The use of online stock brokers makes it convenient for people to buy and sell stocks without going through a traditional stockbroker. However, it is important to select the best online stock broker while making stock market investments.
There are a number of online stock brokers available in the US, each with its own features and fees. So, it is difficult to make a selection. In this post, I will share the top 5 online stock brokers in the USA.
5 Top Online Stock Brokers for Beginners
#1 Charles Schwab
Charles Schwab is a well-established online stock broker that offers a wide range of investment options, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs).
Features –
Minimum Investment – $0
Investments Offered – Stocks, bonds, ETFs, mutual funds, options, futures, and CDs
Account Offered – Joint and individual accounts; traditional, Roth, rollover, SEP/ SIMPLE IRAs; Solo 401(k)’s, trusts, custodial accounts
Fees – $0 for stocks, options, and ETFs; over 4,000 commission-free mutual funds
The company also offers a variety of research tools, as well as a mobile app and 24/7 customer support.
#2 TD Ameritrade
Online stock broker TD Ameritrade provides stocks, options, and mutual funds, as well as a wide variety of investment options. The company also offers a variety of research tools, as well as a mobile app and 24/7 customer support.
Features –
Minimum Investment – $0
Investments Offered – Stocks, bonds, ETFs, mutual funds, options, FOREX, and futures
Account Offered – Individual and joint taxable accounts; traditional, Roth and rollover IRAs
Fees – $0 for stocks, ETFs, and options (+ $0.65 per contract fee); $49.99 per trade on no-load mutual funds
#3 Robinhood
Robinhood is a commission-free online stock broker that offers a wide range of investment options, including stocks, options, and ETFs. The company also offers a mobile app and 24/7 customer support.
Features –
Minimum Investment – $0
Investments Offered – Stocks, ETFs, options, and cryptocurrencies
Account Offered – Individual taxable investment accounts only
Fees – $0 for stocks or ETFs; no commissions or contract fees on options
This is best for Account Funding for Beginners, and Runner-up.
#4 Stash
Stash Investment App for beginners. Stash provides individual brokerage accounts, and traditional and Roth IRAs. Stash is best for automatic investment and portfolio management.
Features –
Minimum Investment – $0 to open, $5 to invest
Investments Offered – Stocks & ETFs
Account Offered – Individual brokerage accounts, traditional and Roth IRAs, and custodial accounts
Fees – $1/mo. Beginner plan, $3/mo. Growth plan, $9/mo. for Family plan
#5 M1 Finance
M1 Finance is among the top online stock brokerage firms. M1 Finance offers a robo-advisory investment platform with brokerage accounts, digital checking accounts, and lines of credit.
Features –
Minimum Investment – $0 to open, $100 to invest
Investments Offered – Individual stocks and ETFs
Account Offered – Individual and joint taxable investment accounts; traditional, Roth, rollover, and SEP IRAs
Fees – $0 for management, $0 for trades
M1 Finance is one of the best trading platforms for a beginner.
In addition to the above list, you can also evaluate Fidelity, E-Trade, ZacksTrade & First Trade for online stock brokers.
Before deciding on an online stock broker, do your own research and compare the different options available to you, as each has its own fees, investment options, and research tools. Additionally, make sure you understand the risks of investing in stocks before you start.
