11 Best Online Stock Brokers for Beginners of October 2022 - NerdWallet Advertiser disclosure
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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. Kevin Voigt, Sabrina Parys Oct 3, 2022 Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. 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
BrokerNerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.FeesAccount minimumPromotionLearn more FidelityLearn more on Fidelity's website 5.0/5$0per trade for online U.S. stocks and ETFs$0Get $100when 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 Interactive Brokers IBKR LiteLearn more on Interactive Brokers' website 5.0/5$0per trade$0Noneno promotion available at this timeLearn more on Interactive Brokers' website WebullLearn more on Webull's website 4.9/5$0per trade$0Get up to 12 free stocks (valued up to $30,600)when you open and fund an account with Webull. Promotion ends 10/31/2022.Learn more on Webull's website Merrill EdgeLearn more on Merrill Edge's website 4.5/5$0per trade$0Up to $600when you invest in a new Merrill Edge Self-Directed account.Learn more on Merrill Edge's website VanguardLearn more on Vanguard's website 4.0/5$0per trade$0Noneno promotion available at this timeLearn more on Vanguard's websiteView More Fidelity
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.5.0/5Learn more on Fidelity's website Fees $0 per trade for online U.S. stocks and ETFs Account minimum $0 Promotion Get $100 when you open a new, eligible Fidelity account with $50 or more. Use code FIDELITY100. Limited time offer. Terms apply.Our Take 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. Cons Relatively high broker-assisted trade fee. Why We Like It Fidelity offers $0 trading commissions, a selection of more than 3,700 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. Interactive Brokers IBKR Lite
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.5.0/5Learn more on Interactive Brokers' website Fees $0 per trade Account minimum $0 Promotion None no promotion available at this timeOur Take Pros Large investment selection. Strong research and tools. Over 17,000 no-transaction-fee mutual funds. NerdWallet users who sign up for IBKR Pro get a 0.25 percentage point discount on margin rates. Cons Website is difficult to navigate. 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. Webull
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.4.9/5Learn more on Webull's website Fees $0 per trade Account minimum $0 Promotion Get up to 12 free stocks (valued up to $30,600) when you open and fund an account with Webull. Promotion ends 10/31/2022.Our Take Pros Low costs. Easy-to-use platform. Advanced tools. Access to cryptocurrency. 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. Merrill Edge
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.4.5/5Learn more on Merrill Edge's website Fees $0 per trade Account minimum $0 Promotion Up to $600 when you invest in a new Merrill Edge Self-Directed account.Our Take Pros Robust third-party research. Integrated with Bank of America. Cons Advanced traders may find fewer securities on offer. Why We Like ItMerrill Edge offers high-quality customer service, robust research and low fees. Customers of parent company Bank of America will love the seamless, thoughtful integration, with a single login to access both accounts. Vanguard
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.4.0/5Learn more on Vanguard's website Fees $0 per trade Account minimum $0 Promotion None no promotion available at this timeOur Take Pros Large mutual fund selection. Commission-free stock, options and ETF trades. Leader in low-cost funds. 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. E*TRADE
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.5.0/5Learn more on E*TRADE's website Fees $0 per trade Account minimum $0 Promotion Get up to $600 or more when you open and fund an E*TRADE accountOur Take Pros Easy-to-use tools. Large investment selection. Excellent customer support. Advanced mobile app. Commission-free stock, options and ETF trades. Cons Website can be difficult to navigate. Why We Like It E*TRADE has long been one of the most popular online brokers. The company's $0 commissions and strong trading platforms appeal to active traders, while beginner investors benefit from a large library of educational resources. TD Ameritrade
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.5.0/5Learn more on TD Ameritrade's website Fees $0 per trade Account minimum $0 Promotion None no promotion available at this timeOur Take Pros Commission-free stock and ETF trades. Free research. High-quality trading platforms. No account minimum. Good customer support. Large investment selection. Cons No fractional shares. Why We Like It TD Ameritrade meets the needs of both active traders and beginner investors with quality trading platforms; $0 commissions on online stock and ETF trades; and a large selection of mutual funds. Ally Invest
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.4.5/5Learn more on Ally Invest's website Fees $0 per trade (on eligible US securities) Account minimum $0 Promotion None no promotion available at this timeOur Take Pros Commission-free trades on eligible U.S. stocks, options and ETFs. No account minimum. Strong web-based platform. Robust research and tools. Cons No no-transaction-fee mutual funds. No branches. Why We Like It Ally Invest’s robust trading platform and lineup of free research, charting, data and analytical tools make it a good choice for active traders. But it’s also appropriate for beginning investors who will appreciate that there is no account minimum and no annual fees. Robinhood
NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.4.0/5Learn more on Robinhood's website Fees $0 per trade Account minimum $0 Promotion 1 Free Stock after linking your bank account (stock value range $5.00-$200)Our Take Pros No account minimum. Streamlined interface. Cryptocurrency trading. Cons No retirement accounts. No mutual funds or 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. Want to compare more options? Here are our other top picks:FirstradeCharles Schwab 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 October 3, 2022 You may also like these
People often identify opening a savings account as their next money move. SoFi Checking and Savings
5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.APY2.50% SoFi members with direct deposit can earn up to 2.50% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts (including Vaults). Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. Rates of 2.50% APY (with direct deposit) and 1.20% APY (without direct deposit) are current as of 09/30/2022. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheetWith $0 min. balance for APY Bonus$300 Earn up to $300 with direct deposit. Terms apply.Learn more at SoFi, Member FDIC LendingClub High-Yield Savings
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.APY3.12% With $0 min. balance for APYLearn more at LendingClub Bank, Member FDIC Discover Bank Online Savings
5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.APY2.35% Annual Percentage Yield (APY) is accurate as of 10/20/2022With $0 min. balance for APY Bonus$200 To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online, in the Discover App or by phone. Enter Offer Code NW922 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted to account within 30 days of account open date. Maximum bonus eligibility is $200. What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded, or affinity accounts provided by Discover. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 30 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/15/2022, 11:59 PM ET. Offer may be modified or withdrawn without notice.Requirements to qualifyLearn more at Discover Bank, Member FDIC 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 October 2022
FidelityInteractive Brokers IBKR LiteWebullMerrill EdgeVanguardE*TRADETD AmeritradeAlly InvestRobinhoodFirstradeCharles Schwab Frequently asked questions
Is it worth getting a stock broker? 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.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. Any losses and gains of your investments carry no protections.How much does a stock broker cost? 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.)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 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.What is a brokerage fee? 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.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.Can you cash out a stock 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 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.) About the authors
Kevin Voigt
Kevin Voigt is a former investing writer for NerdWallet. He has covered financial issues for more than 20 years, including for The Wall Street Journal and CNN.com. Read more EmailLinkedIn Sabrina Parys
Sabrina Parys is a content management specialist at NerdWallet. Read moreEmail