |
|---|---|
| Founded | 2008 |
| Headquarters | Palo Alto, California, USA |
| Key Offerings | Automated investing, tax-efficient portfolios, and financial planning tools |
| Platform Accessibility | Mobile app (iOS & Android), Web platform |
| Target Audience | Beginner to advanced investors |
| Unique Selling Point | Robo-advisory services with tax-loss harvesting and goal-based investing |
| Revenue Model | Advisory fees based on account balance |
| Security Features | Two-factor authentication, encryption, and SIPC protection |
| Customer Support | Email and live chat support |
| Additional Services | High-yield cash accounts, socially responsible investing, and college savings plans |
8.ETRADE
As a one-stop-shop for investing, ETRADE boasts an intuitive website with mobile compatibility that allows users to buy and sell stocks, ETF’s, futures, and mutual funds. ETRADE offers targeted services to both active investors as well as casual participants by providing an all-encompassing platform that combines flexible and sophisticated trading features.
For stocks or ETFs, commission-free trading is available, while options trades will cost $0.65 per contract. Reliable research information helps investors make more educated decisions and includes sources such as Moody’s and Morningstar. Options trading, along with custodial, retirement, and brokerage accounts, is also offered by ETRADE so they can cater to a wider target audience.
| Feature | Details |
|---|---|
| Founded | 1982 |
| Headquarters | Arlington, Virginia, USA |
| Key Offerings | Stocks, ETFs, mutual funds, options, futures, and retirement accounts |
| Platform Accessibility | Mobile app (iOS & Android), Web platform, and Desktop application |
| Target Audience | Beginner to advanced investors |
| Unique Selling Point | $0 commissions on online U.S.-listed stocks, ETFs, and options trades |
| Revenue Model | Transaction fees, margin interest, and advisory fees |
| Security Features | Two-factor authentication, encryption, and fraud protection |
| Customer Support | 24/7 availability with live chat, phone support, and educational resources |
| Additional Services | Retirement planning tools, managed portfolios, and banking solutions |
9.SoFi Active Invest
SoFi Active Invest is an investment platform that allows users to trade stocks and ETFs without having to pay any commissions or maintaining a minimum balance. This lets a large number of users partake – including novice investors. The platform supports options trading, fractional shares, and does not have contract fees.
As a downside, SoFi does not allow for mutual funds, bonds, or futures trading, meaning some users may get less diversified options. While users are able to trade cryptocurrency, it does incur a fee of 1.25% per transaction which may deter users. The novice traders are likely to be attracted to SoFi due to the user-friendly interfaces on web and mobile along with the accessible financial advisors.
| Feature | Details |
|---|---|
| Founded | 2011 |
| Headquarters | San Francisco, California, USA |
| Key Offerings | Commission-free trading of stocks, ETFs, IPOs, and fractional shares |
| Platform Accessibility | Mobile app (iOS & Android), Web platform |
| Target Audience | Beginner to intermediate investors |
| Unique Selling Point | Zero commissions, fractional shares, and access to IPOs |
| Revenue Model | Transaction fees, margin interest, and optional subscription services |
| Security Features | Two-factor authentication, encryption, and SIPC protection |
| Customer Support | 24/7 availability with live chat and email support |
| Additional Services | Financial planning tools, retirement accounts, and educational resources |
10.M1 Finance
M1 Finance is an all-in-one investing platform that allows users to trade commission-free, while also utilizing self-managed portfolio services. With M1 Finance, users can easily build a diversified portfolio due to the platform allowing trading of fractional shares. Users can also enjoy great portfolio flexibility with the option to either select investments from 60+ preset portfolios or utilize a ‘Pie’ system to create a self-customized one.
Users need to invest at least $100 for a taxable account and $500 for a retirement one. Starting May 15, 2024, users will have to pay a $3 monthly fee unless their account balance is more than $10,000. Along with M1 Earn, a high yield cash account that offers 5.00% APY, the platform also offers margin loans under its M1 Borrow feature. Despite lacking tax-loss automation and financial advisors, M1 Finance is a great platform for automated portfolio management due to its extensive portfolio flexibility.
| Feature | Details |
|---|---|
| Founded | 2015 |
| Headquarters | Chicago, Illinois, USA |
| Key Offerings | Automated investing, fractional shares, and portfolio customization |
| Platform Accessibility | Mobile app (iOS & Android), Web platform |
| Target Audience | Beginner to advanced investors |
| Unique Selling Point | Combines investing, borrowing, and spending in one platform |
| Revenue Model | Subscription fees, margin interest, and payment for order flow |
| Security Features | Two-factor authentication, encryption, and SIPC protection |
| Customer Support | Email and live chat support |
| Additional Services | High-yield cash accounts, margin loans, and dynamic portfolio rebalancing |
Conclusion
To sum up, the best platforms for direct-to-consumer investing offer easy commission-free trading, various assets, and a simplistic interface. Automated investing (Betterment, Wealthfront), active trading (Robinhood, Webull), or diversified portfolios (Fidelity, Charles Schwab)
All these platforms easily accommodate a range of investor requirements. The selection of the platform is determined by its accompanying costs, functionalities, and the strategic objectives of investing for hassle-free transactions.
