7 Best Online Stock Brokers and Trading Platform for Beginners in USA 2024 (Rewiews + Pros and Cons)
What are stock brokers?
Stock brokers are people or firms licensed to buy and sell stocks and other securities via the stock market exchanges. In the past, the only way for individuals to invest directly in stocks was to hire a stockbroker to trade on their behalf. However, the clumsy, expensive transactions that used to be done via landline phones can now be completed online in a few seconds, and this is only a fraction of the service fees previously charged by full-service brokers. Today, most investors trade through online brokerage accounts.
Best Online Stock Trading Platform For Beginners
1、TD Ameritrade - Best overall for beginners
Review：TD Ameritrade is a full-service brokerage firm. It's a fixture in the investment space, with its predecessor firm, First Omaha Securities, Inc., first opening for business in 1975.
TD Ameritrade requires a $0 minimum investment and delivers standout features, including extensive - and free - research and data, portfolio-building guidance, $0 commissions for stock, options and exchange-traded fund trades and nearly 300 branches for in-person customer support.
Investors have a choice of four trading platforms. Free tools and research and multiple trading platforms aimed at both beginner and advanced traders. If you value DIY (or active) trading, as opposed to passive investing,TD Ameritrade could be a great fit for you. The brokerage offers several trading platforms and investment tools as well as market analysis from Morningstar Investment Management professionals.
tdameritrade.com
Pros:
Free commissions on stock, ETF, and option trades.
No minimum account size requirement.
Large investment selection.
The education offerings are designed to make novice investors more comfortable.
Cons:
Trading platforms can be difficult to navigate.
Some investors may have to use multiple platforms to utilize preferred tools.
Robo-advice and managed portfolios are more expensive.
2、InteractiveBrokers - Best for Advanced Traders
Review：Interactive Brokers is a Connecticut-based brokerage established in 1977. It's recognized for its comprehensive international reach, encompassing more than 135 market destinations globally. Interactive Brokers has long been a popular broker for advanced traders, but in 2019 the company launched a second tier of service - IBKR Lite - for more casual investors.
Interactive Brokers provides two major pricing plans: IBKR Lite, intended for casual traders and beginners, and IBKR Pro, designed for professionals. The former charges no stock, ETF, inactivity, or data fees. Options traders, however, will be charged a $0.65 per contract fee.
The broker also provides copious investment choices, including stocks, bonds, ETFs, options, mutual funds, metals, futures, hedge funds, and Forex. Interactive Brokers currently provides more than 4,300 no-transaction-fee mutual funds.
interactivebrokers.com
Pros:
Volume discount for margin and option trading.
$0 account minimum balance.
No inactivity fee for IBKR Lite users..
Extensive educational material.
Strong research and tools.
Over 4,300 no-transaction-fee mutual funds.
NerdWallet users who sign up for IBKR Pro get a 0.25 percentage point discount on margin rates.
Cons:
Inactivity fee for IBKR Pro users.
Website is difficult to navigate.
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3、E*TRADE - Best Web-based Platform
Review：E*TRADE is a US-based stockbroker founded in 1982. E*TRADE is considered safe because it has a long track record, is listed on a stock exchange, has a banking background, discloses its financials, and is overseen by top-tier US regulators.
E*TRADE offers three computer-based and two mobile platforms that appeal to a range of investing styles and interests. The regular E*TRADE and E*TRADE Pro. The latter is focused on derivatives - options and futures.
E*TRADE excels even outside of its $0 commissions, with superb educational resources, portfolio-building tools and a large mutual fund selection. E*TRADE offers value to both beginner investors and frequent traders with a library of educational resources, professional-level trading platforms, and tools to help assemble a risk-appropriate, balanced portfolio.
etrade.com
Pros:
No commissions on US-listed stocks, options, and exchange-traded funds.
Wide selection of investments available for most accounts.
Thousands of no-load, no-transaction-fee mutual funds available.
Competitive mobile and online offerings for digital investors and traders.
Cons:
Need at least $500 for automated investment management.
Infrequent traders pay more for options contracts.
Investors who would like direct access to international markets or to trade foreign currencies should look elsewhere.
4、Fidelity - Excellent Research and Education
Review：Founded in 1946, Fidelity Investments is based in Boston. With $3.3 trillion assets under management as of June 2020, Fidelity is one of the largest asset managers in the world.
Fidelity earned our top spot for the second year running by offering clients a well-rounded package of investing tools and excellent order executions. It has continued to quietly enhance key pieces of its mobile-responsive website while committing itself to lowering the cost of investing for its clients.
Fidelity is best for low-cost trading, investment research, retirement saving, and advisor access. Fidelity offers $0 trading commissions, a selection of more than 3,400 no-transaction-fee mutual funds and top-notch research tools and trading platform.
fidelity.com
Pros:
No account minimum or account fees.
No commissions for stock, ETF, and options trades; fractional shares available.
Thousands of no-transaction-fee mutual funds and fee-free mutual funds.
Several research tools and trading platforms available.
Fidelity offers a wealth of research and extensive pre-set and customizable asset screeners.
Cons:
Fidelity Go accounts cost more for investors with higher account balances.
Non-U.S. citizens or residents cannot open an account.
Representative-assisted trades are slightly more expensive than other brokerages.
No commodities or options on futures.
5、Merrill Edge - Great Research tools & Best for Customer Service
Review：Merrill Edge is a US-based stockbroker founded in 2010 by Bank of America (BofA). BofA acquired Merrill Lynch during the 2008 financial crisis, and the rationale for launching Merrill Edge was to combine its online investing arm and Merrill Lynch's investment expertise.
Merrill Edge offers $low trading fees, including commission-free stock and ETF trades with industry-leading research tools (especially ESG research) and excellent customer service. The account opening is fast and seamless. Merrill Edge offers US stocks, ETFs, options, and bonds.
Best suited for beginners and intermediate-level long-term investors, this online broker has already welcomed more than 500,000 traders. The broker is considered highly reliable due to the established reputation of its parent company, Bank of America.
merrilledge.com
Pros:
$0 stock and ETF commissions.
Easy and seamless account opening.
Diverse account types offered.
Investment vehicles offered.
Integrated with Bank of America.
Robust third-party research.
Preferred Rewards program.
Cons:
Margin rates are higher than other brokers.
Limited to US clients and products.
No demo account.
Limited options to deposit/withdraw.
6、Charles Schwab: Best for ETFs
Review：Charles Schwab is a US discount broker that was founded in 1971 and is listed on the New York Stock Exchange. It's a full-service investment firm which offers services and technology to everyone from self-directed active traders to people who want the guidance of a financial advisor. Its research is high-quality and covers a lot of tools, including trading ideas and detailed fundamental data. Customer support is fast and gives relevant answers.
It has a wide variety of platforms from which to choose, as well as full banking capabilities. Offering $0 stock and ETF trades, Charles Schwab is one of the least expensive online discount brokers for basic stock and ETF trades. It offers full access to the U.S. equity and options markets as well as 30 international markets. Traders can create a diverse portfolio with $0 commissions and no account minimums.
schwab.com
Pros:
SmartStreet Edge platform is powerful enough for advanced traders, yet easy enough for new traders to utilize.
Wide range of available assets to trade, including futures and 30 global markets.
Commission-free stock, options and ETF trades.
Investing and banking all in one.
Three platforms with no minimum or fees.
Unique educational resources (like infographics and podcasts) make learning fun.
Cons:
Margin rates are more expensive than competitors.
More limitations on available margin than competitors.
Expensive mutual funds.
Only US/Canada markets available.
7、Robinhood - Best for Cryptocurrency and Option Trading
Review：Robinhood Markets is an American financial services company headquartered in Menlo Park, California, known for offering commission-free trades of stocks and exchange-traded funds via a mobile app introduced in March 2015. Robinhood offers commission-free stock, ETF and options trades, a streamlined trading platform and free cryptocurrency trading, and now offers fractional trades and recurring investments for long-term strategies. Besides the brokerage service, Robinhood also introduced Cash Management to help clients earn interest on uninvested funds.
With more than 13 million users with an average age of 31, Robinhood is a marketing phenomenon. They're attracted to the free trading and the streamlined app. Not only is this platform a good fit for active and day traders, but it's also a competitive option for margin traders. You can invest on margin with Robinhood Gold, meaning you'll be borrowing money - or margin loans - from the brokerage to pay for higher-value investments.
robinhood.com
Pros:
No account minimum.
Free US stock and ETF trading.
Can buy and sell cryptocurrency.
Fast and fully digital account opening.
Streamlined, easy-to-understand interface.
Great mobile and web trading platforms.
Cons:
Lack of investing research and trading tools.
Only taxable brokerage accounts available.
No option to open a retirement account,joint accounts, education savings accounts.
No access to mutual funds, forex or futures trading.
Limited customer service.
What You Need to Open a Brokerage Account?
Make sure you have the following details handy when you're ready to start the process:
Name
Address
Date of birth
Social security number (or taxpayer identification number)
Telephone number
E-Mail Address
Driver's license, passport information, or other government-issued identification
Employment status and occupation
Annual income
Net Worth
How to Buy Stocks?
Buying stocks isn't as complicated as it seems, but you'll need to do some research-and learn the lingo - before you make your first investment.
Steps
Select an online stockbroker.
Research the stocks you want to buy.
Decide how many shares to buy.
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