Best Online Stock Broker for Beginners

Read our Advertiser Disclosure.
Contributor, Benzinga
Updated: January 13, 2023

Benzinga readers can try Magnifi FREE for 90 days. Code: BENZINGA90

Though many beginner stock investors believe that they need to have millions of dollars to get started in the stock market, the truth is that most platforms now allow you to get started buying and selling shares with only a few dollars. Plenty of stock brokers make the process of getting involved in the market easier and less intimidating for beginners. To make the best investments, you need to know the best online stock broker for beginners. The following brokers offer affordable trading, straightforward platforms and low account minimums for new investors. 

BZ

Quick look: Best Stock Brokers for Beginners

10 Best Online Stock Brokers for Beginners

A number of stock brokers for beginners specialize in helping you learn about the market. The following brokers are particularly easy to use, which is why they’re recommended as the best stock brokers for beginners. 

1. Interactive Brokers

Interactive Brokers is an international investing platform that allows you to trade assets on 135 unique global markets. If this international access is too overwhelming, know that Interactive Brokers Group Inc. (NASDAQ: IBKR) also offers unique assets not seen with many other platforms — like municipal bonds and metals. Despite all these features, Interactive Brokers still maintains a $0 account minimum, and most traders won’t pay a commission on their trades.

Though Interactive Broker’s platform isn’t as straightforward as the other options on this list, it can be a viable option if you have a bit of trading experience but you’ve been out of the market for a while. Interactive Brokers’ mobile app is also easily customizable, which can make for a better trading experience as you develop a strategy. 

  • IBKR ETF
    More Details
    Best For
    Active and Global Traders
    Overall Rating
    Read Review
    securely through IBKR ETF's website
    More Details

2. Webull

Webull is a trading app designed to offer frequent traders an affordable method to buy and sell multiple times a day. If you’ve ever been interested in day trading, Webull can be a good choice thanks to its $0 commissions, 24/7 cryptocurrency trading and around-the-clock customer service.

Webull also offers trading resources aimed at beginners. You can access a course on day trading directly through the platform and immediately put what you’ve learned into use. Webull even offers a trading simulator, which is similar to a demo account that you can practice trading on. This feature allows you to test a new strategy and learn more about Webull’s tools in a hands-on capacity.  

  • Webull
    More Details
    Best For
    Intermediate Traders and Investors
    Overall Rating
    Read Review
    securely through Webull's app
    More Details

3. Robinhood

2021-Fintech-Awards-Winner-Badge-2

One of the first brokerages to get rid of trading fees, Robinhood remains a strong choice for new investors entering the market for the first time. The broker’s platform was designed with the beginner in mind — you’ll find all of your trading tools clearly labeled, and you can open your account in just 5 minutes.

When an order is filled on Robinhood Markets Inc. (NASDAQ: HOOD), you’ll receive a notification in your app and options to learn more about what to do next. Many of Robinhood’s features also come with instructions that can be a major benefit to the new trader. For example, when you place a buy order, Robinhood’s app offers a short explanation of each type of order and the conditions under which it will execute. 

  • Robinhood
    More Details
    Promotion
    Refer friends and get FREE stock
    Overall Rating
    Read Review
    securely through Robinhood's website
    More Details

4. Magnifi

Magnifi is a marketplace that allows you, as the investor, to use common brokerage tools and AI to make the best decisions for your portfolio. Because you can pull up all the information you need on a given asset, you can easily invest in the assets that will give you the results you deserve and better match your strategy. This makes it easier for beginners to learn how the market works, which assets to target and how the market moves based on current events and conditions.

Search for the investment options that meet your needs, invest in specific categories or scan for assets in a price range that’s affordable for you.

Best for long-term investors and those who require a bit of client support, you can also learn more about investing from this platform, utilize the AI-powered investing assistant, enjoy commission-free investing, try the mobile app and take advantage of over 15,000 possible investment options. This makes Magnifi a good place to trade for both seasoned and novice traders.

  • Magnifi
    More Details
    Best For
    Long Term Investors
    Overall Rating
    Read Review
    securely through Magnifi's website
    More Details

5. eToro

Though eToro began as a cryptocurrency trading platform, the broker has recently introduced stock and exchange-traded fund (ETF) trading in January of 2022. eToro’s pricing is exceptionally fast, providing you with up-to-the-minute information on what every asset currently costs. The platform’s buy-order process is also quick and intuitive, which can be a major benefit for new investors.

eToro also offers a social media-like dashboard that allows you to interact with other traders and investors and see which assets they’re talking about. The platform also regularly offers cryptocurrency benefits for users joining for the first time.

  • eToro Stocks
    More Details
    Best For
    Demo Accounts
    Overall Rating
    Read Review
    securely through eToro Stocks's website
    More Details

    Benzinga is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.

6. moomoo

moomoo is another straightforward platform that many consider to be a viable alternative to Robinhood. With moomoo, you can access free stock reports and market monitoring tools from a mobile or desktop platform. It also offers access to trading on multiple international markets in Hong Kong and China, so you can diversify your portfolio all from a single app.

Moomoo also boasts an impressive social media community, with more than 100,000 in-app users commenting, tagging posts and running polls. This feature gives the beginner investor a casual place to chat with more experienced users and learn more about investing. moomoo also offers a demo account that allows you to practice trading without risking any money. 

  • Moomoo
    More Details
    Best For
    Active Traders
    Overall Rating
    Read Review
    securely through Moomoo's website
    More Details

7. Public.com

Public.com is the only investing platform that lets you buy, sell, and hold stocks and ETFs alongside crypto and alternative assets—like art and collectibles. There are no account minimums, and all accounts are cash accounts—no IRA or 401(k)s at this time—which makes for simpler investing and easier decision-making. 

For every stock or ETF you want to buy, you can see all the information for that asset, a chart that tracks its trajectory, and historical data that allows you to learn and understand trends. This can also include access to advanced data, custom company metrics, and expert analyst insights through their Public Premium membership. It’s all about helping you be a better investor. Public even has a social feed to help you exchange ideas and opportunities with their active community of over one million investors.

If you’re a new investor, you can choose to build your portfolio around different themes—from Green Power to Meatless Revolution, Reduce and Reuse, Water Works, Cannabiz, and Self-driving cars. They also have a ton of educational resources if you’d like to understand more about the markets and what makes them move. Just remember to only spend money you’re comfortable losing if some of those investments don’t work out.

  • public.com
    More Details
    Best For
    Trading Ideas
    Overall Rating
    Read Review
    securely through public.com's website
    More Details

8. SoFi

If you have a mortgage loan, you might already be familiar with SoFi — but did you know that this popular choice for homeowners offers investment opportunities as well? SoFi Wealth gives you access to a wide range of both taxable and retirement accounts. Though you’ll need at least $500 to open an account with SoFi Technologies Inc. (NASDAQ: SOFI), the platform also provides you with access to advisors who can help you adjust the way you invest.

SoFi is particularly beneficial to passive investors thanks to its robot-advising services. Answer a few questions about your plan for retirement and your investing preferences, and SoFi will construct a custom portfolio that divides your assets according to your risk tolerance. Each time you make a deposit, SoFi’s system will handle the distribution. 

  • SoFi Active Invest (Brokerage)
    More Details
    Best For
    IPO Investing
    Overall Rating
    Read Review
    securely through SoFi Active Invest (Brokerage)'s website
    More Details

9. E*TRADE

2021-Fintech-Awards-Listmaker-Badge-2

E*TRADE has the tools and platforms to help beginners invest like professionals.

You'll be connected on all platforms as E*TRADE also has an excellent mobile app, and you can count on their customer service to always be there when you need it.

  • ETrade
    More Details
    Promotion
    Deposit or transfer $5,000 to get $100 back
    Overall Rating
    Read Review
    securely through ETrade's website
    More Details

10. Axos Invest

Look at Axos Invest is a good way to move into the automated trading arena instead of managing everything yourself. When you choose Axos Invest, you select the strategy you prefer, and the platform does all the work. You pay a 0.24% fee, and you can use the quick deposit feature at any time. There’s also selective trading and tax-loss support so that you can save as much money as possible.

If you prefer, you can also open a checking account or high-yield savings account if you want all your money to be managed in one place.

  • WiseBanyan
    More Details
    Best For
    Sign Up Bonus
    Overall Rating
    Read Review
    securely through WiseBanyan's website
    More Details

11. TradeZero

TradeZero is an online platform with free trading options, a powerful mobile app and 24/7 customer service. You can use the platform for free, or you can step up to ZeroPro or ZeroWeb depending on your preferred mode of investment for a reasonable monthly fee.

  • TradeZero
    More Details
    Best For
    Overall Global Broker for Short Selling
    Overall Rating
    Read Review
    securely through TradeZero's website
    More Details

What Should an Online Broker for Beginners Do?

As you hunt for the best online stock broker for a novice—such as yourself—remember that the broker must make your life easy. If you feel confused or overwhelmed, you might be in the wrong place. To that end, the best stock brokers for beginners tend to:

  • Almost oversimplify the interface: This ensures that you know what’s happening, how and why.
  • Offer educational content: A stock broker built for beginners should educate you about the markets, stocks, why to invest, when to invest, etc. You need to learn as much as you can to make investing fruitful. Moreover, you should seek out platforms that allow you to copy popular investors, try a demo account, watch videos or even take investing classes.
  • Feature impeccable customer service: The best stock brokers—irrespective of their focus—should feature impeccable and accessible customer service. Live chat, phone numbers, emails and even a physical address help you reach out to the broker effectively.
  • Offer a diverse collection of assets: As you learn to invest, you want to see a diverse asset selection that allows you to make investments that are appropriate for you. Stocks, crypto, ETFs, options, futures, etc. should be featured. Yes, a beginner shouldn’t be investing in futures or options, but you can better grow with a broker that has all the financial instruments you want as you gain confidence and build your portfolio.

Why Do Beginners Need Quality Brokers?

Online brokers specializing in beginner investing can make the sometimes-confusing stock market easier to master. You’ll want to look for a broker that offers a straightforward account process and makes it easy to buy and sell assets. You’ll also want to choose a broker with a clean, uncluttered interface that allows you to instantly see how your assets are changing in value over time. Most brokers also offer educational tools that you can use to learn more about the market before you jump into trading. 

Assets for Beginners to Avoid

Not every asset is equally as suitable for beginner investors. The following are a few assets you’ll likely want to avoid investing in until you’re confident in your understanding of the market. 

  • Options: Options contracts are assets that give you the right or the responsibility to buy or sell a set number of stocks at a specified price in the future. Multiple types of options contracts exist, and most options expire worthless, which makes them less suitable for beginners.
  • Forex: The word “forex” is short for “foreign exchange.” Forex trading involves the buying and selling of currencies, strategically converting them to profit from the fluctuating value of the world’s currencies. Forex trading requires a high level of technical analysis as well as margin usage, which makes it a risky choice for beginners.
  • Individual stocks: While there’s nothing wrong with a beginner buying individual stocks, you should avoid putting all or a majority of your investing funds into a single company. Any stock on the market has the potential to drop in value, which means that you can lose money on any stock. Diversifying your portfolio with multiple stocks, bonds and funds can help you protect your investment. 

What to Look for in a Quality Stock Broker for Beginners

Making the right choice for a stock broker takes some insight into what to look for. Here are the top factors to look for in stock brokers for beginners.

Educational Tools

The best stockbrokers want to make it easy for you to learn more about the market. Look for a broker that offers free demonstrations, video guides and articles to help you learn as much as possible. 

Simple Interface

Some brokers offer a wide variety of charting and analysis tools while others focus on providing a clean, straightforward interface. While you may want to upgrade to a platform with more analysis tools in the future, you’ll want to look for a broker that offers an easy-to-navigate interface with clearly marked tools. If possible, you may want to take a look at a few platform reviews on YouTube before you open an account to be sure that the broker offers a usable interface. 

Quality Customer Service

If you run into a problem with your account, the last thing you’ll want to deal with is an unresponsive customer service team. Look for a broker that offers multiple methods that you can use to get in touch with their customer service professionals. If you work during the standard 9-to-5 hours, you may also want to look for a broker that offers extended customer service phone hours so you can contact them when you’re off. 

Diverse Assets

Diversifying your assets means investing in multiple types of assets to limit your loss in the event that a specific asset decreases in value. Look for a stockbroker that offers access to multiple asset classes (like stocks, cryptocurrencies and funds) to make diversification easier. 

Opening Your First Brokerage Account

Opening a brokerage account shouldn’t be confusing. If you run into trouble opening your brokerage account, don’t be afraid to contact your brokerage’s customer service. And feel confident that this guide to the best stock brokers for beginners will help you make better traders.

After your first account is open, be sure to return to Benzinga’s money section to learn more about investing strategies, different types of accounts that you can use to save and trending assets that you add to your portfolio. 

Frequently Asked Questions

Q

Is Robinhood good for beginners?

A

Robinhood can be a great option for beginner investors thanks to its straightforward platform and low account minimum — you can begin investing through Robinhood with as little as $5 in your account. Though Robinhood offers only a limited selection of cryptocurrencies, the brokerage allows you to purchase nearly any stock or ETF trading on the major American markets. 

Q

How do beginners buy stocks?

A

As a beginner, your first step to buying and selling shares of stock is to open an account with a broker. After opening your brokerage account and adding funding, you can buy shares of stock directly on your broker’s platform. The broker will carry out your orders on your behalf and deposit them into your account.  

Q

What should beginners look for in a quality stock broker?

A

Three things that beginners should look for in a quaity stock broker are education resources, good customer service, and an interface that is easy to use.