Top 6 Best online stock brokers for beginners in 2021

Are you a new investor looking for the best stock brokers to work with? Have you been searching for a full-featured trading platform to help you through your investment journey? Do you need a simple and user-friendly platform to work with? Or are you looking for a platform that offers educational resources and customer support to guide you through your investment journey? I can hear some big Yes across the hall. In this best online stock brokers for beginner's guide, I will give you answers to all these questions.

But first, you have to note that there is no one-size-fits-all stockbroker. So, "best" can be different for everyone. For this reason, our research team has spent countless hours burning the midnight oil just to ensure that we give you the best of the best. But even before we delve deep into the nitty-gritty details of the best online stock brokers for beginners, it is crucial that we start by explaining what a stockbroker is.

What are Stockbrokers?

A stockbroker refers to a trading platform entrusted with facilitating the purchase and sale of stocks, exchange-traded funds (ETFs), and other securities via the stock market exchanges. Long ago, individuals could only invest in securities by hiring a stockbroker to place the trades on their behalf. However, this posed challenges to investors as there were a lot of costly transactions that were involved. It would also take time since it would require communications that took place via landline telephones.

Fast-forward, and thanks to the internet connectivity, things are done online, in a fraction of a second, and at relatively low costs than the traditional ways. All you need to invest today is to open a brokerage account. A brokerage account refers to a special financial account specifically meant to hold your cash and investments.

Whenever you want to buy the stocks for a particular company, all you will need is to create a specialized brokerage account, and this is where the following stockbrokers come into play.

Best Stock Brokers for Beginners

The decision to invest in stocks is a lucrative yet challenging one. You need an excellent broker that will guide you through your investing journey. Although the following stockbrokers are best for beginners, experienced traders can also find them effective to help in furthering their investment journies.

1.     TD Ameritrade

The first great option for the newbies is the TD Ameritrade. It had to come top on this list because it is the most resourceful stockbroker. It provides adequate information and education that will help to guide beginners in the world of investments. The newbies can leverage all kinds of educational resources that the stockbroker offers. The educational resources provided by TD Ameritrade include over two hundred video tutorials and written materials.

Additionally, TD Ameritrade has made it easy for investors to consult their support team. It does not matter the kind of information or question that you will be seeking an answer for. Whether they are "too basic" or relevant, you can always count on TD Ameritrade to provide the answers you seek. What is even more exciting about TD Ameritrade is the fact that you can freely interact with brands on social media platforms such as Facebook and Amazon Alexa devices.

TD Ameritrade offers flexibility through their two mobile applications, TD Ameritrade Mobile and TD Ameritrade mobile trader, which gives you much more trading ability wherever you are.

Cost per stock/ETF trade: $0

Minimum balance to open an account: $0

2.     E-Trade Financial

E-Trade Financial is arguably the best stock broker we have today. Experts consider it the pioneer of online brokerage. It is a great stockbroker that beginners can find compelling throughout their investment journey. It has two mobile applications that will allow you to trade from wherever.

One of their applications is referred to as E-Trade mobile app. It allows the traders to move money using their mobile check deposits, which is a good thing considering the convenience that comes with it. You can also use the E-Trade mobile app to track the market of trading stocks and exchange-traded funds (ETFs).

Another vital app that E-Trade offers is the Power E-Trade. This application is essential because it allows users to enter orders, including complex options trades, using one ticket. Additionally, using the app will enable you to enjoy insightful quotes, the latest news about stocks, and customizable options chains.

One of the things that makes E-Trade important to beginners is that it offers educational materials that will guide the investors throughout their trading journey. Some of the valuable resources that beginners will find helpful include video tutorials, written articles, and live education sessions.

Cost per stock/ETF trade: $0

Minimum balance to open an account: $0

 3.     Ally Invest

Ally Invest is a novel stockbroker, but one that beginners will find compelling. It was launched a few years ago after it successfully absorbed TradeKing. It is the best stock broker for those who already have accounts with Ally bank and would wish to dip their toes in stock investing.

They have a mobile application that you can access using your smartphone. You can use the mobile application to get quotes and make trades. Those who hold accounts with Ally bank will find it even more convenient because they can quickly move funds between their bank accounts and their brokerage accounts.

Moreover, they also offer resourceful materials and tutorials that new stock investors will find enlightening. The most exciting thing about these materials is that they are structured in a charming manner. For instance, you will find a topic like "What mutual funds and Pizza have in common" quite enthralling.

Cost per stock/ETF trade: $0

Minimum balance to open an account: $0

4.     Merrill Edge

Merrill Edge is owned by the bank of America. It is another great stockbroker that new investors will find convenient. Customers for the Bank of America will find it an ideal option because they can easily and freely move their funds between their bank accounts and their brokerage accounts. It is also easy to find a Merrill advisor in over 2000 locations for the bank of America.

They have a mobile application that makes trading easy. Their customer support staff will also provide you with full-time guidance to help you make informed trading decisions. Their wealth of informative materials will also help to bring you to speed with stock investing.

Cost per stock/ETF trade: $0

Minimum balance to open an account: $0

5.     Charles Schwab

Charles Schwab is popular because it is the most original discount stockbroker. It has quickly emerged as one of the best online stock brokers of our time because of its ease of use and the use-friendly advantages that it brings forth.  

It is one of the best stock brokers for beginners because of the educational materials that it offers to its users. Such materials include Morningstar reports and news about stocks. Such materials will guide you into finding the ideal stocks. The educational materials are necessary because they will enlighten you on some of the basics of good stock investing. They also have a mobile application that allows you to trade virtually. But the most significant advantage for using this stock broker for beginners is that they stand a chance to receive up to a $1,000 bonus with a qualifying deposit and a referral code from a friend.

Cost per stock/ETF trade: $0

Minimum balance to open an account: $0

6.     Fidelity Investments

Fidelity investments is arguably one of the most user-friendly stock brokers available, making it another ideal option for beginners. The stockbroker strives to give users their best. They are characterized by excellent customer service. The support team is dedicated to ensuring that they offer solutions and answers to customers' questions within the shortest time possible.

The research reports and valuable educational materials they offer are pretty informative. As such, users are sure to get all the details they need to start investing. Traders can also acquire knowledge by attending webinars or viewing recorded ones that cover all details related to investing that a trader requires to know.

With Fidelity Investments, you become well-equipped to start investing within no time. They also have an easy-to-navigate website, making it easy for users to find whatever they are looking for within the shortest time possible. If you are a newbie looking for a convenient and user-friendly stockbroker, why not try out fidelity investments?

Cost per stock/ETF trade: $0

Minimum balance to open an account: $0

Conclusion

You do not need a lot of money to start investing in stocks. Most of the stockbrokers mentioned above offer account minimums of between $0 to $500. Therefore, it is easy for anyone to become a trader. Additionally, you do not have to be an experienced trader to start investing because these stock brokers will offer you the support and educational materials you require to start trading.