Choosing the right brokerage is one of the most important steps for beginner investors. A brokerage acts as a bridge between you and financial markets, allowing you to buy and sell stocks, bonds, ETFs, and other investment assets.
But with so many options available, how do you know which one is best for you? In this guide, we’ll cover what to look for in a brokerage, key features to compare, and a list of some of the best platforms for beginners.
What Is a Brokerage and Why Do You Need One?
A brokerage is a financial institution that provides a platform for buying and selling investments such as stocks, ETFs, and mutual funds. Without a brokerage, you cannot trade directly on the stock market.
There are two main types of brokerages:
1. Full-Service Brokerages
🔹 Provide personalized financial advice, portfolio management, and retirement planning.
🔹 Best for investors who want professional guidance.
🔹 Examples: Merrill Lynch, Morgan Stanley, UBS.
🔹 Downside: Higher fees and commission-based services.
2. Discount/Online Brokerages
🔹 Offer self-directed trading with lower fees.
🔹 Best for beginners who prefer to manage their own investments.
🔹 Examples: Fidelity, Charles Schwab, TD Ameritrade, Robinhood.
🔹 Downside: No personalized financial advice.
For beginners, online brokerages are usually the best option because they offer low costs, educational resources, and an easy-to-use platform.
Key Factors to Consider When Choosing a Brokerage
1. Fees and Commissions
Some brokerages charge fees for trading stocks and ETFs, while others offer zero-commission trades.
✅ Look for:
- No commission fees on stocks and ETFs (common in most online brokers).
- Low fees for options and mutual funds if you plan to trade them.
- No account maintenance fees.
Best Brokerages with No Commission Fees:
- Robinhood
- Webull
- Fidelity
- Charles Schwab
2. Account Minimums
Some brokerages require a minimum deposit to open an account.
✅ Best for beginners: Platforms with no account minimum, so you can start with any amount.
Brokerages with No Minimum Deposit:
- Fidelity
- TD Ameritrade
- Robinhood
- Charles Schwab
3. User-Friendly Platform
As a beginner, you need a simple and intuitive platform that makes investing easy.
✅ Look for:
- A mobile app and a web platform that are easy to navigate.
- A clean dashboard to track your investments.
- Simple order placement for buying and selling stocks.
Best User-Friendly Brokerages:
- Robinhood (best for beginners with a simple mobile app).
- Fidelity (easy-to-use and more advanced research tools).
- Charles Schwab (great customer service with a user-friendly platform).
4. Investment Options
Make sure the brokerage offers the investment products you want.
✅ Check for:
- Stocks
- ETFs
- Mutual funds
- Bonds
- Options and futures (if you plan to trade them later)
Best Brokerages for Variety of Investments:
- Fidelity (wide range of stocks, bonds, and mutual funds).
- TD Ameritrade (great for ETFs and long-term investors).
- Charles Schwab (best for beginners who want diverse options).
5. Research and Educational Tools
If you’re new to investing, having access to educational resources is important.
✅ Look for:
- Free stock analysis tools.
- Beginner-friendly guides and courses.
- Paper trading (simulated trading for practice).
Best Brokerages for Research and Education:
- TD Ameritrade (ThinkorSwim platform with free courses).
- Fidelity (detailed research reports and financial tools).
- Charles Schwab (Schwab Learning Center for beginners).
6. Customer Support
As a beginner, you may have questions or need help navigating the platform. Choose a brokerage with good customer service.
✅ Look for:
- Live chat or phone support with real agents.
- 24/7 availability if possible.
- A well-organized FAQ and help center.
Best Brokerages for Customer Support:
- Fidelity (24/7 phone and chat support).
- Charles Schwab (live support and in-person branches).
- TD Ameritrade (highly rated customer service).
Best Brokerages for Beginner Investors (2025)
| Brokerage | Best For | Commissions | Account Minimum | Educational Tools |
|---|---|---|---|---|
| Fidelity | Best overall for beginners | $0 (stocks & ETFs) | $0 | Excellent |
| TD Ameritrade | Best for research & education | $0 (stocks & ETFs) | $0 | Very strong |
| Charles Schwab | Best for long-term investors | $0 (stocks & ETFs) | $0 | Good |
| Robinhood | Best for ease of use | $0 | $0 | Limited |
| Webull | Best for active traders | $0 | $0 | Moderate |
How to Open a Brokerage Account
Opening a brokerage account is easy and can be done online in a few steps:
1️⃣ Choose a brokerage – Compare platforms and pick the one that suits your needs.
2️⃣ Sign up online – Provide your name, email, Social Security number, and bank details.
3️⃣ Fund your account – Transfer money from your bank to start investing.
4️⃣ Select your first investment – Begin with an ETF, index fund, or blue-chip stock.
Final Thoughts: Choosing the Right Brokerage Sets You Up for Success
The best brokerage for you depends on your goals, budget, and experience level. For most beginners, Fidelity, TD Ameritrade, and Charles Schwab are great choices because they offer low fees, educational tools, and excellent customer support.
If you prefer a simple and mobile-friendly experience, Robinhood or Webull may be a better fit.
Whichever platform you choose, make sure it aligns with your investment strategy and helps you grow your financial future with confidence!
