You’ve probably wondered if there’s really such a thing as free stock trading – and you’re right to be skeptical. Most zero fee brokerage platforms come with strings attached, but one lesser-known broker is shaking up the industry with genuinely commission free trading.
This guide is perfect for new investors tired of watching fees eat into their returns and experienced traders looking to cut costs without sacrificing quality. You’ll discover which online brokerage is making waves with their zero commission broker model and why traditional firms are scrambling to compete.
We’ll break down exactly how this discount brokerage eliminates trading fees while still turning a profit, reveal what trade-offs you might face with their free trading platform, and compare real costs against established brokers. You’ll also get honest feedback from actual users about platform performance and whether zero cost investing truly delivers on its promises.
Meet the Zero-Fee Brokerage That’s Disrupting Traditional Trading
Company Background and Founding Story
Public, the zero fee brokerage that’s been making waves in the trading world, started with a simple mission: democratize investing by eliminating the barriers that keep everyday people out of the stock market. Founded in 2017 by Leif Abraham, Will Grimmer, and Jannick Malling, this commission free trading platform emerged from their frustration with traditional brokerages that charged hefty fees for basic stock transactions.
The founding trio, all with backgrounds in fintech and product development, recognized that high trading fees were preventing millions of Americans from building wealth through investing. Their solution? Create a zero commission broker that would make stock trading accessible to everyone, regardless of account size. The company initially launched as a social investing platform, combining the functionality of traditional brokerages with social media-like features that let users share their investment strategies and learn from each other.
What started as a scrappy startup has evolved into a legitimate challenger to established players like Charles Schwab and TD Ameritrade. The platform’s early focus on community-driven investing and educational content helped differentiate it from other free trading platforms entering the market around the same time.
Current Market Position and User Base
Public has rapidly grown from a startup concept to a significant player in the online brokerage space, attracting over 3 million users since its launch. The platform has successfully positioned itself as the go-to best online stock brokers for beginners, particularly appealing to millennials and Gen Z investors who value transparency and social interaction in their investing journey.
The brokerage has secured substantial funding, raising over $310 million across multiple investment rounds, with backing from notable investors including Accel, General Catalyst, and The Chernin Group. This financial backing has enabled Public to compete directly with established discount brokerage firms while maintaining its zero-fee structure.
Public’s user base skews younger than traditional brokerages, with approximately 70% of users under age 40. The platform has seen explosive growth during market volatility periods, particularly during the 2020-2021 retail trading boom. Unlike some competitors that focus purely on trading tools, Public has built a community of engaged investors who actively share insights and discuss market trends.
The company’s market position is unique because it combines zero cost investing with social features, educational content, and a strong focus on long-term wealth building rather than day trading speculation.
Key Features That Set It Apart from Competitors
Public’s zero commission stock brokers comparison reveals several distinctive features that separate it from both traditional and newer online trading account providers. The platform’s most notable differentiator is its complete elimination of payment for order flow (PFOF), a revenue model that most free stock trading platforms rely on to generate income.
Key distinguishing features include:
Social Investing Community: Users can follow successful investors, share their portfolios publicly, and engage in discussions about specific stocks and market trends. This social layer transforms investing from a solitary activity into a collaborative learning experience.
Educational Focus: The platform offers extensive educational resources, including live events, market analysis, and beginner-friendly content that helps new investors understand fundamental concepts before diving into trading.
Fractional Shares: Public allows users to buy partial shares of expensive stocks, making it possible to invest in companies like Amazon or Tesla with just a few dollars.
Alternative Investments: Beyond traditional stocks and ETFs, Public offers access to alternative investments including fine art, collectibles, and crypto, providing diversification options typically unavailable through conventional brokerages.
Transparent Fee Structure: While most best online share trading apps claim to be “free” while profiting from PFOF, Public maintains complete transparency about how they generate revenue, building trust with users who want to understand the true cost of their trades.
The platform’s mobile-first design and intuitive interface make it particularly appealing to smartphone-native investors who expect seamless, app-based experiences from their financial services providers.
How They Eliminate All Trading Fees
Commission-free stock and ETF trades
This zero fee brokerage has completely eliminated the traditional per-trade commission structure that dominated the industry for decades. When you buy or sell stocks, you won’t pay the typical $4.95 to $9.95 commission that many traditional brokers still charge. The same applies to ETF transactions – whether you’re purchasing a single share or executing a large block trade, the cost remains zero.
The platform covers both market orders and limit orders without any fee differentiation. You can trade during regular market hours or extended hours sessions without worrying about additional charges. Even frequent day traders benefit from this structure, as they’re not penalized with mounting commission costs that can quickly eat into profits.
No account maintenance or inactivity fees
Traditional brokers often impose monthly or quarterly account maintenance fees, especially for smaller accounts that fall below minimum balance requirements. This zero commission broker has scrapped these entirely. Your account won’t be charged $25-50 per month simply for existing, regardless of your account balance or trading frequency.
Inactivity fees are also eliminated – a refreshing change from brokers who charge $50-75 annually if you don’t make enough trades. Whether you’re an active trader or a buy-and-hold investor who makes one trade per year, your account treatment remains identical. This approach particularly benefits long-term investors who prefer to set up their portfolios and let them grow without constant intervention.
Free dividend reinvestment programs
Dividend reinvestment programs (DRIPs) typically carry fees of $1-5 per transaction at traditional brokerages. This free trading platform automatically reinvests your dividends without any charges, allowing you to purchase fractional shares when your dividend amount doesn’t cover a full share price.
The automatic reinvestment happens seamlessly – when companies in your portfolio pay dividends, the cash immediately goes toward purchasing additional shares of the same stock. This compounding effect becomes more powerful when fees aren’t reducing your reinvestment amount each quarter.
Zero costs for basic research and tools
While premium research platforms can cost $30-50 monthly at other brokerages, this zero fee brokerage includes fundamental research tools at no charge. You get access to analyst ratings, company earnings reports, financial statements, and basic charting capabilities without paying extra subscription fees.
The platform provides real-time quotes, market news, and educational content that many brokers bundle into paid tiers. Basic technical analysis tools, including common indicators and chart patterns, come standard with every account.
The Hidden Revenue Model Behind Free Trading
Payment for Order Flow Explained
Behind every zero fee brokerage lies a revenue stream that most traders don’t see: payment for order flow (PFOF). When you place a trade on a commission free trading platform, your order doesn’t go directly to the stock exchange. Instead, it gets routed to market makers like Citadel Securities or Virtu Financial, who pay the broker for the privilege of executing your trade.
Here’s how it works: these market makers profit from the tiny spread between bid and ask prices. They pay brokers typically $0.001 to $0.002 per share for stock orders and up to $0.60 per options contract. For a zero commission broker handling millions of trades daily, this adds up to substantial revenue. The Securities and Exchange Commission requires brokers to disclose these arrangements, but many traders remain unaware of this practice.
The controversy around PFOF centers on whether traders get the best execution. Market makers might offer slightly worse prices than what’s available on public exchanges, though regulations require “best execution” within reasonable parameters. Critics argue this creates a conflict of interest, while supporters claim the savings from zero commissions outweigh any potential price disadvantages.
Premium Subscription Services and Upgraded Features
Most zero fee brokerage platforms operate on a freemium model, offering basic trading functionality for free while charging for advanced features. These premium subscriptions typically range from $5 to $25 per month and unlock professional-grade tools that serious traders demand.
Premium features often include:
- Real-time market data and advanced charting tools
- Level II order book access
- Options trading strategies and analysis
- Research reports from major financial institutions
- Priority customer support
- Extended trading hours access
The best online stock brokers for beginners usually start users on free tiers with 15-minute delayed quotes and basic order types. As traders become more sophisticated, many willingly upgrade to access institutional-quality research and faster data feeds. This subscription revenue provides predictable monthly income that helps offset the costs of maintaining a free trading platform.
Margin Lending Interest Rates
Margin lending represents another significant revenue stream for discount brokerage firms. When traders borrow money to purchase securities, they pay interest on the borrowed amount. These rates typically range from 7% to 12% annually, depending on the account size and current market conditions.
Zero commission stock brokers comparison often reveals similar margin rates across platforms, but some offer preferential rates for larger accounts:
| Account Balance | Typical Margin Rate |
|---|---|
| Under $25,000 | 10.75% – 11.75% |
| $25,000 – $100,000 | 9.75% – 10.75% |
| Over $100,000 | 7.75% – 9.75% |
The beauty of this model for brokers is that margin interest compounds daily, creating steady revenue from active traders who use leverage. Even with zero trading fees, a trader maintaining a $50,000 margin balance pays roughly $4,000-$5,000 annually in interest charges.
Cash Management and Interest Earnings
The final piece of the revenue puzzle involves cash management. Every online brokerage holds customer cash in various accounts, and the difference between what they earn on this cash versus what they pay customers creates profit margins.
Most free trading platforms offer cash management features like high-yield savings accounts or money market funds. They might advertise rates of 4-5% to customers while earning 5-6% on the same deposits through institutional banking relationships. This spread might seem small, but across millions of users with billions in aggregate cash balances, it generates substantial revenue.
Some platforms also earn fees by automatically sweeping uninvested cash into partner bank accounts or money market funds. These sweep arrangements often include revenue-sharing agreements where the broker receives ongoing compensation based on customer deposit levels. This explains why many online trading accounts actively encourage users to deposit more than they plan to invest immediately.
What You Give Up for Zero Fees
Limited Customer Support Options
Zero fee brokerages typically operate with lean staffing models to maintain their cost structure, which directly impacts customer service quality. Most commission free trading platforms offer support primarily through chat bots, email tickets, or basic FAQ sections rather than dedicated phone lines with human representatives.
When you encounter urgent trading issues or complex account problems, you’ll often find yourself waiting 24-48 hours for email responses instead of getting immediate phone support. Some zero commission brokers limit phone support to specific hours or reserve it only for high-balance accounts, leaving smaller investors to navigate issues independently.
The trade-off becomes particularly noticeable during market volatility when technical problems arise. Traditional full-service brokers maintain larger support teams specifically for these situations, while free trading platforms may experience support bottlenecks exactly when you need help most.
Basic Research Tools Compared to Full-Service Brokers
Zero cost investing platforms generally provide stripped-down research capabilities compared to traditional brokers. While you’ll get basic price charts and fundamental data, advanced analytical tools remain limited or completely absent.
Most free stock trading apps offer simplified market data, basic earnings information, and elementary charting features. However, they rarely include comprehensive analyst reports, detailed sector analysis, or sophisticated screening tools that seasoned investors rely on for informed decision-making.
Premium research features like real-time Level II quotes, advanced options analysis, or institutional-grade market research typically require separate subscriptions or upgraded account tiers. Traditional brokers often bundle these tools into their service packages, even with higher commission structures.
| Feature | Zero Fee Brokers | Traditional Brokers |
|---|---|---|
| Basic Charts | ✓ | ✓ |
| Real-time Quotes | Limited | ✓ |
| Analyst Reports | Basic/None | Comprehensive |
| Advanced Screening | Limited | Full Suite |
| Options Analysis | Basic | Advanced |
Potential for Slower Trade Execution
Zero commission stock brokers may prioritize order flow differently than traditional brokers, potentially affecting execution speed and quality. Many discount brokerage firms generate revenue through payment for order flow arrangements, which can create conflicts of interest regarding trade execution.
Your orders might get routed to market makers offering the brokerage the highest payments rather than the fastest or best-priced execution venues. This practice, while legal, can result in slightly worse fill prices or longer execution times compared to brokers prioritizing execution quality.
During high-volume trading periods, some online brokerage platforms without fees experience system slowdowns or outages more frequently than established firms with robust infrastructure investments. The cost savings that enable zero fees sometimes come at the expense of technological reliability and server capacity during peak trading hours.
Real User Experiences and Platform Performance
Account opening process and verification times
Getting started with this zero commission broker takes about 10-15 minutes online. Most users report completing the initial application in a single sitting, though the verification process varies significantly based on your documentation and account type.
Standard account verification typically happens within 24-48 hours for US residents with complete documentation. International users often wait 3-5 business days. The platform requires standard KYC documentation: government-issued ID, proof of address, and Social Security number for US accounts.
Several users noted the streamlined nature compared to traditional brokers. The mobile-first approach means you can complete everything from your phone, including document uploads through the camera feature. However, some experienced delays when bank account linking failed automatic verification, requiring manual review that added 2-3 extra days.
One particularly smooth aspect is the funding process. ACH transfers from major banks typically clear within 1-2 business days, faster than many established online brokerage platforms.
Mobile app functionality and user interface
The mobile experience drives this free trading platform‘s appeal. The interface prioritizes simplicity over advanced features, which creates mixed reactions among different user types.
New investors appreciate the clean, intuitive design. Core functions like buying stocks, checking portfolio performance, and viewing market data work smoothly. The app loads quickly and rarely crashes, according to user reviews across app stores.
However, active traders often find limitations frustrating. Advanced charting tools are basic compared to dedicated trading platforms. Options trading requires multiple taps to access, and the watchlist functionality lacks customization options power users expect.
The search function works well for popular stocks but sometimes struggles with lesser-known securities. Push notifications for price alerts arrive consistently, though some users report occasional delays during high-volume trading periods.
Desktop users get a web-based platform that mirrors the mobile experience. While functional, it doesn’t offer the advanced features serious traders expect from traditional online stock trading platforms.
Trade execution speed and reliability
Trade execution performance varies by market conditions and order types. Market orders for liquid stocks typically execute within 1-3 seconds during regular trading hours. This speed matches most established discount brokerage platforms.
Users report reliable execution for standard stock purchases during normal market hours. However, some experience slower fills during market open and close when volume spikes. Extended hours trading shows more significant delays, with some limit orders taking several minutes to process.
The platform handles fractional shares well, allowing investments in expensive stocks with minimal delays. This feature particularly benefits beginners who want to invest small amounts in high-priced securities.
Options trading execution receives mixed reviews. Simple strategies like buying calls or puts work smoothly, but complex multi-leg orders sometimes experience partial fills or longer processing times. During earnings season or major market events, some users report increased latency.
System outages occur occasionally, typically during extreme market volatility. While not frequent, these interruptions can frustrate active traders who need guaranteed access during critical moments.
Customer service response times
Customer support represents this zero fee brokerage‘s biggest challenge according to user feedback. The lean operational model means limited support resources compared to full-service brokers.
Email support typically responds within 24-48 hours for standard inquiries. Account-related issues and technical problems often receive faster attention, usually within 12-24 hours. However, complex questions about trading restrictions or account transfers can take 3-5 business days for complete resolution.
Phone support exists but with limited hours and frequent wait times exceeding 30 minutes during peak periods. Many users prefer the in-app chat feature, which offers quicker initial responses but may require escalation for complex issues.
The help center and FAQ section covers basic topics well, allowing self-service for common questions. Video tutorials help new users understand platform features, reducing support ticket volume for simple how-to questions.
Users consistently note that while support staff are knowledgeable when reached, the limited availability creates frustration during urgent situations. Account lockouts or deposit issues requiring immediate attention sometimes face delays that impact trading activities.
Social media support through Twitter provides quick acknowledgment of issues but rarely resolves problems directly, instead directing users to traditional support channels.
Comparing Costs Against Traditional Brokers
Fee Structure Breakdown of Major Competitors
Traditional online brokerage platforms still charge hefty fees that can eat into your investment returns. Most major brokers like E*TRADE and TD Ameritrade charge $6.95 to $9.99 per stock trade, while options trades can cost $6.95 plus $0.75 per contract. Full-service brokers push these costs even higher, sometimes charging $25 to $50 per trade.
Commission free trading platforms have disrupted this model completely. While Schwab, Fidelity, and Robinhood eliminated stock trading commissions, they still generate revenue through other channels. Here’s how the numbers stack up:
| Broker Type | Stock Trades | Options | Account Minimum | Transfer Fees |
|---|---|---|---|---|
| Traditional Full-Service | $25-$50 | $25+ $1.50/contract | $2,500+ | $75-$125 |
| Discount Online | $0-$9.99 | $0.65-$0.75/contract | $0-$1,000 | $25-$75 |
| Zero Fee Platforms | $0 | $0-$0.50/contract | $0 | $0-$25 |
The zero commission broker model saves active traders thousands annually, but the real question becomes what trade-offs you’re making for these savings.
Long-term Savings Calculations for Different Trading Volumes
The math on free stock trading gets impressive when you crunch the numbers across different investor profiles. A casual investor making 12 trades per year would save $120 annually using a zero fee brokerage instead of a $10-per-trade platform. That might seem modest, but over 20 years, those savings compound to $2,400 – not counting the opportunity cost of investing that money.
Active traders see dramatic differences. Someone executing 200 trades annually saves $2,000 per year in commissions alone. Day traders making 1,000+ trades yearly could save $10,000 or more by switching to free trading platforms.
Options traders benefit even more:
- Conservative options trader (50 contracts/year): $375 saved annually
- Moderate options trader (200 contracts/year): $1,500 saved annually
- Active options trader (500+ contracts/year): $3,750+ saved annually
These calculations assume traditional broker fees of $0.75 per options contract. The savings multiply quickly when you factor in the power of compound growth over decades of investing.
Hidden Fees That Other Brokers Charge
Trading fees comparison reveals that commission-free doesn’t mean fee-free at traditional brokers. Many online stock brokers for beginners advertise zero commissions but nickel-and-dime customers through hidden charges that add up fast.
Account maintenance fees hit investors with small balances hardest – typically $25-$50 quarterly if your account drops below $10,000. Inactivity fees punish buy-and-hold investors, charging $50-$100 annually if you don’t trade frequently enough.
Wire transfer fees range from $15-$30 for outgoing transfers, while paper statement fees cost $2-$5 monthly. Foreign transaction fees on international stocks can reach 1-3% of trade value. Even account closure fees of $50-$75 catch departing customers off guard.
Discount brokerage platforms also profit from payment for order flow, earning $0.002-$0.005 per share on your trades. While this doesn’t directly cost you money, it can result in slightly worse execution prices – essentially a hidden tax on your trades.
The best online share trading app options eliminate most of these fees entirely, making them attractive for cost-conscious investors who want transparent, predictable pricing without surprise charges appearing on monthly statements.
This zero-fee brokerage definitely shakes up the traditional trading world by eliminating commission costs that can eat into your profits. While their business model relies on payment for order flow and potentially wider bid-ask spreads, many traders find the trade-off worthwhile, especially for smaller accounts where commission fees would otherwise take a significant bite. The platform’s performance varies among users, but the cost savings can add up to thousands of dollars annually for active traders.
Before jumping in, take a hard look at your trading style and account size. If you’re making frequent trades with smaller amounts, this could be a game-changer for your bottom line. Just remember that “free” often comes with hidden costs, so read the fine print and understand exactly how they make money off your trades. The disruption is real, but make sure it aligns with your investment goals and trading habits.