Several things go into an online brokerage or app: intuitive design, navigation, valuable tutorials, educational resources, good customer service, little to no fees, etc. If you haven’t used an online trading platform before, which should you choose? What is the best brokerage for beginners?
There is no single “best one” for everybody like any online service. Also, by “beginner,” you mean that you are 100% new to investing entirely or have some experience and want to start trading yourself and know which online discount broker would be right for you. There is no reason to hire a stock broker in this day and age when you can do so much trading online, and there are so many helpful tutorials to get you through the process.
Also, what kinds of investments are you interested in? What is your risk level? How much money can you afford to put into an account? These are all questions to ask yourself when searching for the best online brokerage for beginners.
Here are a few high-rated ones worth looking into:
Public
There is no account minimum and no fee for self-directed trading. The allowable tradable securities include Crypto, ETFs, and stocks. The downside is that it costs $30 for each broker-assisted trade.
Ameritrade
Ameritrade is a good option for those interested in various asset types, including ETFs, stocks, funds, bonds, options, CDs, futures, FOREX, and more. For online US-listed stocks and ETFs, there are $0 fees. However, for contracts on options, there is a $0.65 fee per each.
Vanguard
This broker is considered one of – if not the best online brokerage for beginners who want to keep track of “low-cost funds.” Vanguard offers good security and support and allows for trades, direct deposits to your accounts, keeping track of transaction history, and more.
E*Trade
If there is a trading platform you might already be familiar with on this list, it’s probably E*Trade. It’s popular among beginners. It offers tools to help new investors get started in the right direction – particularly with the “automated portfolio builder.” There are $0 commissions trades (for online US-listed stocks / EFTs / Options), 0.65 options contracts, and $1.50 futures contracts.
Zacks Trade
Some daring investors interested in more fast-paced trades will likely find Zacks Trade an exciting choice. Once again, the word “beginner” means different things for different people. It certainly qualifies as being the best online brokerage for beginners who have at least some knowledge of how day trading works and have enough money to give it a try. One area where it stands out is its FREE broker-assisted trades, which no other web-based brokerage or trading app offers.