Best Trading Platforms and Apps For Beginners 2024- Investing.com (2024)

Our Top Picks for Best Trading Platform in the U.S. for Beginners

When it comes to finding the best trading platform for beginners in the United States, there are several important factors to consider. These include the platform’s ease of use, the range of assets available for trading, the fees and commissions associated with the platform, and the level of customer support provided. Here are four brokers or trading platforms that are worth considering for beginners in the U.S.:

eToro

Why Did We Pick It?

eToro is renowned for its user-friendly interface, making it an excellent choice for beginners. Its intuitive design allows newcomers to navigate the platform and execute trades without feeling overwhelmed by complex features. One standout feature is “social trading,” which lets beginners learn from experienced traders by mirroring their trades. This is invaluable for those new to trading, providing insight into the strategies of seasoned investors. eToro also offers a demo account, enabling beginners to practice trading without risking real money. This builds confidence and experience before venturing into actual trading.

Educational resources are abundant on eToro, including articles, videos, and webinars. These materials are indispensable for beginners looking to grasp the fundamentals and improve their skills. eToro’s low minimum deposit requirement is attractive to novices seeking to start trading without a substantial initial investment. Furthermore, eToro boasts a diverse range of tradable assets, encompassing stocks, cryptocurrencies, commodities, and more. This allows beginners to explore various markets to find their niche. Lastly, eToro’s regulatory compliance and robust security measures provide beginners with peace of mind regarding the platform’s legitimacy and safety.

Read our full review of eToro.

Plus500

Why Did We Pick It?

Plus500 is recognized for its simplicity and user-friendly interface, making it an excellent choice for beginners. Its straightforward design enables newcomers to quickly grasp and navigate the platform, facilitating an easy start to trading. Similar to eToro, Plus500 offers a demo account, allowing beginners to practice trading without risking real money. This feature is invaluable for learning and gaining experience before venturing into live trading. Plus500 offers a diverse range of tradable instruments, including stocks, indices, cryptocurrencies, commodities, and forex pairs. This versatility enables beginners to explore various markets and assets. As a regulated broker, Plus500 provides a sense of security for beginners worried about the platform’s legitimacy. Regulatory oversight ensures that the broker adheres to industry standards. Plus500 also offers a mobile app, allowing beginners to trade conveniently on their smartphones or tablets.

Educational resources, including articles, videos, and tutorials, are available to help beginners understand the basics of trading and enhance their skills. Additionally, Plus500 provides risk management tools like stop-loss and take-profit orders, assisting beginners in managing their trades and reducing potential losses. With potentially low minimum deposit requirements, Plus500 is accessible to beginners looking to start trading with a modest initial investment. Please note that in the United States, traders utilizing Plus500 can exclusively access the Plus500Futures platform. In addition, it’s crucial to note that trading CFDs with this provider carries inherent risks, as 82% of retail investor accounts lose money when trading CFDs with this provider. Therefore, it’s crucial for traders to carefully consider whether they can afford the high risk associated with potential financial losses.

Read our full review of Plus500.

IG Group

Why Did We Pick It?

IG Group offers an array of educational resources, including articles, videos, webinars, and guides, designed to aid beginners in learning about trading and refining their skills and strategies. With its user-friendly interface, IG Group makes the trading learning curve smoother for newcomers, allowing for easy navigation and comprehension of the platform. Similar to many other trading platforms, IG Group may provide a demo account, permitting beginners to practice trading with virtual funds. This invaluable tool aids in learning and gaining experience without the fear of real money loss. Regulation and security are paramount, as IG Group is a regulated broker, instilling confidence in beginners by ensuring adherence to regulatory standards and providing a secure trading environment. A diverse range of tradable instruments, including stocks, forex pairs, commodities, indices, and cryptocurrencies, empowers beginners to explore various markets and assets.

If IG Group offers a mobile trading app, beginners can conveniently trade on their smartphones or tablets, allowing them to monitor their trades while on the move. Reliable customer support from IG Group is available to assist beginners who may have questions or require guidance while using the platform. Furthermore, IG Group’s provision of risk management tools, such as stop-loss and take-profit orders, equips beginners with the means to manage their trades and mitigate potential losses.

Read our full review of IG Group.

Charles Schwab

Why Did We Pick It?

Charles Schwab, a prominent US-based brokerage, delivers versatile trading platforms suitable for both novice and experienced traders. Their user-friendly web-based platform, StreetSmart Edge, offers diverse assets like stocks, commodities, and currencies. With competitive fees and commissions, it’s a reliable choice. Schwab also supports traders with a rich array of educational resources, including articles, videos, and webinars covering various financial topics. Beginners can access materials on investing basics and retirement planning.

The user-friendly mobile app allows beginners to manage accounts, monitor investments, and access real-time market data on the move. Schwab’s online trading platform is beginner-friendly, often offering commission-free trading for select ETFs and stocks. Research tools, customer support, retirement planning resources, educational webinars, and paper trading accounts provide comprehensive support for beginners. Schwab even offers access to financial advisors or robo-advisory services for tailored investment guidance. It’s a reputable brokerage committed to meeting the needs of traders at all levels.

Read our full review of Charles Schwab.

What Is the Best Trading App for Beginners?

The “best” trading app for beginners can vary based on individual preferences, needs, and the specific financial instruments they’re interested in trading. We have here are our recommended trading apps for beginners due to their user-friendly interfaces, educational resources, and features designed to help newcomers to trading:

eToro

Why Did We Pick It?

eToro is known for its user-friendly platform and social trading features, making it our 1st choice for beginners. The platform allows users to copy the trades of experienced traders, providing a learning opportunity while actively participating in the markets.

Read our full review of eToro.

Plus500

Why Did We Pick It?

Plus500 is often praised for its intuitive interface and straightforward design. It offers a wide range of financial instruments, including stocks, forex, cryptocurrencies, and more. Plus500 also provides a demo account for beginners to practice trading without using real money.

Read our full review of Plus500.

IG

Why Did We Pick It?

IG Group‘s platform offers a user-friendly experience and provides access to various markets and assets. It offers educational resources and a demo account, making it suitable for beginners looking to learn and practice trading.

Read our full review of IG Group.

Robinhood

Why Did We Pick It?

Robinhood is a popular app for beginners, known for its commission-free trading and simple interface. It’s particularly popular for stocks and cryptocurrencies trading.

TD Ameritrade

Why Did We Pick It?

TD Ameritrade‘s thinkorswim platform offers a balance of user-friendly features and advanced tools. It provides educational content and a paper trading feature for beginners to practice trading strategies.

Read our full review of TD Ameritrade.

Fidelity

Why Did We Pick It?

Fidelity‘s mobile app offers an easy-to-use interface and access to a wide range of investment options, including stocks, ETFs, and mutual funds. It’s suitable for beginners looking for a well-rounded investment platform.

Read our full review of Fidelity.

Which Type of Trading Is Best for Beginners?

For beginners, it’s generally recommended to start with trading approaches that have lower complexity and risk. Here are some types of trading that are often considered best for beginners:

• Long-Term Investing: Long-term investing involves buying and holding assets like stocks, ETFs, or mutual funds for an extended period. It’s considered a less intense approach compared to active trading, as it focuses on the potential for long-term growth and is less affected by short-term market fluctuations.

• Swing Trading: Swing trading involves holding positions for several days to weeks, aiming to capture price swings within a broader trend. It offers more flexibility than day trading and requires less time monitoring the markets.

• Positional Trading: Similar to swing trading, positional trading involves holding positions for weeks to months. It’s suitable for traders with a longer investment horizon and who prefer to analyze fundamental factors that influence markets.

• Copy Trading: Copy trading platforms, like those offered by eToro, allow beginners to replicate the trades of experienced traders. It’s a way to learn from professionals while actively participating in the markets.

• Buy and Hold: Buying and holding assets with a long-term perspective is one of the simplest approaches. It’s particularly suitable for beginners who want to invest in stable assets and avoid frequent trading.

What Type of Trading Account Is Best Suited for Beginners?

For beginners, it is generally recommended to start with a practice or demo account before moving on to a live account. Practice or demo accounts allow beginners to trade with virtual money, giving them the opportunity to get a feel for the platform and practice their trading skills without risking real money. This can be a useful way to learn the ropes and gain confidence before diving into live trading. Once traders feel comfortable with their skills and are ready to start trading with real money, there are a few types of trading accounts to consider. These include:

• Cash Accounts: A cash account requires any purchases of securities to be paid in full at the time of the trade. This means that users cannot trade on margin (borrowed money) or short sell. Cash accounts are generally suitable for beginners, as they do not allow for the risky trading practices associated with margin and short selling.

• Margin Accounts: A margin account allows traders to borrow money from broker to make trades. This can be a useful way to increase buying power and potentially make bigger profits, but it also carries the risk of larger losses. Margin accounts are generally not recommended for beginners due to the increased risk involved.

• Day Trading Accounts: A day trading account is designed for traders who make frequent trades over the course of a single day. Day trading accounts typically have higher minimum balance requirements and may have additional fees or restrictions. Day trading can be a high-risk strategy, so it is not generally recommended for beginners.

Can I Teach Myself How to Trade?

It is possible to teach yourself how to trade, but it is important to be aware that trading carries inherent risks and can be a complex and volatile activity. Before you begin trading, it is important to educate yourself on the basics of the markets and the various trading strategies and approaches that are available. There is a wide range of educational resources available online, including articles, videos, webinars, and online courses, that can help you get started.

It is important to keep in mind that while it is possible to teach yourself how to trade, it is not necessarily easy. Trading requires a combination of knowledge, skill, discipline, and risk management. It can be helpful to seek out the guidance of a mentor or professional trader to help you get started and stay on track.

How Do I Start a Trading Account for Beginners?

To begin your trading journey, there are a few steps you can take to get started:

• Educate Yourself: As mentioned above, it is important to educate yourself on the basics of the markets and various trading strategies before you start trading. This will help you make informed decisions and understand the risks involved in trading.

• Choose a Broker or Trading Platform: Once you have a good understanding of the markets and trading, it is time to choose a broker or trading platform that suits your needs and goals. Consider factors such as the range of assets available, fees and commissions, user-friendliness, and customer support.

• Open a Practice or Demo Account: Before you begin trading with real money, it can be helpful to start with a practice or demo account. This will allow you to get a feel for the platform and practice your trading skills without risking any of your own money.

• Fund Your Account: Once you are ready to start trading with real money, you will need to fund your account. This can typically be done through a bank transfer or by using a credit or debit card. It is important to note that each broker may have different methods for funding an account, so it is advisable to choose a broker that offers an option that aligns with your capabilities and preferences.

• Start Trading: With your account funded and your trading knowledge and skills in place, you can now begin making trades. It is important to remember to use risk management techniques, such as setting stop-loss orders, to help protect your capital.

Is Online Trading Safe for Beginners?

Online trading can be safe for beginners if the necessary precautions are taken. It is important to choose a reputable and regulated broker or trading platform to ensure that funds are secure and that trades are executed fairly. Users should also be sure to use a secure internet connection and consider setting up two-factor authentication for added security.

To increase the chances of success and mitigate potential losses, it is crucial to gain a thorough understanding of the markets and various trading strategies, as well as to implement effective risk management techniques. By taking these steps, users can help to safeguard your capital and increase their chances of success in the world of trading.

Final Say

Choosing the best trading platform and app for beginners in the U.S. can be a daunting task. By considering factors such as user-friendliness, the range of assets available, fees and commissions, and customer support, you can find a platform that fits your needs and goals.

It is essential to carefully consider the type of trading account that aligns with your goals and needs as a beginner, as well as the feasibility of self-education in the realm of trading. By following the necessary steps to get started and taking the requisite precautions, you can participate in online trading with a greater level of security.

FAQ

What is the Most Trusted Trading Platform?

Determining the most trusted trading platform can be subjective and may vary depending on individual preferences, regulatory oversight, and the specific features you prioritize. MT4 and MT5 are popular trading platforms known for their reliability, user-friendly interface, and extensive features. They are widely used by forex and CFD traders and are offered by many reputable brokers.

Is it Easy to Learn How to Trade?

Learning how to trade can vary in difficulty depending on the individual, their background, the complexity of the trading instruments, and the strategies they want to employ. While trading can be learned by anyone willing to put in the effort, it’s important to approach it with a realistic mindset. Trading carries risks, and not all traders achieve consistent profitability. Many traders undergo a learning curve and experience losses initially. Consider starting with a small amount of capital that you can afford to lose while you gain experience and build confidence. Ultimately, the ease of learning how to trade varies from person to person. It’s recommended to start with a solid foundation of education, practice with a demo account, and gradually transition to live trading with a responsible risk management strategy. If you’re a beginner, consider seeking guidance from reputable educational sources and taking a cautious approach to trading.