Over 10 million Americans opened new brokerage accounts last year, and that number keeps climbing. More people are taking control of their financial futures through investing than ever before.

I opened my first brokerage account back in 2010, and honestly? I had no idea what I was doing.

I picked based on which website looked the coolest, not what actually fit my needs. That mistake cost me in fees and missed opportunities for years.

Choosing the right online brokerage as a beginner isn't just about finding the cheapest option—it's about finding the platform that'll actually help you build wealth without making the journey harder than it needs to be.

After 15+ years of investing experience and testing pretty much every platform out there, I'm gonna walk you through the best online brokerages for new investors in 2025. My goal is simple: help you avoid the costly mistakes I made when I was starting out.

Let's find your perfect investing home.

What Makes a Great Brokerage for Beginners?

When I first started, I got distracted by flashy promotions offering free stocks worth maybe $10. Meanwhile, I completely ignored the fees that would eat into my returns for years. Don't do what I did.

Here's what actually matters when you're choosing your first brokerage:

Low or zero minimum deposits are huge when you're just getting started. I remember wanting to invest but feeling discouraged because platforms wanted $1,000 or more just to open an account. Thankfully, that barrier's mostly gone in 2025.

Commission-free trading is basically standard now, but it wasn't always. There was a time I paid $7-10 per trade, which made investing small amounts completely impractical. Make sure your platform offers zero-commission trading on stocks and ETFs at minimum.

User-friendly interface might seem superficial, but trust me—a confusing platform will discourage you from staying engaged with your investments. I've literally 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 courses that'll save you from costly mistakes. I learned most of what I know from these resources instead of expensive investing books.

Customer support quality becomes incredibly important the moment something goes wrong. Imagine not being able to access your account during a major market movement because your brokerage's support team took 48 hours to respond. That's a dealbreaker.

SIPC insurance protection is non-negotiable. This protects your securities up to $500,000 if the brokerage fails. It's not about market losses—it's about the actual company going under.

Account types available matter more than you'd think. Investing for retirement? You'll want IRA access. Saving for a kid's education? You might need a 529 plan option. Think about your goals before choosing.

Hidden fees are the silent killers that destroy returns over time. 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 Best Brokerages for Beginners

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

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

1. 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. Their mobile app used to be clunky, but now it's one of the most intuitive interfaces in the industry.

Why Fidelity works for beginners:

Zero minimum deposit requirement means you can start with whatever amount you're comfortable with. Even $50 is enough to get going.

Commission-free trading on stocks and ETFs eliminates the cost barrier for making small, regular investments—a strategy that's worked best for beginners in my experience.

Fractional shares availability is a game-changer. Want to buy Amazon stock but can't afford the full share price? You can invest just $1 in any stock through Fidelity.

Exceptional educational content with clear explanations that don't talk down to beginners. Their learning center helped me understand concepts like asset allocation that seemed impossible to grasp elsewhere.

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

The downsides? Their options trading platform isn't the most intuitive if you eventually 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.

Bottom line: Fidelity gives you everything you need to start investing today while providing powerful tools you'll appreciate as you gain experience.

2. Charles Schwab - Best for Long-Term Wealth Building

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

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

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

Zero minimums and zero commissions eliminated the barriers that once made investing seem exclusive to the wealthy.

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

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 some competitors. It might take you a while to feel fully comfortable navigating their platform. But the trade-off is access to more powerful tools as your knowledge grows.

Account maintenance fees are nonexistent for most users, though they do charge for paper statements—an easy fee to avoid by going paperless.

Bottom line: If you're serious about building long-term wealth and want professional-grade tools at beginner-friendly prices, Schwab is your platform.

3. Robinhood - Best for Simplicity and Mobile-First Investing

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

Why beginners love Robinhood:

Most intuitive interface in the industry—bar none. You can be making trades within minutes of downloading the app with zero confusion.

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

Instant deposit feature lets you start investing immediately after transferring funds, unlike the 2-3 day wait at most traditional brokerages. This has saved me from missing opportunities multiple times.

Fractional shares with no minimum let you build a diversified portfolio with just a few hundred dollars—something that was impossible before Robinhood.

Cryptocurrency access alongside traditional investments creates a one-stop shop for modern portfolios. Even if you keep just a small portion in crypto, the integration makes monitoring easy.

The downsides are significant though. Research tools are extremely limited compared to competitors. You'll find yourself using other sources for company information before making trades.

Customer service has reportedly improved but still lags behind traditional brokerages. Waiting for responses to account issues is utterly frustrating.

Educational content, while improving, doesn't compare to what Fidelity or Schwab offers. I recommend Robinhood only if you're willing to learn elsewhere.

Bottom line: Perfect for beginners who want the absolute simplest experience and plan to educate themselves through other resources.

4. Vanguard - Best for Low-Cost Index Fund Investing

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

Why Vanguard works for cost-conscious beginners:

Industry-leading low expense ratios help investors keep more of their returns over time. While many brokers charge high management fees, Vanguard's mutual funds and ETFs consistently rank among the lowest-cost options in the industry.

Commission-free trading on stocks and ETFs makes it cost-effective for beginners who want to start investing without worrying about extra fees. However, mutual funds outside Vanguard's lineup may come with transaction fees.

No minimum deposit for most investment accounts. While some mutual funds may have minimum requirements (typically $1,000-$3,000), ETFs can be purchased with no minimum investment.

Simple platform design focused on long-term investors. While it doesn't have the sleekest interface compared to Fidelity or Schwab, its straightforward layout is perfect for buy-and-hold strategies.

Focus on passive investing philosophy makes it ideal if you're looking for steady, low-cost wealth accumulation. If you want day-trading tools or margin trading, this isn't your platform.

Excellent educational materials including articles, webinars, and retirement planning tools help beginners understand core investing principles.

The limitations? The platform feels dated compared to newer competitors. It's functional but not exciting. Active traders will feel constrained by the limited tools.

Bottom line: If keeping costs ultra-low is your priority and you're committed to long-term, passive investing, Vanguard is hard to beat.

5. SoFi Invest - Best for All-in-One Financial Services

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

What makes SoFi different:

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

Automated investing option provides a robo-advisor alternative alongside self-directed trading. This helps when you're too busy to actively manage portions of your portfolio.

Integration with banking, loans, and credit 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. These planning sessions provide valuable guidance that would cost hundreds elsewhere.

Simple interface makes it less intimidating than traditional brokerages. You can complete your first investment in under 10 minutes.

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

Research tools are adequate but not exceptional compared to Fidelity or Schwab.

Bottom line: Perfect if you want a single app managing your entire financial life—investing, banking, loans, and credit monitoring all in one place.

Comparing Fees and Features: What You'll Actually Pay

Fees taught me a hard lesson when I switched brokers constantly early on. Money lost to various fees could've been worth significantly more if it had remained invested.

Here's how my top picks compare on fees:

Commission structure: All five offer commission-free stock and ETF trading. This wasn't the case just a few years ago when I was paying $7.95 per trade.

Account maintenance fees: Fidelity, Schwab, Robinhood, Vanguard, and SoFi have no annual maintenance fees for standard accounts.

Inactivity fees have been eliminated by all five brokerages. I once got hit with a $50 inactivity fee during a period when I was just holding—painful lesson.

Transfer fees are where you need caution. Moving your account to another brokerage typically costs $75 at traditional brokerages, though Robinhood charges $100. SoFi currently doesn't charge transfer fees.

Margin rates vary significantly: Robinhood offers the lowest at around 5%, while Schwab and Fidelity charge 8-10% depending on your balance. These rates 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 alone, but compounded over decades, they can reduce your returns by tens of thousands of dollars. Always calculate potential fee impact before opening any account.

How to Open Your First Brokerage Account in 5 Simple Steps

Opening my first brokerage account took nearly a week because I wasn't prepared. Let me save you that hassle.

Step 1: Gather required documentation You'll need your Social Security number, government-issued ID, employment information, and basic financial info like your income range. Having these ready makes the process smooth.

Step 2: Complete the online application The application is entirely online for all five brokerages and typically takes 10-15 minutes if you're prepared. I recently helped my wife open an account in under 10 minutes.

Step 3: Fund your account Options include ACH transfers from your bank (usually free), wire transfers (often have fees), or checks. ACH is simplest but takes 2-3 business days. I prefer connecting my bank account for easy recurring transfers.

Step 4: Wait for account verification This 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.

Step 5: Make your first trade Start with something simple like an ETF that tracks the S&P 500 (tickers like VOO, IVV, or SPY). You don't need anything complex—just something you can consistently build upon.

Bonus step: Set up automatic investments. This is crucial for long-term success. I've found investing smaller amounts regularly outperforms trying to time larger investments. Most brokerages let you schedule weekly or monthly investments.

5 Costly Mistakes Beginners Make When Choosing a Brokerage

I've made nearly every mistake possible in my investing journey. Learn from my failures instead of repeating them.

Mistake #1: Focusing only on trading commissions With most brokerages now offering commission-free trading, you need to look deeper at other fees and features. That "free" platform might charge you in other ways.

Mistake #2: Ignoring educational resources Choosing a brokerage with strong educational content can save you thousands in poor investments. Schwab's content has literally saved me from bad decisions multiple times.

Mistake #3: Not considering future needs Think about what you might want later—options trading, retirement accounts, automatic rebalancing—even if you're not ready now. You don't want to outgrow your platform in a year.

Mistake #4: Overlooking customer service quality This seems unimportant until you desperately need help. I need to speak to a live person quickly when issues arise, especially complex ones.

Mistake #5: Being swayed by promotional offers That free stock worth $5 isn't worth much if the platform charges higher fees long-term. I've seen too many beginners (including myself) choose sub-optimal brokerages for bonuses.

Frequently Asked Questions About Brokerages for Beginners

After helping dozens of friends and family start investing, these are the questions I hear most:

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—that's normal investing risk.

Can I have multiple brokerage accounts? Absolutely! I've maintained accounts at three different brokerages for different purposes. 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 based on your goals and risk tolerance. Many brokerages like Schwab and Fidelity now offer both options.

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

Final Thoughts: Just Start Investing Today

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 retirement-focused investors, 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.

The biggest mistake isn't choosing the wrong brokerage—it's not starting at all. Every day you wait is a day your money isn't working for you.

Ready to take control of your financial future? Pick the brokerage that fits your needs and open your account today. Your future self will thank you.