We also rewarded brokerages with tools to help you build ladders of bonds or certificates of deposit. And this year we added points for providing investing education materials, as well as tools that help you vote on corporate proxies or suggest ways to lower your tax bills on withdrawals. Stockpile Stockpile is a top investment platform for kids to learn how to save and invest in their future. Stockpile offers brokerage and custodial accounts with no recurring fees, minimums, or gift card fees. Interactive Brokers Interactive Brokers has multiple pricing options depending on your level of trading activity and personal trading needs. The basic account, IBKR Lite, offers commission-free stock and ETF trades and competitive fees for most other trades.

Best Online Brokers For Beginners Of 2025

This can also be a great strategy for diversifying your portfolio’s investments. The difference, however, is that brokerage accounts act as a safe place to hold investable assets like stocks, bonds, ETFs, mutual funds, and crypto. Fidelity’s Active Trader Pro platform is user-friendly and has many useful features for beginners.

Fidelity Investments

These include Fidelity, best online investors Charles Schwab, Robinhood, Webull and Interactive Brokers. Overall, it’s a good platform for those new and experienced when it comes to investing. Some users appreciate the platform and app’s ease of use, while others are dissatisfied by the user interface and frequent app updates.

Delving immediately into day trading or complicated investing strategies like options before getting the hang of basic order types is a recipe for disaster. Wait until you have more experience before using options, short selling, or buying on margin. Get acquainted with the most important things to know about the stock market for beginners.

What is a brokerage account?

Investors wishing to be more involved may want to research and pick their own stocks. For those who highly value the opportunity to meet a representative in person, J.P. Morgan leads the market in terms of the number of (Chase) bank branches with registered representatives. Ally and Firstrade trailed because they lack many popular tools, such as college-savings calculators and tools to help you analyze your allocations to different kinds of assets. Gold members earn 4.00% Annual Percentage Yield (APY) on uninvested cash. Charles Schwab provides the benefits of an extensive branch network across the United States, where clients can schedule one-on-one sessions with a financial professional.

If you don’t already have one, making a budget could help you see how much money you have coming in and going out. You can also try Fidelity’s cashflow analysis tool,Log In Required  which has a budget feature. Before saving with a taxable account, consider the order of where you should save first to accomplish your financial goals best.

Stock market beginners can take advantage of the screener section to research potential investments. The platform’s News and Research section has some outstanding resources for beginners. The watchlist tool allows you to easily track the stocks you are most interested in. It also enables you to set email and mobile alerts for events like a stock increasing above or falling below a set price level or certain percentage. Our editors are committed to bringing you independent ratings and information. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally.

Questions to answer before your first investment

• Yes, you can open multiple brokerage accounts with the same broker or different brokers.
• Online brokers are sometimes referred to as discount brokers because they offer a considerable discount to what the typical full-service brokerage firm charges.
• For instance, if you’re saving for retirement or education expenses, you might choose tax-advantaged accounts, like an individual retirement account (IRA) and a 529, respectively.
• The Schwab client portal is easy to navigate, and it was refreshing to see customer support options displayed prominently on every page.
• But you could be taxed on earning dividends (small payments to shareholders) in a brokerage account, earning interest in CDs and money market accounts, or selling investments in a brokerage account.
• These accounts have the same contribution limits as a traditional IRA.

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. Online brokers are especially well-suited for beginners, as they are designed to be easy to use and often provide educational resources and features like stock screeners. Additionally, they let you follow markets and trade securities from anywhere, as they are almost universally available via mobile apps. They provide fast execution of trades, and, most importantly, they are much less expensive than a traditional broker.

• In our search for the best online broker for beginners, Forbes Advisor evaluated 21 brokers.
• When markets fluctuate—and they will—it may be tempting to second-guess your decisions.
• Profit and prosper with the best of Kiplinger’s advice on investing, taxes, retirement, personal finance and much more.
• So, just like last year, the robustness of the brokerage’s investment choices, tools and mobile app were each given a weight of 20% of the overall score.
• The online platform that is best for a beginner depends upon a number of factors, including that person’s investing timeline, risk profile and financial knowledge.
• Also review whether your account requires a minimum opening balance (not all do), so you can initiate a transfer for the correct amount.

Runner Up, Best Online Broker for Educational Resources

Selecting the right brokerage account is an important first step in your stock trading journey. With seemingly endless brokerage options available, it’s important to choose an account which is right for your unique needs, experience level, and other factors you may not yet be aware of. Competition has driven the costs of trading stocks, ETFs and many mutual funds down to zero at major brokerages. Some also direct trade orders to market makers who pay commissions for that stream of business, which means you may not always get the absolute best prices available on your trades.

Our writers have collectively placed thousands of trades over their careers. A brokerage fee is a sum of money that is charged for the services provided by the broker. Third-party research reports from Argus Analyst, Investars and more are available within the client portal.

Schwab charges a one-time planning fee of $300 and then $30 per month, so long-term customers with large portfolios pay a very small portion of their assets. Fidelity Go, which has a hybrid tier, was a close second among hybrid advisers. A trading platform, otherwise known as an online brokerage account, allows you to buy and sell investments via computer or mobile app.

The main complaints against SogoTrade have to do with its trading platforms, which some customers find cumbersome and lacking in advanced features. Some users also note a poor user experience when it comes to research. However, positives include an easy account-opening process and multilingual customer support.

But investors should note that many brokerages, including Interactive Brokers and Schwab, also offer free platforms for active or professional traders with more sophisticated bells and whistles. The advantage of opening a brokerage account is — if you’re interested in investing in stocks or bonds, mutual funds, or ETFs, as example, a brokerage is a great way to do it. Most retirement plans offer a curated list of choices that have been well-vetted by consultants and investment experts. When you go into a brokerage account, it is daunting to know where to start.

We’ve evaluated each broker on their pros and cons, and here’s how they stack up on the most important aspects. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The offers that appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.