How to Get Started With an Online Broker for Beginner Stock Investors

So you know a bit about stocks already but have yet to take the leap of faith? What do we mean by leap of faith? We’ll tell you. 

It’s learning how to really trade. To find your favorite stocks, your niche, and cover them like the sun covers the sky–ready to earn your keep today. But to do that, you first need an online brokerage account worth its salt. This article will help you do just that. 

Photo by Anna Nekrashevich from Pexels

What is an Online Broker? 

An online broker is simply an intermediary between a seller and a buyer of a financial instrument, providing its services for a nominal fee. These fees may be charged upfront or through other means, such as marking up the prices of stocks they’re selling. It’s business.

They typically have access to many stock markets and other electronic networks across the world. They represent the backbone of the modern trading world. Perhaps the post office would be flooded with millions of written stock orders without them. 

Yet despite their miraculous service, commissions are most often free. Account minimums, too, are usually zero. So if this is the market, how does one keep an edge?

What Makes a Great Online Broker? 

Yes, there are several “good” online brokers out there. However, we can’t stop at the fee level and account minimum. After all–this is a service. How good or great is the service? 

Quite possibly the million-dollar question here. Promotions are fantastic too. We love them. But they serve only to start you out. Better to see if the following features are up to par: 

  1. Is there a sleek, efficient mobile trading app? 
  2. Do they offer fractional shares trading?
  3. Do they assist with retirement accounts like IRAs or Roth IRAs?
  4. Do they offer crypto trading? Not just Bitcoin or Ether, but Cardano and Dogecoin too?
  5. Do they provide automated, AI-built portfolios without a management fee? We’re not saying buy-and-forget here either. You should have to-the-minute updates and the ability to change portfolio direction when you need to.
  6. How about IPO trading? Can they let you participate in an IPO before it goes to the NYSE in New York?
  7. Are there consistent and immediate news alerts coming to your phone?

Most will answer from two to four, but all seven? How do we define the divide between good and great? This is the kind of service previously reserved for the elite. Those with six-figure account balances only. 

Today, technology has brought opportunity to your doorstep at no additional charge. 

Think of what you can achieve. Save for a wedding? Done. Send your kid to college? Absolutely. Plan for early retirement? Yes, you can. 

How to Open an Online Brokerage Account

Thanks to the rapid rise of the online retail investor in the last few years, especially since the start of coronavirus, opening a brokerage account is easier than ever. 

There are many choices out there. Our foremost goal is to tell you, our dear reader, what to look out for as you begin your trading journey. 

Opening an online brokerage account on SoFi or Robinhood for example, two well-known services, is like going through your ABCs. 

Brokerage accounts are most often available to US citizens or lawful permanent residents 18 years of age or older. A US address and a valid Social Security Number (SSN) are also required.

The application process is entirely online and is usually done in a few minutes. This is true for any decent online broker. If you’re finding it a hassle, be wary, and that could be a sign. 

Once you’re set-up, all you have to do is log in and make your dream income a reality! 

The post How to Get Started With an Online Broker for Beginner Stock Investors appeared first on Enterprise Podcast Network – EPN.

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