Top 3 BEST STOCK BROKERS in 2020 for BEGINNERS

A comparison of our favorite brokers

What is a broker?

A broker is a firm that arranges transactions between a buyer and a seller for a commission when the deal is executed. They provide access to various markets and tools to trade them. Once you created an account with a broker, with the money you provide, they allow you to trade stocks.

Finding the best broker is key to your success!

Having a good broker can make all the difference! Brokers differ in commissions, leverage (they let you trade a multiple of your capital), available stocks to short, overall tooling, and order execution speed that can have a significant impact on your trading success. This is why you should not hesitate to try out different brokers until you find the one that fits you best. Here below, you will find our selection of the best stock brokers for beginners that deliver the most accessible trading conditions.

FAST FACTS
Account Minimum: $399 with our discount
Fees: 0.0075 per share
PDT: No

PDT (Pattern Day Trader)



A pattern day trader is a SEC designation for traders who execute four or more day trades over a five-day period. If the account is based in the US and has less than $25,000 the rule restricts you from doing more than the mentioned trades. This could you being stuck in a position without the ability to get out. Therefore it is best to avoid these types of accounts if you don't have the required capital.

Tradenet is an educational service that helps you to learn how to trade correctly. They trade with “contract for differences” (or CFD’s), which makes it extremely easy to join trades as you can get filled directly with your order with as many shares as you want at market price. The access to their live trading room, the private mentorship, the ease of use, and the overall package make this the best start in trading. If you want to test Tradenet, you can join their free 5-day trading challenge here.

Full Review

Pros

  • CFD trading, effortless to get into trades
  • Fast execution
  • No PDT (Pattern Day Trader)
  • Great educational content with the live trading room
  • up to 28:1 leverage
  • Solid customer support
  • Quick account opening & funding
  • You can short all tradeable stocks
  • No short-sell restrictions

Cons

  • Not all stocks are tradeable, but the vast majority is
  • You can’t trade pre-market and after-hours
  • Does not accept US-Citizens

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FAST FACTS
Account Minimum: $0 – $200
Fees: Free with limit orders, $0.99 minimum or $0.005 per share
PDT: No

PDT (Pattern Day Trader)



A pattern day trader is a SEC designation for traders who execute four or more day trades over a five-day period. If the account is based in the US and has less than $25,000 the rule restricts you from doing more than the mentioned trades. This could you being stuck in a position without the ability to get out. Therefore it is best to avoid these types of accounts if you don't have the required capital.

Tradezero is also an excellent start for traders with less than $25,000 as no PDT applies. It offers a platform that actually can be traded completely free if done correctly. If you don’t get filled at market price (current best price of a stock), you pay no commissions. This, combined with their great tooling and their huge shortlist (amount of stocks that can be shorted) makes it a great trading platform for beginners and advanced traders.

Pros

  • Low fees, free if not filled at market price
  • No PDT (Pattern Day Trader)
  • Number of stocks you can short huge has even hard-to-borrow shares
  • Fast support
  • Professional tooling
  • 6:1 leverage
  • Quick account opening & funding
  • Pre-Market / After-Hours Trading

Cons

FAST FACTS
Account Minimum: $0
Fees: $3.95 per trade minimum or $0.007 per share (can be lower if you trade more)
PDT: No

PDT (Pattern Day Trader)



A pattern day trader is a SEC designation for traders who execute four or more day trades over a five-day period. If the account is based in the US and has less than $25,000 the rule restricts you from doing more than the mentioned trades. This could you being stuck in a position without the ability to get out. Therefore it is best to avoid these types of accounts if you don't have the required capital.

Capital Markets Elite Group (CMEG) is an excellent start for traders with less than $25,000 investment capital because the pattern day trader (PDT) rule does not apply. They provide a popular DASTrader platform to plan and execute your trades quickly. Combined with low fees makes CMEG a great platform to grow your trading skills.

Pros

  • Low Fees
  • No PDT (Pattern Day Trader)
  • You can short over 10,000 stocks
  • Fast support
  • Professional Tooling
  • 6:1 leverage
  • Quick account opening & funding
  • Pre-Market / After-Hours Trading

Cons

  • Commissions can be expensive with all the additional fees
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