Choosing an online investment account can seem like an intimidating process at first, but as long as you know what to look for, you can avoid scams and wasting time with services that aren’t right for you.
The first step, obviously, is to decide 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, it’s probably a good idea to stick with savings accounts, money market accounts, or an IRA. If you opt for a cash account, you’ll need to decide if you want margin privileges, which means you can borrow money to buy shares from time to time, and the shares serve 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 a Roth IRA. With a retirement account, there are some restrictions on when and how the owner can withdraw the money. If you have some experience and are interested in frequent trading, look for a company that offers a day trading platform.
New investors should look for more than just the price of an online investment account, although fees certainly matter. Avoid any company that tries to charge you inactivity fees. Access to research is extremely important. Think you’ll need a managed brokerage account? Thanks to the Internet, there are “robo advisors” that are pretty good and cost less than a real 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 timeline and investment goals.
Online investment account that has real support
Of course, there should be “real” people you can contact for support when you need it. There should be strong customer support via email, phone, 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 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 you sign up. Does everything seem to be useful for your particular needs?
A good place to start an online trading account for investors with a bit of experience and knowledge is Zacks Trade. Rates are reasonable and there is good customer service. Investors can also choose between different trading platforms that allow them to trade on the web or on a mobile device.
