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Best Online Stock Brokers for New Investors

Ready to start investing? Congrats. It’s a huge step on the road to financial independence.

Don’t get hung up on where you invest as long as you’re getting in the habit of investing. The following brokers are my recommendations for new investment accounts, whether it’s an IRA or a taxable non-retirement account.

Top Pick!

TradeKing

TradeKing is a popular broker among MoneyUnder30 readers because of their low-priced trades ($4.95) and award-winning customer service.

Trading doesn’t get more straight-forward and affordable than with TradeKing whether you are just getting started with a few shares for your IRA or diving into options.

Plus, TradeKing will reimburse up to $150 in transfer-out fees charged by another broker if you’re moving accounts.

Min. to Open Stock Trades Mutual Fund Trades
$0 $4.95 $9.95

LOYAL3

makes it possible for you to invest as little as $10 in brands you love. Plus, unlike other brokerages, you pay $0 fees to buy and sell stocks, and there are no account minimums. You can even set up monthly automatic plans, where we’ll automatically purchase stock monthly for you in the amount you select.

If stocks aren’t your thing or you’re looking for more investment options, then we have something for you. We provide access to IPOs (Initial Public Offerings) at the same time and price as Wall Street. Start investing in IPOs with $100, fee-free.

Get started today, it’s as simple as buying a product online and will only take a few minutes.

Min. to Open Stock Trades IPO Trades
$0 $0 $0

OptionsHouse

100 Free Trades.  Visit OptionsHouse.com Today!OptionHouse is a great pick for new investors as there’s no minimum to open; and stock trades are just $4.95.

As its name implies, OptionsHouse has some unique features that will appeal to options traders, but it’s also a great affordable all-around stock broker for new investors.

There’s no minimum deposit to open an account and you it’s hard to beat the $4.95 trade commissions. Among our recommended brokers, we think OptionsHouse’s online trading tools are also the easiest to use.

Special promotion! Get 150 free trades when you open and fund a new OptionsHouse account

Min. to Open Stock Trades Mutual Fund Trades
$0 $4.95 $9.95

E*Trade

E*Trade is a good pick for data junkies and frequent traders, as they get high marks for research; E*Trade’s stock screeners, charts, and planning tools are among the best available to individual investors.

Regular traders will enjoy significantly reduced trade commissions the more they trade. For example, standard trades drop from $9.99 to $7.99 for investors making more than 150 trades each quarter. Additional savings are available at 1,500 trades per quarter.

Min. to Open Stock Trades Mutual Fund Trades
$500 $9.99 $19.99

TD Ameritrade

TD Ameritrade features no minimum opening deposit and a user-friendly interface.

Their trading commissions are a flat $9.99; not the cheapest but still quite affordable. And if you really get into trading and stock-picking, TD’s powerful research tools don’t disappoint. Best of all, TD Ameritrade also has commission-free ETFs perfect for new investors.

TD Ameritrade offers hundreds of no transaction fee mutual funds which you can purchase at no cost. Most investors will be satisfied with such a selection, but purchasing a no-load mutual fund outside of these selections will incur a $49.99 commission.

Min. to Open Stock Trades Mutual Fund Trades
$0 $9.99 $0-$49.99

Scottrade

Scottrade is one of our recommended brokers for young investors.If you can afford the $500 minimum opening investment, consider Scottrade.

Their trades are just $7 a piece and they have over 500 brick-and-mortar locations for face-to-face customer service should you ever need it. These days you can do 99 percent of your investing online, but there are times when it might be nice to talk to a live person. For new investors, Scottrade boasts an impressive number of mutual funds (over 13,000).

Min. to Open Stock Trades Mutual Fund Trades
$500 $7 $17

Betterment

Betterment: Smarter Investing for Busy PeopleIf you find the idea of choosing from say, over 13,000 mutual funds a bit overwhelming and you want to keep investing as simple as possible — at least until you’ve grown your cash a bit — take a look at Betterment.

Betterment isn’t really a broker so much as an alternative — very easy — way to invest in a a broad index of the stock market. Many experts — including Warren Buffet — say that this is how most individual investors should invest. The idea is you simply invest in everything — an index of the entire stock and bond markets. You eliminate the risk of a few bad investments weighting down your returns.

Over time, studies show that index investors do at least as well, and often better, than people who spend years (and fortunes) trying to pick stocks that will beat the market. Best of all, index investing is cheap.

Min. to Open Stock Trades Mutual Fund Trades
$0 N/A N/A

tradeMONSTER

tradeMONSTERTradeMONSTER is an ideal broker for new investors featuring zero commissions for 60 days and a low $4.95 per equity trade thereafter.

TradeMONSTER features robust research tools that are available to everybody — there’s no minimum trading volume required.

For investors wanting to trade options, tradeMONSTER offers a low rate of just $0.50 per contract. TradeMONSTER has been rated the #1 broker for usability, customer service and mobile trading by Barron’s.

Min. to Open Stock Trades Mutual Fund Trades
$0 $4.95 $15.00 (purchase only)

Note: One way I’m able to support my blogging while helping you is to link to products I like and earn a referral commission if you sign up. I only link to products I trust. That said, you should know that, for some of these brokers, I earn a small amount if you follow my links and eventually open an account.