Top Stock Market Analysis Websites That Can Help New Investors

Investing in the stock market can be a daunting task, especially for beginners. With so many options and platforms available, it’s important to find reliable sources of information and analysis to make informed investment decisions. In this article, we will explore the top stock market analysis websites that cater specifically to new investors. Whether you’re looking for educational resources, pricing comparisons, or expert research, these websites have got you covered.

Introduction

As part of our research process, we create a list of features, set strict definitions for each so our testing is uniform, collect the data, then extrapolate the resulting data to see how common each feature is across the industry as a whole. Here’s our findings. To compare all our collected data side by side, check out our online broker comparison tool.

Educational Features Comparison

Here’s a comparison of the most popular educational features offered by beginner trading platforms. To compare all our collected data side by side, check out our online broker comparison tool.

Pricing Comparison

Here’s a comparison of pricing across beginner trading platforms. To compare all our collected data side by side, check out our online broker comparison tool.

E*TRADE

The same can’t be said for its investor education, which we found to be a mixed bag in our testing. ETRADE does not allow clients to buy fractional shares, but does offer paper trading on its advanced trading platform, Power ETRADE, at no cost. Read review.

Our testing found that E*TRADE has the best trading app for beginners and has one of the best trading websites, too. New investors will appreciate the intuitive layouts and well-organized menus of portfolio and market information.

Merrill Edge

Once you’ve mastered the Stories and are ready to take a deeper dive into the numbers, Merrill has an extensive selection of Bank of America Securities and third-party research at the ready. Read review.

If you’re interested in investing in individual stocks or funds, my testing found that Merrill Edge’s Stock Stories and Fund Stories do phenomenal jobs presenting highly relevant info in a friendly way. I don’t think there’s a better way for everyday investors to learn how to research stocks than starting with Merrill’s Stock or Fund Stories. If I had these available when I taught stock investing at a business school, I would have used them in my class.

Fidelity

Fidelity, our 2024 winner for Best Overall Broker, is also my top pick for beginners. Our testing found that Fidelity has two beginner-friendly mobile apps, an extensive investor education library, and high-quality independent research. Fidelity is easy to use and allows fractional trades of stock and ETF shares. It also offers a Youth account, which netted our Best Innovation award in 2022. Read review.

FAQs

What is a trading platform and how does it work?

A trading platform, otherwise known as an online brokerage account, allows you to buy and sell investments via computer or mobile app. The brokerage holds your investments and deposited cash for you and provides activity reports and account statements. It also credits any interest accrued and dividends to your account. To open an online broker account in the United States, you will need a Social Security number and you will be required to enter basic financial information such as your name, address, phone number, and trading experience. In the United States, brokers are regulated by both FINRA and the SIPC. The SIPC insures $500,000 per account including up to $250,000 in cash against theft or the firm going belly-up. It’s important to remember, however, that insurance does not protect any investor against losses due to market fluctuations.

How much money do you need to start investing?

Most trading platforms in the United States don’t require minimum account balances. Now you can open an account, fund it with a dollar or two, and buy a fraction of a share of stock. You can also practice investing with no money at all at a broker that offers virtual trading, also called paper trading. See our top broker picks for paper trading.

Which type of trading is best for beginners?

Beginners should consider starting off with swing trading, which means holding an investment for more than one day and less than a couple of months. It’s less time-consuming and stressful than day trading. Stocks are particularly good for beginners to test the waters. Wait until you have more experience before using options, short selling, and buying on margin. Learn more: Are penny stocks worth investing in? Read our guide, Best Brokers for Penny Stock Trading. Not sure if trading is right for you? Check out our guide on how to invest on our sister site, investor.com.

Can I teach myself how to trade?

Yes, you can teach yourself to trade, provided you have realistic expectations and stay at it through a full market boom-and-bust cycle. Don’t invest more than a fraction of your trading capital at once, and keep a trading journal noting why you entered and exited each trade and how well that trade performed. Most traders fail because they focus on chasing the upside more than managing risk. Dive deeper: Learn more about trading journals for stock trading on our sister site, investor.com.

How do beginners trade stocks?

Here are common steps for beginners when learning how to trade stocks online:

1. Open a self-directed brokerage account.
2. Decide how much money you can afford to risk.
3. Deposit or transfer the money to your new account.
4. Learn how to place an order and view your stocks at the broker you’ve chosen.
5. Practice trading, either through a virtual portfolio or very small amounts of your own money with each trade.
6. Keep a trading journal.
7. Read, read, read. Here’s a list of the best stock trading books on our sister site, investor.com.
8. Follow market news and practice forming your own opinions.
9. Monitor your results closely and adjust when it’s not working.
10. Stay with it.

What is paper trading?

Paper trading, or virtual trading, is a trading platform feature that enables the trading of stocks, ETFs, and options with virtual currency (fake money). This helpful learning tool is popular with beginners and is a great way to practice stock trading without risking real money. Dive deeper: Best brokers for paper trading.

What are fractional shares?

A fractional share is a portion of a full share of a publicly traded company. Fractional shares enable investors with smaller budgets to buy a stake in companies with high stock prices. For example, instead of spending over $87 to buy one Amazon (AMZN) share, a trader could purchase a $10 fractional share – and then own a proportional fraction of that share. A real-world example is Charles Schwab’s Schwab Stock Slices, which are fractional shares of any company in the S&P 500 and carry a minimum purchase of $5. Other brokers that offer fractional trading include Fidelity, Interactive Brokers, Webull, SoFi Invest, and Robinhood.

What is a market order?

A market order is an order to buy or sell a security (such as stock) at the current best-available market price. Market orders are the most common type of order, as they are the fastest and easiest way to buy and sell shares.

What is a limit order?

A limit order lets you buy or sell a security at a pre-specified price or better. Since limit orders are fixed to a pre-specified price, they will only fill when the limit price is reached. Limit orders are best when you know the exact price you want to buy or sell a stock.

Is online trading safe?

Yes, online trading is generally safe as long as you choose a reputable and regulated broker. In the United States, brokers are regulated by both FINRA and the SIPC, which provide certain protections for investors. However, it’s important to remember that investing in the stock market always carries some level of risk, and it’s crucial to do your own research and make informed decisions.

In conclusion, finding reliable stock market analysis websites is essential for new investors. The websites mentioned in this article offer a range of educational resources, pricing comparisons, and expert research to help beginners navigate the stock market with confidence. Whether you’re looking to learn the basics or dive deeper into specific stocks and funds, these websites have the tools you need to succeed in your investment journey. So, start exploring these top stock market analysis websites and take your first steps towards financial success.