Are you all set to start investing but do not know how and where to start? Well, we are here to guide you. In this list, we will discuss some of the best brokerage accounts for beginners. We understand that everyone’s goals and financial circumstances are different, so to help you make a wise decision, we will give you some options as well. You can use this list to find one that fits your needs.
TD Ameritrade is one of our first choices for anyone looking for the best online brokerage accounts for beginners, as it offers investor education. Beyond the solid educational platforms, TD Ameritrade is also very user-friendly and easy to navigate for investors. Moreover, its platform is quite comprehensive. So, you can get through it all without feeling overwhelmed. Furthermore, the company has a myriad of offerings, resources, and support, which will assist the new investors in getting better in the long run.
However, as much as it is suitable for beginners, there are surely some lows associated with it. For example, it does not provide fractional shares. Moreover, its fund fees and account fees are more than most competitors’ fees. Lastly, if there is any uninvested cash in the account, it will not be auto swept into the money market fund. Other than that, it provides you with one of the best brokerage accounts.
Many users regard E-Trade as the pioneer in online brokerage accounts, primarily because it has kept well with the times. It provides you with two mobile applications. On one of its mobile applications, you can move the money effortlessly via the mobile check deposit. Further, it has a host of other features, such as trading stocks, tracking the market, and ETFs. The second mobile app of the E-Trade is known as the Power E-Trade. On this, you can enter orders, such as complex options trade in just one ticket.
Further, you can also get access to the customizable options chain, quotes, and latest news.
Overall, it is a fantastic app for beginners because you can get every kind of content with E-Trade, which helps you understand what you are doing. The platform also has some resources where you can explore articles, videos, and live educational sessions. Another incredible factor about E-Trade is that there is no minimum balance requirement for you to open an account. The cost per stock or ETF trade is also zero dollars. All of this makes it an excellent pick for someone new to the investment scene.
SoFi is one of the best picks for investors who need an elementary, straightforward experience in investing. Unlike a few bigger competitors, SoFi has slimmer accounts lineups, but it still covers the most prevalent needs for investment management. You also get an incredible bank account, an array of financial tools, and lending products that can all help you get a good knowledge of your investments. SoFi provides managed Robo-adviser accounts and active investing accounts. There are zero recurring fees, and you only need $1 to get started. In addition, you can find both Roth IRA or IRA and taxable investment accounts.
However, the only significant con associated with SoFi is that you can trade only ETFs and stocks. Hence, you cannot trade mutual funds via SoFi. But, you get automated investing at no cost, and the ETF trades and stock trades are without any commission. Now, even though SoFi does not have a robust offering, you still get several valuable perks at literally no additional cost. This comprises free career coaching, financial planning sessions, and other bonuses for the members. So even though it is a great platform for beginners, people familiar with technology can make the most of it.
Fidelity Investments has been around since 1946 and is a member of the “big four” US brokerage firms, which comprises TD Ameritrade, E-Trade, and Charles Schwab. With 33.2 million brokerage accounts, $9.8 trillion in client assets, and some 2.3 million trades per day, this one is undoubtedly a premier platform for new and seasoned investors. Fidelity employs over 40,000 associates who serve investors in nine countries. It is renowned for its proprietary Fidelity funds and provides excellent features for sophisticated traders, small investors, and new and amateur investors.
For any investor who ascribes to fundamental investment research, this should be the go-to pick. It ranks high in mobile trading, ease of usage, and research quality. Its unparalleled trading, screening tools, and professional-grade research make it an excellent pick for investors. In addition, both passive and active investors will significantly benefit from the host of educational features.
Compared to the host of positives, the drawbacks associated with Fidelity are pretty minor. For example, if you need a portfolio analysis platform, you can surely find better tools than Fidelity in the market. Also, if you need managed solutions, such as Robo advisors, as an investor, you can surely find better alternatives than Fidelity.
You can understand Charles Schwab as a prevalent discount broker with trading tools, education, service, and research, making it one of the top picks for those seeking to open an online brokerage account. With its integration of TD Ameritrade, and the recognized Thinkorswim platform, Charles Schwab has made a mark for itself as the best-in-class broker. Back in 1975, when brokerage commissions were deregulated, Schwab came out as the first-ever discount broker. It took only a decade for Charles Schwab to spread its operation. Following that, it opened around 100 branches. It also ranks high in customer-friendly service and provides 24-hour quotes and a multitude of other online services. In 1982, Charles Schwab commenced round-the-clock service and order entry. It launched its first website in 1995, which allowed live trading in 1996. An excellent thing about Charles Schwab is that it has not stopped making its platform better, which is why it ranks high in individual investment services.
All said and done; it is almost impossible for us or anyone to find any category of investor who will possibly not benefit from starting a Schwab account. With an easy-to-navigate platform, 360 branches spread across the country, and a myriad of tools, Schwab is indeed one of the best financial firms. With it, you can avail of fee-free exchange-traded-fund trading and stock trading. In addition, several thousand mutual funds are also available without any commission. The firm is dedicated to low fees and needs no account or trade minimums. More so, there is also zero money transfer fee. All the Treasury securities can trade digitally at zero cost.
Ally Invest is a recent addition to the brokerage space. It came into business only a few years ago, following the purchase of TradeKing. However, the company has already started with robust offerings, especially for those already associated with Ally Bank. They want a straightforward way to venture into investing and extend their relationship with Ally. The direct bank is also hugely recognized for its advanced digital banking features and phenomenal customer services. You can keep a tab on your brokerage account via Ally’s mobile app, and the app also makes it convenient for you to make trades and get quotes. Moving cash from your bank account to the investment account is also seamless.
With Ally, you can find a helpful resource center, which provides you with valuable content written in a fun, easy-to-understand, and engaging manner. In addition, you need no minimum balance to open a brokerage account with Ally Invest, and the cost per ETF trade or stock is also zero dollars.
Like Ally Invest, Webull is new to the brokerage scene. However, just because it is new, it does not mean it falls short in any way. Equipped with a multitude of features, Webull is free to use. You do not have to pay for any trading commission or account fees. You can find products and paid upgrades too. However, most new and beginner investors might not need the same, especially when starting.
Sadly, Webull does not support all kinds of accounts or investments, but it covers some of the more prevalent ones. These comprise the IRAs and the taxable investment accounts. In addition, on the platform, you can trade ETFs, options, and stocks. They are to support crypto trading in the future as well.
Webull is a top-end brokerage, which comes up with frequent updates to its digital trading platform. Thus, it is an excellent pick for beginners and seasoned investors. However, someone familiar with mobile apps and computers will find this tool more valuable, as they can comfortably handle their account requirements by themselves.