There are three important assets a broker can offer any new investor. The first and most important is an easy-to-use website and platform. After all, what good is trading online if you can’t figure out how to perform research or place an order? Second, a robust offering of educational content (see the “Education” section for a full breakdown) is always beneficial. Third is having access to virtual trading for practice and honing the art of trading. “X” factors include research, customer service, and community functionality.
Published by Blain Reinkensmeyer on Monday, February 16th, 2015 .
Based on the above criteria, our No. 1 pick for new investors is TD Ameritrade. New investors have access to an easy-to-use platform and website through Trade Architect, more than 100 branch offices for live seminars, top-notch research, and much more. Investools, a premium investing education provider brought to the broker through its acquisition of thinkorswim, is also a great asset. Driven by the Investools team, in 2014 the broker launched a brand-new education center that blew us away. Our one gripe with TD Ameritrade is that its virtual trading capabilities are offered only through the thinkorswim platform, which has not been built with new investors in mind. This caveat aside, TD Ameritrade is the best environment for new investors.
Earning our second recommendation based on its platform alone is OptionsHouse, with its flagship platform tradeMONSTER. OptionsHouse’s web-based platform requires no minimum deposit for access ($100 deposit for real-time quotes) and is the perfect atmosphere for any new investor. Whether stock or options trading in a virtual or real environment, the platform defines ease of use. Personal notes can be added to stock charts as well as any new trades being made (trade tagging also allows for speedy post-trade analysis). The one major caveat with OptionsHouse is its on-site education, which we found to be just okay. Also, OptionsHouse’s research capabilities are nothing spectacular. Despite the drawbacks, however, OptionsHouse is still a winner for beginners.
Other top brokers in this category include Scottrade, ETRADE, and ShareBuilder. Scottrade shines with its massive network of 505 local branch offices for live seminars, its ever-growing variety of on-site educational content, and the easy-to-use Scottrader Streaming Quotes platform. Alternatively, ETRADE offers clients access to in-depth research, an easy-to-use website and excellent on-site education. Lastly, ShareBuilder offers clients one of the easiest websites to use in the industry, fantastic phone support, and a very strong research area.
Navigating the challenges of being a new investor is no easy task. That is why having a good broker to instill confidence while newbies are learning the rules of the game will pay big dividends down the road.
All pricing data was obtained from a published web site as of 11/01/2014 and is believed to be accurate, but is not guaranteed. The StockBrokers.com staff is constantly working with its online broker representatives to obtain the latest pricing data. If you believe any data listed above is inaccurate, please contact us using the link at the top of this page. For stock trade rates, advertised pricing is for a standard order size of 500 shares of stock priced at $30 per share. For options orders, an options regulatory fee per contract may apply.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading privileges subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options (http://www.optionsclearing.com/about/publications/character-risks.jsp) before investing in options. Offer valid for one new Individual, Joint or IRA TD Ameritrade account opened by 12/31/2014 and funded within 30 days of account opening with $2,000 or more. To receive $100 bonus, account must be funded with $25,000 or more within 30 days of initial minimum funding. To receive $300 bonus, account must be funded with $100,000 or more within 30 days of initial minimum funding. To receive $600 bonus, account must be funded with $250,000 or more within 30 days of initial minimum funding. Please allow 3-5 business days for any cash deposits to post to account. Offer is not transferable and not valid with internal transfers, accounts using the Amerivest service, TD Ameritrade Institutional accounts, and current TD Ameritrade accounts or with other offers. Qualified commission-free Internet equity, ETF or options orders will be limited to a maximum of 250 and must execute within 90 days of account funding. Contract, exercise, and assignment fees still apply. Limit one offer per client. Account must remain open with minimum funding required for participating in the offer for 9 months, or TD Ameritrade may charge the account for the cost of the cash awarded to the account. TD Ameritrade reserves the right to restrict or revoke this offer at any time. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. Please allow 3-5 business days for any cash deposits to post to account. Taxes related to TD Ameritrade offers are your responsibility. Retail values totaling $600 or more during the calendar year will be included in your consolidated Form 1099. TD Ameritrade Inc., member FINRA/SIPC/NFA.. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2014 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.