11 Best Online Stock Brokers for Beginners of August 2022
Our list of the best stock brokers for beginners cuts through the noise and offers a curated selection of brokers with low fees, low account minimums and helpful educational resources.
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When you’re a beginner investor, the right broker can be so much more than simply a platform for placing trades. It can help you build a solid investing foundation — functioning as a teacher, advisor and investment analyst — and serve as a lifelong portfolio co-pilot as your skills and strategy mature.
What does a stock broker do?
Stock brokers are people or firms licensed to buy and sell stocks and other securities via the stock market exchanges. Decades ago, the only way for individuals to invest directly in stocks was to hire stock brokers to place trades on their behalf.
But what was once a clunky, costly transaction conducted on landline telephones now takes place in seconds through online stock brokers. Better still, those brokers cost a fraction of what full-service brokers used to charge for the service; many online brokerage accounts, including the ones below, offer commission-free stock trades. (A little lost? Check out our explainers on what a broker is, brokerage accounts and buying stocks.)
When you’re a beginner investor, the right broker can be so much more than simply a platform for placing trades. It can help you build a solid investing foundation — functioning as a teacher, advisor and investment analyst — and serve as a lifelong portfolio co-pilot as your skills and strategy mature.
What does a stock broker do?
Stock brokers are people or firms licensed to buy and sell stocks and other securities via the stock market exchanges. Decades ago, the only way for individuals to invest directly in stocks was to hire stock brokers to place trades on their behalf.
But what was once a clunky, costly transaction conducted on landline telephones now takes place in seconds through online stock brokers. Better still, those brokers cost a fraction of what full-service brokers used to charge for the service; many online brokerage accounts, including the ones below, offer commission-free stock trades. (A little lost? Check out our explainers on what a broker is, brokerage accounts and buying stocks.)
Best Online Stock Brokers for Beginners
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
 Fidelity Learn more on Fidelity's website | $0 per trade for online U.S. stocks and ETFs | $0 | Get $100 when you open a new, eligible Fidelity account with $50 or more. Use code FIDELITY100. Limited time offer. Terms apply. | Learn more on Fidelity's website | |
 Merrill Edge Learn more on Merrill Edge's website | $0 per trade | $0 | Up to $600 when you invest in a new Merrill Edge® Self-Directed account. | Learn more on Merrill Edge's website | |
 Vanguard Learn more on Vanguard's website | $0 per trade | $0 | None no promotion available at this time | Learn more on Vanguard's website | |
 E*TRADE Learn more on E*TRADE's website | $0 per trade | $0 | Get up to $600 or more when you open and fund an E*TRADE account | Learn more on E*TRADE's website | |
 Interactive Brokers IBKR Lite Learn more on Interactive Brokers' website | $0 per trade | $0 | None no promotion available at this time | Learn more on Interactive Brokers' website |
on Fidelity's website
Fidelity
Fees
$0per trade for online U.S. stocks and ETFs
Account minimum
$0Promotion
Get $100when you open a new, eligible Fidelity account with $50 or more. Use code FIDELITY100. Limited time offer. Terms apply.
on Fidelity's website
on Merrill Edge's website
Merrill Edge
Fees
$0per trade
Account minimum
$0Promotion
Up to $600when you invest in a new Merrill Edge® Self-Directed account.
on Merrill Edge's website
on Vanguard's website
Vanguard
Fees
$0per trade
Account minimum
$0Promotion
Noneno promotion available at this time
on Vanguard's website
on E*TRADE's website
E*TRADE
Fees
$0per trade
Account minimum
$0Promotion
Get up to $600 or morewhen you open and fund an E*TRADE account
on E*TRADE's website
on Interactive Brokers' website
Interactive Brokers IBKR Lite
Fees
$0per trade
Account minimum
$0Promotion
Noneno promotion available at this time
on Interactive Brokers' website
on TD Ameritrade's website
TD Ameritrade
Fees
$0per trade
Account minimum
$0Promotion
Noneno promotion available at this time
on TD Ameritrade's website
on Ally Invest's website
Ally Invest
Fees
$0per trade (on eligible US securities)
Account minimum
$0Promotion
$100-in cash bonus with qualifying deposit.
on Ally Invest's website
on Webull's website
Webull
Fees
$0per trade
Account minimum
$0Promotion
Get up to 12 free stocks (valued up to $30,600)when you open and fund an account with Webull. Promotion ends 8/31/2022.
on Webull's website
on Robinhood's website
Robinhood
Fees
$0per trade
Account minimum
$0Promotion
1 Free Stockafter linking your bank account (stock value range $2.50-$225)
on Robinhood's website
Want to compare more options? Here are our other top picks:
More about the best stock brokers for beginners
The star ratings above represent the provider's overall score across various categories. In this section, we've included more detail about how we rated these stock brokers specifically for their customer support options, which are key for many new investors. Our overall customer support rating below takes into account website transparency (a measure of how easily we can find key details), educational resources, customer service availability and the cost of broker-assisted trading. Here's how each provider stacks up.
Merrill Edge
Merrill Edge scores high points for its customer support. Clients have plenty of options to get in touch, including 24/7 phone support, chat, email and the ability to request an in-person appointment at a nearby Bank of America. As for Merrill’s educational resources, the broker offers top-tier content in many formats — from podcasts to webinars and even a robust content library of over 150 articles. Additional tools include calculators for retirement planning, investing, and personal finance mapping.
Merrill Edge’s customer support options: 4.5 out of 5 stars
Vanguard
Vanguard’s primary support options are via phone (Monday through Friday, 8 a.m. to 8 p.m. Eastern time) and email, making the broker a good fit for those who can do without in-person or on-demand support. Beginner investors have access to educational resources by way of news articles, research papers, videos and webcasts. And like many other brokers on this list, Vanguard offers high-quality calculators and tools that can help clients with their retirement goals or aid in decisions about Roth conversions.
Vanguard’s customer support options: 3.5 out of 5 stars
Fidelity
Hands-on learners will enjoy plenty of human support options from Fidelity. The broker’s customer support network includes 24/7 phone, chat and email assistance — and over 200 branches for in-person support. Fidelity’s educational resources are also standouts among competitor offerings. The Online Learning Center provides clients with custom educational materials keyed to their investment interests and behavior. And the broker also offers plenty of seminars, workshops and videos for traders to take advantage of.
Fidelity’s customer support options: 4.5 out of 5 stars
E*TRADE
E*TRADE’s customer service options receive high marks across the board. Clients can take advantage of 24/7 phone, email and chat support. And for those who prefer a personal approach, the broker has 30 local branches for in-person help. Like other big-name competitors, E*TRADE offers plenty of educational resources to guide new investors along, including live and on-demand webinars, online courses from Morningstar, and articles on E*TRADE's Knowledge blog.
E*TRADE’s customer support options: 4 out of 5 stars
Interactive Brokers
Customers can get in touch with Interactive Brokers’ customer support team by phone, email or chat 24 hours a day, six days a week. Like a few others on this list, the broker does not have any physical locations. When it comes to educational resources, beginner traders have a lot to be excited about — especially if they have a penchant for guided learning. Interactive Brokers offers its own IBKR campus, with online classes available to anyone, a Trader’s Academy, which features 55 in-depth online courses, and plenty of learning labs and webinars on a variety of investing topics.
Interactive Brokers' customer support options: 4 out of 5 stars
TD Ameritrade
TD Ameritrade makes it virtually impossible not to get in touch. Clients can reach out 24/7 via phone, text, fax, live chat and email. TD also offers social media direct messaging and mobile screen-sharing. Those who need in-person help can schedule a meeting at a local branch. New investors also have plenty of resources to tap into, from educational webcasts to workshops to 150 live events at branches each year.
TD Ameritrade’s customer support options: 4.5 out of 5 stars
Ally Invest
When it comes to customer support, Ally Invest falls in line with competitor offerings. Clients can take advantage of 24/7 email, phone and chat help. The broker does not offer in-person assistance at this time. When it comes to education, Ally extends some interesting perks. For example, if you’re a visual learner, the broker serves up biweekly digital content on its YouTube channel. And for those who prefer more traditional resources, there’s access to live webinars, quarterly digital conferences, and plenty of educational content in the form of articles and blog posts.
Ally Invest’s customer support options: 4.5 out of 5 stars
Webull
Much like other online-only brokers, Webull provides clients with customer support 24/7 by phone and email. New investors can access learning resources on the broker’s website or in the Webull app, where they'll also find a variety of videos and lessons on topics such as investment basics and an intro to cryptocurrency.
Webull’s customer support options: 4.5 out of 5 stars
Robinhood
Robinhood rolled out a 24/7 call-back feature in 2021, through which clients can request to speak with a representative. The in-app experience guarantees a return call within 30 minutes of the request. You can also reach out to the company by email. Robinhood Learn, the broker’s online learning page, features over 800 articles on a wide range of investing topics. Additional resources come in the form of email newsletters, a podcast and an in-app learning module.
Robinhood’s customer support options: 3.5 out of 5 stars
Firstrade
When it comes to customer service, Firstrade clients can access help by phone and email Monday through Friday from 8 a.m. to 6 p.m. Eastern time. The broker does not offer 24/7 assistance, nor does it offer in-person assistance at this time. New traders can access educational resources in several ways: Firstrade offers instructional videos, primers on basic investing strategies and terms, courses on options, and a weekly newsletter.
Firstrade’s customer support options: 3.5 out of 5 stars
Charles Schwab
Charles Schwab offers a wealth of customer support options, including 24/7 assistance by phone, email or online chat. Clients can get more help in person by visiting a Charles Schwab branch. There are more than 400 locations, and some are even open on Saturdays. Schwab also offers a wide selection of educational tools for the novice investor — both online and in person. Clients can take advantage of educational workshops and webcasts, trading events, and a robust knowledge center on the provider’s website.
Charles Schwab’s customer support options: 4.5 out of 5 stars
More resources for new investors
Need some background? Read our guide to how the stock market works.
Unsure of how to build your portfolio? Learn more about how to invest in stocks.
Interested in instant diversification? Understand how investing in mutual funds can help.
Want to join the passive investing revolution? Consider index funds.
Last updated on August 3, 2022
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Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
For more details about the categories considered when rating brokers and our process, read our full methodology.
To recap our selections...
NerdWallet's Best Online Stock Brokers for Beginners of August 2022
Frequently asked questions
Yes, though you likely don't need a full-service stock broker. Simply opening and funding an investment account at an online broker will allow you to get started investing. Through that account, you can begin to purchase investments and make trades on the stock market.
The Securities Investor Protection Corporation insures cash and securities up to $500,000, with a $250,000 limit on cash losses. But this protects you only in the event your stock broker fails. Any losses and gains of your investments carry no protections.
It doesn’t take a lot of money to get started. Many online stock brokers allow you to open an account for $0 and charge no commission to trade stocks or exchange-traded funds, which can be a cost-effective way to begin building your portfolio. (Have $500? Learn how to invest it.)
To buy and sell assets like stocks, bonds and mutual funds, you need to open an investment account through a stock broker. That account is called a brokerage account, and it holds the cash you’ll use to buy and sell investments, as well as the investments themselves once you own them. (Learn more about how brokerage accounts work.)
If you have a 401(k) or other employer-sponsored retirement account, you already have one kind of investment account. Many investors find it beneficial to open additional stock brokerage accounts when:
Saving for retirement. If you want or need to save for retirement in an account separate from your employer, you can open an IRA. These come in two flavors, a traditional IRA or a Roth IRA. (Read more about the differences between Roth and traditional IRAs here.)
Investing for other goals. If you’re saving for a goal other than retirement — or you’ve topped off your 401(k) and IRA contributions — a taxable brokerage account is a good option. As the name implies, this doesn’t carry the tax advantages of retirement accounts. You will have to pay taxes on any capital gains each year.
On the plus side, you don’t face any of the restrictions for withdrawals that come with tax-advantaged accounts. If you need money in a hurry, a taxable account would be your first line of defense before dipping into retirement accounts and potentially paying early withdrawal penalties.
A brokerage fee is charged by the stock broker that holds your account. Brokerage fees include annual fees to maintain the brokerage account or access trading platforms, subscriptions for premium research, or even inactivity fees for infrequent trading. You can avoid or reduce brokerage account fees by choosing the right broker — most of the options on our list charge low or no account fees. Learn more about investment fees.
The difference between a full-service stock broker and a discount stock broker comes down to the level of service and how much you want to pay for that service.
Traditional full-service stock brokers do more than assist with the buying and selling of stocks or bonds. They often offer a wide array of services and products, including financial and retirement planning, investing and tax advice and regular portfolio updates. But they can charge substantial fees and transaction costs that can erode long-term investment gains.
If you have more money than time, a full-service broker may be for you. For most investors, however, it can pay to look at discount stock brokers. These brokers allow you to buy investments online through their website or trading platforms. You'll pay less in trading commissions and fees at a discount broker.
Other brokers, called robo-advisors, offer a combination of access to financial planners and automated investing technology. Companies in this category include Betterment and Wealthfront, and they build your investment portfolio for you for a fee. If you want a service to make investment decisions for you, robo-advisors are a good option.
Yes, but it will take more time than getting cash from your ATM — often a few business days. Your broker may need to sell securities (like stocks, bonds or mutual funds) equivalent to the amount you want to withdrawal, so it's not as simple as removing cash from a savings account.
If you're taking all of your money out, whether transferring to a different stock broker or cashing out to move to Tahiti, there may be account closing fees.
Keep in mind, the rules for withdrawal of retirement accounts like an IRA are different, depending on your age. Most withdrawals carry a 10% penalty before the age of 59 1/2, and will be taxed as ordinary income the year you cash out. (Roth IRAs, which are funded with after-tax cash, are more forgiving of early withdrawals.)
