How to Buy and Sell Shares Online for Your Account
Ready to start investing but not sure where to start? We'll help you get started with a list of the best online stockbrokers for beginners. We know that everyone's financial situation and goals are different, so we have carefully selected a variety of brokers to help you find the one that suits your needs.
We also have a guide explaining what to look for in a stockbroker, where to buy stocks, and some terms you need to familiarize yourself with when looking for the best stock trading platform for beginners.
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How to Choose the Best Online Stock Broker for Beginners
There is no perfect broker for everyone, but here are some important factors to consider when looking for a beginner stockbroker.
Cost structure: For beginners, the best brokers don't charge commissions for online stock and ETF trading (which is what beginners typically focus on) - but many brokers charge commissions or fees for more complicated steps, Such as trading options, mutual funds, and other products.
Minimum Account: Some stockbrokers require a minimum deposit to open an account, ranging from $5 to $500, while others don't require it at all. We focus our selection on brokers that do not have a minimum account. These low barriers to entry into the broker allow anyone to start investing, even without a lot of capital.
Fund varieties: Picking individual stocks is not suitable for everyone, especially beginners. The best stock brokers for beginners offer low-cost exchange-traded funds and free mutual funds to help you make smart investments without much stock market knowledge.
Account Options: In the Stockbroker section, you can choose between a cash account and a margin account:
Cash Account: You can only use the funds in your account.
Margin Account: You can borrow money from a broker to invest. However, margin trading is risky and generally not a good idea for beginners.
Read: Brokerage Account
Features and Support: If you just want to put your recurring money into low-cost ETFs and grow your money, then you probably just need a neat investing app. If you're interested in taking your investing to the next level and learning how to pick individual stocks and take control of your portfolio, look for a platform packed with educational resources, research, news, and customer support to help you make informed decisions along the way Your progress - and offers more advanced trading features that you can use as your knowledge grows.
Research: Many of the best stockbrokers for beginners offer research opportunities so you can learn more about market sectors as well as individual stocks, ETFs, and mutual funds.
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News: Some beginner stock trading platforms provide news updates so you can keep track of company and stock market events.
Customer Support: You should be able to pick up the phone and speak to a live person who can help you with any issues that arise.
Educational resources: If you are new to investing, you may not be familiar with the key terms needed to manage your account. If you don't know what a mutual fund is, you probably shouldn't buy one. Many beginner stockbrokers have an educational resources section with information that can help you learn more about investing and gain confidence.