How To Buy Stocks In The USA With A Regulated Broker In 2023

Looking to buy stocks in the USA with a regulated online broker, while keeping costs to a minimum?

If so, this comparison guide reviews the best places to buy stocks in the USA in terms of low fees, safety, and user-friendliness. 

We also consider where to buy stocks in the USA in fractional quantities, and which online brokers offer passive investment tools - such as copy trading.

 

Your capital is at risk. Other fees apply.

Do note that further down on this page, we explain how to buy stocks in the USA through a much more detailed step-by-step guide.  

 

Your capital is at risk. Other fees apply.

Read on to find comprehensive and impartial reviews of the above USA stock brokers.  

Detailed Reviews Of The Best Stock Brokers In The USA

In the following sections, we review the overall best stock brokers in the USA for 2023. 

Each review covers important information surrounding the account opening process, minimum deposit requirements, supported stock exchanges, trading commissions, and other applicable fees. 

Furthermore, we also consider whether the broker supports fractional stocks, passive investment features, and analysis tools. 

Read on to evaluate where to buy stocks in the USA right now:

1. eToro - Best Place to Buy Stocks in the USA

The best place to buy stocks online in the USA is eToro. We like eToro for its user-friendly investment platform and the fact that USA clients can open an account in just five minutes. Furthermore, funding an eToro could not be easier, with the broker accepting debit/credit cards, e-wallets like Neteller and Paypal, and traditional bank wire transfers. 

Not only that, but USA clients have access to fee-free deposits and withdrawals. After making a deposit, you will then have access to more than 2,500 stocks. This includes large and medium-cap stocks from the NASDAQ and NYSE, in addition to a wide range of international exchanges. This includes exchanges in Asia, Europe, and more. 

When buying and selling stocks at eToro, the minimum trade requirement is just $10. This is because eToro supports fractional stock trading. There are no commissions to pay when trading stocks at eToro and this is the case irrespective of the exchange. As such, international stocks can be purchased without needing to pay a premium. 

eToro offers all of the required analysis tools to make informed stock trading decisions. For instance, you will have access to charting tools, market sentiment, sell-side analyst ratings, and fundamental news. When you buy stocks at eToro, you will be entitled to any dividend payments that the company makes. 

Furthermore, eToro offers a suite of tools that allow you to buy and sell stocks in the USA passively. This includes the eToro copy trading feature, which enables you to copy the trades of another user. The copy trading feature requires a minimum investment of $200 for each trader that is copied. 

Furthermore, you can add or remove assets to and from the copy trading portfolio as and when you please. eToro also offers smart portfolios, which require a minimum investment of $500. There are many smart portfolios to choose from at eToro, each of which has been hand-picked by the brokerage. 

Each smart portfolio will have its own strategy by targeting a specific marketplace. For example, dividend stocks, growth stocks, BigTech stocks, energy stocks, or AI stocks. Both smart portfolios and copy trading are ideal if you are wondering how to buy stocks as a beginner, but aren’t quite sure where to start. 

eToro is accessible via its website as well as via the iOS/Android app. Both options connect to the same account and are suitable for both newbies and advanced traders alike. Another way to buy stocks at eToro without needing to constantly watch over the markets is via ETFs. In this regard, you can invest in fractional ETFs from just $10 on a commission-free basis. 

eToro is not only the best place to buy stocks in the USA cost-effectively, but in a safe and secure way. More than 30 million clients use eToro for its strong regulatory framework, which includes authorization and licensing from the SEC. eToro is also regulated by the FCA, ASIC, and CySEC in the UK, Australia, and Cyprus, respectively. 

Minimum Deposit	Payment Methods	Deposit Fee	Commission To Buy Stocks	Fractional Stocks
$10	Debit/credit cards, e-wallets, and bank transfers	Free for USA clients	0% commission	Yes - From $10

 

Pros

✅ Best place to buy stocks in the USA

✅ $10 minimum stock purchase via fractional trading

✅ 0% commission on USA and foreign-listed stocks

✅ No fees to deposit or withdraw US dollars

✅ Buy stocks online or via the eToro app

✅ Passive investment tools including copy trading 

Cons

❌ Some asset classes not accessible for USA clients

Your capital is at risk. Other fees apply.

2. Robinhood - Buy and Sell USA-Listed Stocks at 0% Commission

Robinhood is another option to consider when exploring how to buy stocks in the USA. This online broker will suit beginners that wish to invest in US-listed stocks. The Robinhood investment suite was designed with beginners in mind and can be accessed online or via the iOS/Android app. 

There is a strong focus on USA-listed stocks, albeit, Robinhood users also have access to several hundred foreign companies via ADRs. When buying and selling stocks on Robinhood, there are no commissions to pay. This is also the case with ETFs and all other supported assets - which includes options and cryptocurrencies. 

Robinhood supports fractional ownership, so you can buy any USA-listed stock from just $1. This is a great way to build a diversified portfolio of stocks on a small budget. Most Robinhood clients opt for the standard account, which is free to open and maintain. However, those who seek additional stock investment features may consider the Robinhood gold account. 

At $5 per month, this offers access to Level II market data and research materials from Morningstar, not to mention the ability to buy stocks on margin at a more cost-effective interest rate. Robinhood gold also offers much higher instant deposit limits, which are capped at $1,000 on the free account. 

Furthermore, you earn up to 4.15% interest on USD balances, compared to 1.5% on the standard account. Robinhood also offers retirement accounts via IRAs, where the broker will match contributions by 1% up to $6,500 each year. Robinhood also supports cryptocurrencies, albeit, when compared to eToro - the number of supported coins is limited. 

Minimum Deposit	Payment Methods	Deposit Fee	Commission To Buy Stocks	Fractional Stocks
No minimum	ACH, domestic bank wire	None	0% commission	Yes - From $1

 

Pros

✅ Buy stocks in the USA from just $1

✅ Commission-free stock trading

✅ Beginner-friendly mobile app 

Cons

❌ Full functionality requires the gold account at $5 per month

❌ Limited support for international stocks (ADRs only)

❌ High margin trading rates on the standard account

Your capital is at risk. Other fees apply.

3. Ally Invest - Top Stock Investment App for USA Traders

Similar to Robinhood, Ally Invest is an online stock broker that is largely aimed at beginners. With that said, we should note straightaway that Ally Invest does not support fractional stocks, so this should be considered before proceeding. Nonetheless, there is no minimum deposit requirement at Ally Invest and accounts can be opened relatively quickly. 

Ally Invest only supports USA-listed stocks, but exposure to the international markets is still possible via relevant ETFs. Both stocks and ETFs can be traded at Ally Invest without paying any commission. This is also the case for options and no-load mutual funds. Bonds, on the other hand, attract a commission of $1 (minimum $10) for each bond that is purchased or sold. 

Although many investors at Ally Investor prefer to buy stocks on a DIY basis, the platform is also popular for its robo portfolio service. This will perhaps appeal to those that wish to buy stocks but aren't sure how to build a suitable portfolio. 

The robo advisor process simply requires you to answer some questions about your investing goals and Ally Invest will subsequently build a portfolio of stocks. With that said, Ally Invest only supports four robo advisor portfolios, which is limited. Moreover, there is a minimum investment requirement of $100 when opting for a robo advisor.

Ally Invest is also a great option for those exploring where to buy stocks in the USA via a smartphone app. The Ally Invest app is compatible with both iOS and Android devices and connects to the primary account. Ally Invest also offers traditional financial products, such as mortgages, loans, and insurance. 

Minimum Deposit	Payment Methods	Deposit Fee	Commission To Buy Stocks	Fractional Stocks
No minimum	ACH, domestic bank wire, check, transfer from another broker	None	0% commission	No - Full stocks only

 

Pros

✅ No minimum deposit requirements

✅ Choose from DIY investing or robo advisors 

✅ Smooth user-friendly app for iOS and Android

✅ Also supports bonds, ETFs, mutual funds, and options

Cons

❌ No fractional stocks

❌ International stocks only accessible via ETFs

❌ Does not accept debit/credit card deposits 

Your capital is at risk. Other fees apply.

4. Interactive Brokers - Specialist Online Broker for Diversified Stock Portfolios  

Interactive Brokers is a premium stock broker in the USA that offers access to every marketplace imagable. In terms of stocks, this includes the primary USA exchanges - the NYSE and NASDAQ, in addition to the OTC markets. Interactive Brokers also supports international exchanges from every corner of the world. 

Whether you are wondering how to buy stocks listed in the UK, Australia, Canada, India, or Japan - Interactive Brokers has you covered. In terms of fees, the pricing structure at Interactive Brokers is somewhat confusing. The reason for this is that fees not only depend on the exchange but also on the respective account type that you opt for. 

Nonetheless, as a USA client on the IBKR Lite account, you can buy domestic stocks without paying any commissions. If you are an IBKR Pro user, then a commission will apply but once again, this depends on whether you opt for a tiered or fixed plan. Do note that in order to buy stocks from an international exchange, you will need to open an IBKR Pro account. 

On the flip side, IBKR Pro clients have access to low fees across the board. For instance, Canadian stocks can be purchased at just CAD 0.008 per share and even less when trading large volumes. On top of stocks, Interactive Brokers covers many other asset classes. This includes everything from index funds and ETFs to bonds, futures, and currencies. 

There is no minimum deposit requirement on the standard IBKR Lite account, which is likely the most suitable option for casual investors. Interactive Brokers also offers competitive margin trading rates, alongside access to USA-based IPOs. Finally, Interactive Brokers offers high-level analysis tools that can be accessed via its proprietary suite - Trader WorkStation (TWS).  

Minimum Deposit	Payment Methods	Deposit Fee	Commission To Buy Stocks	Fractional Stocks
No minimum	ACH, domestic bank wire, check, online bill pay	None	0% commission on USA-listed stocks (IBKR Lite). Non-USA stocks attract a commission.	Yes - From $1

 

Pros

✅ Fractional stocks from $1 (USA-listed only)

✅ 0% commission when electing to buy stocks in the USA

✅ Dozens of international stock exchanges supported

✅ No minimum deposit 

Cons

❌ Far from beginner-friendly  

❌ Non-USA stocks are not commission-free

❌ Account opening process can be slow

Your capital is at risk. Other fees apply.

5. Webull - Great Paper Stock Trading Account for Beginners    

Webull is one of the best online stock brokers for beginners that wish to start off with a paper trading account. Paper trading accounts at Webull are fast and free to open and come with an unlimited balance of virtual cash. When trading with virtual cash at Webull, real-time data mirrors actual market conditions. 

After testing Webull out via its paper trading account, you can then upgrade to a real-money plan. In doing so, you will be able to buy stocks in the USA without paying any trading commissions. Moreover, Webull offers full support for fractional stocks and the minimum investment per trade is just $5. 

It is also possible to invest in ETFs and trade stock options on a commission-free basis. With that said, Webull only offers access to the international stock markets via funds or ADRs, which will be a major drawback for some. On the flip side, we like that Webull offers access to OTC stocks - including the Pink Sheets. 

Webull is also popular for its recurring investment tool. This enables you to make regular investments into stocks, ETFs, and cryptocurrencies automatically via a dollar-cost averaging strategy. Webull offers access to its trading suite through multiple device types. 

In addition to web trading via a standard browser, Webull also supports a mobile app for iOS and Android, alongside desktop software for Windows, Linux, and Mac. There is no minimum deposit requirement at Webull and payments can be made via ACH and domestic bank wires. While the former is fee-free, the latter will attract a deposit charge of $8. 

Minimum Deposit	Payment Methods	Deposit Fee	Commission To Buy Stocks	Fractional Stocks
No minimum	ACH, domestic bank wire	ACH transfers are free. Domestic bank wires cost $8 per deposit.	0% commission	Yes - From $5

 

Pros

✅ Buy stocks from just $5 via fractional trading

✅ 0% commission stock trading

✅ Free ACH deposits and withdrawals

✅ Also supports stock options, ETFs, OTC trading, and more 

Cons

❌ Domestic bank wire deposits charged $8

❌ Does not offer live chat support

Your capital is at risk. Other fees apply.

6. E*TRADE - Plenty of Stock Investment Accounts to Choose From     

E*TRADE is an established online broker that supports a wide selection of stocks, in addition to other asset classes. This is inclusive of mutual funds, ETFs, stock options, bonds, and access to domestic IPOs. One of the standout features of E*TRADE is that it offers a broad range of account types to ensure that all investor profiles are catered for. 

The standard brokerage account will suit most investors, not least because it offers commission-free trading on stocks, ETFs, and other marketplaces. Furthermore, the standard account comes without any minimum deposit requirements. E*TRADE also supports a multitude of retirement accounts. 

This includes traditional and Roth IRAs, alongside accounts for juniors. Another account option is to open a core portfolio plan. This is somewhat similar to a robo advisor, insofar as E*TRADE will build a portfolio of stocks on your behalf based on your financial goals and risk tolerance. This account type requires a minimum capital outlay of $500. 

Furthermore, the core portfolio account comes with annual fees, which vary depending on the amount invested. E*TRADE also offers margin trading accounts, which enable you to borrow up to 50% of your total equity balance. E*TRADE is also renowned for its market insights, which includes advanced trading tips and financial news. 

Minimum Deposit	Payment Methods	Deposit Fee	Commission To Buy Stocks	Fractional Stocks
No minimum	ACH, domestic bank wire, check, transfer from another broker	ACH transfers are free. Domestic bank wires cost $8 per deposit.	None	No - Full stocks only

 

Pros

✅ Multiple account types to choose from

✅ No minimum deposit on the standard brokerage account

✅ Buy domestic stocks and ETFs at 0% commission 

Cons

❌ No fractional stocks

❌ Core portfolios come with additional fees

Your capital is at risk. Other fees apply.

7. Charles Schwab - Buy S&P 500 Stocks From $5      

Although Charles Schwab has historically been associated with accredited and institutional investors, this popular online broker has since moved into the retail stock trading space. First and foremost, Charles Schwab offers fractional share investing via its Stocks Slices feature. This enables you to buy stocks from just $5. 

However, do note that the company must be listed on the S&P 500. All USA-listed stocks can be accessed without paying any commission, which is another top feature of Charles Schwab. Moreover, Charles Schwab supports commission-free trading on USA-listed stock options and mutual funds. 

Those exploring how to buy stocks in the USA from the OTC markets might also consider Charles Schwab. This is because the broker supports online OTC trading on a commission-free basis. However, if electing to buy OTC stocks on the telephone, Charles Schwab charges a commission of $6.95 plus a $25 service fee. 

There is no minimum deposit requirement at Charles Schwab and this is the case across standard brokerage accounts as well as traditional, Roth, and rollover IRAs. Deposit funds into a Charles Schwab account is free when opting ACH or a check. However, fees may apply when making a bank wire deposit. 

Minimum Deposit	Payment Methods	Deposit Fee	Commission To Buy Stocks	Fractional Stocks
No minimum	ACH, domestic bank wire, check, transfer from another broker	None - but domestic bank wire fees might be charged by the sending bank	0% commission on USA-listed stocks. Commissions apply on non-USA stocks	Yes - From $5 (S&P 500 stocks only)

 

Pros

✅ Huge selection of domestic and international stocks

✅ No minimum deposit

✅ Great range of retirement accounts

Cons

❌ Fractional stocks only support for S&P 500 companies

❌ Onboarding is slow

❌ Does not directly support crypto spot trading

Your capital is at risk. Other fees apply.

8. TD Ameritrade - Advanced Trading Suite for Seasoned Pros      

If you are learning how to buy stocks in the USA for the first time, then TD Ameritrade won’t be the right broker for you. However, if you have some prior experience and seek access to the most advanced trading tools in the market, TD Ameritrade and its native thinkorswim platform will likely tick all of the right boxes. 

Thinkorswin can be accessed online, but for the full stock trading experience - TD Ameritrade suggests opting for the desktop software. TD Ameritrade also offers thinkorswim via a mobile app for iOS and Android - so you will never be more than a few clicks away from the stock trading markets. 

When it comes to fees, TD Ameritrade offers 0% commission stock trading on USA-listed markets. ETFs, load-mutual funds, and stock options can also be traded without paying any commission. TD Ameritrade also offers margin trading facilities and interest rates are competitive when entering larger positions. 

However, to reiterate our view that TD Ameritrade is only suitable for advanced traders, this broker does not support fractional stocks. As such, you will be required to purchase full stocks when using this broker. Finally, TD Ameritrade supports the vast majority of retirement account plans, including 401k rollovers. 

Minimum Deposit	Payment Methods	Deposit Fee	Commission To Buy Stocks	Fractional Stocks
No minimum	ACH, domestic bank wire, check, transfer from another broker, physical stock certificates	None - but domestic bank wire fees might be charged by the sending bank	0% commission on USA-listed stocks. Commissions apply on non-USA stocks	No - Full stocks only

 

Pros

✅ Great reputation with seasoned stock traders

✅ Highly advanced trading suite for desktop devices

✅ Mobile app connects to the primary account

✅ No commissions on USA-listed stocks

Cons

❌ Does not support fractional stock ownership

❌ To advanced for beginners 

❌ Complex fee structure on foreign-listed stocks

Your capital is at risk. Other fees apply.

9. SoFi - Automated Stock Investing Without Advisory Fees      

Those looking to explore how to buy stocks in the USA in an automated manner may also consider SoFi. This online broker not only offers stocks and other asset classes, but also conventional financial products such as loans, student financing, credit cards, and estate planning. 

When utilizing the automated investment plan at SoFi, you will initially be asked some questions concerning your goals. After that, SoFi will not only build a stock portfolio for you - but regularly rebalance it. Additionally, automated investing at SoFI will appeal to those on a budget, considering the minimum outlay requirement of just $1. 

The other option at SoFI is to opt for a DIY brokerage account, meaning you will make your own stock investing decisions. This account type enables you to buy stocks in the USA without paying any commissions and there is no minimum deposit requirement. Moreover, SoFI supports fractional stock purchases, from just $5 per trade. 

Another reason why SoFi is worth considering when assessing where to buy stocks in the USA is that it offers a full suite of investing tools. This includes everything from custom watchlists and financial news to market insights. SoFi is also a great option if you have an interest in investing in IPOs. Finally, SoFI offers a mobile app for both iOS and Android phones. 

Minimum Deposit	Payment Methods	Deposit Fee	Commission To Buy Stocks	Fractional Stocks
No minimum	ACH, domestic bank wire	None	0% commission	Yes - From $5

 

Pros

✅ Easy-to-navigate mobile app to buy and sell stocks

✅ Automated investing accounts from just $1

✅ Commission-free stocks from the USA

Cons

❌ Does not accept debit/credit cards or e-wallets

❌ More suited for complete newbies 

❌ Too much promotional activity on non-investing products

Your capital is at risk. Other fees apply.

10. Fidelity - Established Broker With Stock Planning      

Fidelity is the final broker to consider when learning how to buy stocks in the USA. Fidelity is an established broker that offers a wide range of investment products and plans. This includes stock planning accounts through robo advisor tools. This means that you won't need to pick individual stocks to purchase; rather - Fidelity will build a portfolio on your behalf. 

If you are looking to invest under $25,000 into one of its managed robo portfolios, there are no advisory fees to pay. Otherwise, there is a 0.35% fee charged annually. If you prefer buying and selling stocks by yourself, then Fidelity is also worth considering. You will be able to trade USA-listed stocks and ETFs without paying any commissions. 

Stock options attract a fee of $0.65 for each contract that is traded. There is no minimum account opening requirement and the Stocks by the Slice feature at Fidelity supports fractional shares. This permits stock trading from just $1 on USA-listed companies. Fidelity is also a great option for investing in funds. 

In fact, when investing in a fund that is managed by Fidelity itself, there are no commissions to pay - nor any minimum trade sizes. Fees will apply on non-Fidelity funds. Fidelity also offers unrivaled research tools, inclusive of real-time data quotes, market insights, and customized watchlists with alerts.

Minimum Deposit	Payment Methods	Deposit Fee	Commission To Buy Stocks	Fractional Stocks
No minimum	ACH, domestic bank wire, checks	None	0% commission on USA-listed stocks. Commissions apply on non-USA stocks	Yes - From $1

 

Pros

✅ Stocks by the Slice tool enables fractional investing from $1

✅ No account minimums

✅ Robo portfolios of under $25,000 come without advisory fees

Cons

❌ Complicated fee structure for international stock investments

❌ Account opening process can often take several days

❌ Some features not suitable for beginners 

Your capital is at risk. Other fees apply.

Comparison Of The Best Online Stock Brokers In The USA

Here’s a summary of the key data we discussed in our reviews of the 10 best brokers that enable you to buy stocks in the USA:

Stock Broker	Minimum Deposit	Payment Methods	Deposit Fee	Commission to Buy Stocks	Fractional Stocks
eToro	$10	Debit/credit cards, e-wallets, and bank transfers	Free for USA clients	0% commission	Yes - From $10
Robinhood	No minimum	ACH, domestic bank wire	None	0% commission	Yes - From $1
Ally Invest	No minimum	ACH, domestic bank wire, check, transfer from another broker	None	0% commission	No - Full stocks only
Interactive Brokers	No minimum	ACH, domestic bank wire, check, online bill pay	None	0% commission on USA-listed stocks (IBKR Lite). Non-USA stocks attract a commission.	Yes - From $1
Webull	No minimum	ACH, domestic bank wire	ACH transfers are free. Domestic bank wires cost $8 per deposit.	0% commission	Yes - From $5
E*TRADE	No minimum	ACH, domestic bank wire, check, transfer from another broker	ACH transfers are free. Domestic bank wires cost $8 per deposit.	None	No - Full stocks only
Charles Schwab	No minimum	ACH, domestic bank wire, check, transfer from another broker	None - but domestic bank wire fees might be charged by the sending bank	0% commission on USA-listed stocks. Commissions apply on non-USA stocks.	Yes - From $5 (S&P 500 stocks only)
TD Ameritrade	No minimum	ACH, domestic bank wire, check, transfer from another broker, physical stock certificates	None - but domestic bank wire fees might be charged by the sending bank	0% commission on USA-listed stocks. Commissions apply on non-USA stocks.	No - Full stocks only
SoFi	No minimum	ACH, domestic bank wire	None	0% commission	Yes - From $5
Fidelity	No minimum	ACH, domestic bank wire, checks	None	0% commission on USA-listed stocks. Commissions apply on non-USA stocks.	Yes - From $1

 

Your capital is at risk. Other fees apply.

How To Choose The Best Place To Buy Stocks In The USA

In the sections above, we reviewed 10 of the best brokerages to consider when learning how to buy stocks in the USA. 

With that said, there are many other online brokers that serve USA clients, so it is important that you understand how to make an informed decision yourself. 

Below, we explore the key metrics that we look for when exploring where to buy stocks in the USA. 

SEC Regulation

When assessing how to buy stocks in the USA, it is crucial that your chosen online broker is authorized and regulated by the SEC.

This is the case for all 10 of the online brokers we reviewed earlier. Ultimately, the only way to buy stocks in the USA safely is through an SEC-regulated broker that is also approved by FINRA. 

In addition to the SEC and FINRA, eToro is authorized and regulated by other leading regulatory bodies, such as the FCA, ASIC, and CySEC. 

This offers stock investors an additional layer of security.   

Supported Stock Trading Markets 

All of the 10 brokers that we reviewed on this page offer access to the NYSE and NASDAQ - which are the two primary exchanges located in the USA. 

However, when it comes to international exchanges, there is limited support by USA brokers. Interactive Brokers and TD Ameritrade, for example, both offer access to plenty of international markets, but this comes at a premium. 

This is why eToro offers the overall best place to buy stocks in the USA, as the broker offers commission-free trading not only for domestic exchanges but those based in Europe, Asia, and other regions.

Fractional Stock Ownership 

Many online brokers in the USA now support fractional ownership of stocks. This is a feature that particularly appeals to casual investors on a limited budget. 

To offer some insight, eToro supports fractional stock purchases from just $10 per order. This means that by buying a stock worth $200, you would own 5% of the respective equity. This makes diversification on a budget seamless. 

Not all stock brokers in the USA support fractional ownership, however.  

Examples in this regard include Ally Invest, E*TRADE, and TD Ameritrade - none of which enable you to buy stocks in the USA in small fractions. 

Moreover, it is also important to check which markets the broker offers for fractional stock. For instance, while eToro offers fractional trading on all supported stocks, at Charles Schwab this is only the case for companies listed on the S&P 500.  

Stock Broker Fees  

Many fee types need to be considered when exploring where to buy stocks in the USA. 

This is because fees might not only be charged to trade, but to deposit funds and even keep the brokerage account opened.  

The main fees to consider when choosing a place to buy stocks are discussed below:

Payment Fees

Most online brokers in the USA support fee-free deposits and withdrawals via ACH. In most cases, domestic bank wire transfers are fee-free too, but this isn’t always the case. 

Other payment methods, such as checks - might also attract fees. 

Commissions

Each and every online broker discussed on this page enables you to buy stocks in the USA on a commission-free basis. This is now the industry norm for USA-based investors. 

However, only one broker that we discussed extends its commission-free offering to international stocks - eToro. 

In comparison, other brokers in this industry not only charge a commission to buy non-USA listed stocks but also an FX fee. 

As such, if you are looking to gain exposure to international stocks without going through ADRs or ETFs, then eToro is well worth considering. 

Account Fees

Some brokerage providers that we came across charge account fees. This is a fee charged simply for keeping the account open. 

In most cases, this is charged as a percentage against the amount of investment funds you have tied up in the account - based on the current market value of each asset. 

Passive Investing Tools  

If you are learning how to buy stocks in the USA for the very first time, it is worth considering an online broker that offers passive investing tools. 

For example, Ally Invest and Fidelity offer robo advisor tools, which enable you to build a stock portfolio automatically - based on your goals and risk tolerance. 

With that said, robo advisors are somewhat limited in scope, especially when it comes to asset diversity. 

As such, we much prefer the copy trading service offered by eToro. Put simply, this entails selecting a successful trader that has an established track record on eToro and then electing to copy their future trades. 

This means that if the trader goes long on Microsoft stock, the same position will be mirrored in your own account.  

Analysis Tools  

If you are more of an active investor, then you should consider an online broker that offers sufficient tools from within the analysis department. 

This might include fundamental research tools such as quarterly earnings reports, financial news, and market insights from industry experts. 

If you are interested in buying and selling stocks on a shorter-term basis, then you might need access to technical and economic indicators, alongside chart drawing tools. 

All of these features are readily accessible at many of the online stock brokers we reviewed on this page.

Demo Account

Demo accounts offer a great way to learn how to buy stocks in the USA, not least because you won’t be required to risk your own money. 

Instead, demo accounts are loaded with virtual funds, so you can buy and sell stocks as you please in a risk-free way. 

When choosing an online broker for its demo account facility, be sure that the platform mirrors live market conditions.  

Payments and Minimum Account Balances

Most online brokers enable you to buy stocks in the USA without needing to meet a minimum account balance. 

This is especially notable for casual investors with a small amount of capital to allocate to the stock markets. 

In addition to account minimums, you should also explore what payment methods are supported. All of the brokers discussed on this page support domestic bank wires and ACH. 

eToro supports the aforementioned payment methods but also debit/credit cards and e-wallets at no extra charge.

Customer Service

Some online brokers in the USA only offer customer service via the telephone or email. 

However, most online investors prefer speaking with an agent via live chat. This prevents the need to wait for an email reply or be put on hold via the telephone.  

Stock Broker App

The likelihood is that within the next decade, the vast majority of investors in the USA will prefer buying and selling stocks on a smartphone, rather than a bulky laptop device. 

As such, most online brokers now offer a proprietary mobile app. The likes of eToro, Robinhood, Ally Invest, and many other brokers offer an app for iOS and Android, which is free to download. 

Crucially, if you are away from your primary desktop device, having access to a brokerage app will ensure that you can enter or exit a position at any given time. 

Your capital is at risk. Other fees apply.

How To Buy Stocks In The USA - Full And Detailed Walkthrough 

If you are wondering how to buy stocks in the USA right now without paying any commission - follow the simple step-by-step guide outlined below. 

This explains how to open an account with eToro, deposit funds fee-free with a debit/credit card or e-wallet, and subsequently buy stocks from just $10 via fractional ownership. 

Step 1: Visit eToro and Open an Account

Before eToro enables you to buy stocks in the USA, you will first be required to open an account. 

Unlike many online brokers in this space, new accounts at eToro rarely take more than a couple of minutes to open. 

Fill out the online registration by entering your personal information, email address, and cell phone number. You also need to choose a strong password. 

Complete the registration process by confirming your cell phone number.  

Step 2: Upload Documents for Instant Verification

Just like the aforementioned registration process, verifying your account is also quick and seamless at eToro. 

In fact, you simply need to upload two documents - which will then be verified instantly. 

First, you will need to prove your USA residency status by uploading a copy of a recent bank statement. Other documents are supported too, such as a utility bill. 

Second, you will need to upload a government-issued ID. Examples here include a state ID card, driver’s license, and a passport. 

Step 3: Deposit US Dollars Fee-Free

Now that your account is verified, you can make a deposit. 

eToro enables USA clients to deposit funds fee-free across all supported payment methods. This not only includes ACH but debit/credit cards and e-wallets too. 

The minimum deposit is $10. 

Step 4: Search for a Stock to Buy

The next step is to search the eToro website or mobile app for a suitable stock to buy. 

• There are many ways to do this, but the easiest is to use the search bar by typing in the name of the stock. 
• You can then click on ‘Trade’ to go straight to the order form to complete the investment. 

If you aren’t quite sure which stock to buy, you might consider filtering down by the industry. Alternatively, eToro also displays trending stocks, including the biggest gainers in the previous 24 hours.  

For further information on a stock that you are thinking about buying, eToro offers sell-side analysts ratings, relevant market news, charting tools, and more. 

Step 5: Buy Stocks

The next and final part of the stock purchase process requires you to enter a total investment amount. 

At eToro, you don’t need to buy full shares - so you can enter any amount from $10 upwards. 

After clicking on ‘Open Trade’, eToro will complete the stock purchase and add the shares to your portfolio. 

Note: If the order box displays ‘Set Order’, this means that the markets are closed. Click ‘Set Order’ to have eToro complete the trade once the market reopens. 

Step 6: Sell Stocks on eToro

At some point in the future, you will likely want to sell your stocks - hopefully to lock in a profit. 

If you bought the stocks at eToro, you can sell them wherever the markets are open - also on a commission-free basis. 

The funds will then be added to your eToro account.

Your capital is at risk. Other fees apply.

Learn About Buying Stocks For The First Time - The Basics

The underlying basics to consider when learning how to buy stocks for the first time are actually very simple. 

In its most basic form, by buying stocks, you are investing your own money into a company - such as Apple or Tesla. This means that you effectively have a micro-stake in the ownership of the company. 

Of course, this won’t be enough to have any say in how the company is run. But in most cases, even if you only own one stock, you have the right to attend and vote in the company’s annual general meeting (AGM). 

The value of the stock that you buy is determined by market forces. If more people want to buy the stock because they believe it represents a good investment, then the value of the shares will increase. 

If the opposite happens, the value of the stock that you buy can decline. Due to the volatile and unpredictable nature of the stock market, long-term investors will generally build a diversified portfolio of companies from a multitude of industries. 

This is a great way to reduce the risk of choosing the wrong stock investment. We cover diversification and other handy stock investing tips further down in this guide. 

For more guides on how to buy stocks check out our other stock buying guides:

• How To Buy Adobe (ADBE) Stock
• How To Buy Alibaba (BABA) Stock
• How To Buy Alphabet (GOOGL) Stock
• How To Buy Apple (AAPL) Stock
• How To Buy Amazon (AMZN) Stock
• How To Buy Tesla Stock
• How To Buy Disney (DIS) Stock
• How To Buy Netflix (NFLX) Stock
• How To Buy Spotify (SPOT) Stock
• How To Buy eBay (EBAY) Stock
• How To Buy Ford Stock
• How To Buy Microsoft (MSFT) Stock
• How To Buy Nike (NKE) Shares
• How To Buy Porsche (P911) Stock
• How To Buy Zoom (ZM) Stock
• How To Buy AMC Stock
• How To Buy DocuSign (DOCU) Stock
• How To Buy DWAC Stock
• How To Buy Etsy Stock
• How To Buy Pfizer Stock
• How To Buy Peloton (PTON) Stock
• How To Buy Hertz (HTZ) Stock
• How To Buy Monday.com Stock

 

Your capital is at risk. Other fees apply.

How To Pick The Best Stocks To Buy? 

In the USA market alone, there are many thousands of stocks listed across the NYSE and NASDAQ, as well as OTC exchanges. 

In addition to this, some investors will buy stocks in companies that operate overseas, such as those in Asia or Europe. 

Naturally, this makes it difficult to know which stocks to buy. 

Consider the following tactics when building a stock portfolio:

Sector and Industry 

A good starting point is to create a shortlist of sectors and industries that you wish to invest in. 

For example, you might wish to invest in stocks from a sector like energy. Within this sector, there are many sub-industries, such as oil and gas, as well as renewables like solar and wind. 

To diversify as best as possible, it is wise to consider a wide range of industries from within each stock sector.  

P/E Ratio 

Many experienced investors will look to buy stocks based on the P/E ratio, which helps inform us whether a company might be undervalued. 

The P/E ratio looks at the ratio between the stock’s current price against its earnings per share. This will then give you a multiple.

You can then compare this multiple with the stock’s main competitors. If you find that your chosen stock has a lower P/E than its industry rivals, it could be undervalued. 

Domestic and International 

Don’t be afraid to buy stocks from markets outside of the USA. This is yet another way to achieve a solid portfolio that is well-diversified. 

For example, when electing to buy stocks via eToro, you can access companies from France, Hong Kong, Canada, Germany, the UK, and much more. 

Quarterly Earnings 

Quarterly earnings are perhaps one of the most utilized research avenues when it comes to choosing stocks to buy (or sell). 

In a nutshell, the CEO of a stock will hold a public earnings call every three months, which outlines how the firm has performed. 

Anyone can listen to the call, ensuring that stocks are traded in fair market conditions. The earnings call will then be converted into a quarterly report, where you digest the respective information. 

Either way, by listening to and reading quarterly earnings reports, you can make informed decisions about whether or not you should buy the stock.

Your capital is at risk. Other fees apply.

Top 10 Best US Stocks To Buy In 2023

There are thousands of stocks to choose from across multiple industries and sectors. 

Nonetheless, here’s an overview of the 10 most popular stocks to buy in the USA right now:

Alphabet

This is a major Big Tech stock that owns various transnational brands, including Google and YouTube. Alphabet has a robust balance and is able to weather any economic storm. Alphabet stock is trading 28% below its 52-week high, representing a bargain entry price. 

Amazon

Amazon is another larger-cap tech company that is trading at a discount when compared to its prior highs. The stock is trading more than 33% lower than its 52-week high, which creates a great entry price for new buyers. 

ConocoPhillips

To gain exposure to the oil and gas sector, ConocoPhillips stock is worth considering. Not only is ConocoPhillips stock up 17% over the prior year, but it is paying a running dividend yield of over 5%.  

Johnson & Johnson

Johnson & Johnson sells products and services that will always remain in demand across all economic landscapes, with the firm heavily dominant in the consumer-based pharmaceuticals space. Johnson & Johnson has increased its annual dividend payment for 60 consecutive years, and the stock is currently offering a running yield of over 2%. 

Coinbase

One of the best ways to gain exposure to the cryptocurrency space is through Coinbase stock. Since its IPO in 2021, Coinbase stock has declined by more than 80%. However, some would argue that this represents a solid entry price for the huge discount on offer. 

Grab

Just like Coinbase, Grab is a growth stock that has seen its share price decline considerably since its IPO. Based on prices as of writing, Grab stock is trading over 70% below its December 2020 listing price. 

Apple

Apple is behind a global brand that not only includes its primary iPhone and Mac devices, but plenty of subscription-based services too. Over the prior five years of trading, Apple stock is up 240%. 

Microsoft

Another top-rated tech stock to hold is Microsoft, with the firm offering returns of over 165% in the prior five years of trading. Microsoft pays a small dividend, with the current yield at just over 1%.  

Tesla

Tesla is the largest car market globally, which is interesting considering that it specializes in electric vehicles. Over the prior five years, Tesla has generated growth of over 750%. 

Exxon Mobil

This oil and gas giant has seen its stock price increase by more than 40% in the prior 12 months of trading. Exxon Mobil also offers an attractive running dividend yield of over 3%.  

Your capital is at risk. Other fees apply.

What Taxes Do You Need To Pay On Stocks? 

Taxes can be confusing when electing to buy stocks in the USA and ultimately, no two individual circumstances are the same. 

With that said, the two primary tax liabilities that you will likely face as a stock investor are as follows:

Capital Gains Tax

Capital gains tax is payable when you sell a stock at a profit. The amount you pay will depend on several factors but will invariably be calculated against the profit segment of the stock investment.

• For instance, let’s say that you invest $1,000 into Tesla in January 2023 and cash out in September 2023 for $2,000.
• In this example, your capital gains on the Tesla stock investment is $1,000. This is the figure that you will likely need to pay tax on.  

Some investors will hold back on selling a stock until the following year so that can increase their tax efficiency.

Moreover, you can also consider buying stocks via a retirement account, such as Roth or traditional IRA.  

Dividends Tax

If you buy stocks in a company that pays dividends, this can also trigger a tax event. Unlike capital gains. Taxes on dividend payments are realizable in the same year that they were received. 

Tips To Consider When Learning How To Buy Stocks  

Here are five handy tips to consider when learning how to buy stocks as a complete beginner:

Consider Your Investment Budget

Before electing to buy stocks in the USA, you should spend some time assessing how much capital you have to invest.

This will prevent you from investing more than you can afford to lose. It will also ensure that you only invest money that you will not need access to at short notice. 

After all, you don’t want to be in a position where you need to sell a stock to meet a short-term financial requirement.  

Invest in Fractional Stocks

It goes without saying that when evaluating where to buy stocks in the USA, you should only use a broker that supports fractional enquiries. 

This will give you the very best chance of diversifying across many different sectors and industries - even if you only have access to a small amount of money. 

Opt for a Managed Portfolio

If you do not have the time or experience to pick individual stocks, then you might be more suited for a passive investment portfolio that is managed on your behalf. 

One of the best options in this regard is eToro, which offers dozens of smart portfolios. 

Smart portfolios track a specific market, such as AI or green energy, and the basket of investments will be chosen by eToro. 

Moreover, eToro will maintain the smart portfolio on your behalf at no additional charge. This means that every month or so, the portfolio will be rebalanced. 

Dollar-Cost Averaging

If you prefer investing on a DIY basis, then be sure to understand the effectiveness of dollar-cost averaging. 

Put simply, this stock investing strategy is suited for long-term investors that wish to avoid short-term market volatility. 

You will look to invest a set amount each month into your chosen stocks and repeat this without fail. For instance, let’s say that you have $500 each month to invest. 

You might decide to invest in 10 different companies at $50 each. This will average out the amount you pay for each stock over the course of time.  

Become Tax-Efficient

When electing to buy stocks in the USA, it’s best to become as tax-efficient as practically possible. 

The easiest way to achieve this is by opting into a 401 (k) plan through your employer. 

If your employer doesn’t offer a 401 (k) plan, then you might opt for an IRA, which is offered by many online brokers in the USA.  

It is, however, best to speak with a professional when tax planning for your stock investments. 

Guides To Buying Stocks

To learn more about stock investing, check out our expert guides.

• How To Buy Stocks On eToro
• Next Stock To Explode
• Most Reputable Online Stock Trading Platforms
• Best Shares To Buy In The UK
• How To Pick Stocks: A Complete Guide for New Investors

Your capital is at risk. Other fees apply.

Conclusion - Where To Buy Stocks In The USA

In summary, this beginner’s guide has explained how to buy stocks in the USA in under five minutes without paying any commission. 

When considering where to buy stocks in the USA, eToro is a suitable choice for those that wish to invest in domestic and international companies in a cost-effective way. 

eToro is also the best place to buy stocks on a budget, as the broker supports fractional ownership at a minimum of just $10 per trade.

eToro – Buy Stocks With 0% Commission

Open an account with eToro, deposit some funds with USD, and finally – buy Shares from just $10.

Your capital is at risk. Other fees apply.