Best online broker for beginners

Best online broker for beginners

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Balancing your portfolio means spreading your money out among multiple opportunities in case one turns out to be the next Enron and not the next Apple. “Diversification is the best way to protect yourself against risk,” says Jane Barratt, founder and CEO of Goldbean, and a registered investment advisor. “The most important area of diversification is by asset class. When you invest, you can buy stocks, bonds, funds, or just hold cash. It’s always a good idea to have a mix of all of these.”

The average number of investment products available on each site came out to about four, so we used that as our mark to cut the less-than-average contenders. This meant a platform could have had any combination of at least four investment products, not just the ones listed above, but had to have at least stocks and bonds, which experts agree are best for beginning investors.

We lost Robinhood in this cut, which has an impressive reputation for its commission-free trades, but it only offers stocks and ETFs.


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