Introduction:
Online trading platforms allow you to buy and sell stocks, ETFs, options, futures, and other types of securities in just minutes without leaving your home or office. In order to access these trading platforms, however, you’ll need to open an account with an online broker that provides the trading platform itself, plus access to other essential services like research reports and trade execution. Online brokers come in all shapes and sizes, so it can be difficult to know which one will best meet your needs and preferences.
Brokerage firms
Some of the lowest trading fees in the industry are from online discount brokerages. For example, TD Ameritrade and E*Trade offer commission-free trades on some ETFs and nearly 700 stocks, respectively. Interactive Brokers is another low-cost brokerage, with a per trade cost of $4.95 in most cases. Other great choices for independent investors include Charles Schwab ($8 base) and Fidelity ($4 base). Additionally, Robinhood offers a free trading platform. Plus, many online brokers like TradeKing offer free access to research reports from MarketEdge®. _________
Independent traders who choose low-cost stock brokerages will save money on commissions which they can use to purchase more shares or diversify their portfolios.
Discount brokers
There are many discount brokers that offer free trading or low fees, but the fees charged by these brokers will depend on your personal investing goals. Some of the most popular options for beginner investors include Firstrade, E-Trade, and Charles Schwab. These platforms provide both a phone app and an online web platform which makes it easy to access when needed. Their commissions are also very reasonable with Firstrade having a flat fee of $0.00 per trade as well as no account minimum balance requirement.
Direct investment platforms
With the different types of trading platforms, some are more expensive than others. While brokers can have a range of prices and fee structures, there are also direct investment platforms that help those with smaller trading balances get into the game. These websites offer pricing and features that are comparable to the one-stop shop for beginners. Sites like Ally Invest, TradeKing, and Motif all offer what you need to get started without paying extra just because you don't have as much money as others do. Check out each website's offerings so you can find what's best for your situation.
Robo advisors
New platforms in the Robo-advisor space are cropping up left and right, but these new players don't have to undercut traditional advisory firms on price. Instead, they simply offer slightly different services and fee structures. Most of these Robo-advisors promise lower costs, simplicity, and convenience. For many people who might not need the hand-holding of a human advisor or the full suite of offerings from a traditional adviser, these automated financial advisers make perfect sense. The best part is that you can try them out without risking any of your own money. Here's how it works: Some Robo advisors offer a free trial period where you can see if it's worth paying for their service. Others require you to deposit some money first. That way, even if it turns out you're not satisfied with the service, after all, there won't be too much damage done to your bank account. Another great perk of robots is that they do most of the heavy lifting for you. They'll ask questions about your goals, time horizon, and risk tolerance to come up with an investment strategy that fits those parameters - saving you hours (or days) of research. Finally, robots often focus exclusively on investing in ETFs rather than individual stocks, which means their performance will never be as good as a traditional adviser's since ETFs typically carry higher fees.
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