Picking the best brokerage is critical, especially if you’re a beginner.
Many firms profess to be “the best.” But it’s important to qualify that statement. After all, what works for advanced or professional investors might be inappropriate for a newbie.
To determine the best online brokers for beginners in 2024, we assessed many leading brokerage firms. Our assessments are based on each firm’s services, educational tools, trading costs, customer service and more.
Why trust our investing experts
Our team of experts evaluates many investing products and analyzes various data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 18 brokerages reviewed.
- 50+ data points analyzed.
- 3-step editorial review.
- 5-step fact-checking process.
Best brokers for beginners
- Charles Schwab: Best for beginners.
- Fidelity: Best for low-cost investments.
- E*TRADE from Morgan Stanley: Best for education.
- eToro: Best for features.
- Interactive Brokers: Best for investment offerings.
- Webull: Best for customer service.
- Robinhood: Best for cryptocurrency trading.
- TradeStation: Best for trading costs.
- SogoTrade: Best for novice traders.
Best for beginners
Charles Schwab
Blueprint Rating
Account minimum
$0
Commission-free stock, ETF and options trading
Yes
Why it’s the best
Charles Schwab covers the gamut of everything you could want as an investor. Its features range from robo-advisor and cash management services to educational and research resources. It also boasts no account minimums or commissions for online trades of stocks, options, ETFs and Schwab mutual funds. You can even buy fractional shares of for only $5.
Schwab offers a web-based platform, a mobile app and its proprietary trading software StreetSmart Edge.
Pros and cons
Pros
- No minimum account requirements.
- Offers robo-advisory and professional advisory services.
- Offers mutual funds, bonds, futures, international stocks and fractional shares.
Cons
- Cryptocurrency trading only through funds.
- No email-based customer support.
- No “paper trading” simulator.
Best for low-cost investments
Fidelity
Blueprint Rating
Account minimum
$0
Commission-free stock, ETF and options trading
Yes
Why it’s the best
Fidelity is the food court of online brokers with something for everyone. Like many top competitors, it offers zero-commission stock, ETF and options trades. Fidelity even created the first zero-expense ratio index mutual funds. That’s one of many reasons it tops the list as the best low-cost broker.
You can also buy fractional shares of stocks and ETFs on the Fidelity trading platform. That means you can start investing with as little as a dollar. Those who are adventurous can even buy bitcoin and ethereum.
Fidelity stands out for its commitment to investor education. The platform offers resources like courses, webinars, coaching services and extensive research.
Pros and cons
Pros
- Offers fractional shares and cryptocurrency trading.
- Offers comprehensive educational resources.
- No account minimums.
Cons
- No forex trading.
- No customer support via email.
- High broker-assisted trade commission fee of $32.95 per trade.
Best for education
E*TRADE from Morgan Stanley
Blueprint Rating
Account minimum
$0
Commission-free stock, ETF and options trading
Yes
Why it’s the best
The earliest online broker remains a good option for long-haul investing or stock and options trading. E*TRADE’s zero-commission stock, ETF and options trades are major draws. You can also earn up to $1,000 when funding a new brokerage account with E*TRADE. Terms apply.
E*TRADE’s extensive compendium of educational articles, videos, webinars and research will keep you busy.
If you’re more experienced, dive into the mesmerizing rabbit hole of Power E*TRADE. This platform has an array of tools to make any active trader drool. Features include technical pattern recognition and comprehensive screeners.
Pros and cons
Pros
- No minimum account requirements.
- No account inactivity or closure fees.
- No domestic wire or ACH deposit fees.
Cons
- No fractional shares.
- No international stock trading.
- No forex trading.
Best for features
eToro
Blueprint Rating
Via eToro's website
Account minimum
$100
Commission-free stock, ETF and options trading
Yes
Why it’s the best
eToro is notable for its zero-commission stock and ETF trades. But this is only some of what it has to offer. The broker’s companion platform, eToro Money, also deserves mention. eToro Money provides free and instant deposits and withdrawals with no currency conversion fees. You can pair these platforms to reap significant savings on your cash and investments.
eToro has lots to offer investors of all stripes too. A paper trading virtual portfolio can help you practice investing before putting real money on the table. Once you’re ready to dive in, one-click trading makes investing almost too easy.
Another perk: You can start a hassle-free portfolio with eToro’s ready-made Smart Portfolios. Finally, eToro offers a unique social trading feature, where you can learn from crowdsourced knowledge.
Pros and cons
Pros
- No account transfer or wire fees.
- Offers trading in stocks, ETFs, options and more.
- A strong social focus with an engaged investor community.
Cons
- A $10 minimum account requirement with inactivity charges.
- No professional or robo-advisory services.
- No trading in bonds or mutual funds.
Best for investment offerings
Interactive Brokers
Blueprint Rating
Via InteractiveBrokers' secure website
Account minimum
$0
Commission-free stock, ETF and options trading
Yes
Why it’s the best
Interactive Brokers, known as IBKR by the cool kids, is a top pick for day traders. It offers a suite of award-winning trading platforms for desktop and mobile. There are options for every level of trader, from beginner to professional.
You can trade in more than 150 markets worldwide. And you can do it for as little as a dollar with fractional investing.
Trading pros should check out the company’s flagship IB Trader Workstation. It offers everything from charting and paper trading to research, news, market data and real-time monitoring.
Pros and cons
Pros
- Low margin interest rates.
- No account minimums.
- The broadest range of offerings, from bonds to international stocks.
Cons
- Lacks 24/7 customer service support.
- No in-house research.
- No advisory services.
Best for customer service
Webull
Blueprint Rating
Account minimum
$0
Commission-free stock, ETF and options trading
Yes
Why it’s the best
You won’t get much hand-holding at Webull since it doesn’t offer advisory services. But it makes up for that if you’re comfortable being a DIY investor.
Its strongest feature is its trading app, which is available on mobile and desktop. You’ll find everything your active-trader heart desires inside. Keep a close eye on your top securities with a watchlist and corporate actions tab.
Webull offers a robo-advisor, called Smart Advisor, for the less adventurous. Its portfolios are crafted and managed by a team of 130 experts. All you need is $100 to get started. You can even try it out for free for six months. After that, the fee is 0.2% per year.
Pros and cons
Pros
- Strong trading app for desktop and mobile.
- Commission-free stock, ETF and options trading and no account minimum.
- Earn 5% APY on your uninvested cash.
Cons
- No advisory services.
- No mutual fund, forex or futures trading.
- Minimal research and educational support.
Best for cryptocurrency trading
Robinhood
Blueprint Rating
Account minimum
$0
Commission-free stock, ETF and options trading
Yes
Why it’s the best
Robinhood joins the ranks of many top online brokers with no commissions on stock, ETF and options trades. But it takes zero commissions one step further with no commissions on crypto trades. The platform claims to have the lowest cost to trade crypto on average. That means you could net up to 3.5% more crypto than with other platforms.
You can trade many of the most popular coins, including bitcoin, ethereum and dogecoin. The option to set up recurring buys on an automated schedule may make these the most straightforward investments of your life.
Crypto isn’t all Robinhood offers, though. You can also invest in more traditional products like stocks and ETFs. You can even trade after hours, with trading available 24 hours a day, five days a week. But you won’t find mutual funds here.
Pros and cons
Pros
- Commission-free stock, ETF, options and cryptocurrency trading.
- 24/5 trading.
- No account minimums.
Cons
- No robo- or traditional advisory services.
- No mutual funds or bonds.
- No forex trading.
Best for trading costs
TradeStation
Blueprint Rating
Account minimum
$0
Commission-free stock, ETF and options trading
Yes
Why it’s the best
TradeStation is the place to be if you’re an active trader. The online broker has one of the best trading platforms in the industry. It’s paired with zero commissions on stocks, ETFs and options and no minimum to get started.
The trading platform lets you access the broker’s colossal database to backtest ideas before executing. You can also build custom strategies, watchlists, charts and more. It comes in desktop, web and mobile versions. There’s even an entire platform dedicated to trading futures.
TradeStation runs a blog with market research and insights. It also provides a library of resources to help you elevate your trading expertise. There’s something for every level of trader here, from new to experienced.
There’s a reason this broker has won so many awards. Active traders, look no further.
Pros and cons
Pros
- Sophisticated trading platform.
- No commissions on stocks, ETFs or options.
- Comprehensive education and research library.
Cons
- $14.95 commission to trade mutual funds.
- Pricey commissions to trade individual bonds.
- Some features require an additional fee or subscription to access.
Best for novice traders
SogoTrade
Blueprint Rating
Account minimum
$0
Commission-free stock, ETF and options trading
Yes (limit orders only)
Why it’s the best
SogoTrade provides a potent mix of low-cost investing and free trading tools and research. There’s no account minimum to get started. But you must start with at least $100 if you’re investing in penny stocks. You won’t be charged trading commissions on options trades or stock and ETF limit orders.
SogoTrade provides access to both in-house and third-party research. You can also sign up for a free daily newsletter with equity research and trade ideas. Financial advisors and asset management services are available if you want more hands-on help.
The most novel part of SogoTrade may be its Get Paid to Trade campaign. You can earn $1 for every 1,000 shares traded through limit orders during regular market hours.
Pros and cons
Pros
- Free research tools.
- Access to financial advisors and asset management services.
- Get Paid to Trade campaign.
Cons
- Commission on stock and ETF market orders.
- Research centers are clunky to use.
- Minimal trading tools.
Compare the best brokerages for beginners
| BROKER | ACCOUNT MINIMUM | COMMISSION-FREE STOCK, ETF AND OPTIONS TRADING | FRACTIONAL SHARE TRADING |
|---|---|---|---|
Charles Schwab | $0 | Yes | Yes |
Fidelity | $0 | Yes | Yes |
E*TRADE from Morgan Stanley | $0 | Yes | No |
eToro | $10 | Yes | Yes |
Interactive Brokers | $0 | Yes | Yes |
Webull | $0 | Yes | Yes |
Robinhood | $0 | Yes | Yes |
TradeStation | $0 | Yes | No |
SogoTrade | $0 | Yes (limit orders only) | No |
Methodology
We researched more than 50 queries for each firm in our rankings. Our researchers verified the survey data and confirmed any missing data points by contacting each company directly and conducting online research.
Among the brokerages we considered, the firms that made our list excelled in areas across several major categories. Those include offerings, trading costs, account minimums and fees, features, advisory services, insurance, customer service, education and research, security, margin interest rate, cash interest, and portfolio analysis.
Within each major category, we considered several subcategories. We then combined them to give an overall score for that category.
Data points were scored on a 0.00 to 1.00 scale. The top raw score was 0.79 and was curved to a 5-star rating as the highest possible score.
Why other online brokers didn’t make the cut
We considered 18 brokerage platforms for this list. But only a select few made the cut. The remaining brokerages fell short on the metrics that make a brokerage platform good for beginners. Some charge too high of commissions or impose account minimum requirements. Others harbor hidden costs for things like moving money. And we don’t believe in hiding anything.
Our methodology used a weighting strategy to emphasize features important to beginners. These include trading costs, account minimums and fees, education and research, and customer service.
Trading costs, account fees and minimums can create barriers to entry for beginning investors. Costs and fees eat into your long-term returns. They can also be proportionally relatively high if trading in small denominations. And you shouldn’t have to wait until you can meet an account minimum to start investing.
Access to education and research is also important when you’re a new investor. Any platform that caters to beginners should have a section dedicated to these topics. It also gets bonus points for making hands-on help available through human or robo-advisors. Likewise with customer service. Quick and easy access to help when you need it is key.
Final verdict
The best online brokerage platform for beginners in 2024 is Charles Schwab, which scored the highest at 5.0.
The broker offers a wide range of tools and features, all for some of the lowest costs in the industry. There are no account minimums, trading commissions or hidden fees. Fractional shares mean you need only $5 to start.
You can trade almost anything you want — even cryptocurrency, although this is limited to funds. Some experts would argue that crypto funds are the better option for beginners. Schwab can even serve as your investing and banking destination thanks to its cash management services.
Investment advice comes in many forms. You can DIY with the platform’s extensive education and research section. There’s a robo-advisor available if you want a more hands-off approach. Or you can consult a human for personalized guidance.
Ultimately, Charles Schwab is a great place to begin and grow as an investor.
What to look for in a broker as a beginning investor
There are several key features to look for in a broker as a beginning investor. These include:
- Zero-commission trades. Brokerages can take advantage of inexperienced traders by adding hidden or exorbitant fees.
- No account minimums. You shouldn’t have to wait to start investing until you can meet a broker’s arbitrary account minimum.
- No account fees. Keep an eye out for account fees or fees for additional services, such as transferring money.
- Educational resources. There should be a section of the broker’s website dedicated to investor education to help you learn and grow as an investor.
- Intuitive trading platform. You don’t want to spend valuable time learning how to navigate the broker’s platform.
- Customer support. Easy access to customer support is key in case the platform turns out to be not so intuitive.
“Look for platforms that provide lots of educational resources such as webinars, tutorials and FAQs so you can learn the basics and become more sophisticated in your trading journey,” said Angelo Ciaramello, CEO and founder at The Funded Trader.
Beginners should also watch for red flags. Some brokerages have user interfaces designed similarly to video games to attract new investors.
“The purpose behind this is to drive greater trading activity, which is more often in the best interest of the trading platform” regarding fees, said Paul Peeler, financial advisor at Integrated Financial Group.
Brokerage fees
Keeping costs down when investing, especially when you’re starting out, is crucial. Every dollar that goes toward covering a broker’s fees is money that’s not funding your goals.
Brokerage fees can come in many different forms. You should avoid them all when possible. Here are the most common brokerage fees:
- Trading commissions. These are fees you pay every time you place a trade.
- Account maintenance fees. These are monthly fees the broker takes out of your account to cover backend operations.
- Account closing fees. You’ll get charged this fee when you close your account.
- Transfer fees. Brokers may charge fees for moving money into or out of your account.
- Subscription fees. The broker may charge a fee for access to its research or educational materials.
- Trading platform fees. There may be a fee to use the trading platform.
The one fee that may be worth paying is an advisory fee. This is the price you pay for financial advice. It can be for a financial advisor or a robo-advisor. The fee will likely vary among brokers. So do some comparison shopping to ensure you get a good deal.
Registered brokers are required to disclose all fees and commissions to clients. You should receive Form CRS when you sign up for the platform. This form will have a section summarizing the broker’s fees. The broker should also have a public page where you can view all the fees it charges. Ask for this information if it isn’t given to you.
How to open a brokerage account
Opening a brokerage account is relatively easy today. Most brokers let you open an account online in minutes. The process usually looks something like this:
- Navigate to the broker’s website and click “open account.”
- Choose the type of account you want to open. An individual account is a good place to start. Or consider an IRA if you’re investing for retirement.
- Complete the application. Be prepared to provide your basic personal information, including your Social Security number, which brokers are required to collect.
- Provide necessary documentation. Some brokers may ask for a copy of your ID or bank statement for further verification.
- Fund your account. You can usually do this with an online transfer from your existing savings or checking account to your brokerage account. Watch out for fees, as some brokers charge for faster transfer times.
You will receive an account number once the process is complete. It may take a couple of days for funding to be complete. Why not research investment options in the meantime? This way, you’ll be ready to place your first trade as soon as it does.
Frequently asked questions (FAQs)
These days, you don’t need much money to start an account. Many brokerage firms waive minimum balances, inactivity fees or monthly maintenance fees. Fractional share investing makes it even easier to start with as little as a few dollars.
The top brokers featured in this ranking are beginner-friendly for all budgets. It doesn’t matter how much capital you bring to the table. They all feature zero-commission trades for stocks and ETFs. That means more of your hard-earned money stays invested and compounded.
Investors holding cash balances or securities in a brokerage account are protected by the Securities Investor Protection Corporation. This entity insures up to $500,000 per account, which includes a $250,000 limit on cash balances.
Your securities always belong to you, even if your broker goes bankrupt. The SIPC will step in if the insolvent firm doesn’t have sufficient assets to cover depositor liabilities. But keep in mind that if you make risky investments that do poorly, the SIPC will not compensate you for those investment losses.
Brokerage accounts are not insured by the Federal Deposit Insurance Corporation. The FDIC insures bank accounts, while the SIPC insures brokerage accounts. It provides comparable coverage to the FDIC. So your brokerage assets are still protected.
The SIPC insures up to $500,000 per account, including $250,000 of cash balances. If the broker goes bankrupt, the SIPC will reimburse you up to these amounts.
Investment fees and expenses, including brokerage fees, are no longer tax-deductible. The ability to deduct investment expenses was eliminated by the Tax Cuts and Jobs Act. The 2017 legislation no longer allows individuals who itemize their deductions to take miscellaneous itemized deductions. Investment expenses were included within this miscellaneous category.
The TCJA sunsets at the end of 2025, however. And many provisions will expire when it does, including itemized miscellaneous deductions.
