One of the exciting news about investing is that there are many opportunities you can use to grow your money. There are many exciting ways to invest, but stocks are one of the most important. Typically, when you buy a stock, you are in essence buying a part of the company issuing it. Additionally, many companies issue dividends that are part of the company’s earnings.
Stocks from stable and mature companies tend to offer dividends, but start-ups may not always pay investors any dividends. It is therefore important for people to start considering stock trading as a means to grow their wealth. Additionally, in the current world, investments can be made online provided that a potential has a laptop or a mobile phone and an internet connection. They will only need to select their best online stock trading sites and place their trades.
However, when you are an active trader, it’s highly probable that you are looking to beat the market. It is also likely that you have are aware of what you want from a potential broker. Therefore, you are probably looking for innovative strategy tools, a comprehensive trading platform, and low cost. However, as a beginner, you probably do not know what you want from your online trading broker. This review is thus for you whether a beginner or an experienced broker.
In this article, I relied on research conducted by Reviews.com to select the best online stock brokers in various categories and highlighted their cons, pros, as well as current offers. It is my belief believe that the selected best online brokers will help you select the best for you based on your priorities.
It is important to note that Reviews.com spent a lot of time reviewing the platforms of the top online brokers before we selected the best for our leaders. To complete this exercise, they talked to two professional investors. One of the investors was a day trader while the other was a financial commentator with an experience of over 20 years. They also evaluated the broker’s tools and research as well as their trading platforms. Lastly, they also evaluated if the broker’s overall features support the various trading strategies by the brokers.
Here is a summary of the 5 Best Online Stock Trading Sites
Ally Invest: Best for Cheap Trading
From our research, it was concluded that Ally Invest is the top broker in low-cost commission structure in the stock industry for all types of investors. It is suitable for beginners, buy-and-hold traders, and high-net-worth individuals. This is despite the fact that most brokers dropped commissions in 2017. It is critical to note that Ally Invest still levies a competitive flat-rate commission of $4.95. However, the broker has an advantage over others in that it has a lot of enticing discounts for the active investors.For traders with over 30 trades each quarter or a minimum account balance of $100, 000, the company offers them a lot of discounts. Ally Investor’s trading resources and platform stand out with quality tools and research. Additionally, the trading platforms can be easily accessed by online traders using any devices such as mobile, personal computers, tablets, and laptops.
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Best for Beginners: E*TRADE
If you are a beginner in online stock trading, then you are looking for something simple and which allows you to learn. E*Trade is the best platform with a learning curve. It provides beginners with an endless room to grow. This broker has developed a learning center which is filled with educational articles, webinars, and videos. These resources guide beginners from the basics. While on the site, a trader can stay up to date on investing reports, news as well as commentary from a dedicated and professional market analysts.
E*Trade allows clients to book free appointments at the physical branch. Other communication channels that customers can utilize when they are stuck include24-hour hotline and online chat tools. Therefore, when you are looking to learn or improve your investing over time, then E*Trade is the best online stock trading platforms that will equip you. The website helps you to learn basics such as how to handle entry-level IRAs to aggressively trading options and stocks.
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TD Ameritrade: Best Platforms
TD Ameritrade is designed for two main types of investors. Depending on client’s priorities, they can use any of their best-in-class platforms. The Trade Architect is particularly good for the beginners. It is also suitable for individuals who prefer a simplified educational interface. As such, the Trade Architect helps beginners through a guided ordering process as well as potential strategies that they can implement.On the other hand, the Thinkorswim is a platform designed specifically for advanced investors. The Thinkorswim has racked up awards and praise severally because of its superior features and tools including real-time data, research reports, detailed charts, as well as technical studies. All clients with a TD Ameritrade account can use both platforms for free. However, the broker charges a commission of $6.95.
OptionsHouse: Best for Active Traders
OptionsHouse is a leading platform for investors that specialize in options. However, it is also a winning broker for active traders. It is a specialist in rock-bottom pricing like Ally Invest. OptionsHouse charges a flat $4.95 trade commission as well as $0.50 per options contract. It is also important to note that the broker does not have inactivity fees or account minimums. It stands out as having smart tools and a streamlined interface. OptionsHouse does not offer currency trading. Additionally, it does not have unlimited transaction-free and commission-free offerings. It is expected that the 2016 acquisition by E*Trade will help fill those gaps.
Fidelity: Best Research and Tools
Fidelity is a top broker based on quality and quantity investing and trading research. The broker is particularly suitable for the DIY investors who are looking to unleash their potential. It features research from over 20 providers. In 2016, Fidelity was awarded the best overall online stock broker by Kiplinger and Barron’s. The company continues to show excellence in customer service has lowered its commissions to $4.95 from $7.95. This is an indicator that the broker will continue to play a significant role in the discount scene. Previously, the Fidelity specialized in serving the high net-worth individuals. It still reserves some features and tools for active and high volume traders, but in the future, the broker will be harder to beat.
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How We Developed the Best Online Stock Trading Site List
Over the years, online stock trading sites have experienced a tumultuous moment. However, the players have remained largely the same. The only significant changes include cuts in commissions as well as mergers and acquisitions. Nonetheless, competition between online stock trading sites is fierce more than ever.
Whereas it is difficult to conclude that there is one best online stock sites/broker, it is imperative to examine the different weaknesses and strengths of each. Our aim was to spotlight the pros and cons of each broker and help you identify the broker who best fits your investing style.
Typically, different investors tend to prioritize different things. Despite that I relied on research conducted by Reviews.com, I examined at the educational offerings, platform training, and mobile trading apps of each online broker. Other factors that I examine and which the company reviewed include minimum deposited a client should have before they get started and the commissions the online stock trading sites charge. Lastly, it was also imperative to examine the discounts and other offers that an online stock trading sites offer.
Typically, several questions were used in this process such as how well do the charting tool work? What technical indicators do most investors prefer? What screening tools are available to help potential investments? How easy is it for a new beginner to make trades?
Best Online Stock Trading sites platforms
Most investors and traders prefer intuitive platforms with customizable layouts which lets them control all the tools available to them. Traders also prefer quick as well as easily accessible order process. This is because markets tend to change quickly and therefore to make an order as fast as you can is an important part of maximizing an investor’s profits.
Stockbrokers that performed dismally in the test were difficult to use, had more steps before an investor could fund their account, and had weak tools. On the other hand, highly graded stock brokers included third party-tools which allow traders to screen stocks to invest in. additionally, they had mobile app version closely resembling the desktop version. This implies that the mobile app gave traders same tools to place trades and monitor stocks as a desktop app.
No investment is 100 percent profit guarantee. As such, markets fall, and markets rise. It is therefore important to insulate your portfolio from excess risk. My advice is that you must spread your money around. You must prepared to absorb some losses when any of your positions go south.
See you again on how to where to start online stock trading. Please leave a comment and recommend to a friend.