Our experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.The best online brokerages for beginners offer low fees, easy trading, educational resources, research access, financial tools, and more. Robo-advisors, like Betterment and Acorns, are popular online brokers for beginners that implement low-cost, passive investing strategies. Here are Insider’s editors’ top picks for the best online brokerage for beginners.Get up to $1,000 in stock when you fund a new account.$0 ($1 to start investing); $5 fractional shares; $2,000 for margin trading0% for active trading and automated investingSoFi Invest us a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account.SoFi is the best broker for beginners seeking a straightforward investing experience. It has a slimmer lineup of accounts than some bigger competitors, but it covers the most common needs for managing your investments. It also offers a great bank account, lending products, and other financial tools to help you get an understanding of your investments.SoFi Invest offers active investing accounts and managed robo-adviser accounts with no recurring fees and a $1 minimum to get started. Those include both taxable investment accounts and IRA or Roth IRA retirement accounts. The only big downside of these accounts is that you can only trade stocks and ETFs. There are no mutual funds available through SoFi. Stock and ETF trades are commission-free. SoFi offers automated investing for $0.SoFi also offers free financial planning sessions, career coaching, and other perks for SoFi members. SoFi is currently one of the only online brokerages that plans to offer Instacart stock to its users. SoFi will no longer be offering cryptocurrencies starting December 19, 2023. Folks with existing SoFi crypto accounts will migrate to Blockchain.com or liquefy all their crypto assets. What to look out for: While SoFi is generally a great choice for investors who value low costs, it has a fairly limited investment selection. It primarily offers stocks and ETFs.SoFi Invest reviewOpen and fund your account and get $101 from Schwab to split equally across the top five stocks in the S&P 500$0 ($5,000 for Schwab Intelligent Portfolios; $25,000 Schwab Intelligent Portfolios Premium)0% ($0 Schwab Intelligent Portfolios; $30/month Schwab Intelligent Portfolios Premium)Insider considers Charles Schwab to be the best online brokerage overall, as well as one of the best online brokerages for beginners. It’s great for all types of investors — including active traders, passive investors, and retirement-focused individuals — in search of low costs and access to a variety of trading tools and platforms.Charles Schwab is a great choice for beginners because it offers something for investors with virtually any investment need. Not only does it give you the ability to manage all of your banking and investments with one login, but its investment tools are also designed in a way that they can grow with you as you learn more and level up your investing style.For investors who want to manage everything themselves, you can choose self-directed traditional brokerage and retirement accounts where you pick all of your investments with no commissions for stock or ETF trades. These accounts have no fees and no minimum balance requirements. Charles Schwab also offers a robo-adviser, Charles Schwab Intelligent Portfolios, that can manage all of your investments for you for no added charge. But you’ll need at least $5,000 to use this account. If you want to take automated investing a step further, you can upgrade to Schwab Intelligent Portfolios Premium. This account combines robo-advice with unlimited guidance from a certified financial planner (CFP). Note, however, that you’ll need a minimum of $25,000 to get started. The account has a $300 one-time planning fee and includes a $30 monthly fee.Schwab is best for investors who want every potential investment need covered at a very low cost. Whatever your needs are in the future, odds are Schwab will have a solution that works for you.What to look out for: Schwab’s robo-advisor, Schwab Intelligent Portfolios charges no advisory fees, but it has a higher account minimum requirement ($5,000) than most automated accounts. Charles Schwab reviewFidelity Investments offers a wide range of investing products, including fractional shares.$0 ($25,000 Fidelity Personalized Planning & Advice)0% ($0, $3/month, or 0.35% for robo-advisor)Fidelity is one of the best online brokerages for beginners and retirement savings. It has great features for all types of investors and traders.Fidelity is a top choice if your main goal is investing for retirement. Fidelity offers a wide range of accounts with no fees or minimum balance requirements, as well as a suite of investor tools and resources focused on helping customers reach their retirement goals.In addition to free stock and ETF trades, Fidelity Investments customers have access more than 10,000 mutual funds with no transaction fees. Among those are four funds from Fidelity that charge no expense ratio (that means no fund fees). Fidelity also offers a handful of useful tools and calculators. One favorite is the Retirement Score, which helps you assess your retirement preparation and includes guidance to help you reach your goals.Fidelity Go is Fidelity’s robo-adviser offering; it’s a solid product, though fees are slightly higher on some balances than competitors such as Betterment. Fidelity Go now has one-on-one unlimited coaching calls. Fidelity is a large brokerage that can handle just about anything. But retirement is definitely a specialty.What to look out for: The brokerage offers a long list of tradeable assets, but it isn’t the best option for those who want to invest in cryptocurrencies.Fidelity Go reviewTD Ameritrade offers a large range of investment options, including stocks, bonds, ETFs, mutual funds, futures, bitcoin futures, and more.$0 ($5,000 or $25,000 for managed accounts through Schwab)0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contractTD Ameritrade is great for active traders interested in using multiple trading platforms. As one of the best online brokerages, TD Ameritrade offers secure storage for investments and other assets.If you have plans to manage your account actively and are interested in the fast-moving world of options trading, TD Ameritrade could be the best choice for your needs. TD Ameritrade offers similar low fees to other large investment brokerages, with many account types available with no recurring fees and no minimum balance requirements. As with most other brokerages on this list, there are no fees for stock or ETF trades as well as no base fee for options trades.TD Ameritrade stands out for active traders due to its suite of investment platforms. Brand new investors will probably be most comfortable on the TD Ameritrade website and using the standard TD Ameritrade mobile app. As your investment chops improve, you can upgrade to the professional-quality thinkorswim mobile and desktop platforms.One thing to note about TD Ameritrade is its acquisition by Charles Schwab. Schwab is our top brokerage on this list and plans to keep beloved trading tools from thinkorswim post-acquisition, so it’s still worth considering as your new brokerage when starting out. Another thing to note is that TD Ameritrade’s robo-adviser and managed accounts — Essential Portfolios, Selective Portfolios, and Personalized Portfolios — are no longer available to new clients.You’ll have to set up managed or automated accounts through its affiliate, Charles Schwab.What to look out for: TD Ameritrade doesn’t allow customers to invest in fractional shares.TD Ameritrade reviewYou can trade stocks without commissions here, and Vanguard offers margin accounts and commission-free options trading for more advanced investors.$0 ($3,000 for Vanguard Digital Advisor; $50,000 for Vanguard Personal Advisor Services)0% (0.20% to 0.30% for professionally managed portfolios)Vanguard is a reasonable low-cost option for all types of investors. Whether you’re an active trader, passive investor, or retirement-focused individual, you should be able to find what you’re looking for.Vanguard has long been a one-stop shop for all things investing. The brokerage’s investment selection includes self-directed accounts, automated investing accounts (robo-advisors), IRAs, education savings plans, and much more. Plus, like many of the brokerages listed above, it offers commission-free trading for stocks, ETFs, and options. Vanguard also gives you access to mutual funds, bonds, and CDs, and many of its mutual funds are actively managed, meaning the brokerage itself oversees the funds.If you’re more of a hands-off investor, Vanguard’s Vanguard Digital Advisor and Vanguard Personal Advisor Services automated accounts might suit you. The first, Vanguard Digital Advisor, builds a personalized portfolio of Vanguard ETFs for you based on your preferences. Vanguard Personal Advisor Services, on the other hand, is an advisor-managed account that allows you to work one-on-one with experienced Vanguard advisors.Beginners might also appreciate the brokerage’s vast suite of educational resources. Vanguard offers both a library of insights and guides on a variety of investing topics, and it additionally provides market analysis and expert research.What to look out for: Vanguard offers competitive products for long-term focused investors, but some of its products that best suit active traders (e.g., options) fall short of its competitors. For instance, options contracts will cost you $1 each. This is higher than the options contracts fees for many brokerages. In addition, Vanguard doesn’t offer any additional trading platforms for advanced traders.Vanguard Digital Advisor reviewBetterment offers individual or joint accounts, IRAs, trust accounts, and cash reserve or checking accounts.$0 to open, $10 to start investing ($100,000 for premium plan)0.25%/year for digital plan; 0.40%/ year for premium plan; 1%/year for crypto portfoliosBetterment is best for hands-off investors who want to take advantage of professionally built, personalized ETF and cryptocurrency portfolios. The platform offers CFP access, so it could suit those in search of additional guidance from human advisors.Betterment is the largest independent online financial advisor. If you are looking for an investment experience where you explain your investment goals, hand over your money, and someone else takes care of everything for you, Betterment is a great broker for beginners. The term “robo-adviser” is intimidating to some people, but rest assured an actual robot isn’t sitting there picking stocks for you. Instead, you answer some basic questions about yourself and your investment goals when signing up. Based on your answers, Betterment Investing will then provide investing advice and recommendations based on the goal details you provided.Betterment is good for both taxable and retirement accounts. Pricing starts at 0.25% of your portfolio balance per year, though you can pay more for a plan that includes access to a human financial adviser as well. For most beginners, the basic plan covers your needs.What to look out for: You’ll have to pay extra to take advantage of human advisor guidance if you can’t meet the $100,000 minimum attached to Betterment’s premium account.Betterment reviewAlly’s self-directed brokerage accounts also offer commission-free trading on stocks, ETFs, and options.$0 ($100 for Robo Portfolios; $100,000 for Ally Invest Personal Advice)0% (up to 0.85% for Ally Invest Personal Advice; bonds, mutual funds, and certain stocks have fees)Ally Invest is best for active traders looking for $0 minimum deposits, commission-free investing, easy-to-use trading tools, and 24/7 market access. The brokerage is also great for passive investors in search of automated advice.Most of the brokerages above offer some type of integrated bank account, but if you are looking for the best bank account and brokerage combo, Ally Invest may be the best option for your needs. Ally Bank is a broker for beginners that offers some of the highest-rated checking and savings options out there, and it also offers a low-fee investment platform that works well for beginners.The investment side of Ally Invest can handle your taxable or retirement accounts. It features commission-free stock and ETF trades and no base fee for options. There are no transaction fees for mutual fund trades. Managed portfolios are available, too, with no advisory fees and a $100 minimum balance.Ally Invest’s Robo Portfolios rely on ETFs, and Ally manages and monitors each portfolio daily. The robo-advisor also offers four different portfolio options: Core, Income, Tax optimized, and Socially Responsible.Ally Invest doesn’t have the flashiest or fullest-featured trading platform, but it gets the job done and makes it easy for beginners to manage their banking and investments with one login.What to look out for: Ally doesn’t offer any cryptocurrencies directly, but you can get exposure to crypto through Ally Invest Funds that include crypto assets.Ally Invest reviewEarn a $20 bonus when you open a new account and make your first successful recurring investment (min $5). Receive your bonus within 10 days of following month$5Monthly plans start at $3 for Personal, $5 for Personal Plus, and $9 for PremiumAcorns is one of the best investment apps for beginners and hand-off investors who want to start investing but are overwhelmed by the choices with other investing apps. This simple and easy-to-use platform offers a low investment minimum, portfolio diversification, and beginner-friendly charting tools. Acorns is more expensive than other zero-fee apps out there, but the ease of use may make it worthwhile for certain users.Acorns is an online broker ideal for passive investors and beginners seeking a mobile-friendly, easy-to-use platform. While Acorns doesn’t offer as many bells and whistles as some of its competitors, you can invest extra change (aka round-ups or “found money”) automatically by linking your card to your Acorn account. Acorns mainly offers ETFs, which are made up of a diverse selection of stocks, bonds, and real estate assets. After filling out a questionnaire about your time horizon, risk tolerance, and goals, you can choose to invest in a Core portfolio or an ESG portfolio. Acorns then creates a personalized investment portfolio based on your preferences. You can now also invest in bitcoin-linked ETFs. But Acorns doesn’t offer direct crypto trading. The online brokerage only requires $5 to start investing. You can open a regular brokerage account or retirement account, such as a traditional IRA, Roth IRA, or SEP IRA, through Acorn Later. The platform also offers custodial accounts called Early accounts. What to look out for: Acorns is more expensive compared to similar platforms as it charges $3 per month for a personal account, $5 for Personal Plus, and $9 for Premium. It also doesn’t offer mutual funds or crypto. Beginners can benefit from commission-free trades on assets like stocks, bonds, and ETFs with the best free stock trading apps like Webull, Robinhood, and Charles Schwab.Investors can buy and sell different investment assets with an online brokerage account, which provides secure storage and market access. The best online brokerages provide an intuitive interface and a variety of account types to serve your needs.Most online brokers for beginners offer a $0 minimum requirement and commission-free trading on investments, including stocks, bonds, ETFs, and more. Even though most of the best online brokers for free stock trading provide low minimum fees, you may still need to pay a small contract fee. Acorns reviewThe best brokers for trading for beginners are low-cost platforms with various investment options, human advisor access, education resources, and easy trading features. But the best broker for you depends on your personal preferences and investment goals. One of the best online trading techniques that beginner investors can utilize is the buy-and-hold strategy. Passive investors and beginners can implement a buy-and-hold strategy for lower risk and long-term wealth building. But the return will be lowered compared to active day trading techniques. To open your first online brokerage account, consider the type of account, investment options, and features you’re looking for. Once you know what you want, compare different brokerage accounts that fit the bill and find the one that best fits your needs. You can then begin the application process, fund your new account, and start investing. A brokerage account is like a checking account for your investments. Where a checking account holds your cash, a brokerage account holds your stocks, treasury bonds, funds, and other investments. When you open and fund a brokerage account, you can buy and sell investments. Unlike the cash in a bank account, however, the value of the investments in your brokerage account can go up and down.If you want to invest, you need a brokerage account. That goes for long-term investing for retirement, short-term gains, or anything in between. Make sure you’re covering your bills before adding investments to your budget.Most modern brokerage accounts are free to open and keep. You shouldn’t be paying any recurring fees or minimum charges if you’re looking for the best brokerage account for most investors. You should also look for brokerage accounts with no commissions for stock, ETF, and options trades. You may see some fees for phone or broker-assisted trades, as well as commissions for some mutual funds and other investments. The best brokerage for you will reflect your investing style and what you want from a brokerage (for example, robo-advising or active trading, or access to a human financial advisor). Everyone’s investment goals and preferences are unique, so there is no perfect brokerage for everyone. Once you know what features you’re looking for, look at costs, platforms, available account types, and investment options to lock in the decision on what’s best for you.It’s easiest to manage a brokerage account online using a website or mobile app. Online brokerages allow you to transfer funds, enter trade orders, monitor your positions, research current and future investments, and handle any other transactions you need to make in a brokerage account.In the US, brokerage accounts are insured by the Securities Investor Protection Corporation (SIPC). If your brokerage goes out of business, you are guaranteed to get your money and other assets back, up to SIPC limits.Brokerage firms are regulated by the Securities and Exchange Commission and Financial Industry Regulatory Authority (FINRA), among other government agencies and industry groups.Online brokerages providing multiple asset classes, secure storage, stock market access, and an intuitive interface are the best kinds of brokers for beginners. The online brokerage should also offer various account types, as well as low minimums and fees.The best brokerages for beginners offer a handful of investing and goal-building tools, such as tax loss harvesting features, automatic rebalancing tools, portfolio management, and other similar financial planning tools. Educational resources, like webinars and blogs, are also extremely beneficial for new investors. Financially, when assessing which online brokerage is best for you, compare different minimums and fees. Low minimums and fees are more suitable for beginners who are just getting acquainted with investment products and services. More advanced online brokerages will require higher fees and minimums to access advanced trading and charting tools. We applied Personal Finance Insider’s rating methodology for investment platforms to consider the best online brokerages for beginners. We considered a dozen brokerages and zeroed in on options that offered competitive pricing and features most important to beginner investors and traders.To make it onto this list, brokerages must offer commission-free stock and ETF trades and no recurring account fees (not including robo-advisors). Other important focus areas include available investments, types of accounts, and high-quality investment platforms. Strong investment research and education resources were another plus, but carried less weight in the decision process. We interviewed the following investing experts to see what they had to say about online brokerages for beginners. What are the advantages/disadvantages of investing through an online broker forbeginners?Sandra Cho, RIA:The advantage of an online broker is that fees are generally much less than a full-service broker and the disadvantage is that the service is much less than a full-service broker.Tessa Campbell, Personal Finance Insider:Investing through an online broker for beginners can help folks learn the basics of investing in the stock market and managing an investment portfolio. These platforms tend to be more accessible for newcomers while also offering straightforward trading tools, diversified portfolio-builders, and features like automatic rebalancing and goal tracking.Beginner-friendly online brokers are generally low-cost and provide people with access to educational guides, webinars, and other learning features. Who should consider opening a beginner-friendly online brokerage?Sandra Cho, CFP:Online brokers tend to attract two main types of investors in my experience, day-tradersand people who are extremely fee-conscious.Is there any advice you’d offer someone who’s considering opening a brokerageaccount?Sandra Cho, CFP:Stay simple. Keep to long trades and stay away from options like riskier naked shortswhere you can literally lose your shorts.We applied Personal Finance Insider’s rating methodology for investment platforms to consider the best online brokerages for beginners. We considered a dozen brokerages and zeroed in on options that offered competitive pricing and features most important to beginner investors and traders.To make it onto this list, brokerages must offer commission-free stock and ETF trades and no recurring account fees (not including robo-advisors). Other important focus areas include available investments, types of accounts, and high-quality investment platforms. Strong investment research and education resources were another plus, but carried less weight in the decision process.
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