REVIEW · INVESTING
Best Brokerages for Beginners
For long term index investors, the major brokerages are more alike than different. They all offer $0 trades and quality low cost funds, so the right pick comes down to fit and feel. Here are our favorites and who each one serves best.
By the Grow My Pile team · Reviewed against our methodology
The short version
You will do fine with any of the big three for long term investing. Fidelity is the best all around pick for most beginners, Vanguard is the purist choice for cheap index funds, and Schwab is the polished all rounder with branches. The costly mistake is not which one you pick, it is waiting to start.
How we picked
We weighed costs and fund quality, account types including IRAs, fractional shares, ease of use, and beginner support. We lead with fit, not hype. Specific features and promotions change, so confirm the current details on each provider’s site before opening an account.
Best all around for beginners: Fidelity
Fidelity is a frequent top pick for new investors. It has long been known for very low cost index funds, including some with a zero expense ratio, no account minimums, fractional shares, and strong educational resources and customer service. It is a single home for a brokerage account and a Roth IRA under one roof.
Best for: most first time investors who want simplicity and low costs.
Best for pure index investing: Vanguard
Vanguard popularized low cost index investing and remains a favorite of long term, buy and hold investors. Its lineup of broad index funds and ETFs is excellent and cheap. The catch: the platform and app feel older and less polished than many flashier competitors.
Best for: set it and forget it index investors.
Best all rounder with branches: Charles Schwab
Schwab pairs low cost funds and $0 trades with a polished platform, broad account options, and physical branches for those who value in person help. It is a strong, well rounded choice that grows with you from beginner to more advanced needs.
Best for: beginners who want a full featured platform and branch access.
The bottom line
You cannot go far wrong with any of these three for long term investing. The biggest mistake is waiting, because you miss out on the compounding that early money earns. Open the account, set up automatic contributions, and put the money into a broad, low cost fund. New to that part? Start with our Ultimate Guide to Index Funds, then read how to choose a brokerage.
Grow My Pile is educational and not personalized financial advice. We may earn a commission from some links at no cost to you, and that never affects our picks. Product features change over time, so verify current details before opening an account.