Best Brokerage Accounts for Beginners: Our 7 Top Picks 2025 The Motley Fool

Dollar-cost averaging does not assure a profit or protect against a loss in declining markets. For a Periodic Investment Plan strategy to be effective, customers must continue to purchase shares both in market ups and downs. It’s a key step toward helping reach financial goals that are important to you. The information regarding any product was independently collected and was not provided nor reviewed by the company or issuer.

Is online trading safe?

If you’re looking for a platform that suits your needs, you might want to check out this list of the best stock trading apps. The right platform can make your trading experience smoother and more efficient. Additionally, brokers can offer services like portfolio management and financial advice.

Best for All-in-One Services: Charles Schwab

Vanguard charges no fee on some mutual fund transactions, as well as ETFs, stocks and CDs. There is an account service fee, but it is waived if you opt for e-delivery of statements and other documents, or if you hold at least $5 million in qualifying assets. In the event of broker insolvency, the SIPC will work to return your assets and cash to you. The SIPC is not a federal government entity, so it isn’t as secure as the FDIC insurance protecting your bank account, but it does provide a backstop against brokerage failure. The SIPC protects up to $500,000 of assets held with each stock broker. In the United States, brokers are regulated by both FINRA and the SIPC.

How do brokerage accounts work?

While an advisor can help you with features like tax planning and asset allocation, they’re unlikely to earn you more on your investments than a low-cost index fund. Many online brokers charge fees to buy and sell most no-load mutual funds. If you’re looking to dip your toe into the world of investing, you will need to find a brokerage firm. While you can buy stock directly or seek out an individual stock broker, an online brokerage account will give you access to various investments, often with minimal commissions.

What to do after you buy your first investment

To avoid remorse, it could help to revisit your original goals and reasons for investing. Keeping your “why” in mind could help you make thoughtful investment decisions no matter what’s happening in the markets on any given day. Before you start investing, assess your financial situation and ensure you can cover your everyday expenses.

All Schwab accounts come with free access to Schwab Trading Services, an online platform that’s loaded with trading education and dedicated specialist insights. Fortunately, there are a ton of platforms out there that can help you get in the game. Those investments are protected by a different agency called the Securities Investor Protection Corporation (SIPC).

Vanguard offers some of the lowest cost index ETFs, plus it packs in a well-rounded feature set that is a fit for more experienced investors as well. That said, Robinhood’s in-app research tools are relatively basic unless you upgrade to Robinhood Gold, which provides access to advanced research and data. If deep analytical tools and comprehensive research options are a priority, other platforms may better meet your needs.

Of course, personal finance is personal so one person’s experience may differ from someone else’s, and estimates based on past performance do not guarantee future results. As such, our advice may not apply directly to your individual situation. We are not financial advisors and we recommend you consult with a financial professional before making any serious financial decisions. Bigger firms might seem more confusing to start but often come with a wider network of advisors, in-person help, and educational resources. Of all the best brokers for beginners I’ve covered here, Acorns is the most hands-off. It’s a robo-advisor that takes your spare change and invests it for you automatically.

• There are also alt investments such as sneakers, video games, sports cards.
• All of the brokers I’ve covered here include ETF trading and most of them come without a commission.
• Whether you’re planning for retirement, exploring global markets, or refining advanced strategies, Fidelity’s innovative tools and reliable platform make it a superb choice.
• Advisory fees are waived for the first 90 days, allowing new investors to explore the platform risk free.
• The TD Ameritrade Network is an online channel streaming financial news and educational content.

Best Online Stock Brokers for Beginners in April 2025

Fidelity also offers 24/7 customer support and you can even get help in person at one of its more than 200 brick-and-mortar locations. The FDIC — or Federal Deposit Insurance Corporation — protects deposit bank accounts (aka your checking and savings account). They don’t protect money invested in the stock market or other investment instruments. A retirement account, for example, is going to be different than an account where you buy and sell stocks frequently. Retirement accounts are tax-advantaged and because of that, they have contribution limits. If you use an employer-sponsored retirement plan, you might not even get a say in who brokers your account.

Fidelity Viewpoints®

Its mobile trading app gives you access to a range of investment options — including crypto — with no trading fees. You expect the commission-free trading of stocks and ETFs (and Public offers that) but when you open a brokerage account you usually don’t expect everything Public has to offer. Full-service brokers, like Morgan Stanley and Goldman Sachs, offer a wide range of services, including investment advice, portfolio management, and retirement planning. They provide a high level of personal service, with dedicated financial advisors who can help you develop a comprehensive investment strategy.

Public also provides users the option to voluntarily tip to support its mission of offering commission-free trades without accepting any payment for order flow (PFOF). 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. These options, along with the ease of access and flexibility, make Fidelity an excellent choice for beginners looking to grow their investments. The best brokerage accounts for beginners have user-friendly platforms, educational tools, no fees, and the ability to buy fractional shares so you can start with even just a few dollars. The best online brokerage accounts for beginners have no commissions to trade stocks, no minimum account or deposit requirements, and allow you to make trades conveniently right from your phone.

The range of investment options a broker offers is another important factor. Additionally, look for brokers that offer educational tools and resources to help you learn about trading and make informed decisions. SoFi doesn’t charge commissions on stock and ETF trades — and there best online stock brokers for beginners are no contract fees for options trading, but you will pay an exercise and assignment fee.

• Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date.
• Users can also follow goal-based learning paths that combine courses with relevant webcasts and events.
• Even experts do a poor job of trying to time the market, which is why passively managed index funds typically outperform funds actively managed by fund managers.
• Robinhood focuses on the essentials, allowing users to invest in stocks and ETFs.
• Fidelity is one of the largest and one of the most well-rounded brokerages available in the U.S. today.
• Blain Reinkensmeyer has 20 years of trading experience with over 2,500 trades placed during that time.

Which type of trading is best for beginners?

This no-commission structure makes it particularly attractive to those who want to keep investing costs to a minimum. J.P. Morgan stands out for beginners by offering an app-based platform for both self-directed and automated investing, all with $0 commissions — even on mutual funds, which is pretty rare. Plus, if you bank with Chase your accounts will be integrated so you can manage your money in one place. Most of the best stock brokers for beginners don’t charge commissions or transaction fees when you trade ETFs or stocks.