Best Brokerage Accounts for Beginners - Reliable and Free
If you plan to start investing in stocks, bonds, and mutual funds, or you want to try forex trading, you’re going to need a brokerage account. This is a special type of account that you deposit money and other financial assets into, that you then use to buy, sell, and trade.
If you’re just getting started ass an investor, you want to look for some specific things in your brokerage account. These include commission free trading, education, and paper trading. But let’s take a closer look at some of the best brokerage accounts for beginners.
Traders Union has been involved in investments and trading for over ten years. So, we know a lot about the markets, and the best way to get started. We love helping people who are new to the “game” to get started too, so we decided to put together a comprehensive review of all the best brokerage accounts out there.
So, before you sign up anywhere, make sure you’re getting the best service, tools, and pricing with this handy guide to free brokerage accounts.
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Top 4 Best Brokerage Accounts for Beginners in 2024
Trading online has become hugely popular – so there are a lot of resources and platforms out there. But sometimes, too much choice is almost as bad as not enough! So, we’ve narrowed it down to the top three choices for you.
eToro - Best Trading Platform for Beginners
The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA.
👍 Pros
• High level of reliability ensured by the licenses of respected regulatory authorities and participation in the compensation funds.
• Wide selection of assets quoted at stock exchanges in the UK, U.S., Australia and Asia.
• An opportunity to combine active trading with social trading and passive investing.
• Zero-fee trading of a number of stocks.
• Access to ready-made diversified asset portfolios with various risk levels.
• Provision of leverage, educational materials on various markets and user-friendly trading platforms that can run on any device.
• Zero fees for portfolio management, depositing funds and account maintenance.
👎 Cons
• High minimum deposit for users of a number of countries.
• No live chat on the website for quick connection to customer support.
eOption - Best for Automated Portfolio Management
The eOption broker (eoption.com) is an American stockbroker headquartered in Glenview, Illinois. It has been operating since 2007 and is a member of FINRA (CRD#: 7297/SEC#: 8-21765) and SIPC. It specializes in options trading and also acts as an intermediary in trades involving the popular securities classes. The company offers low trading commissions, super-fast execution of orders, and modern platforms with an advanced set of analytical tools. In 2020-2021, eOption was recognized as the best options broker by several resources such as Investopedia, The Tokenist, Benzinga, Investormint, and NerdWallet.
👍 Pros
• Low commissions for options trading — $0.10 per contract plus $1.99 per trade.
• No minimum deposit requirements for cash trading accounts opened by US residents.
• FINRA membership and the protection of clients’ funds are available through Securities Investor Protection Corporation (SIPC).
• Access to professional trading platforms such as DAS and Sterling Trader Pro are developed by third-party software developers for the proprietary eOption terminal.
• An affiliate program with high rewards.
• Compensation for commissions for funds or assets from other brokerage firms and institutions transfer.
• Prompt support by phone and online chat in the trading platform during company business hours.
👎 Cons
• The narrow range of choice of investment solutions to generate passive income.
• You cannot trade Pink Sheet and Bulletin Board stocks.
• There is no online chat on the company's website.
Ally Bank - Best User-Friendly App
The Ally Bank broker is part of Ally Financial Inc., which is an American holding company. The original company was created in 1919 by the General Motors automobile corporation to conduct activities with its auto parts suppliers and associated automobile dealerships. In 2014, Ally started offering banking products, and since 2017, it has also offered brokerage services. Currently, it operates solely as an online bank and brokerage firm and has no physical branches. It does, however, offer favorable terms of cooperation at consistently competitive rates with professional round-the-clock support. The company's services are used by more than 8.1 million customers globally.
👍 Pros
• It has official licenses for banking, dealer, and brokerage activities from reputable US regulators.
• A wide range of assets is available such as currency pairs, metals, securities, and options.
• There is an opportunity to invest in diversified portfolios for passive profit.
👎 Cons
• The company works only with US tax-paying residents.
• On the broker's website, there is no training on trading in various financial markets, nor is there a Forex glossary of terms.
• There are high commissions for withdrawing funds and the company does not compensate customers in any way.
• Only registered users can ask a question in the online chat.
• There is a time-consuming procedure for opening an account, which in some cases takes up to two weeks.
Revolut - Best for Free Stock Trading
Revolut is a British fintech company that has been providing investors with accounts for trading precious metals, cryptocurrencies, and stocks listed on U.S. exchanges since 2015. The broker offers its clients access to investing in stocks and ETFs on European stock exchanges. For organizations and private clients, the company offers a multi-currency account with the possibility of exchanging currencies at the current inter-bank exchange rate. Revolut is supervised by the Financial Services Authority (FSA).
👍 Pros
• In addition to stock trades, customers can trade cryptocurrencies and precious metals.
• The broker offers commission-free trading plans.
• The minimum number of shares to buy is 0.00000001.
• There are no minimum deposit requirements.
• Social trading is available, which allows newcomers to the stock market to copy trades of successful traders.
• Communication with the support service via chat is available in the mobile application 24 hours a day.
• There is no fee for opening and maintaining a trading account.
👎 Cons
• Stock trading is currently only available to UK residents.
• Operations in precious metals and cryptocurrencies are not regulated by supervisory authorities.
• The company does not offer fiduciary management of its investment portfolio.
How to Choose Best Brokerage Account for Beginners
Hopefully, one of the three big names we’ve highlighted here will offer the solutions you’re looking for. But if you still want to look around a little, there are a few things that can help you to make the right choices:
1. No Commissions
The term “no commissions” doesn’t mean there are no fees at all. You will still have to pay a few fees for every trade you make, but you won’t be charged a percentage of your earnings on those trades. So, it’s easy to calculate what your costs will be, and no one will be cutting into your profits.
2. Beginner Friendly Interface
The investment learning curve is steep. You’re going to be learning a lot of things as you go. So, look for an intuitive interface that’s easy to navigate. Because you don’t want to have to search for features and tools every time you login.
3. Promos and Freebies
A lot of the best brokerage accounts offer you something for free when you sign up. Often, it’s a stock or two. Usually, they are valued up to a few hundred dollars, but they might well appreciate over time, so that’s a great deal! If you don’t see any deals, freebies, or promos on their homepage when you are considering signing up, don’t be shy to ask!
4. Paper Trading Account
A “paper trading account” is a demo trading account that doesn’t use any real money, but still lets you try out simulated trades. This is a great way to get some investment practice without risking your own money.
5. Their Reputation
You don’t have to choose the oldest service out there, or the best known. But you do want to work with reputable companies. So do some research. Find out how long they have been around, and if there are any worrisome news stories about them or their founders. Read some online reviews and ask people you know who have used a particular platform what they think.
6. In Depth Learning Resources
Investing and trading is complex, and there’s a lot to learn. The best brokerage accounts for beginners have educational tools built right in. Look for platforms that have a robust and comprehensive resource section with articles, videos, and other things to help you find your feet.
Don’t be afraid to try more than one platform or application too. Some might offer more of what you want or have an interface that you prefer. You can always sign up with companies that have zero minimum deposits, try them out, and then decide which one you want to commit to.
Best Free Brokers for Beginners – Fees Comparison
Most platforms – even those that don’t charge commissions, do still have some fees. Those fees are usually a flat rate per trade, and for any services that you choose to access on their platform or site. The best platforms keep these fees as low as possible and are upfront about what you will pay and when.
Here’s a breakdown of our favorite platforms’ fees and other financial considerations:
eToro Commissions and Fees
Registration on the eToro platform is free. The broker does not charge a fee for opening and closing long positions on stocks quoted at the US stock exchanges. The stocks of other markets are available as derivatives, with eToro charging a trading fee on them in the form of the spread. Also, the fees are applied to short positions and leveraged orders. The company accepts and allows withdrawals of only US dollars. If a client deposits or withdraws another currency, it is converted into USD at a fee of 0-50 pips. Members of eToro club get a 50-100% fee reduction on conversion. If a client shows no activity for a period of 12 month, the broker charges the inactivity fee of $10. There is no deposit fee. eToro charges $5 on each withdrawal.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Standard |
$5 |
Yes |
|
Pro |
from $1.1 |
$5 eToro’s fee + the fees of payment systems |
eOption Commissions and Fees
The experts at Traders Union analyzed the terms and conditions of eOption by searching for obvious and hidden fees and commissions, and found the following: options cost 10 cents per contract (+$1.99 per trade); stocks and ETFs cost $0 (but foreign stocks cost $39); mutual funds cost $5 per trade; and the first 25 quoted bonds cost $5 per bond, then $3 per bond after that (but at least $39). Exchange fees are also provided: OCC commissions on contract trades are $0.05 for the first 1,100 trades; then $55 per trade. There is also an options regulation fee of $0.0181 per contract, as well as a trading activity fee and an SEC trade fee depending on the asset. The eOption broker withholds a $35 non-trading fee when withdrawing funds via Wire Transfer.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Margin Account |
From $2.09 |
Yes |
|
Cash Account |
From $5 |
Yes |
Ally Bank Commissions and Fees
Traders Union experts have carefully studied the information on commissions presented on Ally’s website. The brokerage fee for trading securities ranges from $0 to $9.95 depending on the asset type selected. On Forex accounts, a floating spread is held as a trading commission, which starts from 0.7 pips. The broker also charges withdrawal fees: $25 for each transaction made and from $5 to $50 if the client transfers money to a third-party bank account, and not to Ally Bank.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Forex |
From $7 |
Yes |
|
Stock market |
From $1 |
Yes |
Revolut Commissions and Fees
During our analysis of trading conditions, it was found that Revolut limits the number of trades without commissions. Depending on the account type, 1-5 transactions per month are free. There is a monthly subscription fee of £2.99-£12.99 on different accounts, which can be reduced by 20% if you pay in advance for a year. The broker charges a fee of 1 USD for additional orders. Since stocks listed on American exchanges are offered for investment, the fees are calculated in USD and then the funds are converted to the account currency at the current exchange rate. For transactions in cryptocurrency, the commission is 1.5-2%, and for transactions in precious metals, it’s 0.5-1.5% of the transaction volume. The amount of interest depends on the selected trading account. No additional hidden commissions were revealed.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Standard |
From £2.99 |
No |
|
Plus |
From £2.99 |
No |
|
Premium |
From £2.99 |
No |
|
Metals |
From £2.99 |
No |
While fees are important, it’s also worth remembering that you do get what you pay for, and a small fee for a high-quality platform is not the worst thing in the world. If something sounds like too good of a deal, ask more questions. The last thing you want is to trust your money to a company that doesn’t have your best interests at heart.
How to Start Trading: A 5-Step Guide
If you’re ready to start trading, the good news is that it’s easy to hit the ground running. In fact, you can get started with sites like Webull with just a few simple steps.
1. Sign up – you can usually do this with your email address or even a social media account
2. Complete the application – you will need to submit proof of your identity, address and other information
3. Wait for approval – it will take some time for the company to approve your account
4. Login to your approved account – you might have to do this on a computer, or if they have an app, you can download it to your phone or tablet and start using their system there
5. Start exploring – try the paper trading account first, to get the basics figured out, and then start buying and selling stocks and other investments
Because of the approvals process, it might take a few days before you can start trading, but once you have, everything happens in real time or close to it. So, there are no long delays or time-consuming calls and emails. Everything is right there, at your fingertips!
How to Buy Stock Online
If you have a brokerage account like one of the best brokerage accounts for beginners listed here, it’s easy to buy stock online. In fact, if you can use online banking or social media, you can use a modern online stock trading platform.
Here are the basic steps you will need to take:
-
1
Choose an online brokerage and create an account
-
2
Sign up and get approved
-
3
-
4
Research the stocks you’re interested in buying
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5
Decide how many shares you want to buy, and how you want to buy them
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6
Buy the stock
Once you have bought stocks, you will be able to see them in your portfolio. You will also be able to sell them when or if you choose to. Help is always available too – often with live chat – so if you’re not sure what to do next, reach out and ask questions.
Our Methodology
Investing got a lot easier when it all went online (and you don’t have to pay big fees to brokers or have thousands in the bank to get started!) But that doesn’t mean it’s risk free.
Some of the inherent risks in investing are just part of the game, but others are avoidable – if you know what you’re looking for.
Traders Union does know exactly what to look for. We use our superior knowledge of investments and trading to rate the best investment tools, platforms and more based on UX, reviews, costs, resources, and real-world tests.
So instead of searching the web for information, you can get it all in one easy to use, easy to understand place!
Best Forex Trading Platforms by Countries
Summary
If you’re ready to start investing, and you want to do it yourself, you’re going to need a brokerage account. We hope that this comprehensive review of three of the best brokerage accounts for beginners makes it easier to get started. The internet has made it easier than ever to be your own wealth manager, and it all starts here!
FAQs
Do I have to have a lot of money to open a brokerage account?
No. In fact, many of the most popular platforms for beginners don’t require any minimum investment at all.
What kind of information do I need to provide to open a brokerage account?
You will need to provide personal information like your name, proof of your identity, proof of where you live and other relevant information like tax registration and so on. This may vary depending on where you live.
Do I have to practice investing with my own money?
No. Choose a platform that has a “paper trading account” which allows you to use “fictional” money to practice simulated trades. When you’re comfortable that you know what you are doing, you can graduate to a real money account.
Can I only buy stocks?
No. Most of the best brokerage accounts for beginners let you trade stocks, options, crypto currencies and more. Platforms do differ though, so make sure you are signing up for one that offers what you want to buy and sell.
Where can I learn more about investing?
Most of the bigger investment platforms have fantastic, detailed help and resources sections. You can find articles, videos and more. Follow their social media accounts for financial news too, and make sure you choose a platform that offers comprehensive round the clock support too. You will have questions, and it’s nice to have someone to ask when you need them!
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Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.