Best Online Brokers for Beginners

We evaluated brokerages based on over 55 categories, like fees and costs We researched 35 financial institutions that offer brokerage accounts suitable for beginners. For each institution, we evaluated more than 55 data points. This helped us understand each brokerage profile and its available features. For newer investors, cost can often be a key consideration when choosing a brokerage, so we weighted trading costs, fees and account minimums heavily. The ability to trade a range of assets, including mutual funds and fractional shares, is also important for beginning investors, as well as the features a brokerage offers to make trading easier. We assessed data points on a scale from 0.00 to 1.00. The highest raw score was adjusted to correspond to a 5-star rating as the maximum possible score. Consumer Sentiment Index (CSI) (15%) The Consumer Sentiment Index (CSI) uses a proprietary weighting system developed by our subject matter experts. It analyzes thousands of consumer reviews and insights from leading online forums and review platforms to measure overall customer satisfaction and user experience. Trading Costs (15%) We evaluated the range of trading costs that can impact investor returns, including stock and ETF commission fees, options contract fees, broker-assisted trading charges and over-the-counter (OTC) stock fees. Features (15%) Brokerage platform tools and usability can significantly affect the investing experience. We assessed features such as mobile and web functionality, paper trading, customizable screeners, price alerts, portfolio tracking tools and extended trading hours. Investment Offerings (14%) We reviewed the breadth of available investment products, including stocks, exchange-traded funds (ETFs), mutual funds, options, cryptocurrency, bonds and fractional shares, to determine how well each brokerage supports diversified investing strategies. Advisory Services and Fees (15%) This category evaluates the availability and quality of advisory offerings, including robo-advisors, automated portfolio management, financial planning tools and traditional advisory services. We examined account-related fees that may affect accessibility and long-term value, including inactivity fees, account transfer or closure fees and minimum deposit requirements for opening an account. Education and Research (6%) We assessed the educational resources and market research tools available to investors, including webinars, articles, tutorials, third-party analysis and proprietary research reports. Insurance (6%) We evaluated whether brokerages provide additional protections beyond standard FDIC and SIPC coverage, including excess insurance policies designed to safeguard client assets. Customer Service (6%) Strong customer support is especially important for newer investors. We reviewed service availability and support quality across channels such as live chat, phone, email and 24/7 assistance. New Customer Bonus (5%) This category considers promotional offers available to new customers, including cash bonuses, free trades and deposit incentives. Margin Rate and Idle Cash (3%) We evaluated the competitiveness of margin borrowing rates as well as the interest brokerages pay on uninvested cash balances held in customer accounts.