Which US Stock Brokers Offer Zero Commissions? Charles Schwab, Interactive Brokers, or Tiger Brokers

With the advancement of globalization, more investors are turning their attention to overseas markets, especially the US stock market. Compared to traditional investment methods, secondary market investments have become a preferred choice due to their simplicity and speed. Unlike the domestic stock market, the US and Hong Kong markets are more mature, have more robust mechanisms, and offer a wealth of investment opportunities. This article will introduce how to choose a suitable US stock broker, compare Charles Schwab and Interactive Brokers comprehensively, and share my profitable experiences.

Why Choose Overseas Market Investments

Compared to domestic stock markets, the US and Hong Kong markets feature more internationally renowned companies such as Apple, Microsoft, and Google, offering investors more investment opportunities. The first step to investing in overseas stock markets is to open a stock account. Currently, well-known brokers among Chinese investors include Futu Holdings (FUTU) and Tiger Brokers (TIGR). However, it is essential to pay attention to their fee structures and service quality when choosing.

Recommended Zero Commission US Stock Brokers

Futu Securities and Tiger Brokers are well-known internet brokers among Chinese investors, listed on the NASDAQ, providing convenient account opening and trading services. However, these brokers charge fees to Chinese users while offering zero commission services to US users. This double standard has caused dissatisfaction among Chinese investors. Additionally, these brokers have stopped registering mainland users for well-known reasons. Hence, choosing US-based zero commission brokers might be a better option.

1. Charles Schwab
   History and Background:

   • Founded in 1971 as a wholly-owned subsidiary of Commander Industries, First Commander, registered in California, USA.
   • Started discount brokerage in 1975; established the industry’s first 24-hour quotation service in 1980; began online trading in 1996; pioneered zero commission trading in 2019.
     Advantages:
   • Pioneered zero commission trading in 2019.
   • Became one of the top three brokerage firms in the US by acquiring TD Ameritrade.
   • Offers “fractional shares” trading, allowing investors to purchase “slices” of up to 10 different stocks at once.
   • Opens a JPMorgan bank account for users, facilitating deposits and withdrawals.
     Key Point: Many users find trading US stocks challenging due to the lack of a US dollar bank account. However, Charles Schwab provides a JPMorgan bank account in the user’s name, greatly facilitating deposits and withdrawals. For instance, I often use Panda Remit and BiyaPay to transfer funds to my Charles Schwab account. While Panda Remit is convenient, as an investor in both US stocks and Bitcoin, I prefer to discuss BiyaPay. BiyaPay allows trading of US and Hong Kong stocks and digital currencies like Bitcoin and Ethereum. BiyaPay supports USDT deposits and withdrawals to Charles Schwab accounts or other US dollar bank accounts. I highly recommend BiyaPay and hope that platforms like BiyaPay continue to thrive.

2. TD Ameritrade
   History and Background:

   • Listed on the NASDAQ, regulated by the SEC, FINRA, SIPC, and CFTC.
   • Customers enjoy $500,000 insurance protection, also regulated by the Hong Kong Securities and Futures Commission and the Monetary Authority of Singapore (MAS).
     Advantages:
   • Offers zero commission on stock and ETF trades.
   • Features the powerful thinkorswim trading platform, recognized as one of the best trading software globally.

3. Firstrade
   History and Background:

   • Established in 1985, providing comprehensive financial services.
   • Offers zero commission trading, no minimum deposit for opening accounts, and no account maintenance fees.
     Advantages:
   • Supports Chinese language service.
   • Offers a wide range of financial products, including stocks, ETFs, options, and mutual funds.

4. Robinhood
   History and Background:

   • Known for its easy-to-use mobile app and zero commission trades.
   • Supports cryptocurrency trading, which other brokers do not.
     Advantages:
   • User-friendly interface, suitable for novice investors.
   • Offers trading in stocks, ETFs, and cryptocurrencies.

5. Webull
   History and Background:

   • Founded in 2016 by Wang An, a former Alibaba Finance and Xiaomi Finance employee.
   • Funded by Xiaomi Technology, Shunwei Capital, and Noah Wealth.
     Advantages:
   • Provides zero commission trading, suitable for domestic users.
   • Features a powerful trading platform, praised by users.

Comprehensive Comparison of Top Brokers Charles Schwab and Interactive Brokers

Charles Schwab:

• Fees: Zero commission, no minimum account balance requirement.
• Trading Platform: Comprehensive, offering robust research tools and resources.
• Service: 24/7 customer support, supports multiple languages.
• Security: Regulated by SEC and FINRA, customer funds protected by SIPC.

Interactive Brokers (IB):

• Fees: Low commission, suitable for high-frequency traders.
• Trading Platform: Professional-grade trading platform, ideal for advanced traders.
• Service: Global market access, multilingual support.
• Security: Regulated by SEC, FINRA, and various international regulators, customer funds protected by SIPC.

Summary:

• Choose Charles Schwab: Suitable for investors seeking zero commission trades, robust research tools, and resources.
• Choose Interactive Brokers: Ideal for high-frequency traders, those needing global market access, and using a professional trading platform.

My Profitability Tips

1. Choose the Right Broker:

   I use Charles Schwab and Interactive Brokers because they offer powerful trading platforms, low costs, and efficient customer service.

2. Diversify Investments:

   Diversify investments across different asset classes such as tech stocks, healthcare stocks, and real estate funds, or Bitcoin ETFs to reduce risk. Bitcoin ETFs, a new investment option this year, offer significant growth potential. Since its inception in 2011, Bitcoin has grown from virtually worthless to a substantial market cap today, with further growth potential. If you find direct investment in Bitcoin risky, consider investing in Bitcoin ETFs available through brokers like Charles Schwab and BiyaPay.

3. Regularly Review and Adjust Investment Portfolio:

   Review the investment portfolio quarterly to ensure asset allocation aligns with market changes and personal goals.

4. Utilize Market Volatility:

   Use limit orders and stop orders to buy and sell during market volatility, ensuring profits during fluctuations.

5. Learn and Improve Investment Skills:

   Continuously learn financial knowledge, attend investment seminars, read professional books, and improve investment skills and decision-making abilities.

Conclusion

Choosing the right US stock broker is crucial for investment success. Charles Schwab and Interactive Brokers are excellent choices, offering powerful trading platforms and low-cost services. Following principles such as diversified investments, regular portfolio reviews, utilizing market volatility, and continuous learning can help investors achieve stable returns in both bull and bear markets. I hope this comparative analysis and personal experiences provide valuable references for you.