So, you know you want Stocks, you have the money and you are ready to invest.
you may be asking yourself..
“Where to I buy stocks online”
Buy Stocks Online With Discount Brokerages For Better ROI
The return on investment or ROI is the number that deserves your attention the most, as every other decision you make impacts your rate of return. Buying stocks online at significant discounts helps minimize the impact of brokerage commission fees and other types of fees. Each year that goes by, more and more of these online discount brokers become available, and the fees seem to keep dropping, too!
Are you ready to be in shock? What if you were told there was a platform that allowed you to trade commission free, no catch! In fact, there is no minimum account balance for this new contender, and it’s an account you can sign up for on your smartphone. As a matter of fact, that is one of the downsides to this platform currently, but the browser based platform will be available soon. What is the name of the app? It’s Robinhood!
Now this isn’t an advertisement for this particular app, but think about what this means. The app allows you to invest in the stock market for free. It’s only been out for months, and many experts are still leery about whether or not the app will be able to pull enough funding from options investors to negate the need for charging fees for regular trades. As of right now, however, the platform still allows people to trade as much as they want commission free.
Will the other companies have to follow suit and find other ways to make money? You can bet the market will continue to change, and it’s interesting how popular ETFs have become since their inception as well. There is a new investing app that focuses on ETFs and investing your spare change, and it’s called Acorns. This app is very popular among the millennials, and the concept of investing spare change is quite intriguing.
While there is one mobile platform that allows people to trade for free, most are still using online discount brokerages. Of course, these sites have their own apps, and commissions have been lowered for most of those companies as well. Just browsing different brokerages to sign up with, you’ll see that most every one of them has a promotion offering free trades, and when looking for the lowest per trade commission, 4.99 is probably going to be the number.
Another way buying stocks online has expanded is through a service called Folio Investing. Again, this isn’t an advertisement, just merely an example of the way investing is changing online. This company offers window trades at 4 bucks, as do other companies with similar automatic investing features. However, they also offer an upgraded membership that allows investors to pay 29 dollars a month for essentially unlimited trades.
If you’re going to be socking enough money away, then trading with any of the brokerages isn’t going to hurt you. However, it’s about getting the best rate of return or return on investment (ROI). And, many people aren’t able to save tons of money each month but would still like to sock away some money consistently for retirement. Too many brokerage commission fees can really eat up a good rate of return and even cause it to go into the red for smaller amounts.
It is apparent that the market is adjusting to grab more of the small investors, especially considering the past, when decades ago orders had to be placed by brokers who charged huge fees for phone orders. The market is also trying to grab those potential millennial investors who need something innovative for them to sign up.
Those apps are what are popular with millennials right now, but whatever brokerage you choose, it’s about disciplined investing and focusing on choices that will get you the best rate of return over the long term. Investing is all about the future and saving for retirement, so you can live out those years comfortably.
Don’t get caught up in market fluctuations, and use dollar cost averaging to your advantage. When you’re going to invest, you need a window of five years or more. You also need to realize that you’re going to be your own investment advisor. You want to put in the research looking at individual stocks, or else you’re going to need to go with mutual funds, which still means you need to know which funds to pick.
That shouldn’t be a problem, however, as you’re excited about investing and just need an online broker. There are so many different types of brokers out there, and a few commission models have been explained for you. What you need to understand is each different broker, commission model and other factors fit different people’s finances and investing goals, so you need to find the right broker for you. A good broker for one person might not be the best one for you.