Best discount broker for beginners: an overview of the top 5 platforms and what they offer


Just by searching for “best discount broker for beginners” you have taken a very important step in your journey. Choosing a broker is one of the most crucial decisions you can make in the world of investing, especially if you are interested in stocks.

Today, most people turn to online discount brokers. The problem with most of these types of services is that they are generally not “full service” and require traders to do most of the work themselves. What you need to look for is a brokerage firm that offers educational tools and resources for beginners so you can learn yourself as you go.

Don’t think that the best discount brokers are the ones with the cheapest fees. What types of services come with this fee? Do you have educational resources? Software? Tools? Are there any miscellaneous fees that will cost you in the long run? Like inactivity fees? What does customer service look like?

What is the best discount broker for beginners?

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

• TD Ameritrade – Currently, many people consider TD Ameritrade to be the best overall for beginners. However, it will soon be acquired by Charles Schwab, so hopefully its ease of use and great tools carry over through the acquisition. It offers a very user-friendly website, lots of monthly webinars, free premium courses, and more.

• 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 wallet service, which is chargeable, but worth it.

• Loyalty – $0 commissions, beautiful mobile app and superior search are all combined in one simple platform with this service. This is the best discount broker for beginners who don’t have a lot of money to fund a new account. 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 are commission-free trades in EFTs and US-listed stocks. There are no inactivity fees to worry about, nor account minimums.

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

Source by George Botwin

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