Best Online Brokers for Beginners in September 2020 |US Market :

 Best Online Brokers for Beginners in September 2020 |US Market :

In our list of the best brokers for beginners, we focused on the features that help new investors learn as they are starting their investing journey. Brokers were selected based on top-notch educational resources, easy navigation, clear commission and pricing structures, portfolio construction tools, and a high level of customer service. Some brokers also offered low minimum account balances, and demo accounts to practice. 

 1.TD Ameritrade

 

 TD Ameritrade, one of the largest online brokers, has made a priority of finding new investors and making it easy for them to get started. TD Ameritrade maintains an active social media presence so that a younger audience can gain familiarity with the company and the concept of investing. New users will find that financial education is a key component of TD Ameritrade’s offerings. The broker’s online resources feature expanded learning pathways, ranging from beginner to advanced, to help you understand everything from basic investing concepts to extremely advanced derivatives strategies.

 TD Ameritrade was the only broker in our review to earn the maximum number of points across the education category.

TD Ameritrade is also very welcoming in terms of test driving the platform without making a commitment. You can open an account and poke around without making a deposit, and take advantage of all the learning opportunities until you’re comfortable putting money down.TD Ameritrade clearly wants to be part of the process through which new investors become more confident in their skills and take charge of their own financial future. 

Pros

•     The education offerings are well designed to guide new investors through basic investing concepts and on to more advanced strategies as they grow.
•     TD Ameritrade offers in-person education at more than 280 offices as well as multiple training pathways available on its website and mobile apps.
•     The TD Ameritrade Network offers nine hours of live programming in addition to on-demand content.
•     The well-designed mobile apps are intended to give customers a simple one-page experience that will sit well with a younger, mobile-first crowd.

Cons

•     Some investors may have to use multiple platforms to utilize preferred tools. This is most likely to affect experienced investors using a mixture of fundamental and technical analysis in their trading.
•     TD Ameritrade offers many account types, so new investors may be unsure of which to choose when getting started. There should be more help available to make sure customers start out with the correct account type.
•     Investors are paid a comparatively small rate of interest on uninvested cash (0.01-0.05%) unless they take action to move cash into money market funds.

2.E*TRADE

 

E*TRADE offers three computer-based and two mobile platforms that appeal to a range of investing styles and interests.4 The standard E*TRADE website and app have been redesigned for investors who are just getting started. Both the website and app have two-level menus with easy access to numerous screening tools, portfolio analysis, and education offerings. There is also a demo account in the form of a paper trading platform modeled after the Power E*TRADE platform for traders to practice on. The more advanced E*TRADE platforms are also elegantly designed and guide you along the way as you graduate to more complex asset classes.

Pros

•     E*TRADE’s mobile apps are extremely well laid-out and easy to use and are among the most comprehensive and extensive apps tested. There are two mobile apps available: regular E*TRADE and E*TRADE Pro. The latter is focused on derivatives – options and futures.
•     E*TRADE paper trading capabilities are used extensively to test strategies. The paper trading site uses delayed data so you won’t think you’re placing real trades.
•     For those with a chunk of change that they want to invest quickly, E*TRADE’s Prebuilt Portfolios offer a fast track to the markets. You can choose from three different risk levels (conservative, moderate, aggressive) made up of ETFs ($2,500 minimum) or mutual funds ($500 minimum). There are no fees beyond fund management costs.

Cons

•     E*TRADE is hanging on to its tiered commission schedule for options trades, charging $0.65 per contract for less frequent traders and $0.50 for those who place more than 30 options trades per quarter.
•     Investors who would like direct access to international markets or to trade foreign currencies should look elsewhere.
•     Though you can see all of your E*TRADE accounts when you log in, you cannot consolidate your externally-held finances to form a complete picture of your net worth on E*TRADE.

3.Merrill Edge

 In terms of customer service, Merrill Edge is hard to beat. Not only are there great resources built into Merrill Edge’s technology for newcomers to investing and for those exploring various life stages, but you can sit down face-to-face with an advisor in almost any Bank of America branch nationwide. That said, these consultants are primarily focused on life stage planning rather than trading advice. Besides its extensive advisor network, Merrill Edge’s two computer-based trading platforms and well-designed native mobile apps have a lot of built-in context-sensitive help. The Story features are especially helpful for understanding what is going on in your portfolio, or what is affecting the performance of a particular stock or fund.

In terms of technical customer support, Merrill Edge offers online chat in addition to a phone line. The phone line offers technical support or trading assistance 24/7 and is answered relatively quickly, though you start with an automated menu before being routed to a human.

Pros

•     Merrill Edge’s portfolio analysis tools let clients take a deep dive into how their assets are working for them. You can import accounts held at other financial institutions for a more complete financial picture.
•     Merrill Edge offers top-notch proprietary and third-party research capabilities geared for fundamental investors.
•     Clients with more than $100,000 in qualifying assets combined with Bank of America and Merrill Edge qualify for additional benefits that can save or make you money.

Cons

•     Merrill Edge’s per-contract options fees and margin interest rates are on the high side.
•     Options spreads traded online are limited to two legs. You can trade more complex spreads by phoning the order in to a live broker.
•     You cannot trade futures, futures options, or cryptocurrencies with Merrill Edge. Some investors may outgrow the firm’s offerings as they develop an interest in more complex derivative trading.

Credits :Investopedia