Just by doing a search for “best discount broker for beginners”, you have taken a very important step in your journey. Choosing a broker is one of the most crucial decisions you can make in the investment world, especially if you are interested in stocks.
Today, most of the people turn to online discount brokers. The problem with most of these types of services is that they are usually not “full service” and require the merchants to do most of the work themselves. What you should look for is a brokerage firm that offers educational tools and resources to beginners so you can teach yourself as you go.
Don’t think that the best discount brokers are the ones that offer the lowest rates. What kinds of services come with those rates? Do you receive educational resources? Software? Instruments? Are there any miscellaneous fees that will cost you in the long run? Like an inactivity fee? How is the customer service?
What is the best discount broker for beginners?
Here are some companies you’ll want to start your search with for the best discount broker for beginners:
• TD Ameritrade – As of now, many people consider TD Ameritrade to be the best overall for beginners. However, it will soon be acquired by Charles Schwab, so we hope its ease of use and great tools will continue through the acquisition. It has a very user-friendly website, numerous monthly webinars, free premium courses, etc.
• E-Trade – This is a popular online broker that caters to both active traders and long-term traders. There are quite useful features that make E-Trade beneficial for beginners too, such as a managed portfolio service, which comes with a fee, but it is worth it.
• Loyalty – $0 commissions, a great mobile app, and superior research come together in one simple platform with this service. It is the best discount broker for beginners who do not have a lot of money to fund a new account. You can invest in mutual funds with little money and do it all easily with the mobile app.
• IBKR Lite (Interactive Brokers) – The “Lite” option is an easy way for beginners to trade in the US and many other countries. There are commission-free transactions in EFT and US-traded stocks. There are no inactivity fees to worry about, and no account minimums.
• Zacks Trade – This is probably the best discount broker for beginners interested in active trading. It is useful if you already have some knowledge about day trading and foreign stock exchanges. There are plenty of resources and learning materials to help you with your decision making.
