5 Biggest Online Brokers in 2021

In this article we are going to list the top 5 biggest online brokers in 2021. For a detailed coverage of this topic and a more comprehensive look, please head over to the 10 biggest online brokers in 2021.

5. Webull

Founded just 4 years ago in 2017, WeBull is one of the only non-American companies in our list of top online brokers in 2021, as it is a Chinese financial services company, even though its headquarters are in New York. It also halted buy orders for GameStop stock on January 28, only to reverse its order and allow trading to continue unabated.

4. Merrill Edge

The electronic trading platform is a service provided by BofA Securities, which itself is a part of Bank of America (NYSE:BAC). The service has been in existence for over 10 years now, having been founded in 2021.

3. Robinhood

Robinhood didn’t only block trades being made by its users on GameStop; it also sold GameStop shares owned by users automatically when the prices were low, if the shares were bought on margin, using the excuse of volatility to cover their act. With class actions lawsuits pending and also having the eyes of regulators on them now, the current period will be a really testing one for an app which brought retail investing into the mainstream.

2. InteractiveBrokers (NASDAQ:IBKR)

It may be near the top of our list right now, but the online broker has certainly taken a major reputational hit during the GameStop story as it also stopped allowing its users to purchase GameStop stock, while also raising margin requirements for certain stocks. This certainly does not bode well for a 43 year old major company which has 24 offices in 14 countries and revenues of close to $2 billion. We will have to wait and see to find out the true impact on the company, though it is entirely possible that a company of this size and stature can weather the storm and grow even further.

1. Fidelity

Topping the list of the 5 biggest online brokers in 2021 is Fidelity, which has also emerged as the hero in the GameStop saga. The app is owned by Fidelity investments, which is one of the biggest asset managers in the entire world with more than $3.3 trillion under asset management. Among the many services it provides is its online trading app known simply as Fidelity which has been lauded for not having commission rates,  and doesn’t require an account minimum either. It is an excellent app not just for retail investors, but also for those who are completely new to investing or are long-term investors and not just short term ones. Unlike other apps, it is also one of the extremely rare ones which doesn’t charge a commission while also not selling your order flow, which is unique in today’s online broker world.

The reason Fidelity gained such acclaim in the GameStop story is because while other apps such as Robinhood and InteractiveBrokers limited or completely paused purchases transactions for GameStop stock, Fidelity made no such declarations and allowed traders to continue trading.

See also: 20 largest insurance companies in the US and 15 largest gaming companies in the world