Some firms cater to experienced traders with complex needs, while others are ideal for beginners, offering a range of products and services designed to ease new investors into the trading world. Firstrade and Charles Schwab are two of the best brokerage firms for beginners, providing excellent resources to help newcomers.
Pricing
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Margin
Rate |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
13.575%
|
$0
|
$0
|
|
Firstrade
|
$0
|
$0
|
13.75%
|
$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, you'll find educational materials conveniently organized by category at the top of their website.
Beginners should begin with the Education tab. Here, you'll find several sections, with Overview being an ideal starting point. This section provides a comprehensive view of all educational resources available under the Education tab, covering:
- Stocks
- Options
- ETFs
- Mutual Funds
- Bonds and other fixed-income securities
Additionally, there's an informative article about how margin trading works and a useful investment glossary with hundreds of terms explained in simple language, making it a valuable resource for new traders.
The Education Center also hosts a collection of videos and recorded webinars that tackle a variety of topics suitable for beginners, including:
- Basics of options trading
- How to fund an account
- Introduction to ETFs
- How to place stock trades
Services
The Service tab on the Firstrade website is another rich resource area that beginners should explore.
It starts with a Help Center containing articles on topics ranging from tax implications of trading to withdrawing funds. A search feature allows you to quickly find articles by keyword.
The Contact Us page under the Service tab provides all available methods to get in touch with customer service, including fax, phone, and email.
The Form Center includes a comprehensive list of downloadable and online forms categorized for easy navigation. Here, you can also upload documents directly through the document upload tool.
The Home tab offers various resources, including news articles, a list of quick links like market holidays and fund transfer details, plus announcements of upcoming webinars.
Research
Firstrade offers exceptional security research resources through a partnership with Morningstar, a leading financial analyst firm. This collaboration provides free access to detailed research on stocks, ETFs, and mutual funds.
Under the Research & Tools tab, every investment option is accompanied by a comprehensive profile filled with insights from Morningstar, including ratings and potential price targets.
Firstrade's investment screeners are accessible under the same tab, allowing you to filter investments by various criteria and directly access detailed profiles by clicking on ticker symbols in the search results.
Lastly, the Analyst Research page under the Research & Tools tab links to numerous reports in PDF format and includes a search function for pulling up specific reports by name or ticker symbol.
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Customer Service
For newcomers, reliable customer support is crucial, and Charles Schwab excels in this area. On both its website and mobile app, Schwab offers extensive support options, including phone and chat services. Initially, you may interact with automated responses, but it's easy to switch to a live representative if needed. Schwab’s customer service operates 24/7, so help is always just a call or click away.
For issues that aren't urgent but may require submitting documents, both the website and app have messaging features. For more complex issues or when you prefer face-to-face interaction, Schwab also has physical branches nationwide, with hundreds of locations available for in-person assistance.
Managed Accounts
Beginners looking for guidance in making investment decisions will appreciate Charles Schwab’s extensive advisory services. Alongside self-directed trading tools, Schwab offers investment advice, portfolio management, and financial planning through its investment-advisory division at very reasonable prices. Schwab’s Intelligent Portfolios® is a robo-advisor that manages investments using algorithms, and it’s available for free.
Those preferring more comprehensive management can turn to Schwab’s full-service programs, which include human advisors and provide services such as estate planning, insurance advice, personalized financial plans, charitable giving strategies, and tax help.
There’s also an option for a hybrid service called Intelligent Portfolios Premium®, which combines digital management with access to Certified Financial Planners™ for personal consultations.
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$0 commissions + satisfaction guarantee at Charles Schwab.
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Education
If you choose to manage your investments independently, Schwab provides an extensive range of educational resources. These resources are available on both the website and mobile app and are valuable for both beginners and experienced investors.
A good starting point is the Learn tab on Schwab’s website, which offers:
- Self-guided courses on a variety of investment topics
- Onward magazine, a quarterly financial publication
- Financial podcasts
- A new client welcome center
- Live and on-demand broadcasts from the Schwab Network
- Market commentary
- A tax center
- Planning and retirement tools
More resources are available under the Products and Research tabs, including calculators, security research tools, market news, planning resources, and more.
Complimentary Financial Plan
Even if you haven’t opted for Schwab’s advisory services, you can still access a free financial plan. This service is available through the financial-planning page found under the Products tab.
Paper Trading
After acquiring the necessary knowledge and a financial plan, Schwab offers simulated trading to safely practice trade execution. This feature is available through Schwab’s desktop platform, Thinkorswim, in demo mode, allowing you to trade without financial risk. The simulated trading environment includes all the tools available in live trading sessions and is accessible outside of regular market hours, providing a practical way for novices to gain trading experience.
Research Tools
Finally, when you’re ready to find investments, Schwab’s user-friendly research tools can help. Located under the Research tab, these tools include scanners for stocks, options, bonds, and funds, making it easy for beginners to find and evaluate potential investments.
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Charles Schwab Promotion
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Updated on 7/23/2024.
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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