Top Discount Brokers for 2021

We found 11 online brokers that are appropriate for Trading Discount.

Best Discount Brokers Guide

Updated March 04, 2021

Discount Brokers

Brokers who help in executing orders at a discounted commission rate are known as discount brokers.

It is important to take note that these brokers do not offer any suggestions or advice with respect to performance analysis or investment.

Discount brokers are not full service brokers and hence not suitable for beginners or those who want to invest and are new to the market.

Discount brokers are mainly operating through online platforms and charge a smaller commission to traders with smaller capital.

Discount Brokerage

Lately, discount brokerage has become a common term in the financial world. It best fits experienced traders who do not require additional support from a broker, such as research, advice, and financial planning. Discount brokers charge lower fees and clients usually have none or very little interaction with them.

Discount Brokerage Explained

A discount brokerage is basically used for trading securities at a discounted or lower rate without any additional services like advice on buy or sell, financial planning, and research. It is important to note here that discount brokerage is not the same as a full-service brokerage.

In fact, a discount brokerage firm is similar to a traditional brokerage as it needs to be registered with the Securities and Exchange Commission (SEC). It also needs to be a member of the Securities Investor Protection Corp. and Financial Industry Regulatory Authority (FINRA).

Meanwhile, a discount brokerage is not limited to the securities segment. It also serves insurance clients with one-off fees, thus becoming comparatively cheaper than other insurance brokers. Discount brokerages are gaining popularity even in the real estate industry.

Why opt for Discount Brokers

One of the primary advantages to choose discount brokers is that orders can be executed at cheaper costs. Most of them operate online and it is easy to find.

Discount brokers have lately been in much demand as they perfectly suit traders with small capital.

Disadvantages of Discount Brokers

Discount brokers are perfect for experienced traders who need less advice or no advice in terms of trading.

Beginners who are in need of investment advice should not opt for discount brokers. Instead, they should find out a full service broker for their trading needs.

Discount brokers don't offer personal consultations, tax planning, research, analysis, estate planning and other advice.

How Discount Brokers offer Low Commission

Discount brokers are capable of discounting commissions or fees as they operate with less overhead expenses.

They usually operate online and don't require an office establishment. They require few human resources to run their business.

Examples of Discount Brokerages

Let us understand the benefits of a discount brokerage through an example. Suppose an experienced trader is looking to buy mutual funds and stocks without paying a high fee or commission to a broker. He would try contacting an online discount brokerage who is registered with required regulatory authorities and who also offers a mobile app to help to trade on the go.

As the trader is experienced, he only needs to rely on the brokerage's database and some guidance made available on the website or app. After which, the trader simply selects the discount brokerage and trades mutual funds using the broker's platform. Overall, this entire process will incur a low trading cost and be fuss-free.

Discount Brokers vs Full Service Brokers

Full service brokers offer useful information and suggestion apart from executing orders for clients.

They support traders with financial planning, performance analysis, tax planning and more. They are perfect for beginners or those traders who want to trade in high volume.

Discount brokers, on the other hand, do not provide personal consultations to clients.

They are best for experienced traders who know their financial goals and are well informed about the tit and bits of the market. They can save money by paying less fees or commission.

It is important to know whether one needs a discount brokerage or a full-service brokerage. In simpler terms, experienced traders should opt for discount brokerages, while beginners or novice traders should rely on a full-service brokerage.

The difference between the two brokerages are that the discount brokerage offers no additional services apart from providing a trading platform. On the other hand, a full-service brokerage provides investing knowledge, financial goals, current financial status, and many more services.

In general, traders are advised to opt for a full-service brokerage to get professional investment advice. It is better to pay a higher fee or commission to explore other platforms to earn better profits.

Discount Brokerage in Other Industries

Discount brokeragea has gained immense popularity. Hence, it is not limited to securities. It also thrives in the real estate segment by helping investors and individuals to buy and sell properties. At times, full-service real estate agents and discount brokerages would offer the same home listings. Hence, it is better to buy or sell the property through a discount brokerage as you would save more money.

Discount brokerage has also pervaded the insurance industry. One can buy insurance products through a discount brokerage without taking professional financial advice.

Main Characteristics of a Discount Brokerage

Traders need to decide whether they require full service brokers or discount brokers for their trading needs.

Discount Brokers in Several Industries

Discount brokers are gaining popularity in other industries too. In real estate, they are playing important roles in minimizing the cost for traders. Those buyers and sellers who know perfectly what they want or need can opt for discount brokers as no suggestion or advice is required.

Discount Brokers Verdict

Discount brokers are just like stockbrokers, but simply offer brokerage services at a discount or reduced commission. They offer no expert advice or investment planning for clients, unlike full-service brokers. Even though the services are limited, discount brokerages have been growing in popularity among traders.

However, it is important to understand that without proper knowledge, trading could be a risky venture. This is the reason why beginners and novice traders are recommended to opt for full-service brokers instead of discount brokers.

Apart from all these, it cannot be ruled out that fees or commissions eat away a good portion of the profit. This would be detrimental if multiple trading is done every single day. Therefore, experienced traders usually prefer dealing with discount brokers to overcome the high trading expenses.

Novice traders with small capital may be confused about whether to opt for a discount broker or a full-service broker. If such traders choose a discount broker, there is a risk due to the lack of sufficient knowledge about the market. However, if he deals with a full-service broker, a good portion of the profit will be eaten away in the form of commissions or fees. Therefore, novice traders should always assess their skills properly and conduct enough research to solve this dilemma.

We've collected thousands of datapoints and written a guide to help you find the best Discount Brokers for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best discount brokers below. You can go straight to the broker list here.

Reputable Discount Brokers Checklist

There are a number of important factors to consider when picking an online Discount trading brokerage.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Our brokerage comparison table below allows you to compare the below features for brokers offering Discount Brokers.

We compare these features to make it easier for you to make a more informed choice.

Top 15 Discount Brokers of 2021 compared

Here are the top Discount Brokers.

Compare Discount Brokers min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are discount brokers. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more discount brokers that accept discount clients

Broker eToro XTB FP Markets Trading212 Plus500 SpreadEx Forex.com City Index Markets.com IG Axitrader
Rating
Regulation Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 Financial Conduct Authority (FCA) Financial Conduct Authority (FCA), Cayman Islands Monetary Authority (CIMA), Investment Industry Regulatory Organization of Canada (IIROC), National Futures Association (NFA) Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Monetary Authority of Singapore (MAS) Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC) Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC) Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Dubai Financial Services Authority (DFSA)
Min Deposit 200 No minimum deposit 100 1 100 1 100 25 250 No minimum deposit No minimum deposit
Funding
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
Used By 17,000,000+ 250,000+ 10,000+ 14,000,000+ 15,500+ 10,000+ 150,000+ 14,000+ 10,000+ 239,000+ 10,000+
Benefits
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
Accounts
  • Demo account
  • Standard account
  • Islamic account
  • Pro account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Zero spread account
  • ECN account
  • Managed account
  • Islamic account
  • Demo account
  • Demo account
  • Standard account
  • Islamic account
  • Demo account
  • Standard account
  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Managed account
  • Demo account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
Spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
Platforms Web Trader, Tablet & Mobile apps MT4, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, MT5, WebTrader, Advantage Trader Pro, TradingView, Tablet and mobile apps MT4, Web Trader, Tablet & Mobile apps MT4, MT5, Web Trader, Tablet & Mobile apps MT4, Mac, Web Trader, L2 Dealer, Tablet & Mobile apps MT4, Mac, ZuluTrade, Web Trader, Tablet & Mobile apps
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
etoro
Sign Up with
xtb
Sign Up with
fpmarkets
Sign Up with
trading212
Sign Up with
plus500
Sign Up with
spreadex
Sign Up with
forexcom
Sign Up with
cityindex
Sign Up with
marketscom
Sign Up with
ig
Sign Up with
axitrader
Risk Warning 67% of retail investor accounts lose money when trading CFDs with this provider. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Losses can exceed deposits CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Losses can exceed deposits 74% of retail investor accounts lose money when trading CFDs with this provider 75% of retail investor accounts lose money when trading CFDs with this provider 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Losses can exceed deposits
Demo eToro
Demo
XTB
Demo
FP Markets
Demo
Trading 212
Demo
Plus500
Demo
SpreadEx
Demo
Forex.com
Demo
City Index
Demo
Markets.com
Demo
IG
Demo
Axitrader
Demo
Excluded Countries IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, US, IN, PK, BD, NG , ID, BE US, JP, NZ US MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE US, TR BE US, CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW RU, BR, CH, ZA, SG, JP, US, CA, BE, IL, TR, NZ, MY, SY, TH, ID, IR, IQ, HK, PH, PR US, BE, FR, IN, IL, PL, ZW US, JP

All Discount brokers in more detail

You can compare Discount Brokers ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.

We also have an indepth Top Discount Brokers for 2021 article further below. You can see it now by clicking here

We have listed top Discount brokers below.

Discount Brokers List

eToro
(4/5)
Min deposit : 200
eToro was established in 2007 and is used by over 17000000+ traders. 67% of retail investor accounts lose money when trading CFDs with this provider. eToro offers Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency, Index Based Funds, Exchange Traded Funds (ETF). Cryptocurrency availability with eToro is subject to regulation.

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC)
XTB
(4/5)
Min deposit : 0
XTB was established in 2002 and is used by over 250000+ traders. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. XTB offers Forex, CFDs, Cryptocurrency. Cryptocurrency availability with XTB is subject to regulation.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mirror Trader, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG)
FP Markets
(4/5)
Min deposit : 100
FP Markets was established in 2005 and is used by over 10000+ traders. Losses can exceed deposits FP Markets offers Forex, CFDs.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC)
Trading212
(4/5)
Min deposit : 1
Trading 212 was established in 2006 and is used by over 14000000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trading 212 offers Stocks, Forex, Commodities, Indices.

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Financial Supervision Commission (FSC)
Plus500
(4/5)
Min deposit : 100
Plus500 was established in 2008 and is used by over 15500+ traders. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Plus500 offers CFDs.


Plus500 offer a 100% Free and Unlimited Demo account No Deposit fees/Commissions No hidden fees Competitive fees Tight Spreads

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546
SpreadEx
(4/5)
Min deposit : 1
SpreadEx was established in 1999 and is used by over 10000+ traders. Losses can exceed deposits SpreadEx offers Forex, CFDs, and spread betting.

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA)
Forex.com
(4/5)
Min deposit : 100
Forex.com was established in 1999 and is used by over 150000+ traders. 74% of retail investor accounts lose money when trading CFDs with this provider Forex.com offers Forex, Indices, Commodities, Equities, Cryptocurrencies. Cryptocurrency availability with Forex.com is subject to regulation.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, WebTrader, Advantage Trader Pro, TradingView, Tablet and mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cayman Islands Monetary Authority (CIMA), Investment Industry Regulatory Organization of Canada (IIROC), National Futures Association (NFA)
City Index
(4/5)
Min deposit : 25
City Index was established in 1983 and is used by over 14000+ traders. 75% of retail investor accounts lose money when trading CFDs with this provider City Index offers Forex, CFDs, Spread Betting.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Monetary Authority of Singapore (MAS)
Markets.com
(4/5)
Min deposit : 250
Markets.com was established in 2008 and is used by over 10000+ traders. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Markets.com offers Forex, CFDs and Spread Bets. Spread Bets are only available to UK customers.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
IG
(3/5)
Min deposit : 0
IG was established in 1974 and is used by over 239000+ traders. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. IG offers Forex, CFDs, Spread Betting, Share dealing.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, Web Trader, L2 Dealer, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
Axitrader
(3/5)
Min deposit : 0
Axitrader was established in 2007 and is used by over 10000+ traders. Losses can exceed deposits Axitrader offers Forex, CFDs, Social Trading.

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Dubai Financial Services Authority (DFSA)