Thanks to a lot of high-profile news stories involving options trades, cryptocurrency, and people using mobile apps like Robinhood, more and more people are getting interested in investing. There are a wide variety of online brokers out there, some of which are commission-free and some of which come with commissions. You’ve probably heard about online brokers like TD Ameritrade, Fidelity, and Charles Schwab, and you might be wondering what online trading platform is the right fit for you. Ultimately, choosing the right option for online trading is a bit of a personal preference; however, depending on your needs, you might feel that one trade platform is better suited to you than another trade platform.
So, how do you go about finding out what trade platform is best for you to use, especially in regards to your own goals as an investor? It all starts by thinking about what you need as a trader and then looking at how various brokerages and online trading platforms stack up based on your wish list. Keep reading for a list of a few of the different factors to keep in mind as you’re researching brokerages in order to find the best trading platform for you and your needs.
Customer Support
Especially for new investors, customer service is actually an important factor to consider as you’re weighing different online trading platforms. While customer service likely won’t make or break your decision, when it comes to completing your quest to find the best trading platform, customer support is certainly important. The good news is that larger brokerages such as Fidelity, Charles Schwab, and TD Ameritrade have solid customer support options. It’s also a good idea to look into what sorts of communication channels you can utilize to contact customer support. New investors may prefer live chat or even phone support rather than having to stick to email, for example.
Trading Options
Trading options are another thing to think about when you look at different online brokers. The best broker is going to be the one that offers you the chance to invest in the asset classes and financial markets you’re most interested in. It’s important to recognize that what’s good for one investor may not necessarily be good for another investor. Some investors will want to invest in cryptocurrency, for example, while others care more about being able to open an IRA through their brokerage or make ETF trades. Ultimately, picking based on asset class is one of the more important choices you make when searching for the best option and considering your trading strategy. Even if you don’t think that crypto is something you want to invest in currently, finding an online brokerage that offers you more choice can be a good approach to finding the best online broker for you.
Account Minimums and Minimum Deposits
In order to make stock trades in your trading account, it’s important that you understand the various account minimums and minimum deposits in order to actually buy, sell, and trade real money as part of your brokerage account. Keep in mind that some asset classes are only available to be invested in with a certain amount of money. While many brokerages offer you the opportunity to get started investing by purchasing fractional shares, other brokerages may require minimum deposits in order to manage your ETF trades. Each stock trading platform has its own ins and outs, so the best online trading platform is likely the one that fits your current budgetary requirements. That being said, once you have generated some wealth within the stock market and your brokerage account, you can always rollover your account into a different brokerage.
