Are you thinking of investing your money in stocks or online trading? The most vital thing is to choose the right or the best online broker. Here we will discuss the things that you need to keep in mind while choosing a broker. We will also give you some suggestions.
Best Online Trading Brokers for Beginners
Now we will give you a detailed idea about the online trading brokers that we have mentioned earlier.
1. Freetrade
In the year 2016, this company came to the market as a commission-free stock trading company. Being a UK-based fintech start-up and duly regulated by the FCA or United Kingdom’s Financial Conduct Authority. As it is regulated by the top-tier regulator or FCA, it is considered safer.
This mobile trading platform is well-designed and user-friendly with the proper search function. But you will only get two orders and won’t get any price alerts,
| Benefits | Lack of |
| Mobile Trading Platform
● Two-step login ● Safer login ● Efficient search functions ● User-friendly
Fees
● Free stock and ETF trading ● No account, withdrawal, or inactivity fees ● Low trading fees
Education
● Educational content ● Invest HUB blog
Customer Service
● Efficient live chat function on mobile app and websites ● Relevant answers ● Fast response time
Account Opening
● Fully digital and fast account opening ● No minimum deposit
Withdrawal & Deposition
● User-friendly withdrawal and deposition ● No deposition fee ● Free withdrawal |
● No price alerts ● Limited order types
● None
● No webinars ● No educational videos
● No 24/7 support ● No call support
● None
● Debit cards only for deposits ● One account base currency
|
2. Revolut
It has been known for its payment and banking services since 2015. In the year 2019, Revolut Trading Limited launched commission-free stock trading.
Some top-tier regulators like the US Security Exchange Commission or SEC, and the Financial Industry Regulatory Authority, or FINRA regulate Revolut. Under the SIPC or Securities Investments Protection Corporation’s insurance, the client’s assets are protected unto $500,000 and $250,000 cash.
| Benefits | Lack of |
| Mobile Trading Platform
● Touch or Face login ● Efficient search functions ● User-friendly
Fees
● Free stock trading ● No account, withdrawal, or inactivity fees ● Low trading fees
Education
● None
Customer Service
● An efficient live chat function ● Phone support
Account Opening
● Fully digital and fast account opening ● No minimum deposit
Withdrawal & Deposition
● Debit/credit card available ● User-friendly withdrawal and deposition ● No deposition fee ● Free withdrawal |
● No two-step login ● Limited order types
● None
● No educational videos ● No Demo Account ● No trading platform tutorial videos
● No 24/7 support ● Irrelevant answers ● Only prerecorded answers are available on the phone
● None
● One account base currency
|
3. Robinhood
Established in 2013, Robinhood is a USA-based broker, which does not charge any broker fee. Some top-tier regulators like the US Security Exchange Commission or SEC, and the Financial Industry Regulatory Authority, or FINRA regulate Revolut.
To help all its clients earn interest on the invested funds, Robinhood has also introduced cash management besides brokerage service.
| Benefits | Lack of |
| Mobile Trading Platform
● Two-step (safer) login ● Efficient search functions ● User-friendly
Fees
● Transparent fee structure ● No account, withdrawal, deposition, or inactivity fees ● No commission fee on US stock and ETF trading
Education
● Quality educational texts
Customer Service
● Relevant answers ● Fast response time
Account Opening
● Fully digital and fast account opening ● No minimum deposit
Withdrawal & Deposition
● Cash management service ● No deposition fee ● Free withdrawal |
● None
● None
● No educational videos ● No Demo Account ● No trading platform tutorial videos
● No 24/7 support ● No live chat ● No phone support
● Only for US clients ● Does not offer any IRA accounts
● No credit/debit cards ● Pricey wire withdrawal ● A larger amount of deposition takes longer |
4. Merrill Edge
In the year 2010, the Bank of America, or BofA founded Merrill Edge. It offers ETFs, US stocks, bonds, and options. FINRA or Financial Industry Regulatory Authority and SEC or Securities and Exchange Commission regulate Merrill Edge.
The parent company of Merrill Edge which is a reputed bank makes it safer for its users. Apart from being regulated by top-tier regulators, it also discloses its financials.
| Benefits | Lack of |
| Mobile Trading Platform
● Touch or Face login ● Two-step (safer) ● User-friendly
Fees
● Low stock and ETF fees ● Low account, withdrawal, or inactivity fees ● Low trading fees
Education
● Educational videos ● Trading platform tutorial
Customer Service
● An efficient live chat function ● Phone support
Account Opening
● Fully digital and fast account opening ● No minimum deposit
Withdrawal & Deposition
● User-friendly withdrawal and deposition ● No deposition fee ● Free withdrawal |
● Poor search function
● High financial rate
● No Demo Account
● No email support
● Available for the only US clients
● Debit/credit card not available ● One account base currency ● Slower withdrawal (Over 3 days)
|
5. Degiro
Degiro is an online broker in the Netherlands. Some former employees of another brokerage company established Degiro in 2008. The Netherlands Authority of Financial Market or AFM and DNB or Dutch Central Bank regulates Degiro. It is also registered with the Chamber of Commerce and Industry in Amsterdam.
| Benefits | Lack of |
| Mobile Trading Platform
● Touch or Face login ● Efficient search functions ● User-friendly
Fees
● Low ETF and trading fees ● Low account, withdrawal, or inactivity fees ● Low trading fees
Education
● Educational videos ● Trading platform tutorials
Customer Service
● Relevant answers ● Phone support
Account Opening
● Fully digital and fast account opening ● No minimum deposit
Withdrawal & Deposition
● Several account’s base currency ● No deposition fee ● Free withdrawal |
● No price alerts
● For Aslan it has higher trading fees and smaller for European stock exchanges
● Only English and Dutch language ● No Demo Account
● No 24/7 support ● No live chat
● None
● Debit/credit cards not available
|
6. Verdict
Different brokers offer different benefits and also lack some useful things. So, at the time of choosing a broker make sure that you are choosing the right one. Go for the safer one and also search for those brokers who charge the lowest. Being a beginner try to opt for the most user-friendly one.
Suggestions for Best Online Trading Brokers for Beginners
As promised earlier, here are some suggestions for online trading brokers for beginners.
1. Freetrade
It is considered the best broker in 2022 for beginners. It offers free stock along with ETF trading. Being a great mobile trading platform, it has a fast and easy account opening.
2. Revolut
Just like Freetrade, Revolut also offers free stock and fast account opening. It is also a great trading platform on mobile.
3. Robinhood
Robinhood has freed US trading with ETF trading. An excellent web and mobile trading podium. Here you can open an account fast and the whole process is fully digitalized.
4. Merrill Edge
Now come to Merrill Edge, which has a seamless and easy account opening. It is a parent company. For all these benefits, Merrill Edge charges a fee.
5. DEGIRO
Multiple top-tier authorities regulate Degiro, which is one of the lowest chargeable brokers in the market. This web and mobile broker is very user-friendly.
6. Client Comparisons
Where Freetrade accepts clients only from the UK Revolut serves broadly and accepts clients from all over the US, Europe, Singapore, Canada, Australia, and Switzerland. Robinhood and Merrill Edge accept clients only from the entire US. Only Europeans can get access to Degiro.
Points To Consider For Online Trading Brokers for Beginners
Some factors make a broker more likable for beginners. They are the following.
- Offers low brokerage fees and a great mobile trading platform.
- Easy accessibility and a service that will cater to all your needs Courier Business
- Contains some nice educational tools, such as a demo account and courses or webinars.
- Easy process of opening an account and fund depositions.
How to select the Best Online Trading Brokers for Beginners?
We understand choosing the right broker is not as easy as pointing out the factors. If you are unable to decide which broker is suitable for you, we are here to help you. You can find several tools that will help you to find the perfect match for you. You also can compare different brokers and their services by using comparison tools.
All you need to do is put the place where you are residing and a list of available brokers will be served. By comparing between them you can select the right one for you.
