One of the biggest hurdles for beginning investors to overcome is option overload. With countless investment websites, firms and investments to choose from, getting started with investing can feel like trying to pick the prettiest blade of grass on your lawn.
[Sign up for stock news with our Invested newsletter.]
The way to conquer this challenge is by taking it one decision at a time, starting with deciding where to invest. While there’s no one-size-fits-all solution when beginning your investment journey, it’s important to analyze your options from various angles. Commissions, account minimums and educational materials are just a few things to consider when searching for an online brokerage that fits your financial goals. Here are five of the best investment websites for beginners:
— Charles Schwab
— Fidelity Investments
— Vanguard
— E-Trade from Morgan Stanley
— M1 Finance
Charles Schwab
Charles Schwab is known for retirement investing, but beginning investors of all ages and goals can find things to appreciate about this investing site.
Schwab offers some of the most affordable robo-advisor platforms among major brokers. Its digital investing platforms come in two flavors: Schwab Intelligent Portfolios has no advisory fee and a $5,000 minimum. The premium version has a $25,000 account minimum, one-on-one guidance and more tools for a $300 one-time planning fee and $30 per month advisory fee.
Outside of robo advice, Schwab offers $0 online commissions on more than 3,000 U.S. exchange-traded funds, or ETFs, and thousands of no-transaction-fee proprietary mutual funds. There’s no minimum required to open an account, so getting started couldn’t be cheaper.
While the educational materials available at Schwab may have been lacking in the past, the finance giant grew even larger when it acquired TD Ameritrade, along with its robust catalog of educational content. Since the full integration of the two institutions, Schwab investors have access to TD Ameritrade’s webinars, videos and trade strategy testing as well as immersive courses on various financial topics with Schwab Coaching.
Fidelity Investments
Fidelity Investments has a solid educational platform, but where it really shines is in its research offering. Its suite of industry-leading research and free tools and calculators make it easy for beginning investors to find the best investing strategy and investments for them. If you’re not sure where to begin, you can also visit one of Fidelity’s more than 200 U.S. investor centers for in-person help. There are even offices in 10 other countries, if you happen to be based outside of the U.S.
Fidelity also ranks among the lowest-cost brokers with no account minimums and $0 commissions on U.S. stock, ETF and options trades, as well as hundreds of mutual funds. The broker has even done away with expense ratios on some of its mutual funds, called the Fidelity ZERO funds.
To make your investing journey even easier, the brokerage offers a robo-advisor solution with a $10 initial investment. Fidelity’s robo-advisor fees are waived if your balance is less than $25,000. When your account reaches $25,000, fees are 0.35% per year, but you get unlimited one-on-one coaching calls with Fidelity’s hybrid robo-advisor option.
[Read: 8 Free Investment Classes and Resources for Adults and Teens]
Vanguard
Vanguard is another leader in low-cost investing. It takes low cost so seriously, the firm earned its name when it pioneered index investing and launched the first index fund for individual investors in 1976. Since then, it has expanded to offer more than 160 index products for both stock and bond investors.
Vanguard is a proponent of long-term investing, which doesn’t need to be complicated, costly or time consuming. This makes it the perfect starting place for beginning investors. You’ll also find a wealth of tools and resources to help you learn as you go — even if your goal is short term.
You can DIY your portfolio or get help through the firm’s robo advisor ($100 minimum; 0.15% advisory fee) or a personal advisor ($50,000 minimum; 0.3% advisory fee). Once you’ve grown your wealth, you can upgrade to even more select advisory services.
The one thing you won’t get from Vanguard is access to cryptocurrency, since the firm doesn’t believe this volatile asset is reliable enough for long-term investors. While you can transfer crypto funds you already own to the platform, you won’t be able to buy more through the broker.
E-Trade from Morgan Stanley
The E-Trade platform has risen from good to great after its acquisition by Morgan Stanley in 2020. You can now get the best of both brokerages: E-Trade’s strong digital offering combined with access to banking, in-person support and financial advisors at Morgan Stanley locations.
E-Trade also caters to investors of all levels, from beginners to advanced traders. This means you have plenty of room to grow when you start investing here. You’ll also get commission-free trades on U.S.-listed stocks, ETFs, mutual funds and options.
If you need a little extra enticing, the broker is offering a sign-up bonus up to $10,000, depending on your your deposit amount, for new accounts through July 31, 2025. That said, it’s generally better to choose the broker that best fits your preferences and needs — not the one with the biggest bribe.
M1 Finance
M1 Finance doesn’t often top lists of online brokers. But when it comes to beginning investors, it shines at helping you overcome the second hurdle to start investing: investment selection.
The online broker makes the, at times, complex world of investing as easy as pie. Truly: The platform guides you to thinking of your portfolio as a pie with each investment representing one slice of the whole. All you need to do is set target allocations — or slice sizes — for the investments you want to own. Then, anytime you deposit money, M1 will place the trades for you so that you always own exactly what you want and exactly as much as you want of it.
M1 costs $3 per month if you have less than $10,000 on the platform, unless you have an active personal loan with them. But if you have a balance greater than $10,000 for at least one day during the 30-day billing period, or you have an active personal loan with M1, you won’t have to pay anything. You also won’t be hit with trading commissions on self-directed accounts. So this is one low-cost, easy-peasy pie.
More from U.S. News
‘VOO and Chill’: Should Investors Rely on Just the S&P 500?
7 of the Best Fidelity Bond Funds to Buy for Steady Income
6 Best Mid-Cap Tech Stocks to Buy
5 of the Best Investment Websites for Beginners originally appeared on usnews.com
