Best Stock Trading Platform for Beginners: Expert Guideline

Being a stock trader, it’s important to keep eyes and ears open about the best online stock trading platforms. And what can be better than a comprehensive all-in-one article about stock trading that tells you what is the best stock trading platform for beginners in 2021

Now, you may be caught up intensely searching for how to choose a broker – a reliable and renowned one. But there are certain conditions in every online stock trade company that you should be concerned about. Reasonable offers, minimum investment, universal access to customers, robust trading platform, no hidden account fees, etc.

Now, taking these parameters in hand and also 42 other features only for mobile trading, we’ve listed our 10 best stock trading platforms in 2020.

We have deep-dived into the features of each of these trading platforms to identify the pros and cons. So, this list is equally helpful for forex traders, stock traders, cryptocurrency trader, or if you simply want to keep track of all the activities – look no further.

List of the Best Online Stock Brokers for Beginners in 2020

TD Ameritrade

Minimum Deposit: $0

Trade Costs: $0.65

Fees: Free stock, ETF, per-leg options trading commission (since October 2019)

Recurring Fees: None

Overview

TD Ameritrade is our second choice on the list. This online broker has branded itself across all social media platforms as a beginner-friendly trading platform. The company had been working for quite some time on user experience on mobile and web platforms. Moreover, it added a little twist by enabling users to interact with Alexa-compatible devices to buy and sell stocks.

Besides, its top-notch platform and low pricing together make it a perfect combo for options trading. The users have access to the huge library of trading resources for beginner investors with enough advanced materials for independent investors, such as – articles, FAQs, webinars, etc. Customer support is highly recommended.

The mobile app is highly rated on Google Playstore, Apple Appstore, and its customers for a smooth user experience. The app incorporated all the web platform options along with enough features to encourage a budding investor.

As of late 2019, Charles Schwab acquired TD Ameritrade, and the two companies merged as one.

Pricing

TD Ameritrade imposes no commission fees on regular stocks and ETFs. It is also recognized as another one of the most beneficial & best stock trading platforms for beginners. But it considers $0.65 per contract for options trading. So, it’s actually very close to being free even though it’s not. Users do not have any minimum balance but need at least $2000 to access the marginal trading and advanced options privileges.

Features

1. Best choice for beginner investors
2. Top-notch educational materials curated for beginner to advanced investors
3. Regular stocks and ETFs are free
4. Trades with no base commission but option trades are as low as $0.65 per contract
5. Unrivaled customer support across the country with phone support and physical appointments across 300+ branches across the country
6. Interactive features for advanced traders like – streaming live data, trading from charts, complex options contracts, and etc.
7. Highly rated and user-friendly mobile app

E*TRADE

Account Minimum: None

Commission Fee: None

Account Fees: Transfer fees are applicable

Investment Products: Stocks, ETFs, Options, Mutual Funds, Futures, Bonds, IRAs, CFDs, Managed Portfolios, Retirement Portfolios, and etc.

Overview

E*TRADE is one of the oldest established brokers in the stock trading business on our list. Having been in the business for more than 40 years, the company certainly knows how to uphold its values and services to keep its trust intact. We have seen that many experts have mentioned it as one of the best stock trading platforms for beginners.

Free commissions, frequent trading, research, retirement planning, beginner investor – if you’re interested in any of these offers, then E*TRADE is for you. With E*TRADE, you have various investment options to choose from because options are one of the company’s strong suit.

Besides, there are 9000 mutual funds to choose from and of which 4400 are commission-free. All this is possible because of E*TRADE’s heavyweight force with funds. Last but not least, the company has a dedicated robo-advertising platform called E-Trad Core Portfolios that readily takes care of your account automatically at the expense of 0.30% annually.

Pricing

E*TRADE has a lot on its offer list for its clients. And that is the reason why the company is best for careful investors. People who are persistent in updating their trading knowledge over time will easily understand how they manage the trades.

To stay in competition with other top major brokers, E*TRADE reduced its trading commissions to zero for regular stocks and ETF trades, $0.65 per contract for an options trade. But you can avail a discount on options trade at $0.50 per contract if you can make over 30 trades per quarter.

Features

1. The minimum account balance for new users is $0
2. The cost of regular stock trading and ETFs is $0
3. Options trading requires no base commission; however, $0.65 per contract is required for options trading
4. Over 4400 no-transaction-fee mutual funds
5. 3 Excellent trading platforms offering services like – free data streaming, research tool, stock screeners, real-time quotes, and lots more
6. Mutual funds that are not on the free list are priced at $19.99 per transaction
7. 24/7 standby customer support (email, phone call, live chat) along with in-person appointments

Interactive Brokers

Account Minimum: None

Commission Fee: Depends on the account and location of the user

Account Fees: Monthly activity charge imposed if you drop below the minimum threshold value

Investment Products: Stocks, ETFs, Options, Forex, Mutual Funds, Metals, Futures, Bonds, IRAs, CDs, Managed Portfolios, Retirement Portfolios, Hedge Funds, EFPs, and etc.

Overview

The interactive broker is a renowned international broker for professional traders. But, their platforms – IBKR Lite and IBKR Pro both encourage budding and advanced investors. If you want to get a trader-friendly stockbroker then Interactive Broker is one of those best stock trading platforms for beginners in the industry.

The company offers one of the most sophisticated stock trading and stock analysis tools in the market and stands as one of the few companies that offer a fractional share of stocks.

Along with that, you will also get – Robo-portfolios (if you are happy feel secure to have your trading rely on algorithms) and Probability Lab (for those who are not so good with mathematics). Besides, 50 top-notch educational courses cover all kinds of trading knowledge from beginner to advanced.

Pricing

The company has 2 tiers of service. IBKR and IBKR Pro. The Pro version is more directed for the advanced traders. Per-share price on options trading is very reasonably priced at $0.005 per share (the minimum is $1). The account minimum across both services is $0.

Besides, it also offers stock on fractional share. The basic IBKR has no price on account of maintenance and inactivity whereas, IBKR Pro will charge you for inactivity.

Features

1. Holds more than $8.2 billion in equity capital, which makes it pretty reliable for all.
2. Offers two main platforms -IBKR Lite and IBKR Pro. The Pro version offers more features as it is directed at advanced traders
3. Free trial option on both platforms – IBKR Lite and IBKR Pro for a limited time.
4. Sophisticated tools and services for thorough analysis, refining your investments.
5. PortfolioAnalyst helps to provide data to help in maintaining your account.
6. ProbabilityLab as a tool helps to provide mathematical insights without having to worry about complicated mathematical analysis.
7. Option to buy fractional share stocks.

Charles Schwab

Account Minimum: $0

Commission Fee: No base commission, Options trading at $0.65 per contract.

Account Fees: No yearly fees included, $50 charge for full asset transfer, and $25 on partial transfer.

Overview

Charles Schwab is one of the largest international online broker company in the world after taking over TD Ameritrade in 2019. The company attracts all kinds of users – beginner to advanced in its intuitively designed trading platform.

It provides one of the most accurate research offerings in the stock market using the reports collected from – Morningstar, Market Edge, Credit Suisse, Ned Davis, and others. The company labels itself as a full-service investment company as it infuses service with technology for those who seek the help of a financial advisor.

It has different kinds of platforms to choose for each kind of trade, as well as full-banking capability. ETF trades are one of the most popular trades in the company, and that is why Schwab’s ETF screener gets featured on the StreetSmart Edge platform promptly.

Their mobile and web platform is easy to use and navigate through the options, making it easy for all kinds of users. Also, the 24/7 customer service virtually and for in-person appointments is unrivaled.

Pricing

Prices are friendly to attract beginner investors. So, the company puts some lucrative available offers such as – $0 minimum account requirement, $0 trading cost on regular stocks, and ETFs.

Plus, there is no transaction-free on 3500 mutual funds, options trade available on as low as $0.65 per contract, $50 for a full asset transfer, and $25 for a partial transfer.

Features

1. Requires no minimum account fee
2. Competitive contract fee of $0.65 per contract on options trading
3. Over 600 funds on the platform have an expense of 0.50% or lower
4. Personalized portfolio tool to help create a calculated diversified portfolio based on your financial target, timeline, and risk factor
5. Easy to navigate through the thousands of funds available on the website and on the app. It is possible to select categories and sort the list by features
6. Fractional shares available for purchase
7. Research offerings are one of the best in the market
8. Offers many research reports, insights, market commentary by their own experts along with a quarterly magazine provided free of charge
9. The platform is integrated with voice commands i.e., Google Assistant, Amazon Alexa, and others.

Robinhood

Overview

Robinhood is the perfect broker for people who expects a minimalistic platform free from all the technical clutter! Even with a limited trading option and account types, anyone can master Robinhood’s web and mobile platform at ease.

Expert users usually do not prefer this broker because of the lack of technical analysis tools supported by almost all other platforms.

Pricing

Like any of its competitors, Robinhood also offers a $0 commission trade on regular stocks, ETFs, and options trading. Likewise, for any of Robinhood’s tradable assets, you need to pay absolutely $0 in commissions.

Users need a Robinhood Gold membership to access margin trading. Even though the users enjoy a $0 account minimum, but you need at least $2000 to make a sweep a decent profit. Besides, a 5% annual percentage rate (APR) is imposed for any amount you use over $1000.

Features

1. Most user-friendly trading app in the market
2. Commission-free trade on any of Robinhood’s tradable assets
3. No minimum account fees required on signup
4. Becoming a Robinhood Gold member does not require you to stack up to $2000 or more in your bank account.
5. All accounts are taxable, and the interests are calculated on a daily basis.
6. Instant deposit offer transfers your first $1000 in a matter of seconds, and the rest is completed when the account is cleared, and the transfer is complete.
7. Customer service is very unconvincing as it is not possible to reach the service team by phone or through live chat. However, you can contact them via social media i.e., Twitter.

Conclusion

If knowledge is power then, foreknowledge is empowering.  If you work with stock trading long enough, you’re going to understand the patterns in which the market works. Of course, there is some level of oddity in the nature of how it works, but you’ll get adjusted to it.

We have tried to present you with the most actionable guideline through our best stock trading platforms review in the above article. Our experts have gone through every broker platform to present the best solutions for you.