Tips for Choosing Online Brokers for Beginners

New to the stock market? Here’s our tips and comparisons for the best online brokers for beginners.

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There are many different online brokers for beginners to choose from and it can be hard to know which might be the best. Online stock market brokers each offer various things that can help make your experience with trading stocks in the market go smoothly. Today I’m going to help you decide on a broker based on your needs, because there are many factors that make a big difference for which one might be right for you!

Here are some of the key considerations for choosing which company to use for trading:

  1. How much do you have to invest? Different companies may have minimum requirements for opening a new account.
  2. What type of investing strategies are you planning to use? Some online stock broker companies may result in higher fees depending on how often you trade – while others may not let you use day trading strategies.
  3. Your own personal financial situation: This includes current banks you have accounts with and the ease of transferring funds. Certain financial institutions may pose limits.

Some of Our Favorite Online Stock Brokers

There are thousands of brokers out there, but there are only two that I would recommend as a beginner. I am not affiliated with nor sponsored by these companies, so there really is no reason to recommend them other than I personally have used them and felt they were the best of all the others I have tried. Of course, you are entitled to use whoever you wish to go with and ultimately responsible for whichever decision you might make. You may or may not like them as much as I do, but they are definitely worth checking out.

These two brokers are eTradePro and SureTrader.

So let’s go over why I recommend these two online stock brokers, as well as some tips to help you decide on which one is the right choice for you.

Now, before you jump into either of these programs, you need to know some very important things before you start. Depending on the amount you are going to invest and how often you plan on making trades – you could potentially get your account shut down due to Day Trading Pattern Laws.

This was one of my first mistakes when I started researching online stock brokers. I wanted to go with a cheap broker {thinking it would save me money} – only to realize there were laws, regulations, and a multitude of other issues that was holding me back from being able to trade in real time.

If you have over 25,000 to invest in the stock market as a beginner – $25,000 which you are willing to lose every single cent – then eTradePro is for you. This is the only way you won’t be limited by the amount of trades you can make each day. If you sign up with eTradePro with only a few thousand dollars, you can only make a limited amount of trades because of the Day Trading Pattern Laws.

If you do not have $25,000 to invest {and as a beginner probably shouldn’t be willing to risk that entire amount anyways} – This is where SureTrader comes in, and they are a very good and reputable online stock broker you can use. SureTrader is one of the best online brokers for small investors, because their low minimums make it easy for you to learn the ropes without taking as big of a risk.

Here are the benefits of SureTrader for Online Investing for Beginners:

Their Trading Platform and Online User Interface

It’s sleek, professional looking, and easy to use. You’re not going to waste time trying to find your way around the site or have your eyes cringing at ugly colors.

You Only Need $500 to Start

It’s Easy to Transfer Money In and Out of the Account: There have been various brokers I’ve used that hold your money up for days. SureTrader makes it super easy to get your money in, get your money out.

No Pattern Day Trading Restrictions

This means you can make as many trades as you’d like without limitations and your account being frozen, which is exactly what would happen to you in eTradePro or any other American stock market online broker for that matter.

SureTrader is a Swiss Bank Account {don’t be scared by that!} I have done plenty of business with them and had no problems. The only thing you need to be aware of is that before you transfer money to them that you need to let your bank know you will be depositing money in an account out of the country otherwise your bank may put a freeze on your account because they want to make sure you are authorizing a transaction to a foreign country. {Which for all of us is a pretty good safeguard to have!}

You Can Put Money in With a Credit Card

You don’t need to wire transfer – just use your bank card. This is extremely convenient and easy, because there are some brokers that require you to drive down to your bank, fill out paperwork, wire transfer money – all that can cost you time and lead to delays which can cost you money.

You Can Create a Margin Account

Margin Accounts are something you won’t jump into right away as a new investor, but it’s nice to have the option available to you. A margin account works like this: Let’s say you put $500 in your account. SureTrader gives you a 6 to 1 ratio, giving you essentially $3000 to trade with. There are a lot of risks with margin accounts, but it’s also an option that’s available to you.

{Learn More About Margin Accounts and Their Risks Here}

Bottom Line: Choose the Online Broker That Meets Your Trading Strategies

The online stock broker you choose to work with can influence what types of trading strategies you can do.

While every single trader has their own preferences on what is most user-friendly and provides the services they want, it is important to understand the type of strategy you choose to use will influence whether or not an online trading platform is going to be the wisest choice for your investing habits.

There are many, many online companies that make it easy to buy stocks online for you to choose from. If you are new to stock investing and trading, going with one of these online stock brokers is the way to set yourself up with a solid foundation in the very beginning with a trustworthy broker where you don’t have to worry about your money disappearing overseas or being locked into what you are able to do.

It may seem I am biased towards these two trading platforms, but honestly, it is only because of how many I have personally used and tried. I researched over 30 of the top online broker companies, and even had a few bad experiences with a few. As I said earlier in this article – ultimately it is your choice. I receive no commission or incentive from these companies, so there is no reason for me to even mention them other than I’ve used them and enjoyed the service they provide. When you’re just starting how to trade stocks online, I feel working with a reputable broker is essential. The best way to do this is research your options and choose the one that is going to work best for you, your investment strategy, and your overall financial health.

If you are a stock market beginner looking for a top investment broker, hopefully being aware of these two online trading companies as options to consider this will help save you time, save you frustration, and possibly even saving money. Hopefully by learning from my mistakes in opening an investment account you will be able to at least try out your trading strategies and get started in the stock market easily.

What are your thoughts and experiences about the best online stock market brokers for beginners? Join the discussion below!


  1. please how do you withdraw your earnings?

    1. The Mystic Trader says:

      You will need to check with your broker by contacting them – it is different depending who you use.

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