One of the best benefits the internet has brought to ordinary people is the opportunity to invest and buy stocks easily, without having to work with a traditional broker. The fees are much more affordable with the best online discount stock brokers, which often come in online trading platforms or Robo-advisors.
Online brokerage platforms often include learning materials and resources to help you make informed decisions. Traditionally, brokers would only buy and sell securities on your behalf without offering any advice or other financial services for you. This tradition is now changing with online discount broker-assisted picks and Robo-advisors, which come included in trading software/platforms.
Depending on the platform you choose, you won’t have to interact with an actual, live broker unless you need to. Some programs or apps are more beginner-friendly and come with accessible user interfaces that are straightforward and easy to understand. Platforms often include tutorials to help you get started. There are a variety of platforms for more experienced investors, including day traders as well.
The best online discount stock brokers have very low fees for specific trades or even commission-free trades for stocks and ETFs. There are usually a couple of different account types to choose from: a cash account and a margin account. With the latter, the investor borrows funds from the brokerage to buy a security. With a cash account, the investor pays the full amount for whichever security they purchase.
Best Online Discount Stock Brokers With Margin Accounts
A margin account is helpful if there is a brief window to buy security, but there are not enough funds in the account to make the purchase. A cash account is probably ideal if you are new and only want to get started with a small amount. The minimum deposit amount varies among the best online discount stock brokers.
It’s ideal to choose a discount brokerage account with few to no commission fees for options, ETFs, and stocks. Fees for broker-assisted trades or phone assistance vary. Although rare, you might get an account that includes FREE broker-assisted transactions.
Is a brokerage account right for you? It’s suitable for anybody who wants to get involved in investing, whether it’s for short-term gains, long-term goals, or anything in between. Just make sure you choose a friendly user interface platform, offers plenty of resources and helpful guides, good investing opportunities, and low to no fees.
One of the best online discount stock brokers, Zacks Trade, offers most of the perks many investors require, including absolutely NO broker-assisted fees. There are a few different platform options, some more ideal for PC users and some who prefer smartphone apps.