§ 01
| Broker | Fractional shares? | Notable trait |
|---|---|---|
| Fidelity | Yes | Strong app + competitive cash-sweep yield; great all-rounder |
| Schwab | Yes (S&P 500 names) | Excellent service and research |
| Vanguard | Yes (ETFs) | The index-fund originator; plainer app |
| Robinhood | Yes | Simplest app; fewer account types |
| SoFi | Yes | Beginner-friendly; banking bundled |
| M1 Finance | Yes | Automated 'pie' portfolios |
§ 02
What actually matters for a beginner: commission-free index ETFs (all of these have them), fractional shares (so $50 buys a slice of a $500 fund), and a brokerage that does not nickel-and-dime buy-and-hold investors. Chase the highest cash-sweep yield only after the basics are equal -- on a small balance it is a few dollars a year.
§ 03
Pick one broker and open either a taxable account or a Roth IRA (see pf-3 for which fits). You will need your Social Security number and a bank account to link. It is free and reversible -- you can transfer to another broker later.
§ 04
§ 05
You're a first-time investor choosing a broker. What should drive the decision?
Five questions · AI feedback
Sit with the ideas.
Why can a beginner with only $50 buy into a fund like VTI that trades near $300 a share?
Why: