If you are new to investing and want to start trading stocks online, you might be overwhelmed by the number of options available. There are hundreds of online brokers to choose from, each with different features, fees, and benefits. How do you know which one is right for you?
In this blog post, we will compare 6 of the best online stockbrokers for beginners based on their ease of use, customer service, educational resources, trading tools, and commissions. We will also give you some tips on how to choose the best broker for your needs and goals.
Here are the 6 best online stockbrokers for beginners:
1. E*TRADE: E*TRADE is one of the most popular and well-known online brokers in the US. It offers a user-friendly platform, a variety of investment products, and a wealth of educational materials and tools. E*TRADE charges $0 commissions for online stock, ETF, and options trades, and has no account minimums or inactivity fees. E*TRADE also has a robo-advisor service called Core Portfolios, which automatically manages your portfolio based on your risk tolerance and goals.
2. TD Ameritrade: TD Ameritrade is another leading online broker that caters to both beginners and experienced investors. It has a robust platform with advanced trading features, as well as a simpler web-based platform and a mobile app. TD Ameritrade also offers $0 commissions for online stock, ETF, and options trades, and has no account minimums or inactivity fees. TD Ameritrade has a wide range of educational resources, including articles, videos, webinars, and courses. It also has a robo-advisor service called Essential Portfolios, which provides low-cost automated investing.
3. Fidelity: Fidelity is a reputable online broker that offers low-cost investing and high-quality customer service. It has a user-friendly website and a mobile app that allow you to trade stocks, ETFs, mutual funds, options, and more. Fidelity charges $0 commissions for online stock, ETF, and options trades, and has no account minimums or inactivity fees. Fidelity also has a robo-advisor service called Fidelity Go, which charges a flat fee of 0.35% per year for automated portfolio management.
4. Robinhood: Robinhood is an online broker that aims to make investing accessible and fun for everyone. It has a simple and sleek app that lets you trade stocks, ETFs, options, and cryptocurrencies with no commissions or fees. Robinhood also offers fractional shares, which allow you to buy a portion of a stock for as little as $1. Robinhood has no account minimums or inactivity fees, but it does not offer any educational resources or tools.
5. Ally Invest: Ally Invest is an online broker that is part of Ally Bank, an online-only bank that offers high-interest savings accounts and other financial products. Ally Invest has a web-based platform and a mobile app that let you trade stocks, ETFs, options, mutual funds, bonds, and forex. Ally Invest charges $0 commissions for online stock, ETF, and options trades, and has no account minimums or inactivity fees. Ally Invest also has a robo-advisor service called Ally Invest Managed Portfolios, which charges 0.30% per year for automated investing.
6. Schwab: Schwab is one of the largest and most respected online brokers in the US. It has a comprehensive platform with multiple trading tools and features, as well as a web-based platform and a mobile app. Schwab also offers $0 commissions for online stock, ETF, and options trades, and has no account minimums or inactivity fees. Schwab has a vast array of educational resources, including articles, podcasts, videos, webinars, and live events. It also has a robo-advisor service called Schwab Intelligent Portfolios,
which provides free automated investing with no advisory fees.