The post Best Stock Brokers for Beginners by Ryan Peterson appeared first on Benzinga. Visit Benzinga to get more great content like this.
Interactive Brokers is the best stock broker for beginners, offering a blend of low fees, user-friendly tools and educational resources.
Investing can be intimidating, but the right broker can make all the difference. For beginners, the best stock brokers combine affordability, simplicity and access to educational tools. Whether you’re looking to invest in your first stock or dive into ETFs and mutual funds, picking a platform that aligns with your goals is key. Below, we breakdown the top online brokers that cater to beginners, highlighting their standout features, fee structures and the advantages they bring to first-time investors.
Quick Look at the Best Online Brokers for Beginners:
- Best Overall: Interactive Brokers
- Best for Active Traders: Webull
- Best for Simplicity: Robinhood
- Best for All-In-One Services: Charles Schwab
- Best for Long-Term Investing: Fidelity
- Best for Diverse Investment Options: E*TRADE
- Best for Technical Analysis: moomoo
- Best for Community Insights: Public.com
- Best for Low-Cost Trading: TradeUp
- Best for Social Trading: eToro
Table of contents
[Show]
10 Best Online Stock Brokers for Beginners
If you’re ready to start investing, these online brokers are top choices that balance usability, low fees and a range of tools tailored to beginners.
1. Best Overall: Interactive Brokers
get started
securely through Interactive Brokers’s
website
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
Best For
- Access to international markets
- Active traders
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
- Fees: Starts at $0, but tiered and fixed-rate structured pricing is available depending on asset and contract
- Account Minimum: $0 for IBKR Lite, $100,000 for IBKR Pro
- Promotional Offer: The Refer a Friend program lets eligible IBKR clients earn $200 for each successful referral, while their friends have the chance to earn up to $1,000 in IBKR stock
Interactive Brokers (IBKR) is known for offering a powerful platform with an extensive range of investment options, making it a great choice for beginners who want to explore a variety of asset classes. While IBKR Pro is designed for professionals, IBKR Lite offers commission-free trading with a user-friendly experience. New investors can benefit from the platform’s educational resources and research tools, which are among the industry’s most comprehensive.
Why We Picked It: Interactive Brokers stands out for its range of investment options, which include global stocks, ETFs, options and even cryptocurrencies. The platform’s low-cost trading and extensive resources make it a versatile choice for beginners who want to grow their skills over time.
2. Best for Active Traders: Webull
get started
securely through Webull’s
website
Webull is a commission-free trading platform designed with both beginner and advanced investors in mind. Offering an extensive range of assets like stocks, ETFs, and futures, Webull makes it easy for users to manage their investments through a highly intuitive interface. With educational resources, paper trading options, and no minimum account balance required, Webull caters to those looking to start investing without high upfront costs. The platform’s mobile app ensures that users can trade anytime, anywhere, making it a flexible choice for those with busy lifestyles. Webull’s customer service options are limited, and the platform may feel overwhelming to those completely new to investing.
Best For
- Commission-free trading
- Mobile and desktop trading
- Beginners and experienced traders alike
- No commissions on trades
- Extensive range of tradable assets
- Easy-to-use mobile app
- Limited customer service options
- Learning curve for complete beginners
- Fees: $0 commissions, but trading fees apply and tiered pricing on other assets
- Account Minimum: $0
- Promotional Offer: Get 20 free fractional shares by depositing $500 – $24,999.99 and maintaining for 30 days
Webull offers a mobile-first experience with powerful tools that even beginners can learn quickly. The platform’s commission-free trades and real-time market data make it ideal for those who plan to be active traders. Webull also features paper trading, which allows beginners to practice with virtual funds before diving in with real money.
Why We Picked It: Webull’s blend of advanced charting tools and user-friendly interface provides a smooth learning curve for beginners while giving them room to grow as more experienced traders. The free stock promotion is also a nice incentive for new users.
3. Best for Simplicity: Robinhood
get started
securely through Robinhood’s
website
Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.
Best For
- Beginners looking for simplicity
- Mobile-first investors
- Commission-free trades
- User-friendly mobile app
- Instant double
- Cash management
- Access to cryptocurrencies
- Limited research tools
- No mutual funds available
- Basic customer support options
- Fees: $0 commissions, but trading activity fees apply
- Account Minimum: $0
- Promotional Offer: Earn 3% extra on every annual contribution to your IRA when you subscribe to Robinhood Gold
Robinhood’s sleek and simple platform has become a favorite for first-time investors. With no account minimums and commission-free trades, Robinhood offers a low barrier to entry. The app’s intuitive design and straightforward interface make it easy to buy stocks, ETFs and even cryptocurrencies with just a few taps.
Why We Picked It: Robinhood is ideal for beginners who prioritize simplicity and want a quick, hassle-free way to start investing. Its straightforward design and commission-free trading are perfect for beginners.
4. Best for All-in-One Services: Charles Schwab
get started
securely through Charles Schwab’s
website
Charles Schwab is a solid choice for traders of all skill levels. It offers full access to the U.S. equity and options markets as well as 30 international markets. Traders can create a diverse portfolio with $0 commissions and no account minimums. Schwab’s margin trading is expensive but Schwab makes up for it with affordable futures and options trades, along with a comprehensive mobile offering.
Best For
- 3 trading platforms perfectly in sync makes matching your platform to your skill level a snap
- Excellent futures trading education for new traders
- $0 account minimum means anyone can start trading
- Wide range of available assets to trade, including futures and 30 global markets
- SmartStreet Edge platform is powerful enough for advanced traders, yet easy enough for new traders to utilize
- Unique educational resources (like infographics and podcasts) make learning fun
- Margin rates are more expensive than competitors
- More limitations on available margin than competitors
- Expensive mutual funds
- Fees: $0 online trades + $0.65 per options contract
- Account Minimum: $0
- Promotional Offer: Refer a friend program, up to $1,000
Charles Schwab offers a comprehensive range of services that go beyond just trading. For beginners, the platform provides extensive educational resources, including articles, videos and webinars, making understanding the basics of investing easier. Schwab also offers the flexibility of self-directed trading and robo-advisory services, making it a versatile option for new investors.
Why We Picked It: Schwab’s combination of low fees, excellent customer service and comprehensive tools makes it a top choice for beginners who want more than a basic brokerage account. Its educational resources are also among the best available.
5. Best for Long-Term Investing: Fidelity
get started
securely through Fidelity Investments’s
website
Fidelity is a comprehensive and responsive brokerage suitable for both new and experienced traders alike. With complete access to the full U.S. stock and options markets, a set of state-of-the-art education and research tools, as well as a wide fee-free fund selection, Fidelity is equally useful for the veteran swing traders to novices opening their first accounts. Mobile traders will be especially happy with Fidelity’s app, which mirrors full capabilities of the platform. Though there isn’t much to criticize about Fidelity, the broker does have a few areas where it can afford to improve. Margin rates are significantly higher than most other brokers, especially for traders borrowing less than $25,000. It also doesn’t offer any access to the futures markets. Despite these minor flaws, Fidelity remains a strong choice for most investors.
Best For
- Easy-to-navigate yet functional platform strikes the perfect balance between expert tools and comfort for beginners
- Mobile trading app is fully-optimized and mirrors full functionality of the desktop platform
- Wide range of education and research options make learning more about securities and the market easier and less time-consuming
- Complete range of both independent and managed services available at exceptionally affordable prices
- Offers access to both domestic markets and 25 foreign markets, as well as a wide range of options contracts and over 10,000 mutual funds
- Mobile app that is well-integrated and works just as well as the desktop platform
- Wide selection of education tools and resources available free of charge
- Margin rates higher than many other competing brokerages
- No access to futures trading
- High fees for buying a non-Fidelity mutual fund (with over 3,300 fee-free funds available)
- Fees: $0 for online U.S. stock, ETF and option trades
- Account Minimum: None
- Promotional Offer: None
Fidelity is a well-rounded brokerage that offers everything a beginner needs for long-term investing. It features a wide range of funds with no minimums, making it easy to start small. Fidelity is particularly known for its research tools and detailed educational content, helping beginners learn as they grow their portfolios.
Why We Picked It: Fidelity’s focus on long-term investing, combined with no account minimums and comprehensive research tools, makes it a perfect platform for beginners planning for retirement or other long-term goals.
6. Best for Diverse Investment Options: E*TRADE
get started
securely through eTrade’s
website
Boasting one of the best mobile brokerage platforms on the market and a competitive fee structure, Power E*TRADE is a popular platform for options and futures trading, especially among high frequency traders. It boasts intuitive tools and beginner-friendly options for active traders and investors.
Best For
- High frequency traders who execute more than 30 options trades per quarter
- Investors who want to be able to trade via their phone or tablet
- Among the most advanced mobile apps, complete with a customizable dashboard
- Lower fees and margin rates for frequent traders
- Prebuilt portfolios, preset scans and automation tools that are great for passive investors and new investors.
- Fees are higher for less frequent traders
- Forex and international markets are not available
- Fees: $0 on stocks, ETFs, options and mutual funds. $0.65 on options contracts, $1.50 on futures and $1 on bonds
- Account Minimum: None, but you must fund the account within 30 days to remain open
- Promotional Offer: Get up to $1,000 or more when you open and fund a new brokerage account
E*TRADE has a long history of serving investors with trading tools and resources. The platform is easy to navigate and offers a variety of investment options, including stocks, ETFs, mutual funds and options. For beginners, E*TRADE provides educational resources like online courses and market analysis to help build a solid foundation.
Why We Picked It: E*TRADE’s blend of low fees, diverse investment options and robust educational tools makes it ideal for beginners who want to explore different types of assets as they learn more about the market.
7. Best for Technical Analysis: moomoo
get started
securely through Moomoo’s
website
Investing is a long-term journey, and moomoo can help guide investors of all levels every step of the way. Utilized by over 21 million users worldwide – including in the US, Singapore, Australia, Japan, Malaysia and Canada – moomoo is an investment and trading platform that empowers investors with pro-grade, easy-to-use tools, data and insights.
moomoo provides advanced charting tools, technical analytics and Level 2 data for funded accounts, so investors have the resources to make more informed investment decisions. Users can access educational materials and interactive events, as well as share and learn through the inline community.
With a low-cost, competitive fee structure, moomoo can work for all investors.
Best For
- Novices
- Intermediate and advanced traders
- Active traders
- Equity and index options trading
- Commission free trading for US options, stocks and ETFs and 6.8% margin rate
- Wealth of free options tools and features, including customizable options chain, options calculator, unusual options activity, implied volatility analysis, 13 options strategies and 0 days to expiration (0DTE) options by volume
- Free Level 2 data for funded accounts
- Advanced charting tools with 100+ indicators, 37+ drawing tools and 20 candle patterns
- No minimum deposit to open an account
- 24/7 online chat support
- 5.1% APY in Cash Sweep program for new and qualified users
- Does not support crypto
- Does not support retirement accounts or mutual funds
- Fees: $0 commissions, $0.50 index options contracts
- Account Minimum: $0
- Promotional Offer: Deposit $100, get 5 free stocks, deposit $1,000, get 10 extra free stocks
Moomoo is a newer platform that offers a unique mix of commission-free trading and advanced technical analysis tools. It’s particularly appealing to beginners interested in charting and other technical trading strategies. Moomoo’s interface is sleek and offers real-time data, allowing users to taste what professional trading looks like.
Why We Picked It: Moomoo’s focus on technical analysis tools gives beginners an edge if they want to explore more sophisticated trading strategies without overwhelming them with complexity.
8. Best for Community Insights: Public.com
get started
securely through public.com’s
website
Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.
Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research.
Best For
- Stock and ETF investors
- Crypto investors
- Investors looking to diversify with alternative assets or bonds and options
- Commission-free stock and ETF trading
- Fractional share investing
- Advanced data, tools, and insights with Public Premium
- You can’t transfer crypto to another wallet
- No mutual funds or precious metals
- At this time, only offers individual brokerage accounts and not IRAs
- Fees: $0 for premium members on most assets, $2.99 per trade for non-premium members
- Account Minimum: $5
- Promotional Offer: Get up to $10,000 when you transfer your investment portfolio to Public
Public.com blends investing with social networking, allowing beginners to learn from the community by seeing what others are buying and why. The platform is designed for those who want to invest while staying connected with other like-minded investors. Public’s commission-free trading model and focus on transparency make it a great option for newcomers.
Why We Picked It: Public.com’s unique approach of integrating social features into the investing experience helps beginners learn from others, making it easier to build confidence and make informed decisions.
9. Best for Low-Cost Trading: TradeUp
get started
securely through TradeUP’s
website
TradeUP is a go-to option for savvy investors or active traders seeking a cost-effective and mobile-friendly online platform. TradeUP offers commission-free trading on U.S. stocks, ETFs and options. It is essential to note that while some traditional brokerage firms, like Charles Schwab, still apply option fees, TradeUP is entirely free, in addition to having a 5.99% flat annual margin interest rate. The platform provides excellent trading features, including real-time quotes and market updates, robust technical charting and stock analytical tools and a financial calendar.
If you’re a beginner, the demo or paper trading account allows you to master the tools and refine your strategies using live market data without risking your capital. When you open and fund a TradeUP account and deposit any amount, you have a chance to draw up to 5 free stocks, each worth up to $1800. Additional rewards are available as well when you refer your friends. See below for a comprehensive review of the platform, its core offerings, pros, cons and how it differs from other platforms.
Best For
- Investors who maintain significant margin balances or have an interest in margin investing.
- U.S.-based stocks, exchange-traded funds (ETFs) and options traders.
- Cost-conscious traders who want to minimize trading costs via commission-free trading platforms.
- Beginner traders who wish to practice trading strategies and gain experience without risking their capital.
- Mobile traders who prefer the convenience of trading on the go using their smartphones or tablets.
- Offers both LITE and PRO versions.
- No trading commission or hidden fees.
- No account minimums and maintenance fees.
- Comprehensive suite of technical analysis tools.
- The trading platform supports fractional shares.
- Customizable news feeds based on tailored watchlists.
- Opportunity to subscribe to upcoming IPOs.
- Extended hours trading for U.S. stocks and ETFs.
- User-friendly, multi-platform application.
- Exclusive for U.S. investors.
- Relatively limited investment offerings
- Fees: $0 commissions, but regulatory fees apply
- Account Minimum: None
- Promotional Offer: Open and fund a new TradeUP account to win up to 5 free stocks, each worth up to $1,800
TradeUp is another commission-free platform that focuses on simplicity and affordability. It offers a user-friendly app with essential trading tools and real-time data. For beginners who want to start with a minimal budget, TradeUp provides an easy way to access the stock market with no hidden fees or complex features.
Why We Picked It: TradeUp’s straightforward design and low-cost trading make it ideal for beginners who want to avoid high fees and start small while learning the basics.
10. Best for Social Trading: eToro
get started
securely through eToro’s
website
eToro is a leading trading and investing platform that’s recognized for its stock and crypto broker services. Its standout feature, copy-trading, allows users to reproduce the trades of other investors on the platform. In addition to stocks and cryptocurrencies, eToro provides Smart Portfolios — diversified portfolios of crypto assets managed by eToro.
The platform is regulated by regulatory authorities such as the FCA, SEC, ASIC and CySEC, ensuring a level of trust and security for users. While eToro boasts a user-friendly web and mobile platform, it has limited customizability and lean educational and research offerings. Overall, eToro provides a convenient and regulated platform for social trading and investment.
Best For
- Investors who want to follow and copy other traders
- Investors who want to trade crypto, stocks and options on the same platform
- Beginners who want to invest in stocks and ETFs with zero commissions and copy-trading features
- Commission-free stocks and ETFs trading
- Innovative social investing platform with CopyTrader feature
- Access to a wide range of cryptocurrencies, stocks and ETFs
- Free virtual trading account and digital wallet
- High spreads for buying and selling crypto assets
- Contracts for difference (CFDs) unavailable inside the U.S.
- Fees: 1% fee on crypto transactions, $0 for stocks and options
- Account Minimum: $10
- Promotional Offer: Deposit $100 and get a $10 bonus
eToro is renowned for its social trading features, allowing users to follow and copy the trades of experienced investors. This makes it a unique option for beginners who prefer learning by observing successful traders in real time. While it’s more focused on cryptocurrency and forex, eToro also offers stocks and ETFs, providing diverse investment opportunities.
Why We Picked It: eToro’s social trading capabilities set it apart from traditional platforms, making it an excellent option for beginners who want to learn from others while building their portfolios.
How Do Stock Brokerage Accounts Work?
Stock brokerage accounts act as the gateway between you and the financial markets. When you open a brokerage account, you deposit funds that can be used to buy and sell securities like stocks, ETFs and bonds.
Beginners should know that most brokers offer two types of accounts: cash accounts, where you pay the full amount for your investments upfront and margin accounts, which let you borrow funds to trade more than you currently have. Brokerage accounts also provide access to research tools, educational resources and account management features to help you make informed decisions.
How to Choose the Best Trading Platform for Beginners
Finding the right platform involves considering several important factors:
- Fees and Commissions: Look for brokers that offer commission-free trading or low-cost fee structures to maximize your returns.
- Account Minimums: Choose a broker with low or no account minimums, making it easier to start investing even with a small budget.
- Paper Trading or Demo Accounts: Platforms offering demo accounts allow beginners to practice trading with virtual money before committing real funds.
- Execution Speed and Order Types: A broker’s execution speed and the types of orders available (like limit and stop orders) can impact your trading experience.
- Integration with Financial Tools: Brokers integrating with budgeting apps or retirement planning tools can offer a more comprehensive financial experience.
- Account Types: Ensure the platform offers the types of accounts you need, such as individual, joint or retirement accounts (like IRAs).
- User-Friendly Platforms and Mobile Apps: A well-designed platform or app can make trading more accessible and less intimidating for beginners.
- Educational Resources and Research Tools: Look for platforms that offer articles, webinars and other educational resources to help you learn as you go.
- Customer Support Options: Strong customer support is crucial, especially if you need quick assistance navigating your first trades.
How We Tested Our List of Best Brokerage Accounts for Beginners
To curate our list, we considered a range of criteria:
- Fees and Commissions: We looked for brokers that offer competitive pricing structures, particularly those with commission-free trading.
- Platform Quality: We evaluated user interface design, ease of navigation and the availability of mobile trading apps.
- Educational Tools and Resources: We prioritized brokers that offer educational content tailored to beginners.
- Investment Offerings: Platforms with diverse investment options like stocks, ETFs and fractional shares were given preference.
- Customer Service: We considered the availability and quality of customer support, including live chat, phone and email options.
- Promotions and Bonuses: Special offers and sign-up bonuses added extra value for beginners looking to start their investment journey.
Choosing the Right Broker as a Beginner
Getting started in investing doesn’t have to be complicated. The best stock brokers for beginners provide the right balance of simplicity, educational resources and low costs to help you get your foot in the door. Whether you’re looking for a platform to learn the basics or want something that offers advanced tools as you grow, there’s a broker on this list.
Frequently Asked Questions
What’s the best trading platform for beginners?
Interactive Brokers is often recommended for beginners due to its low costs, user-friendly tools and strong educational resources.
Answer Link
How do I start investing?
Start by choosing a brokerage, setting up an account and making your first investment in a diversified fund or stock that aligns with your goals.
Answer Link
Do I need a lot of money to use a broker?
No, many brokers do not require a minimum deposit, allowing you to start with as little as $1.
Answer Link
How much does a stock broker cost?
Many brokers offer commission-free trades, though there may be fees for certain transactions or account features.
Answer Link
Is your money safe in a brokerage account?
Yes, brokerage accounts are typically insured by organizations like the SIPC, protecting your funds up to a certain limit.
Answer Link
How do you withdraw money from a stock broker?
You can withdraw funds by transferring them from your brokerage account to your linked bank account.
Answer Link
Which broker can I start with for $5?
Robinhood and Webull allow you to start investing with as little as $5.
Answer Link
What stocks should I invest in as a beginner?
Beginners should consider investing in diversified ETFs or blue chip stocks with stability and long-term growth potential.
Answer Link
The post Best Stock Brokers for Beginners by Ryan Peterson appeared first on Benzinga. Visit Benzinga to get more great content like this.