The Success Guardian

10 Best Brokerage Accounts for New Investors in 2024

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Starting your investing journey in 2024 means you’ve got access to a lot of powerful, low-cost tools. Choosing the right brokerage account is the first step. This guide walks through the 10 best brokerage accounts for new investors, highlighting costs, minimums, tools, and who each platform is best suited for.

Quick comparison: Key facts at a glance

Note: Figures in the table were current as of June 2024. Many brokers update fees and features periodically — always confirm on the broker’s site before opening an account.

How I picked these brokers

For new investors, the most important factors are low costs, ease of use, educational resources, and protection/security. I compared dozens of platforms and focused on the combination of:

• Zero or very low trading commissions for stocks and ETFs.
• Clear, predictable fee schedules (especially for options, mutual funds, and account services).
• User-friendly apps and desktop platforms with educational content for beginners.
• Availability of fractional shares, automated investing, and goal-based tools.
• Strong customer support and regulatory protections (SIPC membership).

As one certified financial planner put it, “For a new investor, the learning curve is steep enough — pick a platform that minimizes surprise fees and helps you learn while you invest.”

1. Fidelity — Best for research and long-term investors

Why it’s great: Fidelity combines rich research tools, no account minimums, and competitive pricing. Their mobile app and website are polished, and they offer a wide selection of mutual funds and commission-free ETFs.

2. Charles Schwab — Best all-around for beginners

Why it’s great: Schwab’s platform is beginner-friendly but also powerful for advanced users. It has no account minimum, offers fractional shares via Stock Slices, and has excellent customer service.

A Schwab representative often emphasizes, “We want clients to stay invested — our fee structure and tools reflect that for long-term goals.”

3. Vanguard — Best for index fund investors

Why it’s great: Vanguard is the classic choice for passive investors who favor low-cost index mutual funds and ETFs. Their funds often have some of the lowest expense ratios available.

Real example: The Vanguard Total Stock Market ETF (VTI) has an expense ratio well under 0.05% — meaning you keep more of your returns. If you invest $10,000 and the fund returns 7% while the expense ratio is 0.03%, your net return will be closer to 6.97%.

4. Robinhood — Best for absolute beginners and fractional trades

Why it’s great: Robinhood popularized commission-free trading and fractional shares. If you want a very simple mobile-first experience, Robinhood makes buying your first shares quick and painless.

Tip: Robinhood is great for getting started, but once your portfolio grows or your strategy becomes more complex, you may want a broker with deeper research and retirement tools.

5. Webull — Best mobile-first platform with advanced tools

Why it’s great: Webull offers commission-free trades and a slightly more advanced platform than Robinhood — including better charts, paper trading, and extended-hours trading.

6. Interactive Brokers (IBKR Lite) — Best for global and low-cost traders

Why it’s great: Interactive Brokers is known for ultra-low-cost global execution and extensive asset access. The IBKR Lite tier is an excellent option for U.S. investors who want broad market access with low friction.

If you plan to eventually trade foreign stocks or want tight execution and lower slippage, Interactive Brokers is a standout choice.

7. E*TRADE — Best for learning and trading tools

Why it’s great: E*TRADE has been a long-time player with strong desktop and mobile platforms, good educational content, and a wide fund selection. They also offer competitively priced options trading.

8. Merrill Edge — Best for Bank of America clients

Why it’s great: If you bank with Bank of America, Merrill Edge provides seamless integration, perks like preferred interest rates for certain account sizes, and guidance resources tied to your bank relationship.

9. SoFi Invest — Best for beginners who want banking + investing

Why it’s great: SoFi blends banking, personal finance, and investing into one ecosystem. The platform is simple, offers fractional shares, and provides access to crypto and automated investing.

SoFi is ideal for someone who wants a single app for both saving, borrowing, and simple investing.

10. Betterment — Best robo-advisor for hands-off investors

Why it’s great: If you want to set goals (retirement, emergency fund, house down payment) and let an algorithm do the rest, Betterment is a top pick. It builds diversified ETF portfolios, handles rebalancing, and offers tax-loss harvesting (for higher tiers).

How to pick the right brokerage account for you

Here’s a simple checklist:

• Are you hands-off or hands-on? If you want autopilot, choose a robo (Betterment). If you want to research and pick stocks, choose a full-service broker (Fidelity, Schwab).
• How important are fees? For small balances, commission-free trading matters less than expense ratios and advisory fees. For frequent traders, per-trade and options fees matter a lot.
• Do you need banking integration? If yes, consider Merrill Edge (with Bank of America) or SoFi.
• Do you need retirement accounts? Most brokers offer IRAs; check for retirement planning tools and fund choices.
• Are fractional shares important? Fractionals help start investing with very small amounts — available at Fidelity, Schwab, Robinhood, Webull, SoFi, and others.

Real example: Cost comparison for a new investor

Scenario: You plan to invest $100 per month for a year in ETFs. Which costs matter?

• Commission: Most major brokers offer $0 commissions for US stocks & ETFs — so commissions are often $0.
• Expense ratio: If you pick an ETF with a 0.03% expense ratio versus 0.50%, over time that difference compounds. For small amounts in Year 1, the difference is small, but over decades it magnifies.
• Robo advisory fee: 0.25% annually (Betterment Digital). For $1,200 invested after a year, that fee would be about $3.00 — small now but scales with balance.

Common beginner mistakes (and how to avoid them)

• Chasing hot stocks — instead, build a simple diversified core: broad U.S. stock ETF + international ETF + bond ETF as appropriate for your risk tolerance.
• Letting fees compound — prefer low expense ratios for long-term holdings; review advisory fees for robo accounts.
• Failing to set goals — label accounts and set a plan: retirement (IRA), emergency fund (high-yield account), taxable investing.
• Overtrading — frequent buying and selling can undermine returns even with zero commission due to behavioral mistakes.

Final tips and next steps

Opening a first brokerage account is a meaningful step. A few practical next moves:

• Start with one account and one simple plan: e.g., $50–$200 monthly into diversified ETFs.
• Use educational resources from your chosen broker — read articles, watch short tutorials, try paper trading if available.
• Keep an emergency fund (3–6 months of expenses) separate before investing money you may need soon.
• Review fees annually and migrate if a better, lower-cost option suits your evolving needs.

As a friendly reminder from an investing coach I spoke with: “The single best move for a new investor is to begin. Time in the market, not timing the market, will likely be your greatest ally.”

Wrapping up

In 2024, most mainstream brokers make it easy and cheap to start. If you want research and retirement planning: consider Fidelity or Schwab. If you want automated, hands-off investing: Betterment or SoFi are excellent. If you want a simple, mobile-first experience to buy fractional shares: Robinhood or Webull fit the bill. And if you someday want global markets and professional-grade execution, Interactive Brokers is a top choice.

Pick the broker that matches your goals and comfort level. Start small, be consistent, and keep learning — the most important piece is to begin putting money to work.

Disclaimer: This article provides general information and should not be taken as investment advice. Fee figures and features were accurate as of June 2024 but may change — always verify details with the brokerage before opening an account.

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