Best Brokers For Beginners

Best Brokers For Beginners

If you are a first-time investor, it may seem daunting to find the best online stock broker for beginners.

However, finding the best online stock broker for you doesn’t have to be as overwhelming as it seems. Opening an online brokerage account for beginners is easier than you think.

The best online broker for beginners that you choose likely has no minimum to start investing. That means you can open an account with as little or as much as you want to invest.

Whether you are planning to generate extra income or invest in your retirement, we break down the top factors to consider when choosing the best stock broker for beginners.


Best Online Stock Brokers For Beginners 2018

Broker
Fees
Promotion
$4.95
Discounts available

Overview

Account Minimum:$0

Details

  • Ability to trade stocks, bonds, mutual funds, ETFs, options, futures and forex
  • Real-time streaming quotes available
  • Customizeable dashboard
  • Free research and data
  • Free investment screening tools
  • 24/7 customer support

Overview

Account Minimum:$0

Details

  • Ability to trade stocks, bonds, mutual funds, ETFs, options, futures and forex
  • 2,000+ no transaction fee mutual funds
  • 100+ commission-free ETFs
  • Real-time streaming quotes available
  • Customizeable dashboard
  • Free research and data
  • Free investment screening tools
  • 24/7 customer support

Overview

Account Minimum:$0

Details

  • Ability to trade stocks, bonds, mutual funds, ETFs and options
  • 5,000+ no transaction fee mutual funds
  • Real-time streaming quotes available
  • Customizeable dashboard
  • Free research and data
  • Free investment screening tools
  • 24/7 customer support

Overview

Account Minimum:$2,500; ($0 for IRAs)

Details

  • Ability to trade stocks, bonds, mutual funds, ETFs, options and forex
  • 2,500 no-fee mutual funds
  • Approximately 100 commission-free ETFs
  • Real-time streaming quotes available
  • Customizeable dashboard
  • Free research and data
  • Free investment screening tools
  • 24/7 customer support
$6.95
60 days of free trading

Overview

Account Minimum:$500; ($0 for IRAs)

Details

  • Ability to trade stocks, bonds, mutual funds, ETFs, options and futures
  • 3,600+ options for no-fee mutual funds
  • 100+ commission-free ETFs
  • Real-time streaming quotes available
  • Customizeable dashboard
  • Free research and data
  • Free investment screening tools
  • 24/7 customer support
$4.95
$100 referral bonus

Overview

Account Minimum:$1,000

Details

  • Ability to trade stocks, bonds, mutual funds, ETFs and options
  • 3,000+ options for no-fee mutual funds
  • 200+ commission-free ETFs
  • Real-time streaming quotes available
  • Customizeable dashboard
  • Free research and data
  • Free investment screening tools
  • 24/7 customer support

Overview

Account Minimum:10000; ($5,000 for IRAs)

Details

  • Ability to trade stocks, bonds, mutual funds, ETFs, options and forex
  • 3,000+ options for no-fee mutual funds
  • 50+ commission-free ETFs
  • Real-time streaming quotes available
  • Customizeable dashboard
  • Free research and data
  • Free investment screening tools
  • 24/5 customer support

Overview

Account Minimum:$0

Details

  • Ability to trade stocks, bonds, mutual funds, ETFs and options
  • 2,600+ options for no-fee mutual funds
  • 50+ commission-free ETFs
  • Real-time streaming quotes available
  • Customizeable dashboard
  • Free research and data
  • Free investment screening tools
  • 24/7 customer support

Advertiser Disclosure


What is a stock broker?

A stock broker is a registered representative or a registered broker-dealer that executes buy and sell orders for stocks and other securities submitted by investors.When choosing the best online stock broker for beginners, you will be opening an online brokerage account in which you can buy and sell stocks.

In the U.S., stock brokers and stock brokerage firms are regulated by U.S. law, the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), among other regulatory bodies. Stock brokers must be licensed,and pass the Series 7 and either the Series 63 or Series 66 examinations.

As such, you may or may not work directly with a stock broker, which will depend on your preferences. The best online stock broker for you may be an online account in which you choose the investments, or you may decide you would rather have a stock broker manage your portfolio for you.

When you select the best online brokerage, you have the flexibility to choose the best stock broker that meets your investment criteria and personal preferences.A stock broker will charge you a commission, or fee, each time you buy or sell shares of a stock. This commission is typically a flat fee per trade, regardless of how many shares of stock that you buy or sell.

How do you invest in the stock market?

When it comes to choosing the best online stock broker for beginners,the best online brokerages will make investing in the stock market easy. As an investor, you have many options to invest your money. If investing in stocks is your preference, you can buy and sell shares of stock in a company. Each share of stock represents a fractional ownership in the company. As an investor, you can purchase “ownership” in certain companies known as publicly-traded companies listed on a stock exchange.

Therefore, you don’t invest directly in the “stock market,” but typically choose to invest directly into specific stocks of companies. Some of the most well-known companies are publicly-traded companies such as Coca-Cola, Disney, Nike and General Electric. Each of these stocks have their own stock symbol, which is an abbreviated code of one or more letters used to buy and sell the stock. For example, the symbol for General Electric is GE and the symbol for Disney is DIS. When you buy even a single share of stock, you become an owner of that company.

If you prefer not to invest in single stocks directly, you can invest in exchange traded fund (ETFs) or mutual funds. There are many ETFs and mutual funds that you can buy that represent market indices such as the S&P 500, which can give you broad U.S. market exposure, for example. ETFs and mutual funds also can provide exposure to sectors such as retail or financial services, or even to real estate or commodities. When you buy an ETF or mutual funds, you are essentially buying a basket of stocks, rather than a single stock.

Once you select your best online brokerage, you can use the stock broker’s trading platform to buy and sell stocks directly. The best stock broker for beginners should have an easy-to-use interface where you can enter a buy or sell order. Your online brokerage account should also have an education section where you can learn more about stocks, how to buy and sell them, and how to use the online brokerage’s tools and analytics to help maximize your investing experience.

How do you choose the best online stock broker for beginners?

When it comes to choosing the best online stock broker for beginners, there are several factors to consider. The best online broker for beginners for you depends on what you value most – whether it’s the trading platform, mobile trading, tools and analytics or customer service.

Here are some of the essential factors to consider when selecting the best online stock brokerage account for beginners:

Trading Commission: When you compare the best online stock broker with other options, choose an online stock broker for beginners with reasonable trading commissions. The best stock broker companies will charge a flat commission for each trade, whether you buy or sell, regardless of the share count. Robo-advisors, which automate investing for you, charge an percentage of your assets, which is industry standard and also a great option.

Investment Products: When it comes to the best stock broker, you should look for flexibility in investment products. While your focus may be stocks, your online stock broker for beginners also may offer ETFs, mutual funds, options and other investment products. You can use Make Lemonade’s brokerage account comparison to find the best online stock broker for you.

Mobile Trading: If you are looking for the best online brokerage account for beginners with good mobile trading, make sure to find the best online brokerage who offers this flexibility. The good news is that most of the best online stock brokers you choose likely have mobile trading, since most major platforms do. Mobile trading is most useful for active traders with an online stock brokerage account who prefer to trade stocks while away from a computer.

Customer Service: When finding the best stock broker, customer service may or may not be an important criteria for you. Some investors prefer an online brokerage to have 24/7 customer service, while others are comfortable to chat online with their online stock broker. The good news is that most of the best online stock brokers for beginners offer comprehensive customer service, with many open for extended hours.

Investment Platform: When choosing the best stock broker for you, find the best online stock broker with the right investment platform. The investment platform, tools, research and analytics are important factors when selecting an online stock broker. The best online stock broker for you should have the right desktop or web-based trading platform that makes you feel most comfortable.

Regulatory: The best stock brokers for beginners in the U.S. are regulated by the Securities and Exchange Commission (SEC), U.S. law and the Financial Industry Regulatory Authority (FINRA). You can always verify your online stock broker with FINRA’s free stock broker check tool.

Other Fees: Online brokerages make money from commissions and fees. Therefore, your online stock broker may have other fees such as inactivity fees and potentially IRA fees.

Account Security: The best online brokers for beginners have secure platforms and the highest standards for online security. Secure websites (noted with the “https”) are commonplace when you choose the best online brokerage. Some of the best stock broker companies even offer two-factor authentication for an extra level of security.

How do I know if I am choosing the best online stock broker for beginners?

When it comes to choosing the best online stock broker for beginners, there are several factors to consider. You can compare the online stock broker that best fits your criteria and preferences. The good news is that the best stock brokers should offer all the criteria you would need to start trading stocks, including trading tools, investment platform, research, analysis and a strong customer service.

How much money do I need to start investing with an online stock broker?

To start investing with an online stock broker, the good news is that you don’t need much to start. Whether you are an experienced investor or a beginner, most of the best online brokerage firms have no account minimum. That means once you find the best online brokerage you can open an account with as little or as much as you want to invest.

Where can you find the best online broker for beginners?

You can find the best online stock broker for beginners directly on Make Lemonade. Our comparison table helps you choose the best online stock broker for you. You can evaluate trading commission, trading platform, account minimum, mobile trading, customer service and more. The good news is that you can start investing with the best online brokerage options with no account minimum.