
- Investment products
- Stocks, ETFs, crypto, options, margin, retirement accounts
The days of investing from a broker's office are mostly gone. Now, the best online brokers for beginners can do everything you need without you having to leave home.
However, beginner investors have unique needs compared to more seasoned ones. Guidance, educational tools and intuitive transaction processes may be just as important as the investment itself to someone who is just starting out.
We’ve compiled our top picks for the best online stockbrokers for beginners to help you find one that’s right for you.
To make our choices for best online stockbrokers for beginners, we examined the verified reviews on our site and considered factors benefiting beginner investors the most, such as educational tools, ease of use and minimum investment requirements.
Our picks may be Authorized Partners that compensate us. This does not affect our recommendations or evaluations but can impact the order in which the companies appear.
A brokerage account is a financial account that allows you to buy and sell investment products such as stocks, bonds, mutual funds and exchange-traded funds (ETFs).
It acts as the go-between for investors and the financial markets, allowing you to directly place trades and manage your investment portfolio. Many brokerage accounts offer features like research tools, portfolio tracking and access to professional advice to help you make informed decisions.
» MORE: What is a good investment?
The Securities and Exchange Commission divides brokerage accounts into two main types:
A variety of account types fall under these two broad categories, including many proprietary options. Because there are so many account types available and brokerage offerings are always changing, it’s a good idea to compare individual account types once you’ve narrowed down your list of potential brokerages.
If a standard brokerage account isn’t right for you, consider working with an automated robo-advisor or opening a retirement account, such as a 401(k) or individual retirement account (IRA). These other investment accounts offer different features and functions. For example, retirement accounts often come with tax benefits. You can also get IRAs backed by gold or Bitcoin.
It's up to you to decide what type of account is best suited for your needs:
Here are some tips to help you choose the right brokerage account:
Many brokerages offer multiple types of accounts, so compare the tiers and see what level of account you need.
» MORE: How to open a brokerage account
To provide services, most brokers charge a brokerage fee. This is often a flat fee, but it may also be a percentage of the money you invest.
Yes, as long as the funds aren’t tied up in an investment. Depending on the type of account, this process may require paying taxes upfront. You may incur fees for some types of withdrawals, too.
Online stockbrokers are generally safe if they’re using robust security measures to protect user information and transactions. Reputable online brokers also use industry-standard encryption tools for sensitive data protection, so personal and financial details remain confidential. As far as investments go, all investments carry some risk that your broker is not responsible for.
Yes, most reputable online stockbrokers offer features like automatic investment plans and robo-advisors, so you can set up recurring investments based on your schedule and risk tolerance.
The most common methods for funding an online brokerage account include linking your bank account and initiating electronic transfers, depositing a check via mobile app or mail, or wiring funds directly from your bank. Some online brokers may accept alternative payment methods, too, like debit cards or electronic wallets, but you should check these policies first.
The right broker for you will vary based on your situation and your personal preferences. However, the best online brokers for beginners typically prioritize educational tools, customer service and a simple-to-use platform and app.
As a new investor, you want a broker that has a low barrier to entry (minimal fees and account minimums) and enough options and resources to let you test the waters, see what you prefer and grow along with your portfolio.
To make our choices for best online stockbrokers for beginners, we started with a list of 17 popular online brokers. We examined the verified reviews and ratings on our site and also reviewed information benefiting beginner investors the most, such as educational tools, ease of use and minimum investment requirements.