Choosing an online stock broker can be an intimidating process, but it’s an important first step in your investing journey and can help you build substantial wealth over time. While the task of choosing a broker can be daunting, especially when stocks are highly volatile, it’s actually quite simple to get started.
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Are you taking your first steps into the investing world and feeling overwhelmed by all the broker options out there? I totally get it! When I first started investing, I spent weeks researching different platforms before taking the plunge. To save you that headache, I’ve compiled this comprehensive guide to the best brokers for beginners in 2025.
Top Brokers for Beginner Investors in 2025
If you’re new to investing, you’ll want a broker that offers educational resources, an intuitive platform, commission-free trades, and low minimum requirements. Here’s my breakdown of the best options available
Fidelity – Best Overall for Beginners
Fidelity stands out as perhaps the most investor-friendly broker making it my top recommendation for beginners. Here’s why
- Fee structure: $0 commission on stocks, ETFs, and options trades
- Account minimum: $0
- Standout features:
- “Stocks by the Slice” fractional shares starting at just $1
- Exceptional customer service (especially by phone)
- Comprehensive educational resources including webinars
- Deep research tools and reports
- High-quality mobile app
Fidelity truly offers the complete package for new investors, with remarkable customer service and educational content that helps you understand investment fundamentals.
Robinhood – Best for a Seamless Platform
Robinhood has become super popular with younger investors, and for good reason:
- Fee structure: $0 commission on stocks, ETFs, and options
- Account minimum: $0
- Standout features:
- Incredibly user-friendly mobile app
- Fractional shares available
- Cryptocurrency trading
- 24/7 chat support
- Phone support from 7 a.m. to 9 p.m. ET
Robinhood makes investing fun and accessible. If you get frustrated with clunky, outdated platforms, Robinhood’s clean interface might be perfect for you. However, it does lack some of the educational resources that other brokers offer.
SoFi Active Investing – Best for Advisor Access
SoFi is unique in providing actual advisor access to beginners:
- Fee structure: $0 per trade
- Account minimum: $0
- Standout features:
- Free meeting with a financial advisor (unlimited meetings for SoFi+ members)
- Fractional shares available
- IPO access
- One-stop shop for various financial products
- 1% IRA match for members
For beginners who want guidance from a real human professional without paying premium fees, SoFi is an excellent choice. Most other brokers charge hefty fees for this level of service.
Charles Schwab – Best for Paper Trading
Schwab is a well-established broker with features that grow with you:
- Fee structure: $0 per online equity trade
- Account minimum: $0
- Standout features:
- Paper trading platform (practice with virtual money)
- Multiple trading platforms with no minimums
- “Stock Slices” fractional shares starting at $5
- Extensive research offerings
- Large fund selection
The paper trading option is particularly valuable for beginners who want to practice investing strategies without risking real money. Schwab’s platforms are sophisticated enough to satisfy you as your skills advance.
Vanguard – Best for Index Funds and ETFs
Vanguard has long been the go-to for retirement-focused investors:
- Fee structure: $0 per trade
- Account minimum: $0
- Standout features:
- Industry leader in low-cost index and exchange-traded funds
- High interest rate on uninvested cash
- Well-established fund lineup
- High order execution quality
If your investment strategy focuses on low-cost, long-term index fund investing, Vanguard is hard to beat. However, their trading platform is more basic compared to competitors, so active traders might want to look elsewhere.
J.P. Morgan Self-Directed Investing – Best for In-Person Support
J.P. Morgan combines modern online tools with traditional banking accessibility:
- Fee structure: $0 per trade
- Account minimum: $0
- Standout features:
- In-person customer support at Chase branches
- Easy-to-use platform
- App connects all Chase accounts
- Portfolio Builder tool for creating diversified portfolios
If you value face-to-face interaction when you have questions, J.P. Morgan’s branch network provides an advantage that purely online brokers can’t match.
How to Choose the Right Broker for You
Picking the perfect broker isn’t just about finding the cheapest option. Here’s what to consider:
1. Define Your Investing Goals
Are you saving for retirement? Looking to generate additional income? Wanting to experiment with active trading? Your goals will influence which broker is best for you:
- For retirement focus: Fidelity or Vanguard excel
- For active trading: Charles Schwab or Robinhood
- For comprehensive financial planning: SoFi or J.P. Morgan
2. Consider Your Investment Style
Different brokers cater to different investment approaches:
- Index fund investors: Vanguard is the clear leader
- Stock pickers: Fidelity or Charles Schwab offer excellent research
- New traders wanting guidance: SoFi’s advisor access is invaluable
3. Evaluate Educational Resources
As a beginner, educational tools are crucial. Look for:
- Articles and guides: All the recommended brokers offer these
- Webinars and videos: Fidelity and Charles Schwab excel here
- Interactive tools: M1 Finance’s visual “pie” approach helps understand allocation
- Paper trading: Charles Schwab lets you practice without risk
4. Check Account Minimums and Fees
While most modern brokers have eliminated commissions on standard trades, watch for:
- Account minimums: All our recommended brokers have $0 minimums
- Hidden fees: Transfer fees, inactivity fees, or paper statement fees
- Mutual fund transaction fees: Can vary widely between brokers
How Do I Open a Brokerage Account?
Opening an account is simpler than you might think:
- Choose your broker from the options above
- Gather your info: You’ll need your Social Security number, address, employment details, and banking info
- Complete the application: This typically takes 10-15 minutes online
- Fund your account: Most brokers allow transfers from your bank
- Start investing: Once funds are available, you can begin building your portfolio
Common Questions from Beginners
How Much Money Do I Need to Start Investing?
Thanks to fractional shares and $0 account minimums, you can literally start with just a few dollars! I recommend starting with whatever you can comfortably afford, even if it’s just $50 or $100 per month. Consistency matters more than the initial amount.
Is My Money Safe with an Online Broker?
Yes! Legitimate brokers are members of the Securities Investor Protection Corporation (SIPC), which protects your securities up to $500,000 (including $250,000 in cash) if the brokerage firm fails.
This protection doesn’t cover investment losses from market fluctuations, but it does protect against broker insolvency. All the brokers on our list maintain SIPC protection.
Can I Withdraw My Money Anytime?
Absolutely! Unlike retirement accounts, regular brokerage accounts allow you to withdraw funds whenever you want. However, the process typically takes a few days:
- Sell investments to convert to cash (if needed)
- Transfer cash to your linked bank account (usually 2-3 business days)
Just remember that selling investments may trigger taxable events, and money you’ll need soon shouldn’t be invested in volatile assets like stocks in the first place.
My Personal Recommendation
After reviewing all these options, if I had to recommend just one broker for absolute beginners, I’d choose Fidelity. Their combination of educational resources, fractional shares, zero fees, and exceptional customer service creates the perfect environment for learning the investing ropes.
However, if you’re specifically looking for the simplest user experience, Robinhood might be your best bet. And if having access to a financial advisor is important to you, SoFi offers incredible value.
Final Thoughts
Starting your investing journey is one of the best financial decisions you can make. Even small, consistent contributions can grow substantially over time thanks to compound interest.
Don’t get paralyzed by trying to find the “perfect” broker – any of the options on this list will serve you well as a beginner. The most important thing is to start investing as soon as possible, even if you’re starting small.
Other Options: Top robo-advisors
If getting started investing in individual stocks or ETFs feels too daunting and you want a low-cost option that manages a portfolio of investments for you, then a robo-advisor is a great option. A robo-advisor will create a portfolio based on your risk tolerance and time horizon, and you’ll pay a low management fee based on how much you have in the account. And it still takes only a few minutes to get started.
How much should you start with in a brokerage account?
If you have disposable income remaining after paying your expenses each month, you can start slowly contributing your savings into a brokerage account.
It’s best to start off with what you can afford, regardless of how small, and then start gradually increasing your contributions as you’re able to do so.
Remember that investing is a game best played long, and accrued interest is still accrued interest regardless of how small the principal. Investing just $50 or $100 (consistently) a month can make a big difference several years down the line. Plus, many brokers let customers buy fractional shares of stocks and ETFs for as little as $1, which allows you to instantly get your money invested.