Best stock trading website for beginners

3 stock broker companies with best online investment/trading accounts for beginners in 2014


Choosing your first brokerage firm


When you are new to investing, the stock market can be intimidating and a bit hard to grasp: all this technical lingo, complicated trading platforms, the crazy swings up or down, and a lot of generally unpredictable behavior. Many beginners also feel more than a little apprehension: who wants to lose their hard-earned money? But investing is just a skill that can be learned, and the more time and effort you put into your investing education and real-life practicing, the better you become.

It’s also important from the start to choose a brokerage firm that is friendly to entry level investors. Some brokerage houses target wealthy clients who want to let the firm manage their money. Other companies are after customers, like day-traders and professional money managers, who are already knowledgeable and comfortable with advanced trading tools and account management.

However, there are also online brokerages that are great for beginners, that welcome new investors, and offer them comprehensive educational materials, online webinars and classes, and trading simulation tools to practice trading (also known as "virtual" or "paper" trading). Some firms even have helpful online communities, where customers can ask questions, learn from more experienced members, and get investing ideas from fellow users. A few of these companies don’t even charge additional commission if a client wants to call a broker and place a trade with the broker's help.

Best online brokers for beginners


Below we list three discount brokerage firms that are the best for beginner investors, for both regular brokerage and various IRA accounts:

-  OptionsHouse (OptionsHouse Review) offers very low commissions -- $4.75 per stock or ETF trade, and $9.95 for mutual funds transactions. It also provides free virtual trading environment and lots of educational articles. Users can open an account with $1,000. Broker-assisted trades have the same rate - $4.75 per trade.

New customer promotion link: Get 150 commission-free trades at OptionsHouse.

Online Trading For Beginners




-  TD Ameritrade (TD Ameritrade Review) has a flat $9.99 per trade stock/ETF commission, 2,500 NTF (no-transaction fee) mutual funds and $0 account opening minimum. The firm is one of the best-known brokerage companies in the country. Broker-assisted trades are very high, though -- $49.99 per trade. There are tons of educational resources on TD Ameritrade's website and active trader community. However, commissions on all investment products are some of the highest in the industry.

New customer promotion link: Trade free for 60 days + get up to $600.

best online trading for beginners




-  Scottrade (Scottrade Review) offers a flat $7 commission per stock or ETF trade, a $17 per transaction rate for no-load, no-transaction fee mutual funds, and only $500 is required to open an account. It is one of the largest online brokers in United States, with great customer service, largest network of local offices for in-person visits, and good banking services (savings, CDs, money market and free checking accounts). Broker-assisted trades are not cheap at $32 per trade.

New customer promotion link: $100 in Transfer Fees Refunded. No set-up fees. No Annual Fees.

Best online broker for beginners




Our recommendations

If you are completely new to investing and looking for easy-to-use website, or to have access to one of the best trading platforms, then go with TD Ameritrade. After promotion offer ends, it is going to be the most expensive option, though. Read full TD Ameritrade Review.

OptionsHouse is the best choice if you want the lowest price, or a way to practice online trading without risking real money (virtual trading). See the full OptionsHouse Review here.

Open an account with Scottrade if you are only comfortable investing with one of the oldest, most established and largest online brokerage houses for do-it-yourself (DIY) investors in the country, or you are looking for an IRA account (no IRA fees). See the full Scottrade Review here.

All companies listed in this article are members of FINRA and have to comply to strict government rules. They are also SIPC insured which is a broker-dealer equivalent of FDIC insurance for banks.

This article was updated on 7/31/2014.



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