Best Brokerage Accounts for Beginners: Our 7 Top Picks 2025 The Motley Fool
Before filling out your first trade ticket, make sure your investment choices line up with your investing timeline and goals. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear), but does not influence our editorial integrity. We do not sell specific rankings on any of our “best of” posts or take money in exchange for a positive review. No matter who you are or what your background is, you can and should get started investing in the stock market right now. You don’t need a complex market strategy — you just need a smartphone, a little starter cash, and a willingness to learn.
Navigating the investment waters: Risk assessment and portfolio diversification
Even experts do a poor job of trying to time the market, which is why passively managed index funds typically outperform funds actively managed by fund managers. With this strategy, called dollar-cost averaging, you wind up buying more securities when prices are low and fewer when prices are high. Once you’re sure the brokerage is legitimate, check the following to make sure the broker is a good fit for your financial goals and investing style. GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information.
What is a brokerage fee?
Whether you want to save for retirement or focus on the best stocks to buy, you’re going to need a brokerage account before you can get started. With many online brokerage best online stock brokers for beginners services, you can buy fractional stocks, mutual funds and other basic investments with just a few dollars. And many offer low-cost trading, but you’ll still have to watch out for various fees. Or learn more about the world of stock brokers and brokerage firms, our guide to the best online brokerages and trading platforms for beginners can help.
- There are limitations with fractional shares to consider before investing.
- If you want someone to manage your money for you, you will want to hire a financial advisor.
- Schwab offers $0 stock and ETF trades, as well as access to thousands of fee-free mutual funds.
- Newsweek.com does not include all financial companies or all available financial offers.
- We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers.
- Fidelity also offers fractional share trading, which allows users to trade and invest in more than 7,000 stocks and exchange-traded funds (ETFs) using very small sums of money.
Prior to Newsweek, he worked at Bankrate as the lead editor for small business loans and as a credit cards writer and editor. He has also written and edited for CreditCards.com, The Points Guy and The Motley Fool Ascent. He has been credit card and travel rewards enthusiast since applying for his first credit card the day he turned 18. No, many brokers do not require a minimum deposit, allowing you to start with as little as $1. Chat and email support were also reliable in our survey, with fast, helpful responses.
A trading platform, otherwise known as an online brokerage account, allows you to buy and sell investments via computer or mobile app. The brokerage holds your investments and deposited cash for you and provides activity reports and account statements. Interactive Brokers is a broker that caters to active traders with its advanced trading platform and wide range of investment options. They offer competitive pricing with low commissions, making it a good choice for traders looking to keep costs down. Online brokerages, such as Fidelity and Charles Schwab, offer a balance of services and affordability. They provide a range of trading tools and resources, as well as access to a wide variety of investment options.
- That said, Robinhood’s in-app research tools are relatively basic unless you upgrade to Robinhood Gold, which provides access to advanced research and data.
- A good rule of thumb is to never invest more than you can afford to lose or that you might need within the next three months.
- Select your investments (such as mutual funds, ETFs, or individual stocks) and enter the amount and frequency of your recurring investment.
- We want to help you make personal finance decisions with confidence by providing you with free interactive tools, helpful data points, and by publishing original and objective content.
- Users can easily track their progress, adjust financial plans, and access personalized guidance tailored to their needs.
Best Brokerage Accounts for Beginners: Our 7 Top Picks of 2025
Check out my comprehensive review of Charles Schwab to discover more about its features and offerings. The Robinhood Snacks daily newsletter and podcast are definite pluses for beginners, delivering financial news in cleverly written small bites. Morningstar Research Reports are available with a Robinhood Gold subscription, which costs $5 a month. The Robinhood app’s layout is minimalistic but peppered with useful features. Lists such as “100 most popular,” “top movers” and “upcoming events” help users stay on top of daily events.
Tools & Features
Interactive Brokers (IBKR) secures the number two spot for best stock broker for 2025 in what was an incredibly tight race. While IBKR is best known for catering to advanced traders and professionals, it also offers features that make it surprisingly accessible to a broader audience. Many brokers offer commission-free trades, though there may be fees for certain transactions or account features.
Best Investing Tools
But the best brokerage accounts for beginners provide more than commission-free trades. They offer an intuitive platform, transparent pricing and access to advice and resources to help you learn about the world of investing. Charles Schwab offers a comprehensive range of investment options, including stocks, ETFs, mutual funds, IRAs, and more.
For one, a brokerage has to be a member that qualifies for SIPC coverage. Charles Schwab invests in research to build in-house expertise that anyone can use, no matter how much money they have. If you have questions or want to learn more, an expert is only a phone call away. Please disable your adblocker to enjoy the optimal web experience and access the quality content you appreciate from GOBankingRates.
Best app with educational resources: E*TRADE from Morgan Stanley
Fidelity excels in educational resources, offering tools like free in-depth reports from over 20 independent research firms, StarMine analyst rating analysis, and daily market insights. Its robust screeners for stocks, funds, and ETFs make it easy for investors to find opportunities tailored to their goals. These features are invaluable for beginners and seasoned investors alike. 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 investment opportunities, the inclusion of mutual funds without commissions is a notable advantage for those seeking low-cost diversification.
Just remember, it’s all about balancing risk with reward and staying focused on the long-term horizon. Fidelity’s platform is straightforward, offering just enough information to make informed decisions without being overwhelming. While it may not have the ultra-modern aesthetics of newer platforms like Robinhood, its reliability and functionality are consistently high.
Blain created the original scoring rubrics for StockBrokers.com and oversees all testing and rating methodologies. We opened live accounts at each of the brokers in our survey for hands-on testing of their services. Our broker reviews were conducted by a seasoned market professional with over 20 years of experience in the markets, both as a broker and a retail investor. Regular webcasts hosted by industry professionals provide market commentary and information on how to manage your portfolio. Webcasts, which are offered live and recorded for later viewing, cover topics including active trading, portfolio management, investing and platform demos. Charles Schwab combines competitive fees, a powerful platform and high-quality research and educational materials.
TD Ameritrade has raised the bar in terms of educational resources, offering content across a wide range of media. The firm has taken special care to ensure that the learning experience is immersive and interactive. In our search for the best online broker for beginners, Forbes Advisor evaluated 21 brokers. In side-by-side comparisons, we assessed the user friendliness of each broker’s platforms, with a strong focus on the quality of educational and research materials. A pioneer in fee-free investing, you can be sure an account with Charles Schwab means a reliable low-cost investing journey.
These fees are fairly standard in the industry, but worth considering if you plan to engage in more complex trading activities. Explore our top-rated beginner-friendly platforms below to find the one that fits your needs. Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Investing in bonds involves risk, including interest rate risk, inflation risk, credit and default risk, call risk, and liquidity risk.
Simple-to-use investing experience and commission-free trading make Robinhood one of the best stock brokers for beginner investors, and Robinhood delivers on all these fronts, and more. J.P. Morgan’s trading platform is integrated into the Chase mobile app, providing a unified experience for Chase customers. If you already bank with Chase, consolidating your financial accounts in one place can be convenient.
SoFi also offers a robo-advisor that doesn’t charge fees — though this service does create portfolios with proprietary SoFi funds. There are different flavors of brokerage accounts tailored to your investing style. On the other hand, a margin account lets you borrow funds to potentially boost your buying power, which can amplify gains but also comes with its own drawbacks.