(Best Online Brokerages for Beginners)
Best Online Brokerages for Beginners: Investing in the stock market can seem a little daunting, especially if you’re just starting out. But with the right online brokerage for beginner investors, you can trade stocks, ETFs, and other assets with confidence, even without a financial degree.
The best brokerages for beginner investors offer easy-to-use platforms, low fees, educational resources, and helpful customer support. In this guide, we’ll break down the top online brokerages for beginner investors in the US, so you can start investing wisely.
Why Choosing the Right Brokerage Is Important
Before we move on to the list, let’s talk about why choosing the right online brokerage for beginner investors is so important:
1. Low Fees – High commissions can eat into your profits, especially if you’re starting out with a small account.
2. User-Friendly Platform – A cluttered, confusing interface can make investing stressful.
3. Educational resources – The best brokerages for beginners offer guides, tutorials, and even free courses.
4. Customer support – When you’re new, having help available makes a huge difference.
5. Account minimums – Some platforms let you start with $0, while others require a larger initial deposit.
Now, let’s take a look at the best online brokerages for beginners.
Top 5 Online Brokerages for Beginners
1. Fidelity – Best for Beginners
Why it’s great:
- $0 account minimum
- No commission fees on stocks, ETFs, or options
- Excellent research and educational tools
- 24/7 customer service
Fidelity is one of the best online brokerages for beginners because it offers a balance of simplicity and powerful tools. Whether you want to invest in stocks, mutual funds, or fractional shares (buying a portion of a stock like Amazon for a few dollars), Fidelity makes it easy.
2. Charles Schwab – Best for long-term investors
Why it’s great:
- Minimum account fee $0
- No trading fees on stocks and ETFs
- High-quality research and retirement planning tools
- Schwab’s robo-advisor (Schwab Intelligent Portfolios) is free
Because of its strong reputation and straightforward approach, Schwab is another top choice among beginner-friendly brokerages. If you’re focused on long-term growth (like retirement), Schwab is a great choice.
3. ETRADE (now part of Morgan Stanley) – Best for active traders
Why it’s great:
- $0 minimum account
- Powerful trading tools (great if you want to learn more advanced strategies)
- Free educational webinars and articles
- Two mobile apps (one for casual investors, one for active traders)
If you want a beginner-friendly brokerage that can grow with you, ETRADE is ideal. The platform is intuitive, but it also offers advanced charting and analysis tools when you’re ready to take the next step.
4. TD Ameritrade (now part of Charles Schwab) – Best for education
Why it’s great:
- Minimum account amount $0
- Free access to ThinkOrSwim (a professional-level trading platform)
- Huge library of courses, videos, and articles
- No commission fees on stocks and ETFs
Although TD Ameritrade has merged with Schwab, it still remains one of the best online brokerages for beginners thanks to its unmatched educational resources. If you want to learn while you invest, this is a great option.
5. Robinhood – Best for simple, mobile-first investing
Why it’s great:
- Minimum account amount $0
- Extremely easy-to-use app (great for first-time investors)
- No commission fees
- Free stock when you sign up
Robinhood is the most beginner-friendly of all the online brokerages for beginners, but it lacks some research tools. If you want to buy stocks, ETFs, or crypto without the hassle, Robinhood is a solid option.
How to Choose the Best Online Brokerage for You
Are you not sure which brokerage for beginners is right for you? Ask yourself:
- Do I want to actively trade or invest for the long term? (ETRADE is great for trading; Schwab is better for retirement.)
- Do I need a lot of educational resources? (TD Ameritrade and Fidelity are great here.)
- Do I prefer a mobile app or a desktop platform? (Robinhood is completely mobile-oriented; Fidelity and Schwab have strong desktop sites.)
- Do I want to start with very little money? (Most of these have a $0 minimum deposit, but some mutual funds may require more.)
Final Thoughts: Start Investing with Confidence
Choosing the right online brokerage for beginners is the first step toward accumulating wealth. Whether you choose Fidelity for all its features, Schwab for retirement planning, or Robinhood for simplicity, getting started is key.
The best brokerages for beginners make investing accessible, affordable, and even fun. So open an account, deposit some money (even if it’s just $50), and take the first step toward financial growth.
Happy investing!
FAQs – Best Online Brokerages for Beginners
1. What is an online brokerage?
An online brokerage is a platform that lets you buy and sell investments like stocks, ETFs, mutual funds, and more. The best online brokerages for beginners offer easy-to-use tools, low fees, and educational resources to help new investors get started.
2. How do I choose the best brokerage for beginners?
Choose from:
- Low or no fees (commission-free trades)
- Easy-to-use platforms (mobile and desktop)
- Educational resources (tutorials, articles, webinars)
- Good customer support (live chat, phone, email)
- No (or low) account minimums
3. Can I start investing with little money?
Yes! Many of the best online brokerages for beginners—like Fidelity, Robinhood, and Charles Schwab—let you open an account with $0. Some brokerages even allow fractional shares, so you can invest in expensive stocks (like Amazon or Tesla) for just a few dollars.
4. Are these brokerages safe?
Yes, provided you choose a reputable platform. Look for brokerages regulated by members of the SEC and FINRA/SIPC, which protects your money (up to $500,000) if the brokerage fails.
5. What’s the difference between a robo-advisor and a brokerage?
- Brokerage – You choose and manage investments yourself.
- Robo-advisor – An automated service invests for you based on your goals.
Some beginner-friendly brokerages (like Schwab) offer both features.
6. Do I have to pay taxes on my investments?
Yes, if you sell shares for a profit (capital gains tax) or earn dividends. Some brokerages provide tax forms to make filing easier.
7. Can I practice trading before using real money?
Yes! Many online brokerages for beginners (like TD Ameritrade) offer paper trading (fake money) for risk-free practice.
8. Which brokerage is best for long-term investing?
Fidelity and Charles Schwab are great for retirement (IRAs) and long-term growth because of their low fees and research tools.
9. Is Robinhood good for beginners?
Yes, Robinhood is one of the simplest online brokerages for beginners, but it lacks research tools. It is best if you just want to buy stocks/ETFs without any complications.
10. Can I change brokerage later?
Absolutely! Most platforms offer ACAT transfers to move your investments to a new brokerage, sometimes for a small fee.
