Where to invest
The tools are free.
Here's where to find them.
All three brokers below are free to open, charge $0 commissions on stock and ETF trades, and have no account minimums. You cannot make a wrong choice. The only wrong move is waiting.
Compare brokers
Three great options. One right decision.
The differences between these brokers are small. The difference between starting and not starting is enormous.
Fidelity
Best overall — strongest app, most account types, and the only broker with zero-expense-ratio index funds.
Watch out for
Non-Fidelity mutual funds cost $49.95 to trade. Stick to Fidelity index funds and ETFs — FZROX, FNILX, and FXAIX are all excellent.
Recommended first fund
Charles Schwab
Strong alternative — great customer service, physical branches nationwide, and integrated banking if you want everything in one place.
Watch out for
The Schwab Intelligent Portfolios robo-advisor requires a $5,000 minimum. Stick to self-directed investing to start — it's simpler and costs nothing.
Recommended first fund
Vanguard
The original — invented the index fund in 1976. Best for hands-off, buy-and-hold investors who want the simplest possible approach.
Watch out for
The app and website are less polished than Fidelity or Schwab. Mutual fund minimums start at $500 — buy ETFs instead. Customer service can be slower to reach.
Recommended first fund
* Fidelity ZERO funds (FZROX, FNILX, FZIPX, FZILX) carry 0.00% expense ratios and are available only within Fidelity accounts. Fees are subject to change — verify current rates at each broker's website before opening an account.
* Start the Chain is not affiliated with Fidelity, Charles Schwab, or Vanguard and receives no compensation for these recommendations.
Step by step
How to open your first account
The same basic steps apply to all three brokers. Set aside 15 minutes and you'll be done.
Gather what you need
Before you start the application, have these ready: your Social Security number, a government-issued ID (driver's license or passport), your bank account and routing number, and your employer's name and address. That's everything — no income verification, no credit check.
Choose your account type
You have two good options depending on your situation. Pick the one that fits.
Roth IRA — best if you're eligible
A Roth IRA lets your money grow completely tax-free. You contribute money that's already been taxed, and when you withdraw it in retirement you pay nothing. For 2026 you're eligible if you earn under roughly $150K single or $236K married (check IRS.gov for the exact current figures).
One important thing to know upfront: a Roth IRA is a retirement account. You can withdraw your original contributions anytime without penalty — but if you withdraw the earnings before age 59½ you'll owe taxes plus a 10% penalty. This account is designed for money you won't need for decades. If there's any chance you'll need this money in the next few years, read the next option first.
Regular brokerage account — best if you need flexibility
A regular brokerage account has no income limits, no contribution limits, and no restrictions on when you can take your money out. You can invest today and withdraw next year if you need to — no penalty. The tradeoff is that you'll owe taxes on your gains when you sell. For someone just starting out who isn't sure they can leave the money alone for decades, this is a perfectly reasonable place to begin. You can always open a Roth IRA later.
Not sure which to pick? Start with the Roth IRA if you're eligible and you already have an emergency fund in place. If you don't have an emergency fund yet — three to six months of expenses in a savings account — build that first. The Roth IRA works best when it can sit untouched.
Fill out the application
Go to the broker's website and click "Open an account." They'll ask about your employment, income, and investing experience — answer honestly. The application takes about 10 minutes. Most accounts are approved immediately or within one business day.
Fund your account
Link your bank account and transfer money. Even $25 is enough to start. The transfer typically takes 1–3 business days to clear. Once the funds are available you'll see a cash balance in your account ready to invest.
Buy your first index fund
Search for an S&P 500 index fund: FXAIX at Fidelity, SWPPX at Schwab, or VOO at Vanguard. Buy however much you can. Then set up automatic monthly contributions — even $25 or $50 per month. That's the chain. Leave it alone and let it compound.
One important thing
Once you invest, do not check the balance every day. The market will go up and down — sometimes dramatically. That is normal and expected. The grandma calculator is built on real returns that include crashes of 37% (2008) and 26% (1974). In every case the market recovered and eventually reached new highs. Your job is to contribute consistently and not panic. Time is doing the work.
Decision guide
Which one is right for me?
Three quick scenarios. Pick the one that sounds most like you.
If you want the simplest experience
→ Fidelity
Best mobile app, zero-fee index funds, fractional shares from $1, and 200+ physical branches if you ever want to walk in and talk to someone face to face. For most first-time investors this is the right default choice.
If you also want a checking account
→ Schwab
Schwab's checking account has no fees and reimburses all ATM fees worldwide. If you want your banking and investing under one roof and the ability to walk into a branch, Schwab is the strongest option.
If you want the original index fund company
→ Vanguard
Vanguard invented index investing in 1976 and is structured so its clients are its owners — there are no outside shareholders to pay. If you plan to buy and hold forever and never need to call anyone, Vanguard works perfectly.
The most important thing
The most important decision isn't which broker to pick. It's starting. All three of these brokers will serve you well for a lifetime of investing. Pick one, open the account this week, and make your first contribution — even if it's $25. The grandma calculator shows what happens when someone starts and stays consistent. You are now the person who starts.
Still deciding?
Go back and run the numbers again.
The grandma calculator shows what consistent investing in an S&P 500 index fund — available at all three brokers — actually produces over decades. Let the math finish the argument.
Run the calculator →