Then it’s time to start making moves that matter.
Want to put your money to work for you instead of the other way around? First, you need to be decisive about it, then you can proceed to open a brokerage account. This may seem basic to some, but not everyone has the same level of knowledge or comfort with investing.
Brokerage accounts are like your financial safe. This is where you can store, buy, and sell investments like stocks, bonds, mutual funds, among other things. A brokerage account connects you to the stock market, giving you access to a world of growth opportunities. Without such an account, your money remains stagnant, earning little or nothing, and missing out on its potential to work for you.
A brokerage account does more than just store your investments. It also protects your assets, records your ownership, and ensures your financial foundation is secure. Once you’ve decided to open one, the next step is choosing the correct type of account for your needs.
There are full-service, discount, and online brokers, as well as mobile-app-oriented brokers, each offering similar yet distinct experiences.
Full-service brokerages offer everything from research tools and tax tips to the best strategies and managing your entire portfolio, so you don’t have to think about or do anything. It’s a more personal atmosphere that allows you to speak with someone when you have questions about your account, online tools, or other matters. You have the option to self-manage your investing activity online or have a financial advisor manage your account (typically for a fee).
Mobile investing apps, such as those from Robinhood, have made investing more accessible by offering mobile-only accounts that allow you to check your holdings and make trades anytime, directly from your smartphone. Micro-investing apps take this convenience even further by allowing users to invest small amounts of money, sometimes even rounding up spare change from everyday purchases. This makes it easier for anyone, regardless of budget or experience, to start building wealth.
While commission-free trading and fractional shares existed before, these platforms have brought these features into the spotlight, making investing more affordable and flexible for all users.
Commission-free trading allows you to buy and sell investments without paying a fee for each transaction.
Fractional shares give you the ability to purchase less than a whole share, letting you invest exactly the amount you’re comfortable with.
Investing Is Not Like It Used To Be
When I began as a DIY investor, I studied the terminology and technical analysis to make the most informed decisions possible. The rise of AI and automation has transformed investing. Many online brokerages now utilize robo-advisors, which employ algorithm-driven technology to manage investments without requiring human intervention.
These automated tools create and adjust portfolios based on your financial goals and risk tolerance. As competition has increased, even traditional full-service brokerages have started offering digital advisors as a more affordable alternative to hiring a personal financial advisor.
To explore how these robo-advisors and digital platforms can fit your needs, compare both mobile apps and full-service brokerages. Each offers different levels of service and features, so it’s worth seeing which option you’re most comfortable with.
Here’s a list of options you can check out. I recommend visiting their sites to see what they offer or even giving them a call for more information. There is no obligation to open an account simply by reaching out.
Mobile / Digital Only and Robo-Advisor Brokerage
- Robinhood (fractional shares available)
- Stockpile (offers fractional shares)
- Webull
- SoFi Invest (Robo-Advisor)
- Betterment.com (Robo-Advisor)
- Acorns.com (automatic recurring investing)
- Discount Full-Service Brokerages
- Fidelity
- E*Trade
- Ally Invest
- Charles Schwab
- Vanguard
A few additional points:
- Different Types of Accounts: You can open various types of brokerage accounts, including individual, joint, and retirement accounts (like IRAs and Roth IRAs).
- Online or Mobile vs. Full-Service Brokers: Choose a broker that aligns with your investment style and needs.
- Fees and Costs: Be aware of the fees associated with your brokerage account.
*Please note this is not an endorsement of any company. You should conduct your due diligence as part of your decision-making process.
You read it, and it made sense. Now, send it out into the world.
