Is this your first time in the stock market?
If your answer is yes, then you’re probably wondering which service providers to trust. Don’t worry. We got you covered! Our list of top brokers for newbies cuts through the noise. It offers a carefully chosen group of brokers with small fees, minimal account minimums, handy learning resources, and exceptional customer service.
When you’re just starting your stock journey, a good broker can be more than just a place to trade. They can serve as a lifelong portfolio co-pilot and a teacher, advisor, and investment analyst while you learn and develop your investing abilities and strategy.
What Are Stock Brokers?
Licensed stockbrokers are individuals or companies authorized to buy and sell securities on the stock market exchanges. Individual investors used to rely on stockbrokers to execute trades on their behalf to make direct stock investments.
However, what used to be a time-consuming and expensive landline phone transaction is now completed in seconds through online brokers. Many online brokerage accounts are now offering commission-free stock trading at a fraction of the cost of full-service brokers.
So let’s get on to our list of top online brokers FOR BEGINNERS as of May 2022.
Charles Schwab
Charles Schwab provides many customer support options, including 24/7 phone, email, and online chat support. Clients can get more assistance in person by visiting a Charles Schwab location. There are over 400 locations, with some even open on Saturdays.
Schwab also provides various educational tools for new investors, both online and in person. Clients can access educational workshops and webcasts, trading events, and a robust knowledge center on the provider’s website.
Customer service at Charles Schwab is rated 4.5 out of 5 stars.
Merrill Edge
Merrill Edge is another online broker that gets high marks in terms of its customer service. Clients have numerous ways to contact the company, including 24/7 phone support, chat, email, and the ability to book an in-person appointment at a nearby Bank of America.
In terms of Merrill’s educational resources, the broker provides top-tier content in various formats, including podcasts, webinars, and a robust content library with over 150 articles. Calculators for retirement planning, investing, and personal finance mapping are among the additional tools that you can take advantage of as well.
Merrill Edge’s customer service options are rated 4.5 out of 5 stars.
Firstrade
Some investors prefer to get support within a specific time. Customers can reach Firstrade customer service by phone or email Monday through Friday from 8 a.m. to 6 p.m. Eastern time. At this time, the broker does not provide 24-hour support or in-person assistance.
New traders have several ways to gain access to educational resources: Firstrade provides instructional videos, primers on fundamental investing strategies and terms, option courses, and a weekly newsletter.
Customer service at Firstrade is rated 3.5 out of 5 stars.
Ally Investment
When it comes to customer service, Ally Invest is on par with competitors. Clients can get help via email, phone, or chat 24 hours a day, seven days a week. At this time, the broker does not provide in-person assistance.
Ally provides some attractive educational benefits. For example, if you prefer to learn visually, the broker offers biweekly digital content on its YouTube channel. There are also live webinars, quarterly digital conferences, and plenty of educational content in articles and blog posts for those who prefer more traditional resources.
Customer service at Ally Invest is rated 4.5 out of 5 stars.
Fidelity
Next on the list is Fidelity.
Hands-on learners will appreciate Fidelity’s extensive human support options. The broker’s customer support network includes phone, chat, and email support 24 hours a day, seven days a week — as well as over 200 branches for in-person assistance.
Fidelity’s educational resources are also notable among competitors. The Online Learning Center offers clients personalized educational materials based on their investment preferences and behavior. In addition, the broker provides dozens of seminars, workshops, and videos for traders to take advantage of.
Customer service at Fidelity: 4.5 out of 5 stars
E*TRADE
E*TRADE’s customer service options consistently receive high marks. Clients have access to phone, email, and chat support 24 hours a day, seven days a week. For those who prefer a more personalized method, the broker has 30 local branches where they can get help in person.
E*TRADE, like other well-known competitors, provides a wealth of educational resources to help new investors get started, such as live and on-demand webinars, Morningstar online courses, and articles on E*TRADE’s Knowledge blog.
Customer service at E*TRADE: 4 out of 5 stars
Interactive Brokers Inc.
Customers can contact Interactive Brokers’ customer service team by phone, email, or live chat 24 hours a day, seven days a week. The broker, like a few others on this list, does not have any physical locations.
Beginner traders have a lot to be excited about when it comes to educational resources, especially if they enjoy guided learning. Interactive Brokers has its own IBKR campus where anyone can take online classes, a Trader’s Academy with 55 in-depth online courses, and plenty of learning labs and webinars on various investing topics.
Customer service at Interactive Brokers is rated 4 out of 5 stars.
Webull
Webull, like other online-only brokers, offers 24/7 phone and email support to clients. New investors can find learning resources on the broker’s website or the Webull app.
They can also find various videos and lessons on topics like investment basics and an introduction to cryptocurrency.
Webull’s customer service options are rated 4.5 out of 5 stars.
TD Ameritrade Inc.
TD Ameritrade can also take pride in its exceptional customer service because it is nearly impossible not to contact them. Clients can contact them 24 hours a day, seven days a week by phone, text, fax, live chat, or email. TD also provides mobile screen-sharing and direct social media messaging. Those who require in-person assistance can arrange a meeting at a nearby branch.
New investors can also take advantage of many resources, including educational webcasts, workshops, and 150 live events held at branches each year.
Customer service at TD Ameritrade is rated 4.5 out of 5 stars.
Robinhood
In 2021, Robinhood launched a 24/7 call-back feature, allowing customers to request to speak with a representative. The in-app experience guarantees a call-back within 30 minutes of making the request. You can also contact the company through email.
Over 800 articles on various investing topics are available on Robinhood Learn, the broker’s online learning platform. Email newsletters, a podcast, and an in-app learning module are among the additional resources.
Customer service at Robinhood is rated 3.5 out of 5 stars.
Vanguard
Last on our list is Vanguard.
Vanguard’s primary support channels are phone (Monday through Friday, 8 a.m. to 8 p.m. Eastern time) and email, making the broker suitable for those who do not require in-person or on-demand assistance.
News articles, research papers, videos, and webcasts are the available educational resources for new investors provided by Vanguard. And, like many of the other brokers on this list, Vanguard provides high-quality calculators and tools to help clients with their retirement goals or make Roth conversion decisions.
Vanguard’s customer service options are rated 3.5 out of 5 stars.
We’ve also answered some of the most commonly asked questions from new investors in the stock market.
Is it required to have a lot of money to use a stockbroker?
It doesn’t cost much to get started; many stockbrokers allow you to open an account for as little as $0. Many brokers will also waive any minimum investment requirements if you commit to making $100 or more in monthly contributions. If you don’t have a lot of funds but want to try your hand at do-it-yourself investing, commission-free exchange-traded funds can be an excellent place to start.
How are a full-service broker and a discount broker different? Which is best?
The main distinction between a full-service and a discount stockbroker comes down to the level of service you want and how much you’d like to pay for it.
Traditional full-service stockbrokers do more than just help you buy and sell stocks and bonds. They frequently provide a diverse range of services and products, such as financial and retirement planning, investment and tax advice, and regular portfolio updates. However, they can levy significant fees and transaction costs, which can erode long-term investment gains.
A full-service broker may be right for you if you have more money than time.
However, for most investors, it may be worthwhile to investigate discount stockbrokers. These brokers enable you to purchase investments online via their websites or trading platforms. A discount broker will help save you money on trading commissions and fees.
Other brokers, known as robo-advisors, provide access to financial planners as well as automated investing technology. Robo-advisors are a good option if you want a service to make investment decisions for you.
What exactly is a brokerage fee?
The stockbroker who manages your account will charge you a brokerage fee. Brokerage fees typically involve annual fees for maintaining the brokerage account or accessing trading platforms, premium research subscriptions, and even latency fees for infrequent trading. By selecting the right broker, you can avoid or reduce brokerage account fees.
Is a brokerage account a secure place to keep my money?
Cash and securities up to $500,000 are insured by the nonprofit Securities Investor Protection Corporation, with a $250,000 cap on cash losses. However, you are only protected in the event that your stockbroker goes bankrupt. Your investments’ losses and gains are unprotected.
