Account type
Taxable brokerage accounts: how they work and how providers compare
Provider figures checked on
A taxable brokerage account is a plain investing account with no special tax treatment. You can put in and take out money whenever you like, and you pay tax on what it earns. This page covers the basics and then lines up what ten providers charge.
Educational, not financial or tax advice
This page explains how taxable accounts work in general. It isn’t a recommendation to open, move, or invest any account. Your tax situation is your own, so check the sources below and talk to a tax professional for decisions that matter. Fees and rules change, so confirm details with the provider.
How a taxable account differs from an IRA or HSA
The yearly contribution limits on our Roth IRA and traditional IRA pages apply to those retirement accounts. A regular taxable brokerage account doesn’t have an IRS contribution limit, and you can generally withdraw whenever you want. The trade-off is that you get no deduction for putting money in and no tax-deferred or tax-free growth.
Capital gains, dividends and interest in short
- Capital gains. The IRS says you have a gain if you sell an asset for more than your adjusted basis (roughly what you paid) and a loss if you sell for less. Generally, if you held it more than a year the result is long-term; one year or less is short-term. (IRS Topic no. 409)
- Rates. Net short-term gains are taxed as ordinary income. Net long-term gains are taxed at 0%, 15% or 20% for most people, depending on taxable income, with a few exceptions. The income cutoffs change every year, so look them up on the IRS page for the year you sell. (IRS Topic no. 409)
- Losses. If your losses are more than your gains, the IRS says you can use up to $3,000 ($1,500 if married filing separately) against other income and carry the rest forward. Sales are reported on Form 8949 and Schedule D. (IRS Topic no. 409)
- Dividends and interest. Taxable dividends are ordinary income unless they qualify for lower capital gain rates, and most interest credited to an account you can withdraw from is taxable in the year you get it. Holding the investment without selling doesn’t avoid tax on these. (IRS Topic no. 404, Topic no. 403)
- Higher incomes. A 3.8% net investment income tax can apply above certain income levels. (IRS Topic no. 559)
Which account to fund first, and whether tax-loss selling makes sense for you, depends on your situation. That’s a question for a tax professional, not this page.
Provider comparison
Ten providers, listed alphabetically. This is not a ranking and no provider pays to be here or to change what’s shown. Every figure comes from the provider’s own pages (linked in the last column), read on October 28, 2026. “Not verified” means we didn’t find the figure on an official page. It doesn’t mean it’s zero or that the feature doesn’t exist.
| Provider | Commissions and fees | Minimum to open | Fractional shares | Cash interest | Worth knowing | Sources and links |
|---|---|---|---|---|---|---|
| BettermentManaged | Advisory fee, not commissions: $5 a month if your household balance is under $24,000 and you don’t have $200+ a month in recurring deposits; otherwise 0.25% a year. Premium plan: 0.65% a year. Betterment says it adds no trading commissions. | No minimum balance required. | Not verified | Cash Reserve is a separate account. Its fee page shows a variable APY of 3.50% as of 9/21/2026, plus promotional or Premium boosts under their own terms. | Betterment says it waives its wrap fee on assets in its separate self-directed investing accounts. | |
| FidelitySelf-directed | $0 commission on online U.S. stock and ETF trades. Options: $0 commission plus a per-contract fee (see Fidelity’s table). Regulatory and other fees can apply. | No minimum to open an account. | Yes. Fractional shares of U.S. stocks and ETFs, from $1. | Not verified | — | |
| Interactive BrokersSelf-directed | IBKR Lite: $0 commission on U.S.-listed stocks and ETFs. IBKR Pro (fixed): $0.005 per share with a $1 minimum per order. $0 maintenance fee. | $0 minimum balance. | Yes. Eligible U.S. and European stocks and ETFs. | IBKR says you can earn “up to” 3.38% on instantly available USD cash. The rate depends on the plan and balance and is benchmark-based, so check your own rate. | — | |
| M1Self-directed | No commission, trading or management fees for self-directed brokerage accounts. $3 a month platform fee, waived when your M1 assets reach $10,000 (or you have an active M1 personal loan). Other fees, such as account closure fees, can apply. | $100 to open an individual account; $10 or more per deposit after that. | Yes. M1’s pricing page says fractional shares let you build to your exact percentages. | Not verified | — | |
| PublicSelf-directed | $0 commission on U.S.-listed stocks and ETFs, in regular and extended hours. Outgoing ACAT transfer: $100. | Not verified | Yes. Fractional orders under $5 aren’t accepted (under $1 for recurring investment plans). Fractional shares can’t be transferred to another brokerage; they’re sold for cash if you move your account. | Not verified. Public’s own pages showed different cash yields on the day we checked, so we’re not quoting one. | — | |
| RobinhoodSelf-directed | Commission-free U.S.-listed stocks, ETFs and their options. $0 account opening, maintenance and inactive-account fees. Regulatory fees apply to sells. Outgoing ACATS transfer: $100. | No account minimum to open or maintain a brokerage account (per Robinhood’s customer relationship summary). | Yes. Fractional shares of stocks and ETFs valued at $1 or more. | Not verified | — | |
| SchwabSelf-directed | $0 online commission on listed stocks and ETFs; options are $0.65 per contract. $0 opening and maintenance fees. Other trade types have their own fees. | No account minimum. | Yes. Schwab Stock Slices: most U.S.-listed stocks and ETFs, from $1. | Not verified | — | |
| VanguardSelf-directed | $0 online commission on stocks, ETFs and Vanguard mutual funds under $1 million. $25 annual account service fee, waived with e-delivery (also waived at $1 million+ in qualifying assets and in some other cases). Fund expenses apply. | $0 to open. Individual funds can have their own minimums. | Partly. Dollar-based trading lets you buy Vanguard ETFs from $1 and mutual funds by dollar amount. Vanguard’s page doesn’t say whether individual stocks are included. | Not verified | The fee schedule says a $100 processing fee may apply to closing an account and transferring all assets to another firm (ACH and electronic bank transfers excluded). | |
| WealthfrontManaged | 0.25% annual advisory fee, deducted monthly. Wealthfront says it charges no account-opening, withdrawal, account-closing, trading or transfer fees. | $500. | Not verified | Cash Account is a separate product. Wealthfront’s account guide (dated October 15, 2026) lists 3.55% APY from its program banks. Rates change, so check the current one. | — | |
| WebullSelf-directed | $0 commission on U.S.-listed stocks, ETFs and options. $0.50 per contract on certain index options. Regulatory fees apply. Outgoing stock transfer: $75. | No deposit minimums. | Yes. From $1.00. | Not verified | — |
A dash under “Worth knowing” means we didn’t note anything, not that nothing exists. “Self-directed” means you choose the investments and “Managed” means the provider builds and trades a portfolio for an advisory fee, so the cost columns aren’t like-for-like between the two. Fund and ETF expense ratios, options and margin pricing, regulatory pass-through fees and promotions aren’t included. Cash rates are variable and often cover a separate cash product, so check the current rate before relying on one.
IRS sources
Checked on October 28, 2026. Tax rules and thresholds change, so look at the IRS for the year you’re in.
Keep exploring
See all account types, compare Roth IRAs, traditional IRAs, HSA providers, or read our guides. Found a wrong or outdated figure? Email hsacompare@mail.grokbot.com with a link to the page showing the right number.
General information, not financial, tax or legal advice. See our terms of use.