When you’re ready to invest in your first stock, it can be difficult to decide which online broker to use. Do you go with one of the brokers that has been around for many years or do you go with one of the newer online brokers that could be around just as long? Or do you pick an online stock broker that offers specialized services like cryptocurrency trading? With so many online brokers available, choosing the best online stock broker for beginners can be overwhelming. To help you make this important decision, we’ve put together a list of our top 10 best online stock brokers – check them out below!
1) TD Ameritrade
A lot of people don’t realize that there are so many different online stocks brokerages that offer great services. TD Ameritrade offers an impressive amount of tools and excellent customer service which is perfect for those just starting out. If you’re new to the world of online stocks trading, it’s a good idea to set up an account with them as they offer some great starter features and low costs. Another aspect worth considering is the experience level; TD Ameritrade caters to beginners who want excellent customer service but have limited knowledge or need more help getting acclimated in this market.
2) E-Trade
E*TRADE, one of the most popular online stock trading sites on the market, has some great features. But it’s not the best broker out there. E-Trade doesn’t charge commissions per trade or have an annual fee. And it offers a ton of resources on financial planning and investing topics. One major drawback? E-Trade only provides access to a limited number of ETFs (exchange traded funds). For anyone looking to invest in stocks and mutual funds, this is a bummer.
Another popular option is TD Ameritrade’s ThinkorSwim platform, which has been around since 1975 as an online brokerage firm–making them veterans in the industry.
3) Charles Schwab
Charles Schwab is a popular stock trading platform because it has the lowest fees of all major brokerages. They offer free trades and up to $600 in free money management services when you sign up. That’s not all, they also have an app so you can trade on the go.
Charles Schwab also offers one of the most robust toolsets, with over 150 years of experience in providing investment advice. They are well-known for their customer service, with dedicated phone numbers and a live chat feature that’s available 24/7.
Overall, Charles Schwab is one of the best options for beginner traders due to its low fees, ease of use and robust features.
4) Fidelity
Fidelity is a well-known online broker that offers services from stocks, to bonds, and more. If you’re just starting out in the world of online stock trading, Fidelity can be a great way to dip your toes in the water. You’ll need an account with at least $2,000 minimum but you’ll get free trades on all orders up to 300 trades per quarter (or $3,000). You’ll also get up to $600 cash as you trade your way up. To make things even better, Fidelity has an excellent mobile app where you can watch your investments grow while on the go.
5) Robinhood
Robinhood is a mobile app that lets you invest in the stock market without any commission fees. The app, available on iOS and Android, is one of the most popular online stock exchanges. With Robinhood, you can make trades quickly, using nothing more than your phone number and a valid email address. You don’t have to pay anything up front – the company makes money by charging interest on any cash that’s sitting in your account (which is rare) or through Robinhood Gold – a premium service which costs $10 per month and offers features like after-hours trading and instant deposits from debit cards.
Robinhood was founded in 2013 by Stanford University classmates Vlad Tenev and Baiju Bhatt who wanted to create an investing platform for millennials.
6) Merrill Edge
Merrill Edge was founded in 1925 and has been a favorite among online stock traders since 1987. It offers quick and easy access to markets, along with the ability to trade stocks, bonds, ETFs, options and mutual funds on a single platform. Plus, the company is regulated by both FINRA and the SEC so you know your money is safe. And if you’re looking for a broker that’s going be there with you as you learn the ropes of trading online, Merrill Edge has an entire program dedicated to teaching investors how it works.
7) Ally Invest
Ally Invest is one of the best online stock brokers for beginners because it offers a range of low-cost trades, low minimum deposits, and no account maintenance fees. Ally Invest also has a mobile app so you can trade on the go. You can start off with as little as $100 and build your way up by adding more money over time. This is the perfect balance between being able to afford trades without wasting money on account maintenance fees.
8) Interactive Brokers
Interactive Brokers (IB) is the best online stock broker for beginners. Interactive Brokers offers a user-friendly web trading platform, low commissions and fees, and advanced order types. They offer a wide range of tradable securities, including stocks, bonds, mutual funds, options, futures and forex. Interactive Brokers also has one of the most robust mobile offerings in the industry with mobile apps available on Android and iOS devices.
IRA accounts are also available with no annual fee and no commission on trades of U.S. listed securities as well as stocks that trade on international exchanges outside of the U.S.
9) Vanguard
Vanguard is a best online stock broker for beginners, but it’s not cheap. Fees start at $7 per trade and go up from there, depending on the account type. However, Vanguard has some of the lowest trading commissions around. At $7 per trade, you’re paying 0.7% of the trade value in fees. This means that a $5,000 trade would cost you $35 in fees – only 0.35%. Compare this with E-Trade’s commission rates of 7%, which comes to $105 on a trade of the same size! That’s more than three times as expensive!
10) TradeStation
TradeStation is one of the best online stock trading platforms and brokerage accounts available today. It offers a wide range of products, including investment management and research tools. TradeStation is perfect for active traders because it offers lower commissions than most other brokerages, and its mobile app lets you trade on the go. You can open an account with as little as $500, which is a lot less than many other brokerages require.
