One of the biggest hurdles for beginning investors to overcome is option overload. With countless investment websites, firms and investments to choose from, getting started with investing can feel like trying to pick the prettiest blade of grass in your lawn.
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The way to conquer this challenge is by taking it one decision at a time, starting with deciding where to invest. While there is no one-size-fits-all solution when beginning your investment journey, it’s important to analyze your options from various angles. Commissions, account minimums and educational materials are just a few things to consider when searching for an online brokerage that fits your financial goals. Here are five of the best investment websites for beginners:
— Charles Schwab
— Fidelity Investments
— E-Trade by Morgan Stanley
— Ally Invest
— SoFi Invest
Charles Schwab
Charles Schwab (ticker: SCHW) is known for retirement investing, but beginning investors of all ages and goals can find things to appreciate about this investing site.
Schwab offers some of the most affordable robo-advisor platforms among major brokers. Its digital investing platforms come in two flavors: Schwab Intelligent Portfolios, which have no advisory fee and a $5,000 minimum; or the premium version with a $25,000 account minimum, one-on-one guidance and more tools for a $300 one-time planning fee and $30 per month advisory fee.
Outside of robo-advice, Schwab offers $0 online commissions on more than 2,000 U.S. exchange-traded funds, or ETFs, and thousands of no-transaction-fee mutual funds.
While the educational materials available at Schwab may have been lacking in the past, the finance giant grew even larger when it acquired TD Ameritrade, along with its robust catalog of educational content. Since the full integration of the two institutions, Schwab investors have access to TD Ameritrade’s webinars, videos and trade strategy testing as well as immersive courses on various financial topics with Schwab Coaching.
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Fidelity Investments
Fidelity Investments has a solid educational platform, but where it really shines is in its research offering. Its suite of industry-leading research and free tools and calculators make it easy for beginning investors to find the best investing strategy and investments for them. If you’re not sure where to begin, you can also visit one of Fidelity’s more than 200 investor centers for in-person help.
Fidelity also ranks among the lowest-cost brokers with no account minimums and $0 commissions on U.S. stock, ETF and options trades. Investors will also get competitive margin rates that can be as low as 9.25%. When it comes to mutual funds, Fidelity offers zero-expense-ratio mutual funds, with no minimum investment and no opening account minimums.
To make your investor journey even easier, the brokerage offers both a robo-advisor and hybrid robo advisor solution with a $10 initial investment. Fidelity’s robo advisor fees are waived if your balance is less than $25,000. Then fees are 0.35% per year.
E-Trade by Morgan Stanley
E-Trade became a part of the Morgan Stanley powerhouse in 2020, and the popularity of this site is showing no signs of slowing down. The broker can attribute its growing popularity in recent years to its comprehensive product offerings and low-cost investment options.
E-Trade encourages investors to focus on their future, not fees, by matching its competitors’ $0 online commissions on U.S. stocks, ETFs, mutual funds and options. Investors can opt for a more hands-off option by selecting one of E-Trade’s prebuilt portfolios based on their risk tolerance. These portfolios are customizable and have a low-cost account minimum of $500 for mutual funds and $2,500 for ETFs. This could be a good option for those looking for a simple, low-cost way to invest in large companies such as Apple Inc. (AAPL), Mastercard Inc. (MA) and Microsoft Inc. (MSFT).
For investors who want to learn more about investing concepts, E-Trade offers an extensive library of articles to help you understand everything from ETFs and retirement to cryptocurrency.
Ally Invest
Ally Invest, owned by Ally Financial Inc. (ALLY), has climbed the ranks of best investment websites for beginners thanks to its low cost and no account minimum.
Though Ally Invest offers robo portfolios for a 0.3% annual fee, the platform is best suited for do-it-yourself investors. With commission-free trades on stocks, ETFs, options and mutual funds in line with its competitors, Ally Invest offers an array of products to build your own diverse portfolio. The built-in analysis and research tools on the platform allow newbie investors to access expert market analysis, stock “Smart Scores” and custom watchlists.
Ally Invest is an entirely digital institution, which means there’s no option for in-person guidance. Luckily, the broker is known for its high-quality mobile app and offers 24/7 general support via phone, chat or email. As an added bonus, portfolio specialists are available Monday through Friday from 8 a.m. to 5:30 p.m. Eastern Time.
SoFi Invest
SoFi, short for Social Finance, believes investors shouldn’t have to pay to invest their own money, making them a favorite among beginners by offering $0 commission on every trade of stocks and ETFs. No account minimums make it easy for individuals to get started investing with any amount they are comfortable with.
SoFi stands out from the crowd by offering cryptocurrency trading within the app as well as initial public offering investing and fractional shares. One major perk of choosing SoFi as an investment broker is the variety of resources available within the community. SoFi members have access to exclusive events and experiences, curated content and real-time investing news to guide them through their investment decisions.
While SoFi Invest does not offer financial services at brick-and-mortar branches, the broker offers 24/7 support with a virtual assistant as well as live agent support during business hours.
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5 of the Best Investment Websites for Beginners originally appeared on usnews.com
Update 11/14/23: This story was previously published at an earlier date and has been updated with new information.
