Are you a veteran investor looking for new brokerage or a newbie testing the waters of investments? Is your desire to go into full-time investing, or you want a few solid investments to secure retirement plans? No matter what, you will need to know which brokerage has the best investor resources.
Then finding the right online brokerage that meets your investment goals and learning style is paramount in your journey. Throughout this article, we dig into the best online brokers and other information you will need to consider to help your decision.
What Are Investor Resources?
Usually, different investors look for personal preferences in the choice of which company to invest in. Anything from, familiarity to market share and competitive advantage, investors have different options about what makes an investment worth taking.
When working with a middleman, in this case the broker, investors search for brokers with the right information and tools that will help them decide how to invest and in what to invest.
How Do Investor Resources Work?
Brokers understand the peculiarity of each investors’ demands and requirements. The best online brokers meet the needs of investors across every point of the learning curve.
Every investor, whether professionals, intermediate traders, or new investors, will need a different range of resources to maximize their trading and learning experience. With this at the back of their minds, the best online brokers provide these resources on their websites, giving room for investors to access information that best suits their needs.
Why Is It Important for Brokerages to Provide Investor Resources?
Without the right information at the right time, in an accessible form, investors will have a hard time tracking the market, monitoring their trades, and making the best investment decisions.
In addition to these reasons, there are some other pertinent reasons why brokers should provide investor resources.
Creates Awareness of One’s Firm to Other Investors
The resources brokerages provide help investors identify which middleman to tag along with. This is important, especially in raising capital funds for the firm.
It also helps investors understand what offerings they provide and how they can access them.
Helps Firms Gain Access to Capital
Brokerage firms bridge the gap between investors and public companies to help investors get access to stocks. The business is capital intensive and has ongoing costs with regard to licensing and compliance training and testing.
Initial capital will be needed to get a website, office space, and staff support. Through fees and commissions displayed with other investors’ resources, broker firms can course capital for the growth and smooth running of the firm.
Vital for Growth and Success
Investors, among other things, want to invest in prospects with social proof of reliable financial yields and tractions. Brokerages who can provide investor resources for easy accessibility on their websites are likely to attract company growth and success.
5 Best Options for Investment Resources
Below are some of the best options for investment resources.
TD Ameritrade is one of the largest online brokers that aim to give beginners an easy sail through investment waters. Generally, it is well lauded for several outstanding features, including an extensive education portfolio (called thinkorswim), top-notch customer services, and an intuitive trading platform.
To create a better user experience, TD Ameritrade invested in its mobile app functionality in 2019. The app is currently available on smartphones and tablets.
The mobile version also offers unlimited real-time data streaming on thinkorswim.
- Mobile users
- Educational resources for every investor at any point of the learning curve
- Easy-to-use trading platform
- Offers in-person education at more than 280 offices
- Knowledgeable customer service, with reliable phone support, a message center, and live chat available 24/7
- Provision to trade a range of securities beyond stocks
- The mobile app has full features and is available on iOS, Android, and Windows devices
- Additional support channels on social media platforms such as Facebook Messenger, WeChat, Twitter, and others
- High commissions for some mutual funds
- It doesn’t trade cryptocurrencies
- It doesn’t offer fractional shares of stocks
Webull is a mobile-friendly broker in strong competition with Robinhood but offering more features than it. It offers $0 trades on stocks and ETFs. However, its limited account types make it a better option for solo investors.
- No-commission trading
- Cryptocurrency trading
- Mobile trading
- Free trading on stocks, ETFs, and options
- Provides charts and advanced trading tools
- Offers commission-free trading on some cryptocurrencies
- No-cost options trading
- Offers paper trading
- Instant funding on deposits up to $1,000
- Phone and email support 24/7 and live chat in mobile app
- Limited free research
- No fractional shares
- Access to only individual accounts, not joint accounts, custodial accounts, or self-employed accounts
- It doesn’t offer mutual funds, bonds, forex, or futures
- It may not be truly beneficial to new investors
The easy-to-use online broker Robinhood is credited with offering new investors a platform to launch out from. This platform is best known for free trading and an amazing mobile app.
With the current trends of $0 commission trading though, Robinhood is behind competitors in the market. However it still has amazing offers that serve the needs of millions of clients.
- Free trading
- Cryptocurrency trading
- Trading from a mobile device
- Free trading of stocks, ETFs, options, and cryptocurrency
- Easy-to-use mobile app
- Offers fractional shares
- Has a cash management account for easy cash transfer for trade
- Daily newsletter and podcast delivering financial news
- Email support available
- Lack of trading tools and research
- Does not offer live chat or phone call access to customer care
- It does not support trading OTC stocks except for those that trade on either the NASDAQ or NYSE.
- Offers only individual taxable accounts
Fidelity is accoladed with industry-leading research and is one of the best online brokers for passive and active investors. They offer quality research to clients while lowering the investment costs to investors.
Their excellent trading tools make them an attraction to investors of all kinds, and their mobile app version is available on android and iOS.
- Everyday investors
- Offers a holistic package of investing tools
- Uninvested cash is directed into a money market fund
- Great research and asset screeners
- Comprehensive retirement services
- Easy-to-use mobile app
- Low commissions and fees
- Reliable customer service
- No futures forex trading
- Broker-assisted trades attract higher commission
- No options for paper trading
- Need to combine Active Trader Pro with the web version of Fidelity to access more sophisticated tools and research for trading
- Human-controlled live chat is not 24/7
- Need for frequent refreshing while using on the web
- Not available to non-U.S. citizens
Merrill Edge is a Bank of America company and full-service broker that serves the needs of both professional traders and novice investors. They offer industry-leading research tools and one of the best in-person advisory services.
- In-person support
- One-stop finances
- Easy accessibility to human advisors courtesy of about 2,000 locations inside parent Bank of America branches
- Offer access to detailed research reports on individual stocks for preferred clients.
- Customer support is 24/7
- Offer quality third party research
- ETF commissions
- Diverse account types offered
- Offer several investment vehicles
- Margin rates are higher than other brokers
Now that we’ve gone through the five best online brokerages that offer their clients the required investors resources needed to scale in their trade and investments, it’s time to make a choice. But, remember that no broker has it all.
The idea is to choose a broker who meets your needs and demands at your present proficiency level. To help you make the best choices, consult with a financial advisor who’ll give you a better and more objective guide to your decision.