There are a lot of brokers out there for any kind of investor – including those who are just starting out. You don’t have to pay much for an investor these days thanks to the internet and mobile apps. You just need to be careful with which program you start an account with. First, do some checking to find out which programs are considered legitimate and not scams. Then, look for the best investment brokers for beginners and decide which one is right for you.
Luckily, you really don’t need much money for a stock broker since most of the internet platforms and apps offer enough educational resources and tutorials to help you get started on your own, with a bit of assistance from a robo-advisor should you need it. As long as you choose a platform with an intuitive, user-friendly interface, it shouldn’t be too difficult to get started.
What are some of the contenders for “best investment brokers for beginners”? Here are a few:
This is perhaps the largest online broker and it has made a priority of finding new investors and providing tools to help them get started. You’ll find TD Ameritrade regularly on social media as it really reaches out to the younger demographic. The online educational resources it offers varies from beginner to advanced. One of the possible downsides is that there are so many different account types that you might be unsure of which one to actually choose as your “starter account”.
This digital trading platform originally was known as General Motors Acceptance Corp (GAMC) and served the automobile industry. It evolved a bit over the years until it purchased “TradeKing” and became Ally Invest in 2017. It now offers a versatile trading platform that offers a high number of EFTs. The cost per trade is $0 and the minimum balance required to start an account is $0.
This makes the list of best investment brokers for beginners who are interested in trading apps. The mobile apps are very well laid-out and straightforward in their use. There is the regular E*trade app and the Pro app. The latter puts more of a focus on derivatives (futures and options). There is a $0 cost per trade, although you’ll need at least $500 to get started.
This is a platform you’ll want to look into once you begin gaining some experience and knowledge in how web-based trading and trading apps works.
Since Zacks Trade tends to be more ideal for day traders, it doesn’t always make it to the “best investment brokers for beginners” lists – at least not for the absolute newbies who have no knowledge whatsoever. It does offer an amazing selection of research offerings and a robust trading platform. You’ll need a higher account minimum ($2,500).