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The best online brokerages for beginners offer low fees, easy trading, educational resources, research access, financial tools, and more. Robo-advisors, like Betterment and Acorns, are popular online brokers for beginners who implement low-cost, passive investing strategies.
Many of the best beginner-friendly platforms are brokerage accounts with no minimum deposit and access to educational resources (such as webinars, blogs, videos, training courses, and quizzes).
Easy-to-use trading platforms for beginners are crucial for those starting their investment journey to access tools and resources designed to simplify the investing process. Getting started can feel overwhelming, but with the best investment apps for beginner investors, novice traders can more easily grasp the basics of online investing.
Best Online Brokerages for Beginners in 2024
- SoFi Invest: Best overall online broker for beginners
- Charles Schwab: Best overall online for beginners runner-up
- Fidelity Investments: Best for all levels of investors
- TD Ameritrade: Best for active trading
- Vanguard: Best for retirement-focused investors
- Betterment Investing: Best robo-advisors
- Ally Invest: Best for banking-brokerage combo
- Acorns Invest: Best for round-up investing
Here are Business Insider's editors' top picks for the best online brokerage for beginners in 2024.
Top Online Brokerages for Beginners
Best Overall Online Brokerage for Beginners: SoFi
SoFi is the best online broker for beginners seeking a straightforward investing experience. The investment platform has a slimmer lineup of accounts than some bigger competitors, but it covers the most common needs for managing your investments. It also offers a great bank account, lending products, and other financial tools to help you understand your investments.
SoFi Invest offers active investing accounts and managed robo-adviser accounts with no recurring fees and a $1 minimum to get started. Those include both taxable investment accounts and IRA or Roth IRA retirement accounts.
The only big downside of these accounts is that you can only trade stocks and ETFs. There are no mutual funds available through SoFi. Stock and ETF trades are commission-free. SoFi offers automated investing for $0. SoFi also offers beginner investing educational resources, free financial planning sessions, career coaching, and other perks for SoFi members.
What to look out for:While SoFi is generally a great choice for investors who value low costs, it has a fairly limited investment selection. It primarily offers stocks and ETFs.
SoFi Invest review
Best Overall Online Brokerages for Beginners Runner-up: Charles Schwab
Best overall runner-up
Charles Schwab
Start investing
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Insider’s Rating
4.88/5
Perks
Open and fund your account and get $101 from Schwab to split equally across the top five stocks in the S&P 500
Account Minimum
$0 ($5,000 for Schwab Intelligent Portfolios; $25,000 Schwab Intelligent Portfolios Premium)
Fees
0% ($0 Schwab Intelligent Portfolios; $30/month Schwab Intelligent Portfolios Premium)
Pros
- No minimums; commission-free trading on stocks, ETFs, and options
- Thousands of no-load mutual funds and 50+ Schwab-managed funds; fractional shares (Stock slices) available
- Automated and advisor-managed accounts available
- Multiple trading platforms; stock screeners and other trading tools
Cons
- $5,000 minimum for automated Schwab Intelligent Portfolios is on the higher end
- Schwab's no-load funds have a $100 minimum; some competitors offer lower minimums
Insider’s Take
Insider considers Charles Schwab to be the best online brokerage overall, as well as one of the best online brokerages for beginners. It's great for all types of investors — including active traders, passive investors, and retirement-focused individuals — in search of low costs and access to a variety of trading tools and platforms.
Charles Schwab Brokerage review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want a wide range of account types, with easy-to-use apps and web interfaces
- Awards: Investor's Business Daily recognized Charles Schwab as one of its Most Trusted Financial Companies for 2021.
Charles Schwab is a great online brokerage account for beginners because it offers something for investors with virtually any investment need. Not only does this investment app allow you to manage all of your banking and investments with one login, but its investment tools are also designed to grow with you as you learn more and level up your investing style.
For investors who want to manage everything themselves, you can choose self-directed traditional brokerage and retirement accounts where you pick all your investments with no commissions for stock or ETF trades. These accounts have no fees and no minimum balance requirements.
Charles Schwab also offers a robo-adviser, Charles Schwab Intelligent Portfolios, that can manage your investments for free. But you'll need at least $5,000 to use this account.
If you want to take automated investing a step further, upgrade to Schwab Intelligent Portfolios Premium. This account combines robo-advice with unlimited guidance from a certified financial planner (CFP). Note, however, that you'll need a minimum of $25,000 to get started. The account has a $300 one-time planning fee and a $30 monthly fee.
Schwab is best for investors who want every potential investment need covered at a very low cost. Whatever your needs are in the future, Schwab will have a solution that works for you.
What to look out for: Schwab's robo-advisor, Schwab Intelligent Portfolios charges no advisory fees, but it has a higher minimum requirement ($5,000) than most robo-advisors.
Charles Schwab review
Best Online Brokerage for All Levels of Investors: Fidelity
Best for all levels of investors
Fidelity Investments
Start investing
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Insider’s Rating
4.86/5
Perks
Fidelity Investments offers a wide range of investing products, including fractional shares.
Account Minimum
$0 ($25,000 Fidelity Personalized Planning & Advice)
Fees
0% ($0, $3/month, or 0.35% for robo-advisor)
Pros
- No account minimum or account fees
- No commissions for stock, ETF, and options trades; fractional shares available
- Thousands of no-transaction-fee mutual funds and fee-free mutual funds
- Several research tools and trading platforms available
Cons
- Fidelity Go accounts cost more for investors with higher account balances
- Representative-assisted trades are slightly more expensive than other brokerages
Insider’s Take
Fidelity is one of the best online brokerages for beginners and retirement savings. It has great features for all types of investors and traders.
Fidelity Brokerage review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Promotion: None at this time
- App store rating: 4.8 iOS/4.3 Android
- Awards: Morningstar named the Fidelity HSA as the best HSA provider in 2019, 2020, and 2021.
- Consider it if: You're focused on long-term investing and retirement.
Fidelity is a top low-fee brokerage account for novice investors if your main goal is investing for retirement. It's a brokerage account with no minimum deposit requirement and no fees. Fidelity offers a suite of investor tools and resources focused on helping customers reach their retirement goals.
In addition to free stock and ETF trades, Fidelity Investments customers can access more than 10,000 mutual funds without transaction fees. Among those are four funds from Fidelity that charge no expense ratio (that means no fund fees).
Fidelity also offers a handful of useful tools and calculators. One favorite is the Retirement Score, which helps you assess your retirement preparation and includes guidance to help you reach your goals.
Fidelity Go is Fidelity's robo-advisor offering; it's a solid product, though fees are slightly higher on some balances than competitors such as Betterment. Fidelity Go now has one-on-one unlimited coaching calls.
Fidelity is a large brokerage that can handle just about anything. But retirement is definitely a specialty.
What to look out for:The brokerage offers a long list of tradeable assets, but it isn't the best option for those who want to invest in cryptocurrencies.
Fidelity Go review
Best Active Trading Online Brokerage for Beginners: TD Ameritrade
Best for active trading
TD Ameritrade
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Insider’s Rating
4.83/5
Perks
TD Ameritrade offers a large range of investment options, including stocks, bonds, ETFs, mutual funds, futures, bitcoin futures, and more.
Account Minimum
$0 ($5,000 or $25,000 for managed accounts through Schwab)
Fees
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
Pros
- Free commissions on stock, ETF, and option trades
- No minimum requirement to get started with brokerage account
- Large investment selection
- Research and educational resources available
Cons
- No fractional shares
- Robo-advice and managed portfolios are more expensive
- No cryptocurrencies
Insider’s Take
TD Ameritrade is great for active traders interested in using multiple trading platforms. As one of the best online brokerages, TD Ameritrade offers secure storage for investments and other assets.
TD Ameritrade review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Promotion: None at this time.
- App store rating: 4.5 iOS/3.6 Android
- Consider it if: You want multiple apps for different trading experiences and goals
If you have plans to manage your account actively and are interested in the fast-moving world of options trading, TD Ameritrade could be the best beginner-friendly brokerage for your needs.
TD Ameritrade offers similar low fees to other large investment brokerages, with many account types available with no recurring fees and no minimum balance requirements. As with most other brokerages for beginners on this list, there are no fees for stock or ETF trades or base fee for options trades.
TD Ameritrade stands out for active investors due to its suite of investment platforms. Brand new investors will probably be most comfortable using the TD Ameritrade website and the standard TD Ameritrade mobile app. As your investment chops improve, you can upgrade to the professional-quality thinkorswim mobile and desktop platforms.
TD Ameritrade's robo-adviser and managed accounts — Essential Portfolios, Selective Portfolios, and Personalized Portfolios — are no longer available to new clients.
You'll have to set up managed or automated accounts through its affiliate, Charles Schwab.
What to look out for:TD Ameritrade doesn't allow customers to invest in fractional shares.
TD Ameritrade review
Best Retirement-focused Online Brokerage for Beginners: Vanguard
Best for retirement-focused investors
Vanguard
Start investing
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Insider’s Rating
4.49/5
Perks
You can trade stocks without commissions here, and Vanguard offers margin accounts and commission-free options trading for more advanced investors.
Account Minimum
$0 ($3,000 for Vanguard Digital Advisor; $50,000 for Vanguard Personal Advisor Services)
Fees
0% (0.20% to 0.30% for professionally managed portfolios)
Pros
- Commission-free stocks, ETFs, and options
- Brokerage, automated, and advisor-managed accounts available
- Thousands of low-cost mutual funds
- Multiple resources with expert analysis and market insights
- Several retirement accounts and services for retirement plan participants
Cons
- Higher options contract fee than other discount brokerages (Vanguard charges $1 per options contract)
- No separate trading platforms for advanced traders; no fractional shares
- No cryptocurrencies
Insider’s Take
Vanguard is a reasonable low-cost option for all types of investors. Whether you're an active trader, passive investor, or retirement-focused individual, you should be able to find what you're looking for.
Vanguard review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Promotion: None at this time.
- App store rating: 4.7 iOS/ 1.8 Android
- Consider it if: You're a long-term focused investor looking for access to a variety of account types and investment choices.
- Awards: Morningstar gave Vanguard a 'High' assessment in its 2022 Robo-advisor Landscape report, listing it as the #1 platform out of 16 robo-advisors
Vanguard has long been a one-stop shop for all things investing. The online brokerage's investment selection includes self-directed accounts, automated investing accounts (robo-advisors), IRAs, education savings plans, and much more.
Plus, like many brokerages listed above, it offers commission-free trading for stocks, ETFs, and options. Vanguard also gives you access to mutual funds, bonds, and CDs, and many of its mutual funds are actively managed, meaning the brokerage oversees the funds.
If you're more of a hands-off investor, Vanguard's Vanguard Digital Advisorand Vanguard Personal Advisor Services automated accounts might suit you. The first, Vanguard Digital Advisor, builds a personalized portfolio of Vanguard ETFs based on your preferences. Vanguard Personal Advisor Services, on the other hand, is an advisor-managed account that allows you to work one-on-one with experienced Vanguard advisors.
Beginners might also appreciate the online brokerage's vast suite of educational resources. Vanguard offers both a library of insights and guides on various investing topics, and it additionally provides market analysis and expert research.
What to look out for: Vanguard offers competitive products for long-term focused investors, but some of its products that best suit active traders (e.g., options) fall short of its competitors. For instance, options contracts will cost you $1 each. This is higher than the options contracts fees for many brokerages. In addition, Vanguard doesn't offer any additional trading platforms for advanced traders.
Vanguard Digital Advisor review
Best Robo-advising Online Brokerage for Beginners: Betterment Investing
Best for robo-advising
Betterment Investing
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Perks
Betterment offers individual or joint accounts, IRAs, trust accounts, and cash reserve or checking accounts.
Account Minimum
$0 to open, $10 to start investing ($100,000 for premium plan)
Fees
0.25%/year for digital plan; 0.40%/ year for premium plan; 1%/year for crypto portfolios
Pros
- No minimum for standard investing account
- Goal-based planning, tax-loss harvesting, charitable giving, and socially responsible investing available
- Access to certified financial planners
- Mobile app with external account syncing options
Cons
- You'll have to pay to consult a human advisor, unless you have the premium plan
Insider’s Take
Betterment is best for hands-off investors who want to take advantage of professionally built, personalized ETF and cryptocurrency portfolios. The platform offers CFP access, so it could suit those in search of additional guidance from human advisors.
Betterment review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Promotion: None at this time.
- App store rating: 4.7 iOS/4.5 Android
- Consider it if: You want access to robo-advice with multiple service levels.
Betterment is the largest independent online financial advisor. If you are looking for an investment experience where you explain your investment goals, hand over your money, and someone else takes care of everything, Betterment is a great broker for beginners.
The term "robo-adviser" is intimidating to some people, but rest assured, an actual robot isn't sitting there picking stocks for you. Instead, you answer some basic questions about yourself and your investment goals when signing up. Based on your answers, Betterment Investing will provide investing advice and recommendations based on your goal details.
Betterment is good for both taxable and retirement accounts. Pricing starts at 0.25% of your portfolio balance per year, though you can pay more for a plan that includes access to a human financial adviser as well. For most beginners, the basic plan covers your needs.
Betterment is also a good brokerage option for small business employers looking to offer their employees 401(k) plans. Betterment offers unique benefits like the new student loan match program through Betterment at Work.
What to look out for:You'll have to pay extra to take advantage of human advisor guidance if you can't meet the $100,000 minimum attached to Betterment's premium account.
Betterment review
Best Banking-brokerage Combo Online Brokerage for Beginners: Ally Invest
Best for banking-brokerage combo
Ally Invest
Start investing
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Insider’s Rating
4.48/5
Perks
Ally's self-directed brokerage accounts also offer commission-free trading on stocks, ETFs, and options.
Account Minimum
$0 ($100 for Robo Portfolios; $100,000 for Ally Invest Personal Advice)
Fees
0% (up to 0.85% for Ally Invest Personal Advice; bonds, mutual funds, and certain stocks have fees)
Pros
- No account minimums or commissions for trading
- Automated portfolios free of advisory or management fees; Ally Invest Personal Advice available
- Options contracts only cost $0.50 per contract
- Bank accounts, mortgage refinancing, car loans, and personal loans available through Ally Bank
Cons
- Thousands of mutual funds but no no-transaction-fee mutual funds
- No cryptocurrencies
Insider’s Take
Ally Invest is best for active traders looking for $0 minimum deposits, commission-free investing, easy-to-use trading tools, and 24/7 market access. The brokerage is also great for passive investors in search of automated advice.
Ally Invest review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- App store rating: 4.7 iOS/ 3.9 Android
- Consider it if: You want easy-to-use apps paired with excellent investing, checking, and savings accounts.
Most of the brokerages for beginners above offer an integrated bank account, but if you are looking for the best bank account and brokerage combo, Ally Invest may be the best option for your needs.
Ally Bank is a broker for beginners that offers some of the highest-rated checking and savings options and a low-fee investment platform that works well for beginners.
The investment side of Ally Invest can handle your taxable or retirement accounts. It features commission-free stock and ETF trades and no base fee for options. There are no transaction fees for mutual fund trades. Managed portfolios are available, too, with no advisory fees and a $100 minimum balance.
Ally Invest's Robo Portfolios rely on ETFs, and Ally manages and monitors each portfolio daily. The robo-advisor also offers four investment portfolio options: Core, Income, Tax optimized, and Socially Responsible. It doesn't have the flashiest or fullest-featured trading platform, but it gets the job done and makes it easy for beginners to manage their banking and investments with one login.
What to look out for: Ally doesn't offer any cryptocurrencies directly, but you can get exposure to crypto through Ally Invest Funds that include crypto assets.
Ally Invest review
Best Round-Up Investing Online Brokerage for Beginners: Acorns
Best for round-up investing
Acorns Invest
On Acorns's website
Insider’s Rating
3.97/5
Perks
Earn a $20 bonus when you open a new account and make your first successful recurring investment (min $5). Receive your bonus within 10 days of following month
Account Minimum
$5
Fees
Monthly plans start at $3 for Personal, $5 for Personal Plus, and $9 for Premium
Pros
- Low fees
- Helpful automatic saving and investing tools
- Portfolio suggestions built to match your risk level
- "Found money" invests a percentage of your purchases from certain companies
Cons
- Flat monthly fee is on the high side, especially for smaller accounts
- The option to choose individual investments requires a Premium plan
Insider’s Take
Acorns is one of the best investment apps for beginners and hand-off investors who want to start investing but are overwhelmed by the choices with other investing apps. This simple and easy-to-use platform offers a low investment minimum, portfolio diversification, and beginner-friendly charting tools. Acorns is more expensive than other zero-fee apps out there, but the ease of use may make it worthwhile for certain users.
Acorns review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Get started in under 5 minutes
- $5/month gets you a full financial wellness system with connected investment, retirement, and saving accounts.
- Invest in a diversified, expert-built portfolio
- No expertise required
- Invest your spare change with Round-Ups (more than $900M invested in 2021 just from RoundUps!)
- Set easy, automatic Recurring Investments
- See your account performance right in the app, and play with our interactive Potential screen
- All you need to start investing is $5
- 18M downloads
Acorns is an online broker ideal for passive investors and beginners seeking a mobile-friendly, easy-to-use platform. While Acorns doesn't offer as many bells and whistles as competitors, you can automatically invest extra change (aka round-ups or "found money") by linking your card to your Acorn account.
Acorns mainly offer ETFs, comprising diverse stocks, bonds, and real estate assets. After completing a questionnaire about your time horizon, risk tolerance, and goals, you can invest in a Core or ESG portfolio. Acorns then create a personalized investment portfolio based on your preferences.
You can now also invest in bitcoin-linked ETFs. But Acorns doesn't offer direct crypto trading.
The online brokerage only requires $5 to start investing. You can open a regular brokerage or retirement account through Acorn Later, such as a traditional IRA, Roth IRA, or SEP IRA. The platform also offers custodial accounts called Early accounts.
What to look out for:Acorns is more expensive than similar platforms, as it charges $3 a month for a personal account, $5 for Personal Plus, and $9 for Premium. It also doesn't offer mutual funds or crypto.
Investors can buy and sell different investment assets with an online brokerage account, which provides secure storage and market access. The best online brokerages provide an intuitive interface and a variety of account types to serve your needs.
Most online brokers for beginners offer a $0 minimum requirement and commission-free trading on investments, including stocks, bonds, ETFs, and more. Even though most of the best online brokers for free stock trading provide low minimum fees, you may still need to pay a small contract fee.
Acorns review
Best Online Brokerages for Beginners — Frequently Asked Questions (FAQs)
Can I open a brokerage account with no money?
You can open a brokerage account without money, as many robo-advisors and other beginner-friendly investment apps have no minimum requirements. Compare different minimums and fees when deciding which online brokerage is best for you. Remember that investments will require funds to purchase.
How do I know if a brokerage account is beginner-friendly?
When looking for a beginner-friendly brokerage account, look for brokerages offering comprehensive educational resources, easy-to-use interfaces, simplified trading strategies, strong customer support, and low fees. Robo-advisors are a great place to start.
Are online brokerages safe for beginners?
Yes. There are many online brokerages sage for beginners. Beginner-friendly online brokerages use simplified trading strategies and easy-to-use interfaces while offering a vast selection of educational content. Online investment platforms are generally equipped with regulated security measures and SIPC insurance.
Should beginners use a robo-advisor or a traditional brokerage account?
Robo-advisors are generally great for beginners and hands-off investors interested in using AI algorithms to build and manage their investment portfolios. However, some beginners may prefer to open a traditional brokerage account if they want to self-select their own investment options.
How much should beginners invest in their first brokerage account?
Beginners should only invest as much as they feel comfortable and can afford to lose. There's no harm in starting small and gradually increasing investments as you gain more knowledge and confidence.
Understanding Fees and Commissions
Many of the best online brokerage accounts for beginners require only low minimums (or no minimums at all). Low to no trading fees for beginner-designed investment apps are also common. Common perks include commission-free trades and no AUM fees.
If you can swing it, you shouldn't be paying recurring fees or minimum charges with most of the best brokerage accounts. You may see some fees for phone or broker-assisted trades, as well as commissions for some mutual funds and other investments.
Make sure to keep an eye out for hidden fees, especially on trades for assets like index funds, options contracts, futures, and digital currencies.
Getting Started with Your First Brokerage Account
To open your first online brokerage account, consider the type of account, investment options, and features you're looking for. Once you know what you want, compare different brokerage accounts that fit the bill and find the one that best fits your needs. You can then begin the application process, fund your new account, and invest.
Managing a brokerage account online using a website or mobile app is easiest. Online brokerages allow you to transfer funds, enter trade orders, monitor your positions, research current and future investments, and handle any other transactions you must make in a brokerage account.
In the US, brokerage accounts are insured by the Securities Investor Protection Corporation (SIPC). If your brokerage goes out of business, you are guaranteed to get your money and other assets back up to SIPC limits.
Brokerage firms are regulated by the Securities and Exchange Commission and Financial Industry Regulatory Authority (FINRA), among other government agencies and industry groups.
Criteria for Choosing a Brokerage Account as a Beginner
Online brokerages providing multiple asset classes, secure storage, stock market access, and an intuitive interface are the best kinds of brokers for beginners. The online brokerage should also offer various account types and low minimums and fees.
The best brokerages for beginners offer a handful of investing and goal-building tools, such as tax loss harvesting features, automatic rebalancing tools, portfolio management, and other similar financial planning tools. Educational resources, like webinars and blogs, are also extremely beneficial for new investors.
Financially, compare different minimums and fees when assessing which online brokerage is best for you. Low minimums and fees are more suitable for beginners just getting acquainted with investment products and services. More advanced online brokerages will require higher fees and minimums to access advanced trading and charting tools.
Other Online Brokerages for Beginners We Considered
- Firstrade: Firstrade isn't as well known as some others on this list, but it's been around for decades and offers commission-free trades for most assets, including no per-contract fee for options and no commissions for any mutual fund trades. The trading platform isn't as modern and polished as some competitors, but the price is right.
- Webull: Webull is also almost completely free to use; there are no account fees or trading commissions. You can trade stocks, options, ETFs, and cryptocurrencies. But while it's available account types include taxable investment accounts and IRAs, it doesn't currently offer joint brokerage accounts, education savings accounts, or automated investing options.
- E*TRADE: E*TRADE is a major brokerage with a long history of serving online traders. It has a great web platform and works well for beginner to experienced traders. E*TRADE is currently in the process of being acquired by Morgan Stanley.
- Interactive Brokers: Interactive Brokers are best for investors who are looking to become more active traders. It may be good for beginners looking to invest time to learn the markets and how higher-powered trading tools work.
- Merrill Edge: Merrill Edge is part of Bank of America. It does a good job of rewarding very loyal customers with high balances across Bank of America and Merill accounts. It's less ideal for traders who don't have a strong relationship with Bank of America.
- tastytrade: tastytrade (previously called tastyworks) is an online brokerage account that offers stocks, ETFs, cryptocurrencies, options, futures, and more. Traders can choose to open a cash account or a margin account. The platform's educational blog, tutorial videos, and Follow Feed feature can be beneficial to beginners. But tastytrade, in general, is best suited for experienced active traders.
- Uphold: Uphold is an online brokerage that mainly offers crypto and currency trading between different asset classes. Its easy-to-use platform makes it a solid option for beginners looking to earn staking rewards or join Uphold's Affiliate Program. However, there are numerous customer complaints against Uphold. Plus, it has higher spread fees compared to other online brokerages for beginners.
Why You Should Trust Us: Our Expert Panel For The Best Online Brokerages for Beginners
We interviewed the following investing experts to see what they had to say about online brokerages for beginners.
- Sandra Cho, RIA, wealth manager, and CEO of Pointwealth Capital Management
- Tessa Campbell, Investment and retirement reporter at Personal Finance Insider
What are the advantages/disadvantages of investing through an online brokerage for beginners?
Sandra Cho:
"The advantage of an online broker is that fees are generally much less than a full-service broker, and the disadvantage is that the service is much less than a full-service broker."
Tessa Campbell:
"Online brokerages designed for beginners come with multiple advantages for new investors with simple-to-use platforms, simplified trading strategies, educational resources, minimal fees, and easy portfolio diversification. Some of the most popular online brokers for beginners are robo-advisors, which are automated investment platforms that use computer algorithms to trade and manage your investment portfolio.
"The disadvantage of beginner-friendly online brokerages is that you won't get access to advanced trading strategies and market data. You also won't get the same level of account flexibility as you would with a more hands-on trading platform designed for experienced investors."
Who should consider opening a beginner-friendly online brokerage?
Sandra Cho:
"Online brokers tend to attract two main types of investors in my experience, day traders and people who are extremely fee-conscious."
Tessa Campbell:
"Online brokerages for beginners are best for, well, beginners with limited trading experience. These platforms offer accessible, easy-to-use investing interfaces. A beginner-friendly broker may be a good option if you're looking to avoid all the complicated bells and whistles found with other advanced investing platforms. Moreover, these brokers tend to have lower fees and minimums, which makes them appealing to fee-conscious individuals."
Is there any advice you'd offer someone who's considering opening a beginner-friendly brokerage account?
Sandra Cho:
"Stay simple. Keep to long trades and stay away from options like riskier naked shorts where you can literally lose your shorts."
Tessa Campbell:
"Make sure to thoroughly compare different online brokers for beginners to ensure that the platform you choose best fits you. Not all online investment platforms offer the same features and investable securities. So if there's a certain feature you're looking for, such as automatic rebalancing or ESG funds, make sure that you pick the best broker for that feature."
Methodology: How We Choose the Best Online Brokers for Beginners
We applied Personal Finance Insider's rating methodology for investment platforms to consider the best online brokerages for beginners. We considered a dozen brokerages and zeroed in on options that offered competitive pricing and features most important to beginner investors and traders.
To make it onto this list, brokerages must offer commission-free stock, ETF trades, and no recurring account fees (excluding robo-advisors). Other important focus areas include available investments, types of accounts, and high-quality investment platforms. Strong investment research and education resources were another plus but carried less weight in the decision process.
Junior Investing Reporter
Tessa Campbell is a Junior Investing Reporter for Personal Finance Insider. She reports on investing-related topics like cryptocurrency, the stock market, and retirement savings accounts. She originally joined the PFI team as a Personal Finance Reviews Fellow in 2022. Her love of books, research, crochet, and coffee enriches her day-to-day life.
Senior Wealth-Building Reporter
Rickie Houston was a senior wealth-building reporter for Business Insider, tasked with covering brokerage products, investment apps, online advisor services, cryptocurrency exchanges, and other wealth-building financial products. Before Insider, Rickie worked as a personal finance writer at SmartAsset, focusing on retirement, investing, taxes, and banking topics. He's contributed to stories published in the Boston Globe, and his work has also been featured in Yahoo News. He graduated from Boston University, where he contributed as a staff writer and sports editor for Boston University News Service.
Jr Compliance Associate
Elias Shaya is a junior compliance associate on the Personal Finance Insider team based in New York City. Personal Finance Insider is Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that readers already know and love. The compliance team's mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up to date and accurate. He joined Insider in February 2022 as a fellow on the compliance team. Elias has a Bachelor of Science in International Business from the CUNY College of Staten Island. Prior to joining Insider, he volunteered at the New York Presbyterian Hospital, where he worked with the biomedical engineering department. In his spare time, Elias enjoys exploring new restaurants, traveling to visit his family in Lebanon, and spending time with friends.
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