Best investment firms for beginner investors. Top rated online investing companies for new investors.

Best Online Investment Firms For Beginners

Beginners in the investing world can find a lot of helpful resources on websites at Ally Invest, Scottrade, and TD Ameritrade. These three top rated investment companies for new investors have different strengths in different areas. Let's take a look at them and see what specific types of investors would be better off where.

Strengths of TD Ameritrade

Novices will find several advantages in choosing TD Ameritrade. The broker has a large educational section on its website that would be great for beginners. There are articles, videos, and self-guided courses on a wide range of financial topics. They include personal finance, bonds, mutual funds, ETF's, options, and stocks. There are also materials on products beyond securities, including futures and forex.

The broker's resources can be searched by experience level. There are three categories: rookie, scholar, and guru. Obviously, the rookie category would be good for beginners. Live on-line events are hosted periodically on the TD Ameritrade website. The broker has registration instructions for these events on its educational section.

Also a good source of education is Investools, an affiliate of TD Ameritrade. It is an investment education specialist, and TD Ameritrade offers its clients a free trial.

A wide selection of mutual and exchange-traded funds without any loads or commissions is available with TD Ameritrade. These funds would be a good opportunity for novices to try trading securities without paying any commissions. All ETF's are free to trade, while roughly 2,600 mutual funds have neither load nor transaction fee. Both of these figures are above-average in the brokerage world.

While many other brokers, such as Fidelity and Merrill Edge, have active trader requirements to use their advanced desktop platforms, TD Ameritrade does not. Noobies can try out the broker's most sophisticated trading system, thinkorswim, with no obligations. In fact, the software has a paper trading version, so that investors can practice with a virtual currency.

Learn more about this top rated brokerage account for beginner investors in TD Ameritrade review.

New customer promotion offer: $0 commission stocks/ETFs + get up to $600 cash.

Open TD Ameritrade Account
Open TD Ameritrade Account

Advantages of Scottrade


TD Ameritrade have bought, integrated and discontinued Scottrade brand.

The largest network of brick-and-mortar locations of any on-line discount broker is available at Scottrade. The broker operates more than 500 locations across the U.S. Many small towns have a location, which is unusual. The company's branches would be an excellent resource for new investors who need some extra personal guidance.

Another great feature that Scottrade offers is its large selection of no-load, no-transaction-fee mutual funds. The broker's screener returns more than 1,990 products that are free to trade. These securities would be a good opportunity for traders to practice buying and selling without having to pay any trading fees.

New investors who want to try buying and selling stocks can do so with a very low $7 commission. This is fairly inexpensive by industry standards. Options only cost 70¢ per contract extra, another below-average commission.

Scottrade has a basic trading platform that is free for all clients. Called Scottrader Streaming Quotes, it can be accessed after logging into the website. Orders can be placed on it, and the software has simple charting. The broker's website offers more advanced charting along with a user-friendly trade ticket at the bottom of the browsing window. Here, orders for stocks, options, and ETF's can be placed quickly and easily.

The Scottrade website has a basic educational section called Knowledge Center. There are several articles that cover a wide variety of areas. These include mutual funds, options, and fixed-income.

Free stock reports on a wide variety of companies can be accessed on Scottrade's website. These important documents can help rookies make important trading decisions. The reports are provided by S&P Capital IQ, Thomson Reuters, and MarketEdge.

Ally Invest: Top Investment Firm For Beginners

Beginners can take advantage of Ally Invest's free advanced trading platform called Ally Invest LIVE. It is web-based and requires no trading or account minimums. It is simple to use and thus would be ideal for novices to learn on.

Despite the free software, Ally Invest still manages to charge an ultra-low $0 for stock and ETF transactions. Option contracts are just 50¢, another industry low. These inexpensive commissions would be a good opportunity for new traders to get some practice in at a low rate.

Although Ally Invest falls into the ultra-low fee category, the broker still manages to offer a good selection of educational resources on its website. There are articles and videos that cover a wide area of the securities world. Many of the materials would be valuable for beginning investors. Topics include how to trade options and bonds, an overview of mutual funds, taxation of brokerage accounts, and the basics of ETF's. The broker also provides information on currency trading, which it does offer.

There is a handy glossary of many brokerage terms that is on Ally Invest's website. This would be a valuable tool to a new investor unfamiliar with many securities terms.

Searching for educational materials by experience level is an option the Ally Invest website has thoughtfully included. The available levels are rookie, veteran, and all-star. Of course, rookie materials would be perfect for noobies.

Ally Invest is one of the few brokerage firms to have a customer forum on its website. Traders can discuss investment ideas with each other, read blogs, and ask financial questions. A company associate oftentimes participates in these discussions. They would be a good opportunity for beginners to ask questions. Ally Invest is also one of the few brokers to have on-line chat, another helpful customer service feature.

New traders who have $500 to deposit in a brokerage account will earn free trades for 2 months at Ally Invest. These trades can be used to buy and sell stocks, ETF's, and options.

Much more information on this top brokerage accounts for beginners is in Ally Invest review.

Ally Invest bonus for new customer: Up to $3,500 cash bonus + free trades.

Open Ally Invest Account
Open Ally Invest Account

Best Investment Firms For Beginners Summary

TD Ameritrade would be a wise choice for new investors who are interested in mutual or exchange-traded funds. And Ally Invest is the top selection for beginner investment firm for cost-conscious investors.


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Best Investment Firms For Beginners reviewed by Rating: 4.5