Navigating the Era of $0 Commissions to Find the Best Brokerage Account for You
So, you want to start investing but don't have a brokerage account.
In the dynamic world of investing, finding the best brokerage account has become a big decision, especially with major platforms moving to $0 commissions a few years back. This article delves into the key considerations such as total cost, customer support and trading platforms to help you discover which brokerage is right for you in the evolving landscape of commission-free investing.
First, let's start with our top three:
Total Cost
With commission fees a thing of the past, it's essential to understand the total cost of your investment journey. Unraveling the fine print reveals nuances like foreign stock and fixed-income securities commissions. Fidelity stands out with hardly any fees (even on OTC-listed securities). You will, however, pay a commission on foreign exchange-listed stocks.
As an added bonus, Fidelity allows you to earn interest on uninvested cash (with no minimum) via the Fidelity Government Money Market Fund (SPAXX). Interest rates vary.
E*Trade fees are next best for small investors, offering volume breaks but still charging a $6.95 per trade commission for OTC stocks. Charles Schwab fees are also relatively low with the only knock against them being the same $6.95 per trade OTC commission.
Customer Support
Investing comes with uncertainties, making customer support a crucial aspect. Each of our top three is similar in customer support. All three have online, phone and in app support options for investors in need. Response times and resolutions generally vary.
Still, each of these three have dedicated customer support teams that are available to help.
Trading Platform
A robust trading platform is essential for effective portfolio management. Fidelity, Charles Schwab and E*Trade offer outstanding platforms, each catering to different needs. All three offer desktop, web-based and mobile app trading platforms that allow investors to perform tasks from simple order entry to in depth analysis and charting.
While all platforms are strong, Schwab's Thinkorswim platform (through TD Ameritrade) is often regarded as the industry's top trading platform.
Conclusion
At The Bowser Report, we believe that investing is simple. Your brokerage account should reflect that simplicity as it will be the vehicle through which you execute your strategy. With most brokerages now offering comparable products, it's up to the fine details to choose the best brokerage account for you.
With the lowest commissions across the board (especially $0 OTC trades) and interest earning uninvested cash, Fidelity is our best brokerage account for small investors. However, as with any investment, choosing a brokerage should not be done without conducting your own due diligence.
Pick a brokerage that's right for your and get started today!
AND, if you are looking to simplify your investing journey even further, check out a free sample copy of The Bowser Report's monthly newsletter to uncover fresh stock ideas and a proven strategy.
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