Best Online Brokerages for New Investors: The Ultimate Beginner's Guide

Would you believe that over tens of millions of Americans open new brokerage accounts each year? That trend has only grown in 2025, with more people than ever taking control of their financial futures through investing.

I still remember opening my first brokerage account back in 2010 - I was completely overwhelmed by the options and ended up choosing based on a gut feeling rather than what actually suited my needs. Big mistake!

Choosing the right online brokerage as a beginner is like picking the right vehicle for a road trip - get it wrong, and the journey becomes unnecessarily difficult. Get it right, and you'll have a smoother path to building wealth.

In this article, I'll walk you through the best online brokerages for new investors in 2025, based on my 15+ years of investing experience and countless hours researching platforms, to help you avoid the costly mistakes I made when starting out.

Let's find your perfect investing home!

What to Look for in a Brokerage as a New Investor

When I first started investing, I had no clue what features actually mattered in a brokerage. I was dazzled by flashy promotions offering free stocks but completely overlooked the fees that would eat into my returns for years. Don't make the same mistake!

Here's what truly matters when choosing your first brokerage:

Low or no minimum deposits are crucial when you're just getting started. I remember wanting to invest but feeling discouraged by platforms requiring $1,000 or more to open an account. Thankfully, most modern brokerages have eliminated this barrier.

Commission-free trading is practically standard now, but it wasn't always that way! There was a time when I used to pay $7-10 per trade, which made small investments completely impractical. Make sure your chosen platform offers zero-commission trading on stocks and ETFs at minimum.

The user interface might seem like a superficial concern, but trust me - a confusing platform will discourage you from staying engaged with your investments. I've abandoned perfectly good brokerages because their interfaces gave me headaches!

Educational resources can make or break your investing journey. Some brokerages offer incredible libraries of articles, videos, and even courses that can save you from costly mistakes. I learned most of what I know from these resources rather than expensive investing books.

Customer support becomes incredibly important the moment something goes wrong. Imagine if you couldn't access your account during a major market movement and lost out on a great opportunity because your brokerage's support team took 48 hours to respond. That's a huge deal breaker. Look for multiple support channels and check reviews about response times.

Account protection is non-negotiable. Ensure your brokerage is SIPC-insured, protecting your securities up to $500,000 if the brokerage fails. This isn't about market losses - it's about the actual brokerage company going under.

Account types matter more than you might think. If you're investing for retirement, you'll want access to IRAs. If you're saving for a child's education, you might need a 529 plan option. Think about your goals before choosing.

Some brokers have a one stop shop and other's are specialized in what they offer.

Additional fees can destroy returns over time and are the silent killers. Watch out for account maintenance fees, inactivity fees, paper statement fees, and transfer fees. These seemingly small charges add up tremendously over decades of investing.

Top 5 Brokerages for Beginners in 2025

I've personally tested many brokerages over my personal investing journey and in my previous career as a financial advisor. These five stand out as the best options for beginners in 2025.

My evaluation considered fees, user experience, educational resources, customer service, and additional features that matter specifically to new investors.

Fidelity Investments - Best Overall for Beginners

There's a reason Fidelity tops my list for beginners in 2025.

Fidelity strikes that perfect balance between being beginner-friendly while offering room to grow as your investing knowledge expands. I've been particularly impressed with how they've evolved their mobile app over the past few years - what used to be clunky is now one of the most intuitive interfaces in the industry.

The standout features that make Fidelity perfect for beginners include:

Zero minimum deposit requirement means you can start with whatever amount you're comfortable with. You can begin with just $50 so there's no reason to get started!

Commission-free trading on stocks and ETFs eliminates the cost barrier for making small, regular investments - a strategy I've found works best for beginners.

Fractional shares availability is a game-changer. Imagine wanting to buy Amazon stock but not being able to afford the price tag. Now you can invest just $1 in any stock through Fidelity.

Their educational content is exceptional, with clear explanations that don't talk down to beginners. Their learning center helped me understand concepts like asset allocation that seemed impenetrable elsewhere.

Customer service has saved me multiple times, particularly their phone support which has surprisingly short wait times compared to competitors.

The drawbacks? Their options trading platform isn't the most intuitive if you eventually want to explore that area. And while most services have no fees, they do charge $32 for broker-assisted trades - but as a beginner, you'll rarely need this service.

Charles Schwab - Best for Long-Term Investors

Charles Schwab holds a special place in my investing journey. It's where I hold my personal accounts, and I've been consistently impressed with how well they cater to those thinking long-term.

For beginners with their eyes on long-term wealth building (which should be most of you!), Schwab offers:

Comprehensive research tools that have helped me make better informed decisions. Their equity ratings and reports from Morningstar and Credit Suisse give you insights typically reserved for professional investors.

Their zero-minimum, zero-commission structure eliminated the barriers that once made investing seem exclusive to the wealthy.

The banking integration is something I didn't initially value but now use daily. Being able to seamlessly move money between my investments and checking account makes regular investing so much easier.

Their retirement planning tools are second to none. The retirement calculator helped me set realistic goals based on my current savings rate and expected returns.

The learning curve is admittedly steeper than with some competitors. It might take you some time exploring features to feel fully comfortable navigating their platform. But the trade-off is access to more powerful tools as your knowledge grows.

The account maintenance fees are nonexistent for most users, but they do charge for paper statements - an easy fee to avoid by going paperless.

Robinhood - Best for Simplicity and Mobile Experience

I feel like people have a love-hate relationship with Robinhood. While I don't use it for my serious long-term investments, I can't deny that it revolutionized investing accessibility and still offers the simplest entry point for absolute beginners.

The app's strengths for new investors include:

The most intuitive interface in the industry - bar none. You can be making trades within minutes of downloading the app, with zero confusion about how things worked.

Commission-free trading across all asset classes was Robinhood's initial claim to fame, and they've maintained this advantage even as competitors caught up.

The instant deposit feature lets you start investing immediately after transferring funds, unlike the 2-3 day wait at most traditional brokerages. This can save you from missing opportunities multiple times.

Fractional shares with no minimum let you build a diversified portfolio with just a few hundred dollars - something impossible in the pre-Robinhood era.

Cryptocurrency access alongside traditional investments creates a one-stop shop for the modern portfolio. Even if you keep a small portion of your investments in crypto, the integration makes it easy to monitor.

The downsides are significant, though. Their research tools are extremely limited compared to competitors. You'll most likely find yourself using other sources for company information before making trades on Robinhood.

Customer service has reportedly improved from their early days but still lags behind the traditional brokerages. Waiting for a response to an account issue - utterly frustrating.

Their educational content, while improving, doesn't compare to what Fidelity or Schwab offers. This is why I recommend Robinhood for those who will take the initiative to learn elsewhere.

Vanguard - Best for Low-Cost

If low-cost investing is a priority alongside access to a variety of well rounded investment options, Vanguard deserves serious consideration.

Vanguard is a great option for new investors because of its low-cost investment options, user-friendly platform, and strong focus on long-term wealth building.

Known for its industry-leading low expense ratios, Vanguard helps investors keep more of their returns over time. The brokerage offers a wide range of index funds and ETFs, making it easy for beginners to build a diversified portfolio without high fees.

Vanguard is famous for its low expense ratios, which help investors keep more of their returns. Unlike many brokers that charge high management fees, Vanguard’s mutual funds and ETFs consistently rank among the lowest-cost options in the industry.

Vanguard offers commission-free trading on stocks and ETFs, making it cost-effective for beginners who want to start investing without worrying about extra fees. However, mutual funds outside of Vanguard’s own lineup may come with transaction fees.

Vanguard has no minimum deposit barrier for most of its investment accounts. While some mutual funds may have a minimum investment requirement (typically $1,000 to $3,000), ETFs can be purchased with no minimum investment, making it accessible for beginners.

Vanguard’s platform is simple and designed with long-term investors in mind. While it doesn’t have the sleekest or most feature-rich trading interface compared to platforms like Fidelity or Schwab, its straightforward layout is perfect for those focused on buy-and-hold strategies.

Unlike some brokers that cater to active traders, Vanguard is built around the philosophy of long-term, passive investing. If you’re looking for day-trading tools or margin trading, this may not be the best choice. However, for investors focused on steady, low-cost wealth accumulation, Vanguard is hard to beat.

New investors won’t be overwhelmed by unnecessary bells and whistles, and the platform offers easy navigation for researching and purchasing funds.

Vanguard provides a wealth of educational materials, including articles, webinars, and retirement planning tools, to help beginners understand investing principles. Its focus on financial literacy makes it an excellent choice for those new to the market.

SoFi Invest - Best for All-In-One Financial Services

SoFi took an interesting approach to brokerages by embedding investing within a broader financial ecosystem. For beginners who want their investments integrated with other financial services, SoFi offers unique advantages.

Their strengths include:

No minimums and commission-free trading make it accessible regardless of your starting capital. I started with just $50 in weekly automatic investments.

The automated investing option provides a robo-advisor alternative alongside self-directed trading. This can be a huge help when you are too busy to actively manage portions of your portfolio.

Integration with banking, loans, and credit score monitoring creates a holistic financial picture. I love seeing my entire financial life in one dashboard.

Access to financial advisors at no additional cost sets SoFi apart from most competitors. Planning sessions that provide valuable guidance can save you hundreds elsewhere.

Their interface prioritizes simplicity, making it less intimidating than traditional brokerages. It can take less than 10 minutes to complete your first investment.

The limitations become apparent as you grow more sophisticated. The investment options are more limited than full-service brokerages, particularly for alternatives beyond stocks and ETFs.

Research tools are adequate but not exceptional.

Comparison of Fees and Features

Let me tell you that fees can be a hard lesson learned if you're switching brokers constantly. Losing money with various fees can be avoided altogether with a better brokerage choice. That money would be worth significantly more in the future had it remained invested!

Here's how my top picks compare on the fee front:

Commission structure: All five offer commission-free stock and ETF trading, which wasn't the case just a few years ago. I remember paying $7.95 per trade at my first brokerage!

Account maintenance fees: Fidelity, Schwab, Robinhood, and Vanguard have no annual maintenance fees for standard accounts. SoFi doesn't charge maintenance fees either, though their active investing account does require occasional activity.

Inactivity fees have thankfully been eliminated by all five brokerages. I once got hit with a $50 inactivity fee during a period when I was holding rather than trading - a painful lesson.

Transfer fees are where you need to be careful. Moving your account to another brokerage typically costs $75 at most traditional brokerages, though Robinhood charges $100. SoFi currently doesn't charge transfer fees, which is unusual in the industry.

Margin rates vary significantly: Robinhood currently offers the lowest rates at around 5%, while traditional brokerages like Schwab and Fidelity charge 8-10% depending on your balance. These rates can dramatically impact returns if you use margin.

Options contract fees range from completely free (Robinhood) to $0.65 per contract (Fidelity, Schwab. SoFi doesn't currently support options trading.

These fees might seem insignificant in isolation, but compounded over decades of investing, they can reduce your returns by tens of thousands of dollars. Always calculate potential fee impact before opening any new account.

How to Open Your First Brokerage Account

Opening my first brokerage account took nearly a week because I wasn't prepared with the right documentation. Let me save you that hassle with a quick guide to getting started:

Required documentation includes your Social Security number, government-issued ID, employment information, and basic financial information like your income range. Having these ready will make the process much smoother.

The application process is now entirely online for all five brokerages and typically takes 10-15 minutes if you have your information prepared. I recently helped my Wife open an account in under 10 minutes.

Funding options include ACH transfers from your bank (usually free), wire transfers (often incur fees), or checks. ACH is typically the simplest method but can take 2-3 business days. I prefer connecting my bank account for easy recurring transfers.

Account verification usually happens within 1-2 business days, though some brokerages now offer instant verification through secure bank login. My most recent account was verified immediately.

Making your first trade can be intimidating! Start with something simple like an ETF that tracks the S&P 500 (tickers like VOO, IVV, or SPY). You don't anything complex or "advanced", just something you can consistently build upon.

Setting up automatic investments is a step many beginners skip, but it's crucial for long-term success. I've found that investing smaller amounts regularly outperforms trying to time larger investments. Most brokerages let you schedule weekly or monthly investments into selected securities.

Common Mistakes New Investors Make When Choosing a Brokerage

I've made nearly every mistake possible in my investing journey. Learn from my failures rather than repeating them!

Focusing only on trading commissions is most people's first mistake. With most brokerages now offering commission-free trading, you need to look deeper at other fees and features.

Ignoring educational resources is something I don't recommend. You can avoid costly mistakes if you choose a brokerage with better educational content and actually use it. Schwab's content can save you thousands in poor investments.

Not considering future needs can leave you outgrowing your first brokerage within a year. Think about what you might want to do later - options trading, retirement accounts, or automatic rebalancing - even if you're not ready for those features now.

Overlooking customer service quality seems unimportant until you desperately need help. If I have an issue, especially if it's complex, I need to be able to speak to a live person or chat ASAP.

Being swayed by promotional offers has led many beginners (including myself) to choose sub-optimal brokerages. That free stock worth $5 isn't worth much if the platform charges higher fees long-term.

Not reading the fine print about fees can cost you hundreds in unexpected charges. Always, always read the fee schedule before opening an account. I now make a game of finding all potential fees before committing.

Frequently Asked Questions About Brokerages for Beginners

After helping dozens of friends, clients, and family members start investing, I've heard the same questions repeatedly. Here are answers to what beginners most commonly want to know:

"How much money do I need to start investing?" With brokerages like Fidelity and Robinhood offering fractional shares and no minimums, you can literally start with $1. I suggest starting with whatever amount you won't miss - even $20 per month builds good habits.

"Are online brokerages safe?" Yes, legitimate brokerages are covered by SIPC insurance, protecting your securities up to $500,000 if the brokerage fails. This doesn't protect against market losses, of course - that's the normal risk of investing.

"Can I have multiple brokerage accounts?" Absolutely! I've maintained accounts at three different brokerages for different purposes at one point. There's no penalty for having multiple accounts, though it can complicate tax filing and portfolio tracking.

"What's the difference between a brokerage and a robo-advisor?" Brokerages require you to select investments yourself, while robo-advisors automatically invest your money based on your goals and risk tolerance. Many brokerages like Schwab and Fidelity now offer both options under one roof.

"How long does it take to open a brokerage account?" The application process takes 10-15 minutes, but account verification and funding may take 1-5 business days depending on the brokerage and your funding method. Some could be same-day such as with Robinhood, while traditional brokerages typically take 2-3 business days.

Choosing the right brokerage as a new investor in 2025 can significantly impact your investing journey.

After years of personal experience and helping countless others get started, I've found that Fidelity offers the best overall package for most beginners, with Schwab being ideal for those focused on retirement, Robinhood for ultimate simplicity, Vanguard for cost conscious investors, and SoFi for those wanting an all-in-one financial solution.

Remember that the "best" brokerage ultimately depends on your specific needs. Consider your investing goals, how much guidance you need, and what additional features matter most to you personally.

My final piece of advice? Just start.

Don't spend months overthinking your brokerage choice when you can simply open an account and begin learning through experience. Even if you don't choose the perfect platform initially, all five options here provide a solid foundation with no minimum requirements.

Have you already opened your first brokerage account? Share your experience in the comments below! And if you have questions about getting started, I'm happy to help based on my own journey from nervous beginner to confident investor.