To make profitable investments, you’ll need to have an account with one of the best discount brokerage firms that offer tools and services that align with your investing goals and learning tools. Different brokers optimize for a particular type of investor, from beginners who want to play it safe to short-term day traders who want to make frequent trades.
How educated are you about trading? Do you know about specific investments, such as stocks, but not so much about cryptocurrency or futures contracts? What kind of securities do you intend to focus on? Or are you a complete beginner who is unsure where to start? Before selecting an online investing platform, first familiarize yourself with various investment types, both short-term and long-term, and decide on your risk level. One of the biggest investment rules is that you should never risk more money than you can afford to lose.
Remember that you should try and diversify your portfolio with a few different types of investments, each carrying its own risk and potential benefits. Some people tend to focus on mutual funds and ETFs since they are an excellent way to invest in various stocks at once. The best discount brokerage firms will make it easy to do so and not charge excessive commission fees.
Some online discount trading apps or platforms charge as low as 0.01 per share, although there might be a minimum requirement price per share (usually $1 or more). For stocks worth less than $1 each, you might be charged 1% of trade value for the fee. Still, this is very low pricing that makes it easier for casual to frequent traders to trade affordably.
Best Discount Brokerage Firms That Help You Trade
If you are not confident in your ability to decide on trades, then low-cost or free broker-assisted trades are something to look for. Not all of the best discount brokerage firms offer this service for free, so look for one that does. Suppose you need assistance making a purchase or selling. In that case, they should not charge you to do so if you are already paying a subscription fee for the platform, to begin with.
Another thing, not every trading app offers access to a global economy. There are often good opportunities to buy stock or make exchanges in other countries. As you gain more confidence in trading and become more knowledgeable, consider a platform that offers the flexibility to trade internationally at competitive commissions – all from one account.
Of the best discount brokerage firms, one that meets most of the criteria above is Zacks Trade. Users get free broker-assisted trades, good resources and educational tools, and easy access to global markets.