Best Online Brokers for Beginners of May 2024
The best brokers for beginners offer a combination of low costs, helpful educational content and a broad investment selection. They also have trading platforms that are easy to navigate and flexible as you grow your skills.
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When you’re a beginner investor, the right broker can be so much more than a platform for placing trades. Online stock brokers 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 investing strategy mature.
What exactly does a broker do?
Stock brokers are people or firms licensed to buy and sell stocks and other securities via stock market exchanges. Decades ago, the only way for individuals to invest directly in stocks or other investments was to hire stock brokers to place trades on their behalf.
What was once a clunky, costly transaction (conducted on landline telephones!) now takes place in seconds through online stock brokers. Better yet, those brokers cost a fraction of what full-service brokers used to charge for the service. In fact, many stock brokers, including all of the ones below, offer commission-free trading, which means you don't pay the broker a fee to purchase stocks.
What makes a broker good for beginners?
We do a deep analysis of brokers, which involves not just collecting data points about their offerings, but also hands-on testing of each broker. For beginners, we focus heavily on ease of use: How usable is the broker's website? How easy is it to fund an account and navigate the broker's trading platform? (Yes, we fund accounts and place trades as part of our testing process.)
We also look at factors like account fees, customer service, mobile app and investment selection — we don't expect the best brokers for beginners to have complex investment offerings, but we do expect them to offer a range of approachable investments, like mutual funds and index funds.
Top three choices for beginners
If you just want to get started, we'll highlight three brokers that stood out above the rest in our analysis. But we'd encourage you to also compare the choices below — including clicking through to read our full reviews if you need more detail — as they all made this list because we found them to be a good fit for beginner investors.
All-around good fit for most investors: Fidelity. Fidelity frequently scores the highest on nearly every feature we put to the test, which makes it a well-rounded choice suitable for beginner investors. It's a broker that can grow with you as you advance your trading strategies and skills.
A good choice to practice trading: Charles Schwab. Some online brokers offer something called a paper trading platform — a tool that allows you to practice trades without putting your real money on the line. Aside from being a generally strong broker like Fidelity, Schwab's paper trading platform stood out to our testers. It offers a large selection of investments to try out.
An impressive mobile app experience: Webull. Webull stood out to our testers for its sleek, intuitive platform, and its mobile app store scores reflect that. It's a good choice for beginner investors who prefer accessing their accounts and trading on their phone versus a desktop platform.
Below, you'll find more details about these three brokers, plus other choices that stood out as strong options for beginners.
When you’re a beginner investor, the right broker can be so much more than a platform for placing trades. Online stock brokers 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 investing strategy mature.
What exactly does a broker do?
Stock brokers are people or firms licensed to buy and sell stocks and other securities via stock market exchanges. Decades ago, the only way for individuals to invest directly in stocks or other investments was to hire stock brokers to place trades on their behalf.
What was once a clunky, costly transaction (conducted on landline telephones!) now takes place in seconds through online stock brokers. Better yet, those brokers cost a fraction of what full-service brokers used to charge for the service. In fact, many stock brokers, including all of the ones below, offer commission-free trading, which means you don't pay the broker a fee to purchase stocks.
What makes a broker good for beginners?
We do a deep analysis of brokers, which involves not just collecting data points about their offerings, but also hands-on testing of each broker. For beginners, we focus heavily on ease of use: How usable is the broker's website? How easy is it to fund an account and navigate the broker's trading platform? (Yes, we fund accounts and place trades as part of our testing process.)
We also look at factors like account fees, customer service, mobile app and investment selection — we don't expect the best brokers for beginners to have complex investment offerings, but we do expect them to offer a range of approachable investments, like mutual funds and index funds.
Top three choices for beginners
If you just want to get started, we'll highlight three brokers that stood out above the rest in our analysis. But we'd encourage you to also compare the choices below — including clicking through to read our full reviews if you need more detail — as they all made this list because we found them to be a good fit for beginner investors.
All-around good fit for most investors: Fidelity. Fidelity frequently scores the highest on nearly every feature we put to the test, which makes it a well-rounded choice suitable for beginner investors. It's a broker that can grow with you as you advance your trading strategies and skills.
A good choice to practice trading: Charles Schwab. Some online brokers offer something called a paper trading platform — a tool that allows you to practice trades without putting your real money on the line. Aside from being a generally strong broker like Fidelity, Schwab's paper trading platform stood out to our testers. It offers a large selection of investments to try out.
An impressive mobile app experience: Webull. Webull stood out to our testers for its sleek, intuitive platform, and its mobile app store scores reflect that. It's a good choice for beginner investors who prefer accessing their accounts and trading on their phone versus a desktop platform.
Below, you'll find more details about these three brokers, plus other choices that stood out as strong options for beginners.
Best Online Brokers for Beginners
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
 J.P. Morgan Self-Directed Investing Learn more on J.P. Morgan's website | $0 per trade | $0 | Get up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money. | Learn more on J.P. Morgan's website | |
 Fidelity Learn more on Fidelity's website | $0 per trade for online U.S. stocks and ETFs | $0 | None no promotion available at this time | Learn more on Fidelity's website | |
 Charles Schwab Learn more on Charles Schwab's website | $0 per online equity trade | $0 | None no promotion available at this time | Learn more on Charles Schwab's website | |
 Robinhood Learn more on Robinhood's website | $0 per trade | $0 | 1 Free Stock after linking your bank account (stock value range $5.00-$200) | Learn more on Robinhood'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 |
$0
per trade
$0
Get up to $700
when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money.
Pros
Easy-to-use platform.
$0 commissions.
App connects all Chase accounts.
No account minimum.
Cons
Limited tools and research.
Portfolio Builder tool requires $2,500 balance.
Low interest rate on uninvested cash.
Why We Like It
J.P. Morgan Self-Directed Investing is a clear-cut investment platform that is great for beginners looking to learn how to buy and sell investments. More advanced investors, however, may find it lacking in terms of available assets, tools and research. INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Best Broker for Beginning Investors 2024
$0
per trade for online U.S. stocks and ETFs
$0
None
no promotion available at this time
Pros
Commission-free stock, ETF and options trades.
Large selection of research providers.
Strong customer service.
Expense-ratio-free index funds.
Highly rated mobile app.
High interest rate on uninvested cash.
Cons
Relatively high broker-assisted trade fee.
Why We Like It
Fidelity offers $0 trading commissions, a selection of more than 3,300 no-transaction-fee mutual funds and top-notch research tools and trading platform. Its zero-fee index funds and strong customer service reputation are just icing on the cake.
$0
per online equity trade
$0
None
no promotion available at this time
Pros
Four trading platforms with no minimum or fees.
Above-average mobile app.
Extensive research.
Large fund selection.
Commission-free stock, options and ETF trades.
Cons
Low interest rate on uninvested cash.
Why We Like It
Charles Schwab has earned its strong reputation: The broker offers high-quality customer service, four free trading platforms, a wide selection of no-transaction-fee mutual funds and $0 commissions for stocks, ETFs and options.
$0
per trade
$0
1 Free Stock
after linking your bank account (stock value range $5.00-$200)
Pros
No account minimum.
Streamlined interface.
Cryptocurrency trading.
IRA with 1% match.
High interest rate on uninvested cash.
Cons
No mutual funds or individual bonds.
Limited customer support.
Why We Like It
Robinhood provides free stock, options, ETF and cryptocurrency trades, and its account minimum is $0, too. Mutual funds and bonds aren't offered, and only taxable investment accounts are available. Still, if you're looking to limit costs or trade crypto, Robinhood is a solid choice.
Best Online Broker for Advanced Traders 2024
$0
per trade
$0
None
no promotion available at this time
Pros
Large investment selection.
Strong research and tools.
Over 19,000 no-transaction-fee mutual funds.
High order execution quality.
Cons
High minimum to earn interest on uninvested cash.
Why We Like It
Interactive Brokers' IBKR Lite is a strong option for frequent traders: The broker offers international trade capabilities, no stock-trading commission and a quality trading platform.
$0
per trade
$0
None
no promotion available at this time
Pros
Large mutual fund selection.
Commission-free stock, options and ETF trades.
Leader in low-cost funds.
High interest rate on uninvested cash.
High order execution quality.
Cons
Basic trading platform only.
Limited research and data.
Why We Like It
Vanguard is the king of low-cost investing, making it ideal for buy-and-hold and retirement investors. But active traders will find the broker falls short despite its $0 trade commission, due to the lack of a strong trading platform.
$0
per trade
$0
Get up to 75 free fractional shares (valued up to $3,000)
when you open and fund an account with Webull.
Pros
Low costs.
Easy-to-use platform.
Advanced tools.
Access to cryptocurrency.
High interest rate on uninvested cash.
High order execution quality.
Cons
No mutual funds.
Thin educational support.
Why We Like It
Webull will appeal to the mobile-first generation of casual investors with its slick interface for desktop and mobile apps, but the brokerage also delivers an impressive array of tools for active traders. However, its relatively weak educational content may leave true beginners in the lurch, and it lacks access to a few common asset classes.
$0
$0
None
no promotion available at this time
Pros
Rebates for trading options.
Impressive selection of alternative assets.
Easy-to-use signup and trading interface.
Cons
No mutual funds.
No margin trading or futures trading.
Lack of tools (e.g. customizable screeners) and account types (e.g. IRAs).
Want to compare more options? Here are our other top picks:
Frequently asked questions about choosing a broker as a beginner investor
Do you need a broker to invest?
You may already be investing through other accounts — for example, if you have a 401(k) or other retirement account at work, that's an investment account. But an online broker allows you to invest outside of that account, with access to a wider investment selection and more tools and resources, including a trading platform. Through an online brokerage account, you can begin to purchase investments and make trades on the stock market.
How do brokerage accounts work?
To buy and sell assets like stocks, bonds and mutual funds, you need to open an investment account through a 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.)
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 standard taxable brokerage account is a good option. It's called a taxable account because it doesn't come with the tax benefits that many retirement accounts offer, but that also makes it more flexible to be used for various goals.
Is my money safe in a brokerage account?
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. Many investments, including stocks, carry the risk of loss, and you're not protected if an investment you purchase goes down in value. You should expect the value of your investments to fluctuate, but over a long time horizon, the stock market has historically returned an average of 10% per year before inflation.
How much does a broker cost?
The brokers on our list generally have low fees as a requirement to appear here, and they don't charge commissions to trade stocks or most other investments. It also doesn’t take a lot of money to get started — many online stock brokers allow you to open an account with no minimum deposit requirement.
To begin investing, you will need enough money to purchase the investments you choose. Stock share prices can vary widely, but some brokers allow you to purchase fractional shares, which are a smaller slice of a stock. We have a list of the best brokers for fractional shares. Other investments, like mutual funds, may have investment minimums, but generally speaking, you can find options that don't — especially at the brokers we've chosen to appear here.
What’s the difference between a full-service broker and a discount broker? Which is best?
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.
What's the best trading platform for a beginner?
For beginner investors, we look for trading platforms that are easy to understand and navigate, but can also grow with you as you begin to move away from "beginner" status and start feeling more comfortable with investing and trading. Brokers that scored highly for both ease of use and their platform's capabilities include Fidelity, Charles Schwab and Interactive Brokers.
Can you cash out an online brokerage account?
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 withdraw, 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 as well.
More resources for beginners
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 crowd? Consider index funds.
Last updated on May 1, 2024
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).
For more details about the categories considered when rating brokers and our process, read our full methodology.
To recap our selections...
