Choosing an online investment account might seem like an intimidating process at first, but as long as you know what to look for, you can avoid scams and wasting your time with services that aren’t right for you.
The very first step, obviously, is deciding what type of account IS right for you and your investment goals. If you don’t have a particularly high risk tolerance and want your investment to be as safe as possible, then it’s probably a good idea to stick with savings accounts, money market accounts, or an IRA. If you do opt for a cash account, you’ll need to decide if you want margin privileges, which means that you can borrow money from it to occasionally buy stocks, with the stocks serving as collateral.
If your primary goal is to save as much money as possible for retirement, then you’ll need to decide between a traditional IRA or Roth IRA. With a retirement account, there are some restrictions concerning when and how the owner can withdraw the money. If you’re somewhat experienced and interested in making frequent trades, then look for a firm that offers a day trading platform.
New investors should look for more than just the price of an online investment account, although fees certainly are important. Avoid any company that will try to charge you inactivity fees. Access to research is extremely important. Do you think you’ll need a managed brokerage account? Thanks to the internet, there are “robo-advisors” that are pretty good and cost less than an actual human investment advisor. With the robo-advisor there are sophisticated computer algorithms to select the best investments for you and manage them based on your investing timeline and goals.
Online Investment Account That Has Real Support
Of course, there should be “real” people to get a hold of to provide support when you need it. There should be solid client support via email, telephone, and online chat.
Create an online investment account with a company that provides an easy application process. There is always a minimum amount of money required in order to open an account, so check the requirements and read the membership policy beforehand.
Have a good understanding of the types of tools and resources you’ll be able to use with a particular company before signing up. Does it all look like it would be helpful for your particular needs?
A good place to start an online investment account for investors with a bit of experience and knowledge is Zacks Trade. Fees are reasonable and there is good customer support. Investors also get a choice of different trading platforms that allow them to trade either on the web or mobile device.