What is the U.S. stock exchange? List of the best stock trading platforms in 2022

BlogJune 22, 2022

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The US stock exchange is the place where the trading activities of buying and selling securities take place. However, most retail investors who want to trade US stocks need to open a stock account through a broker. The choice of a stockbroker dramatically affects the trading efficiency of investors. A reputable broker helps to make transactions faster and more efficient. So what is the US stock exchange? How is it different from an American stockbroker? The following article helps readers distinguish between an exchange and a broker. In addition, the report also introduces a list of the best stock trading platform available today to allow users quickly deposit, withdraw and trade US stocks.

What is the US stock exchange?

U.S. Stock Exchanges are places where buying, selling, and trading activities on the US stock market take place.

In the past, traders and brokers used to meet face-to-face at the stock exchange to buy and sell shares. Currently, securities trading activities take place by automated electronic tools.

Companies wishing to issue initial shares (IPOs) must do so through stock exchanges. After being listed on a stock exchange, IPO shares have the opportunity to increase their visibility in the market and attract transactions to participate in buying and selling such shares, through which the company can raise funds capital for business and business development.

Currently, there are two leading US stock exchanges, the New York Stock Exchange (NYSE) and the Nasdaq.

Difference between a stockbroker and a U.S. stock exchange

Many retail individual stock traders often fail to distinguish between a stockbroker and an American stock exchange.

US stock exchanges are the place for traders to match orders, so there must be at least two traders willing to execute the same trade, one buyer and one seller, for an equal price. In addition, both parties must have their assets on the exchange at the time of the transaction.

Meanwhile, the US stockbroker acts as an intermediary between the investor (the buyer and the seller) and sends orders to the stock exchange to execute the transaction.

Stock exchanges only accept orders from individuals or companies that are members of that exchange. Meanwhile, the US stock exchanges only allow citizens or companies with legal status in the US to register for members.

Therefore, foreign traders/investors (not US citizens) need to open trading accounts through brokers to trade US stocks. Therefore, foreign investors often consider a US stockbroker as a stock exchange – a place to buy/sell US securities.

List of the best stock trading platform in 2022

The three best and most reputable stock trading platforms currently allow trading in US stocks.

#1. Capital.com

  • Certification: Capital.com is a regulated broker by many reputable agencies, including CySEC, NBRB, and FCA. In particular, there are especially certificates of CySEC and FCA, which are prestigious licenses in the world for securities companies.
  • Form of stock trading: CFD.
  • Maximum leverage for stocks: 1:20
  • Minimum Deposit: Capital.com requires a minimum deposit of 20$ when users use online payment or pay by credit card, debit card, or e-wallet. With bank transfers, users need to deposit at least $250/time.
  • Dividend: Yes
  • Commission Fee: No commission for clients when not using leverage
  • Number of shares: More than 3600 shares of CFDs
  • Deposit/withdrawal: Capital.com provides many payment gateways popular in each country, such as e-wallets, credit cards, and bank transfers, easily and quickly.
  • Trading Platform: Capital.com has its trading platform designed to be user-friendly, easy to use for investors new to trading in US stocks, and allows trading on the MT4 platform. It is an outstanding advantage that helps Capital.com meet all needs and different types of customers.

Although Capital.com only allows clients to trade shares as CFDs. However, for clients who do not use leverage and make stock purchases, Capital.com still pays dividends to users and does not charge overnight fees. Therefore, investors who buy shares on Capital.com can completely buy and hold long-term shares without much difference from owning actual shares on the exchange. The only difference is that investors do not have shareholder rights, participate in voting and attend shareholder meetings.

* See more: The complete guide Capital.com from a to z

What is the US stock exchange? Distinguish a stock exchange from a stockbroker. List of the best stock trading platform

#2. eToro

  • Certification: eToro is recognized and supervised by prestigious and rigorous organizations such as CIF number HE20058, CySEC number 109/10, FCA reference number 583263, operating and complying with Directive About Financial Markets (MiFID)…
  • Form of stock trading: shares in custody or CFD.
  • Maximum leverage for stocks: 1:20
  • Minimum Deposit: eToro requires 200 USD for the first trade and 50 USD or more for subsequent transactions.
  • Dividend: Yes
  • Commission fee: No
  • The number of shares: +2400 codes.
  • Copy feature: Etoro offers you two investment options: traditional trade yourself or copy the results of successful investors (CopyTrading).
  • Deposit/withdrawal: eToro also has many payment gateways, including Credit cards (VISA, MasterCard, Diners); E-wallets (PayPal, Skrill, Neteller, …); bank transfer

Because both the form of buying in shares in custody and CFD trading is applied, eToro still provides leverage for investors. If no power is selected, trading that stock is considered custody. But when leverage is activated or short, the trade becomes a CFD derivative.

In addition, if you choose the non-leverage form, you will benefit a lot in 2 points that are no commissions and no swap fees. These two fees on other exchanges are calculated as a percentage of trading investors, so it is a considerable fee, especially when holding orders for many days.

* See more: The complete guide eToro from a to z

68% 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.

What is the US stock exchange? Distinguish a stock exchange from a stockbroker. List of the best stock trading platform

#3. XM

  • Certification: A trusted broker with FSC registration and CySec, ASIC regulated.
  • Form of stock trading: CFD
  • The number of shares provided: 100. It is the quantity calculated for US stock products only. In addition, XM also offers many stocks from other exchanges.
  • Trading platform: MT5
  • The leverage ratio for the stock product: no leverage
  • Minimum deposit: 10,000 USD This is the minimum amount for stock accounts, a rather large deposit, not for most investors today.
  • Dividend: Yes
  • Commission fee: $0.04 per share, with a minimum trade amount of $1 per order. Note that this fee only applies to US stocks; stocks belonging to other exchanges will have a different calculation method.
  • Deposit/withdrawal: support many different payment channels.

* See more: The complete guide XM from a to z

What is the US stock exchange? Distinguish a stock exchange from a stockbroker. List of the best stock trading platform


Above is a list of the best stock trading platform today. These stock trading platforms all receive rave reviews from investors worldwide for the credibility, transparency, and outstanding features they offer. List the best stock trading platform that will have its advantages and disadvantages. Hopefully, you will find a suitable stock trading platform.


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