SoFi and Acorns simplify the process with automation and goal-based tools. Robinhood and Public make mobile investing easy and accessible, especially for smaller balances. Fidelity is our choice for the best broker that caters to youth investors between the ages of 13 and 17.
How We Chose the Best Stock Brokers
Merrill integrates with Bank of America’s Preferred Rewards program, adding value through perks and reduced fees. While the mobile app is intuitive and well-designed, it’s built more for traditional investors than those looking for gamified or socially driven investing. Merrill offers unmatched convenience and synergy for those already within the BofA ecosystem. Are you the kind of investor who doesn’t want to actually pull the trigger on choosing which stocks to buy on your own?
- In any of our review articles, we only list products that meet certain quality thresholds—so if a product is listed, regardless of how it ranks, we still believe it’s worth using.
- The platform is clean, streamlined and fast which is great for users who just want to buy, sell and monitor their portfolio without navigating a maze of tools.
- It’s important to remember, however, that insurance does not protect any investor against losses due to market fluctuations.
- In an age where our lives are increasingly online, the risk of falling victim to identity theft is a growing concern for …
The Account Setup Process
With just a few swipes, you can buy stocks and begin building your own portfolio full of the best stocks to buy. The information regarding any product was independently collected and was not provided nor reviewed by the company or issuer. The rates, terms and fees presented are accurate at the time of publication, but these change often.
If you want an investing platform with a slick mobile app and extra financial tools, SoFi® is worth a look. If you’re taking all of your money out, whether transferring to a different stock broker or cashing out to move to Tahiti, there may be account closing fees as well. Once you’ve done that and opened your account, you’ll need to fund it, either by transferring money in from a bank account or from another brokerage account. The SIPC protects up to $500,000 of assets held with each stock broker. His work has appeared in major publications like Kiplinger, MarketWatch, MSN, TurboTax, Nasdaq, Yahoo! Finance, The Globe and Mail, and CNBC’s Acorns. Public also acts as a micro-investing app, allowing you to invest in fractional shares with as little as $1.
Compare the Best Online Brokers for Beginners
Robinhood, for better or worse, makes investing fun and incredibly accessible. If you get bogged down with old-fashioned platforms and apps that feel like they were developed in the ’90s, Robinhood may be a good choice for you. Vanguard has long been known as the place for hands-off retirement investors. The funds are well-established and often earn high marks with third-party analysts. Plus, they’re fairly inexpensive as long as you can meet the investment minimum. In the event of broker insolvency, the SIPC will work to return your assets and cash to you.
E*Trade Financial
Traditional full-service brokers do more than assist with the buying and selling of stocks or bonds. They often offer a wide array of services and products, including investing and tax advice and regular portfolio updates. However, they can charge substantial fees and transaction costs that can erode long-term investment gains. Active traders may want a little more out of their brokerage account. Some brokers offer highly customizable downloadable platforms with in-depth analysis tools, or access to additional research and data for an extra cost. If these aren’t the types of tools and resources you’ll need, be sure to avoid paying extra for them.
Betterment is a robo-advisor platform that allows you to invest in pre-built portfolios—with different themes and goals—in taxable accounts as well as individual retirement plans. If you’re an investor, consider yourself lucky to be putting your money to work in the 21st century—it has never been easier. New investors are faced with unfamiliar terminology, a wide range of asset choices and the anxiety of making a mistake. That’s why a beginner-focused broker needs to do more than just facilitate trades, it should serve as a starting point for financial education and help build long-term confidence.
While Schwab took top spots in several categories, there are a few other excellent brokers worthy of consideration. J.P. Morgan provides a solid array of standard investment options, including stocks, ETFs, and mutual funds. While some brokers offer more diverse or specialized best online stock broker for beginners investment opportunities, the inclusion of mutual funds without commissions is a notable advantage for those seeking low-cost diversification. J.P. Morgan Investing is a cost-effective choice for low-cost investors.
Why Usability and Education Matter for New Investors
- Commissions or other stock trading trade fees are rare among online brokers these days, but they can still pop up on stock options trades as a per-contract fee.
- That makes Betterment one of the best investment apps for beginners—especially those who don’t want to be particularly active in selecting what they hold.
- A few online brokers have also eliminated fees for options contracts.
Like any digital financial product worth its weight, one of the main benefits of Ally is its seamless performance across all of your devices. Whether you’re on your desktop, smartphone, or tablet, you can quickly move between your accounts and execute trades. Rather than focusing on quick wins, Vanguard’s entire online model is based on low-risk, long-term investment strategies to promote overall financial well-being. New customers can also take advantage of a sign-up bonus of up to $700.
Best In-Depth Educational Content: Interactive Brokers
We cannot recommend E Trade as anything but a not-quite-average stock trading platform. It doesn’t offer mutual funds or bonds, taking them off the table for many investors. Neither does Robinhood offer any other types of accounts beyond taxable brokerage accounts — no retirement or education savings accounts and no robo-advisor service. So it’s more appropriate as a “side account” for risk-tolerant DIY investors. Fidelity excels in financial planning and advisory services, providing both human and robo-advisor portfolio management, free financial plans and investing accounts for minors. Additionally, it offers a wide range of investment options, top-tier research and trading tools and beginner-friendly resources, including educational content and 24/7 customer support.
An online broker may charge you to transfer money into your account or to withdraw your funds. Consider potential transfer fees and whether you would have to sell your investments (and pay fees and taxes) to withdraw your money. The world of investing can be daunting for a beginner, so we reviewed the top brokerages to help you find the best fit. FirstTrade ranks highest for beginners, thanks to its robust educational resources, no account minimum and low fees. Your account choices boil down to a taxable brokerage account or a tax-favored retirement account, such as an IRA.
Understanding the largest and fastest-growing brokerage firms is crucial when selecting the right platform for your investments. Firms like Charles Schwab, Vanguard, and Fidelity lead the market with trillions in assets and millions of active accounts, offering stability and a broad range of services. For investors seeking reliability, these well-established brokers provide a solid foundation. But you will need enough money to purchase the investments you choose.
