Some firms are meant for very experienced traders. Other
brokerage companies focus on newcomers, offering various products and services that are meant
to help new investors get started. Two of these best brokerage firms for beginners are
Firstrade and Charles Schwab. Here’s what they offer:
Pricing
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Margin
Rate |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
12.575%
|
$0
|
$0
|
|
Firstrade
|
$0
|
$0
|
12.75%
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Charles Schwab
|
|
|
|
|
|
|
|
Firstrade
|
|
|
|
|
|
|
Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Firstrade: Get up to $250 in transfer fee rebate.
Education
Starting with Firstrade, we see educational content neatly divided into
groups at the top of the site.
Complete newbies should begin with the Education tab. Under this tab, there are multiple selections. Overview is a good place to start. This page shows all educational content under the Education tab. There are learning materials on these investment options:
- Stocks
- Options
- ETFs
- Mutual Funds
- Bonds and other fixed-income products
There is a piece in the Education Center that explains how margin works. And what we really love about this page is a link to an investment glossary. It has hundreds of terms that new traders may not know, all explained in simple language.
At the bottom of the Education Center, there are videos and recorded webinars. These cover many topics beginners will find helpful. Examples include:
- Options wizard basics
- Fund an account
- ETF basics
- Placing stock trades
Services
We’ve already looked at a lot of information, and it’s all under one tab. Going to
the Service tab on the Firstrade site, we find a variety of tools that beginners
should explore.
First is a Help Center. This page has articles on several topics, such as taxes on brokerage accounts and withdrawing cash. There is a search tool at the top of the page that lets you search these articles by keyword.
There is also a Contact Us page under the Service tab. This page shows every way to reach a support rep. Firstrade has a fax number, weekday phone support, and an email form.
Another resource under the Service tab is the Form Center. It has a large list of forms separated by category. Some are in pdf format, while others use online forms. This is a good resource. On the Form Center, there is also a tool to upload a form.
The Home tab has more resources that beginners will appreciate. These include news articles, quick links (like market holidays and funding options), and ads for upcoming webinars.
Research
Firstrade has impressive security research tools, thanks to Morningstar. This outside analyst is highly regarded, and much of its data is free at Firstrade.
You’ll find these details under the Research & Tools tab. Every stock, ETF, and mutual fund includes a profile with Morningstar data. Some widely followed assets have star ratings and price goals.
Beyond these profiles, Firstrade provides screeners to search for investments. The Screeners link is under the Research & Tools tab. Stocks, exchange-traded funds, and mutual funds each have a screener. These are user-friendly, making them ideal for beginners. Results can be sorted by many factors, and opening a profile is easy (just click on the ticker symbol).
Finally, there’s the Analyst Research page. Its link is also under the Research & Tools tab. Many pdf reports are linked here, and there is a search bar for finding reports on certain stocks or funds (just enter a ticker or name).
Firstrade Review
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Customer Service
One of the first things new traders need is good customer support. Charles Schwab excels in this area with multiple ways to get help. On its website and mobile app, there are help sections with links to various services, including phone and chat support. Both options begin in an automated mode, but it’s possible to connect with a human rep. Since Schwab’s customer service is open 24 hours a day, 7 days a week, you can reach a team member at any time.
Both the website and mobile app have messaging widgets for concerns that aren’t urgent but need file attachments. For issues that can’t be addressed online or by phone, Schwab’s branch network is available. The brokerage firm has physical locations nationwide. There are a few hundred of them. They’re perfect for in-person service.
Managed Accounts
Beginners who need some assistance with investing decisions will appreciate what Charles Schwab offers. Along with its self-directed resources, the firm also has a large investment-advisory department. This branch provides advice, portfolio management, and financial planning at reasonable costs. Intelligent Portfolios® is Schwab’s robo program that uses a computer algorithm to manage an account, and it’s free.
If you’d rather have a full-scale financial-management program, Schwab’s traditional, full-service advisory packages offer more than a computer service can. These can include estate planning, insurance guidance, personalized financial plans, charitable strategies, and tax assistance.
Schwab clients who want something in between these two can choose Intelligent Portfolios Premium®, which combines robo investing with free meetings with CFP® professionals.
Free Charles Schwab Account
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Education
Traders who don’t use an advisory package and go it alone will find plenty of educational support through Schwab’s large resource library. On its website and mobile app, you’ll see a wealth of financial information for both beginners and experienced investors.
A good starting point is the Learn tab on Schwab’s site. We found many tools that new investors will find valuable. Some examples include:
- Self-guided courses on various topics
- Onward magazine, Schwab’s quarterly publication
- Podcasts
- New client welcome center
- Live and on-demand videos on Schwab Network
- Market commentary
- Tax resources
- Retirement and planning tools
And that’s just what’s under the Learn tab. Under the Products and Research tabs, there are calculators, research tools, market news, planning resources, and so on.
Complimentary Financial Plan
Self-directed Schwab clients who haven’t joined the advisory service can still receive a financial plan at no cost. To get started, find the link on the financial-planning page under the Products tab.
Paper Trading
After getting your education and a financial plan, Schwab provides simulated trading as the next step. Before risking real capital, practicing different order types is an effective way to avoid mistakes in an actual account.
Schwab’s desktop platform, Thinkorswim, has a demo mode that supports this practice. It’s free to use and has the same tools as the live version of Edge. Simply select the demo mode option on the login screen. You can also practice trading after the market closes, which is really handy. It’s a great way for newcomers to build experience without risking real money.
Research Tools
The last step is deciding what to trade. On Schwab’s site (under the Research tab), there are easy-to-use scanners for stocks, options, bonds, and both exchange-traded and mutual funds. These user-friendly screeners are part of the reason why Schwab is a solid choice for new traders.
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Charles Schwab Promotion
$0 commissions + satisfaction guarantee at Charles Schwab.
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Updated on 1/6/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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