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Best Investment Brokers For Beginners of 2022

Ashley Jackson

Are you ready to start investing? Set yourself up for success by selecting a broker that provides educational resources and understands your needs. We’ve considered the best brokers based on commissions, account minimums, ease of use, and overall quality.

Trade a wide range of financial assets

$0 - $9.95

Fee Per Trade

$0

Account Minimum

Overview

Ally Invest offers competitive pricing on financial securities and robust research tools to help you make better-informed investment decisions.

What we like

  • Low cost commissions 
  • Wide selection of product offerings 
  • Up to $3,000 cash bonus
  • No minimum deposit required
  • Up to $75 for brokerage transfers

What we don't

  • Crypto not supported
  • Mutual fund fees

Get up to $625 when you open and fund an account

$0

Fee Per Trade

$0

Account Minimum

Overview

J.P. Morgan Self-Directed Investing offers beginners and seasoned investors free trades and a portfolio tool to help build out their asset allocation.

What we like

  • Unlimited trades with $0 commissions
  • No minimum investment
  • Manage investments from a mobile app
  • Portfolio builder tool to help with asset allocation
  • Access to research and insights

What we don't

  • Limited accounts, such as no SEP-IRA
  • No fractional share trading

INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Copy investments from successful traders

$0

Fee Per Trade

$0

Account Minimum

Overview

eToro is a multi-asset platform that offers both investing in stocks, cryptocurrencies, and trading in CDF assets. It provides an innovative approach to ‘Social Trading,’ also known as ‘Copy Trading.’ Social trading allows users to connect, share their trades, and copy successful traders’ trades for potential gains.

What we like

  • Commission-free real stock trading
  • Offers money and risk management tools
  • A lot of learning materials available
  • Offers a free demo account
  • Copy successful traders investments

What we don't

  • Higher spreads and rollover fees
  • High non-trading fees

Discover new ideas from an active investing community

$0

Fee Per Trade

$0

Account Minimum

Overview

Public provides access to a powerful suite of tools, daily insights from millions of investors, and curated content and news, so all members can have the tools and resources needed to invest with context.

What we like

  • All-in-one investing platform 
  • Wide selection of product offerings 
  • Commission-free
  • Insights from an investing community of millions
  • Invest in any fractional asset
  • Live in-app shows about the markets

What we don't

  • Limited account types
  • No in-person customer support

Margin trading available with premium account

$0 - $9.95

Fee Per Trade

$0

Account Minimum

Overview

Axos Self-Directed Trading provides investors commission-free trades and an all-in-one solution for banking and investments.

What we like

  • Commission free trading on most assets 
  • Easy to use platform
  • Wide selection of product offerings 
  • No minimum deposit required
  • Extended market hours for premium accounts
  • Joint accounts available

What we don't

  • Crypto not supported
  • Premium account required for certain features
  • No in-person customer support

Offers fractional share trading

$0

Fee Per Trade

$0

Account Minimum

Overview

SoFi allows you to trade cryptocurrencies, stocks, and ETFs. It also uses the SIPC protection scheme and offers up to $500,000 in insurance coverage.

What we like

  • Free trading on ETFs and stocks
  • Offers fractional shares
  • A wide variety of cryptocurrencies
  • Free financial advice
  • No account minimum

What we don't

  • Does not offer mutual funds, bonds and options
  • Limited track record

What do investment brokers do?

Investment brokers for beginners are a type of financial advisor who can offer their clients a wide range of services. They can help with everything from buying and selling securities, managing portfolios, and planning for retirement.

The exact responsibilities vary based on the scope of the broker’s license and their employer’s policies. Some brokers work at larger firms offering comprehensive services, while others work at smaller firms or as independent contractors. There are also online brokers which help execute trades.

Regardless of the type of broker you choose, they’ll be able to help you make informed decisions about your investments. They’ll also provide ongoing advice to help you reach your financial goals over time.

Why use investment brokers?

Here are some of the benefits of investment brokers (self-directed or directed portfolios):

  • Provide you with guidance: Investment brokers are not only experts in their field but also well versed in financial planning and wealth management. This means that if you hire one, they’ll be able to advise you on what investments are best suited for your needs and goals. They can also educate you about other aspects of investing, such as managing risk, keeping track of your portfolio, and more.
  • Keep it simple: If you’re new to investing or want to start small with only a few thousand dollars, trying to manage everything yourself can be intimidating. Using an investment broker can be simpler because they take care of everything for you, including finding suitable investments based on your needs and goals and handling all transactions on your behalf.
  • Investment research: Investment brokers can provide research on companies that could be useful to help you with your investments. These are usually referred to as equity reports.

Are investment brokers safe?

Yes, brokerage accounts are safe. The money is in your name, and you have the power to withdraw it at any time. However, make sure the broker is a reputable one.

The best way to protect yourself from fraud is to check the investment broker’s background before signing up.

You should also ensure that your account has been set up properly so that no one can access it without your permission.

What are the fees for investment brokers? 

The fees for investment brokers vary depending on the type of account you have and what kind of assets you want to invest in. The only costs you have to pay are the trading commissions, which vary depending on your broker. In some cases, the costs can be free.

What can you invest in with investment brokers?

Here’s a rundown of the different types of investments that you can buy through an investment broker:

  • Funds: This collection of investments is managed by an expert fund manager who looks after your money. The fund manager will buy shares or bonds from all sorts of companies, which means that you don’t have to do it yourself. You just have to decide how much you want to invest and then leave it up to the professional fund manager.
  • ETFs: ETFs are similar to mutual funds but are passively managed and follow an index, such as the S&P 500.
  • Stock: Stocks are a way to invest in a company. The price of stocks goes up and down as the value of the business changes. If you buy shares in Apple and the company does well, your value will more likely increase.
  • Bonds: Bonds are another type of security that you can buy through an investment broker. Bonds are loans issued by companies or governments that pay investors interest over time. They’re similar to loans and mortgages. You can use bonds to diversify your portfolio.

Benefits of investing through investment brokers

There are many benefits of investing through investment brokers. Some of these include:

  • Professional advice: Investment brokers are trained to provide professional advice on which investments best suit your needs and risk tolerance. They will also help you decide how much risk is right for you based on your financial goals and time horizon.
  • In-depth knowledge: Investment brokers have detailed knowledge of their products and can answer any questions. They also have access to research reports and market analyses to provide up-to-date information about the markets and specific stocks or funds.

How to choose the best investment brokers for beginners

There are many investment brokers, so choosing the right one can be challenging. Here are some tips to help you find the best broker for you:

  • Know your needs: The first thing you need to do is figure out what type of investor you are. Are you interested in mutual funds, stocks, or options? If so, how much money do you have available for investment? What is your risk tolerance level? Is it high or low? These are all essential questions that will help narrow down your search for the perfect broker.
  • Narrow the field: Next, look at all your brokers’ options and see which offer similar services. You may find that many firms offer similar services at different prices and with different levels of support. Some firms may offer more tools and resources than others, while others might charge less or have better customer service ratings.
  • Figure out the fees: Many brokers offer flat-fee accounts, meaning there are no additional trades or account maintenance charges. Other brokers charge per trade but also offer discounted rates if you place more than one trade per month. In some cases, some brokers also charge monthly fees for maintaining an account with them. So before signing up with any broker, ensure you understand all the costs associated with using their platform. Sometimes these costs aren’t transparent, so read through their fee schedule carefully to ensure there aren’t any surprises.
  • Test the broker’s platform: Once you’ve figured out how much money you want to invest and how much it costs to buy and sell stocks, mutual funds, or other investments through your broker, it’s time to test their platform. A good platform should be easy to use and provide information about each security, so it can help decide what to buy and sell.