After you’ve built up a 3 to 6 month emergency fund and you’re regularly putting aside money into a savings account, it may be time to consider investing – remember the saving vs investing distinction? One holdup that many new investors fret over is which brokerage house is best. There are a lot of choices out there when deciding which brokerage firm to use for your investments. I personally use Scottrade and E*trade.
Scottrade houses my personal Roth IRA as well as another taxable account and there are a lot of reasons I use them. For one, their interface is ridiculously easy to navigate and for another, their fee structure makes investing a lot less taxing on my account. Fees can erode away your cash very quickly.
Top reasons to use Scottrade?
- Only $500 to open an account.
- Online trades are only $7.
- No account maintenance or inactivity fees.
- Over 400 brokerages nationwide incase you need to speak with someone in person or attend a seminar.
- No-Fee IRAs! Also over 2,800 no transaction fee mutual funds!
- CDs are available.
- An incredible Knowledge Center with educational resources, interactive learning, and help/how-to. Scottrade customers have access to the Reference Notebook where they can save Knowledge Center content for quick reference.
E*Trade Financial was one of the first major online brokers and now has millions of customers in more than 40 countries worldwide. As one of the nation’s largest online brokerages, the company provides financial services that include retirement, trading, and investing. E*Trade accounts include: No-Fee Roth IRA, No-Fee Traditional IRA, and Rollover IRA accounts. Opening an account is quick and easy, and just takes a matter of minutes.
TradeKing is an online broker providing low flat trading fees with no minimum account requirements and no hidden fees. At TradeKing, you will pay just $4.95 a trade plus 65 cents per option contract. Period. They don’t have any account minimums or hidden fees and even charge the same price for broker-assisted trades. SmartMoney and Kiplinger’s both gave TradeKing’s Customer Service their very highest ratings in their latest broker surveys.
Whichever of these investing platforms you choose, the main key is to educate yourself on investing, trust your instincts, let go of emotions, and use solid research to make a decision.