If you need a discount broker, you can find them online at a much more affordable price than a traditional full-service broker. You might not even need an actual “human” broker if you already have some knowledge about stocks and other investment types. A simple “Robo-advisor” that comes with a discount stock trading app or web-based platform.
They are low-cost commission or even commission-free that get their money either through “payment for order flow” (PFOF) or by taking the idle, unused cash in customers’ accounts and putting it into subsidiary banks overnight. They should share the interest they earn by putting the money into the subsidiary banks with customers. However, they keep most of that interest to themselves.
And then some do charge commissions, but at a low percentage, such as $0.01 per share ($1 minimum) for stocks & ETFs, or $1 for the first Options contract (less per additional).
Regardless of how they earn their money, you can benefit from choosing a broker with low fees that give you the freedom and flexibility to make investments. It does so while giving you access to a Robo-advisor and other educational tools and helpful resources to consult with.
Another nice feature that isn’t available with all discount stock trading programs is free broker-assisted trades. If you think you will need assistance from an actual broker regularly, then it’s a good idea to choose one of the few platforms that won’t charge you an extra fee for that.
Discount Stock Trading Online With a Good Dashboard
The dashboard is a critical consideration. You will want to have a friendly interface to work with, whether you are trading online or on your smartphone. Ideally, users should customize their dashboards to only display the information relevant to them regarding their account, transactions, and other details they need to know. When checking out discount stock trading reviews, look at screencaps or short videos of the interface to understand what it looks like.
How much money do you need to get started with trading stocks, ETFs, Options, Crypto-currency, and so forth? It depends on which trading platform you choose, as each has its minimum amount required for opening an account.
One good discount stock trading company, Zacks Trade, only has a minimum of $2,500 and offers FREE broker-assisted trades. It’s ideal for investors who have at least a little bit of knowledge and experience and are interested in day trading.