As a beginner investor, it’s easy to get overwhelmed by the stock market. The entire investing idea can seem a bit scary if you don’t know what you’re doing. But just because you’re a newbie investor doesn’t mean it has to stay that way!
Here are the best brokerage accounts for anyone looking to successfully break into the investment world. We’ve listed these in order of simplicity and skill level.
Additionally, many of them have a zero, or low, minimum balance for putting funds into an investment account and all of these brokers are available online.
Betterment is known for making asset allocation simple and focusing on the end result — having enough money to retire comfortably. And thanks to their low fees and their preset basket of stocks and bonds to choose from, this goal is within grasp.
As you invest money into the account, Betterment will automatically purchase exchange traded funds (ETFs) on your behalf, based on your previously set asset allocation. This set-it-and-forget-it strategy is dollar-cost averaging at it’s best!
You simply choose how money to invest, how often and what allocation of risk you want your investments to have. That’s it!
Betterment specifically designed their investments to take the analysis paralysis out of the equation, so investing becomes incredibly simple. Because of this, their service one of the best options for beginning investors.
Acorns is a very popular service with Millennials. It’s a painless to save and invest in the stock market. Every time you spend money via a credit card, Acorns rounds-up to the nearest dollar and invests the difference. You don’t have to worry about scheduling deposits, the money is automatically taken out of your checking account.
Acorns is $1/month for your first $5,000, and then 0.25% annually for anything over that amount. Similar to Betterment, you are diversified via investments through ETFs. You choose how risky your investment are from 5 different types of portfolios. Acorns hides the investment details which is perfect for most beginning investors investing in the stock market.
With Scottrade, you have access to lots of investment choices, with a high level of consistency throughout their service. Once you’ve broken into the world of investing with services like Betterment or ShareBuilder, and are ready to take that next small step, discount brokerages like Scottrade can offer you more options.
They have the least expensive trades available, at just $7 per trade. Scottrade has an opening balance requirement at just $2,500 ($0 for retirement accounts), so you can break into the investing world with a minimal amount of funds.
They offer dependable service, low barrier level of entry, stable and affordable fees, and cool online tools for the tech-savvy investor. Use the money you save on trades for other retirement needs.
If you want easy investing from a reputable discount brokerage, then TD Ameritrade is the perfect choice for any new investor. They do, however, offer an expansive resource of tools for advanced and beginner investors alike. And you have the option to walk into one of over 100 TD Ameritrade branches to speak with a representative.
They offer features that are especially enticing for new investors like, a no minimum required deposit amount, along with low fees for online stock transactions. Additionally, one of nicest features of TD Ameritrade is their online webinars and free investing classes that are offered to all their users.
These features, combined with TD Ameritrade’s excellent service, makes it a no-brainer for newer investors looking to get into the stock market.
As a leader in the investment world, E*TRADE has one of the largest investment inventories available. Once you’re comfortable with moving into more advanced investing options, like active trading, E*TRADE is the perfect choice.
Since this brokerage firm is a bit more advanced, they do require a $500 minimum deposit on all accounts. This is still reasonable for newer investors, but not as low as some of the other brokerage accounts on this list.
They also aren’t the lowest priced brokerage out there, but they do have extensive research reports, and the site (along with their mobile features) is very easy to use.