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Best online trading brokerages for beginner investors
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If you are new to investing, the stock market can be intimidating and a bit hard to grasp.
The technical lingo, the crazy swings, the unpredictable behavior, and, of
course, the apprehension: who wants to
lose their hard-earned money? But investing is
a skill that can be learned - the more time and effort you put into your
investing education, the better you become.
It’s also important to choose a brokerage firm that is friendly to beginner investors.
Some brokerage houses target wealthy investors who want to let the firm manage their money. Other firms are
after clients who are already knowledgeable and comfortable with advanced trading
tools, like day-traders or hedge funds.
However, there are also brokerage companies that welcome new, beginner
investors and offer them comprehensive educational materials, online webinars and trading simulation
tools to practice trading (virtual trading). Some firms even have helpful online communities where customers
could ask questions, learn from more experienced members and get investing ideas from fellow users. A few of these companies don’t
charge additional commission if one wants to call a stock broker and place a trade with broker help.
Below we list three discount brokerage firms that are the best for beginner investors:
- OptionsHouse (OptionsHouse review) offers very low stock
commissions -- $3.95 per stock/ETF trade. It also provides free virtual trading environment and
lots of educational articles. Users could open account with $1,000.
Broker-assisted trades are the same $3.95 per trade.
- TradeKing (TradeKing review) charges just $4.95 per trade
(even for broker assisted trades!) and has the best investor community of all brokerage firms. The firm offers
plenty of educational materials and the highest rated customer service for three years in the row. Investors could open
an account with TradeKing and give it a try with $0 down.
- Scottrade (Scottrade review)
has a flat $7 per trade stock/etf commission and only $500 account minimum. The firm is one of the best-known brokerage companies in the country
and boasts one of the highest customer loyalty levels. Broker-assisted trades
are very high, though -- $27 per trade. There are plenty of educational resources on
Scottrade's website and live trader community.
If you are new to investing and looking for the best overall package,
then go with TradeKing. Read full TradeKing Review.
OptionsHouse is the best choice if you want to practice trading without risking real money (virtual trading).
Read full OptionsHouse review.
Open account with Scottrade if you are only comfortable investing with one of the oldest, most established and
well-known online brokerage houses in the country. Read full Scottrade Review.
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