12 Best Online Stock Brokers for Beginners in April 2025

On the positive side, many users appreciate Robinhood’s user-friendly interface, which makes trading accessible to beginners. Conversely, many users have criticized Robinhood’s customer service, which can involve long hold times, delays in responses and multiple steps before an issue is resolved. Conversely, you won’t be able to invest in mutual funds, futures, or international stocks. Blain Reinkensmeyer, co-founder of StockBrokers.com, has been investing and trading for over 25 years. After having placed over 2,000 trades in his late teens and early 20s, he became one of the first in digital media to review online brokerages.

There is certainly no shortage of investment options, but the differences (not to mention tax treatment) among them is vast. The kind of returns you can expect from a bond fund versus equities are very different, as are their time horizons. Options and crypto might be considered more volatile assets than bonds but can also offer higher returns.

Trading platforms tested

Some users also expressed frustration with customer service hold times and a lack of transparency related to policy changes. Charles Schwab has over 36 million brokerage accounts as of late 2024. Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC.

Best for Initial Investing Education: Charles Schwab

Consult an attorney or tax professional regarding your specific situation. Before you start investing, assess your financial situation and ensure you can cover your everyday expenses. 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.

Popular Investing Strategies for Beginners

Based on your combined investing and banking balance, you might also qualify for Preferred Rewards, which comes with extra perks. Despite these excellent features, eToro lacks mutual funds, futures, bonds and forex trading, which makes it less than ideal for anyone looking to invest in those securities. Many Webull customers appreciate its excellent charting functionality and range of educational materials. However, there are criticisms about lags in trading execution, difficulty withdrawing funds and poor customer support.

Educational Resources

• Online stock brokers have dramatically reduced this burden by offering lower trading fees compared to their traditional counterparts.
• If you’re looking to dip your toe into the world of investing, you will need to find a brokerage firm.
• Some brokers also earn money from interest on cash in trading accounts or by lending out securities in margin accounts.
• You don’t need a complex market strategy — you just need a smartphone, a little starter cash, and a willingness to learn.
• But online brokers like InteractiveBrokers have geared their entire platform toward a global trading experience.
• Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks.

A brokerage account might be used to save and invest for a specific financial goal such as paying for a child’s education, or it may just be used to build wealth over time. Brokerage accounts also typically come with a number of additional features such as access to research reports and other tools. Robinhood is renowned for its simple, beginner-friendly app, which makes navigating and managing investments easy. In October 2024, the company introduced Robinhood Legend, a desktop platform designed for advanced traders.

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. Charles Schwab, another leading brokerage firm, excels for stock trading whether you’re a novice investor or advanced trader in need of a suite of tools to capture alpha. Like Fidelity, Schwab offers consistent access to tools across platforms, all of the investment options needed for stock trading and excellent 24/7 customer support. Fidelity provides a diverse selection of investment options, including stocks, ETFs, mutual funds, and specialized accounts such as IRAs and 529 college savings plans. One of its standout features is the no-transaction-fee mutual funds, which allow you to invest with low costs and achieve broad diversification — perfect for building a well-rounded portfolio.

What to consider when choosing a beginner brokerage account

Before filling out your first trade ticket, make sure your investment choices line up with your investing timeline and goals. This compensation may impact how and best online brokers for beginners where products appear on this site (including, for example, the order in which they appear), but does not influence our editorial integrity. We do not sell specific rankings on any of our “best of” posts or take money in exchange for a positive review.

For example, the Bank of America Preferred Rewards program offers perks like fee reductions and increased credit card rewards when you hold assets with Merrill, which is owned by Bank of America. Newsweek.com is part of an affiliate sales network and receives compensation through featured partners. Newsweek.com does not include all financial companies or all available financial offers. Robert is a senior editor at Newsweek, specializing in a range of personal finance topics, including credit cards, loans and banking. Prior to Newsweek, he worked at Bankrate as the lead editor for small business loans and as a credit cards writer and editor. He has also written and edited for CreditCards.com, The Points Guy and The Motley Fool Ascent.

Some stock trading apps offer webinars, courses, and forums, too, adding a community element to investing. There’s more to a good online broker than low fees and investing options. You should also assess the educational resources and investing tools each investing platform has to offer.

Its experts provide valuable insights into stock market trends, global economies, and asset allocation, making it an excellent resource for beginners who want to build their knowledge over time. Robinhood led the way in commission-free trading, making it an excellent platform for new investors who want to start trading without worrying about fees eating into their gains. There are no account minimums or annual fees, further cementing its reputation as an affordable option. There is a $100 fee to transfer from Robinhood to an outside brokerage. Robinhood revolutionized the investing world by popularizing commission-free trading, attracting younger, tech-savvy investors with its intuitive and accessible app.

• These resources often include educational articles, webinars, video tutorials, and even simulated trading environments.
• Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives.
• With Stocks by the Slice, you can invest in stocks or ETFs for as little as $1, no matter the share price.
• If an investment no longer aligns with your goals and situation, time horizon, or risk tolerance, consider making a change, like selling some or all of that investment and replacing it with new ones.
• Integration with existing Vanguard accounts adds convenience, creating a seamless experience for both new and seasoned investors.
• Some brokers charge a fee when you move an existing account to a different brokerage.
• You won’t pay taxes on certain tax-advantaged accounts like a traditional IRA until you make withdrawals.

For retirement, Vanguard offers traditional and Roth IRAs, spousal IRAs, SEPs, and 401(k)s. At no extra cost to you, some or all of the products featured below are from partners who may compensate us for your click. This does not influence our recommendations or editorial integrity, but it does help us keep the site running. Compensation may influence how and where products appear, including their order in listing categories.

How are brokerage accounts taxed?

Aside from retirement accounts, there are a couple of other types of accounts you’ll want to be aware of. Ally is fully digital, so if you’re looking for in-person support this brokerage firm might not be the best for you. On the other hand, speculative assets such as cryptocurrency, which have no underlying assets backing them, can be extremely volatile and risky. You should only invest in these assets after you’ve taken the time to research them and only use money you can afford to lose. These investment vehicles often have hundreds or thousands of underlying investments selected according to a specific strategy, so your investment isn’t tied to a single company. He enjoys helping others optimize their wallets, build financial security, and fulfill their travel dreams.

This is significant because, along with its online trading features, a Merrill account comes with full access to BoA’s nationwide network of in-person financial advisors. Our team of experts provides clear, practical advice on budgeting, credit, saving, investing, and more to help you make smart financial decisions. Having a disciplined investment strategy means making thoughtful and researched decisions rather than chasing ‘hot’ tips or trends. This strategy involves regularly reviewing and adjusting your portfolio, reinvesting dividends, and not being swayed by market volatility. No matter how user-friendly a platform is, you’re likely to encounter queries or issues that need resolution.

Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. EToro’s user-friendly interface and social trading features are appreciated by many customers, especially beginner investors. However, some customers report technical issues like slow loading times and occasional crashes, which present a challenge to active traders. Some customers also find it difficult to withdraw funds and report that customer-service resolution can take weeks.