5 Top Online Stock Brokers for Beginners

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.