Best Discount Broker for Beginners: An Overview of Top 5 Platforms and What They Offer

Just by conducting a search for “the best discount broker for beginners” you’ve taken a very important step in your journey. Picking a broker is one of the most crucial decisions you can make in the world of investing – especially if you’re interested in stocks.

Today, most people turn to online discount brokers. The problem with most of these types of services is that they typically aren’t “full service”, and require the traders to do most of the work themselves. What you must look for is a brokerage firm that offers tools and educational resources to beginners so that you will be able to learn yourself as you go along.

Don’t think that the best discount brokers are the ones that offer the cheapest fees. What kinds of services come with those fees? Do you get educational resources? Software? Tools? Are there any miscellaneous fees that will cost you in the long run? Like an inactivity fee? What is customer service like?

Which is the Best Discount Broker for Beginners?

Here are a few companies you’ll want to start with your search for the best discount broker for beginners:

• TD Ameritrade – As of right now, many people consider TD Ameritrade to be the best overall for beginners. However, it’s soon to be acquired by Charles Schwab, so hopefully its ease of use and excellent tools will continue on through the acquisition. It has a very user-friendly website, numerous monthly webinars, free premium courses, and so forth.

• E-Trade – This is a popular online broker that caters to both active traders AND long-term traders. There are enough useful features that make E-Trade beneficial for beginners as well, such as a Managed Portfolio service, which does come with a fee, but it’s well worthwhile.

• Fidelity – $0 commissions, a nice mobile app, and superior research are all combined in a simple platform with this service. It’s a best discount broker for beginners who don’t have much money to fund a new account with. You can invest in mutual funds with little money, and do everything easily with the mobile app.

• IBKR Lite (Interactive Brokers) – The “Lite” option is a hassle free way for beginners to trade in the US and many other countries. There is commission-free trading on EFTs and US exchange-listed stocks. There are no inactivity fees to worry about, or any account minimum.

• Zacks Trade – This is probably the best discount broker for beginners interested in active trading. It helps if you already have some knowledge in day trading and foreign stock exchanges. There are plenty of resources and learning materials to help you with your decision making.



Source by George Botwin

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