Best Investment Accounts For Young Investors
Modified date: Aug. 29, 2022
Investing can feel intimidating.
And if youre feeling nervous, thats OK. It means youre mindful of the risks and are approaching the markets with caution.
That being said, theres never been a better time to get started investing. Todays brokers and robo-advisors are making it easier than ever for young folks like us to invest confidently with almost any amount of money.
Whether you want to start investing as little as $25 a month or have a windfall of $10k youre looking to manage, the right account is just a few clicks away. And were here to help you determine which one is right for you so you can take the most important step on your journey to early financial independence: investing your first capital.
But before we get started, some quick FYIs: unless otherwise noted, you can open either a standard, taxable investing account or an Individual Retirement Account with any of these platforms.
Also, if you need a quick refresher on what terms like robo-advisor and brokerage mean, check out our FAQs at the bottom of this article.
Now, lets investigate the best investment accounts for young investors!
Scope Of Products You Can Trade
While browsing for a brokerage account, first consider which trading products you plan to invest in. If you have plans to invest in not only Singapore stocks but also US stocks, you may prefer to find a broker that has access to both SGX stocks and those in the US market. If you want to invest in other asset classes such as CFDs, gold, and REITs, you should then consider finding a broker that allows you to access these products too.
Is Online Trading Safe
Online trading is safe if you use a regulated online stock broker and never invest more than you are willing to lose. Trading stocks online is inherently risky. Start with a small amount of money, read investing books, and keep it simple by buying and holding for the long term rather than trying to time the market.
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Best App For Active Investing And Saving For Retirement
Who’s this for? Similar to Robinhood, Webull offers commission-free trading on stocks, options, ETFs and crypto, with no minimums required. Users also have access to IPO and fractional shares.
While Robinhood and Webull are both great investing options for active traders, only Webull currently offers IRAs so users can manage their retirement funds along with their stocks all in one place.
Webull offers users a customizable desktop version of its platform if you prefer to trade on a bigger screen and investors have extensive extended trading hours before and after the market closes: 4:00 a.m. to 9:30 a.m. ET and 4:00 p.m. to 8:00 p.m. ET, Monday to Friday.
Webull’s app is available to download for free in both the App Store , where it has 4.7/5 stars, and on Google Play , where is has 4.4/5 stars at the time this article was written.
The Best Investment Sites For Every Investor
Review the price table below to find the best investing site for your budget. Keep in mind, most of these sites still offer limited research for free. If you end up liking what they offer, consider signing up for their paid subscription.
Seeking Alpha is best for hands-on investors who enjoy researching companies but might not have time to research every company they’re interested in.
They offer a huge collection of well-researched articles on actionable investing and trading ideas from hundreds of contributors. Plus, all contributors are thoroughly vetted, so the overall content quality is high.
Seeking Alpha has content for every kind of investor. Articles are organized by:
- Markets: gold and precious metals, crypto, forex, real estate, etc.
- Stock ideas: Long-only ideas, upcoming IPOs, short ideas, etc.
- Dividends: REITS, fixed income, retirement, etc.
- Top stocks, Latest News, ETFs, and much more
Their sector-specific ideas make it easier for investors to zero in on what is most relevant to their portfolio. And with more than 100 unique articles published every day, there are ideas for every type of investor.
You can also create watch lists and portfolios, which allows the platform to notify you of any news or articles related to your investments.
Seeking Alpha Premium Tip
Recommended Reading: The Motley Fool Investment Guide For Teens
Research Material And Insights
Most brokerage firms provide news and research materials prepared by their in-house professional analysts and experts to help investors interpret market behaviour and understand stock performance of companies. Some brokers also hold webinars and events where professional investors and traders share their views on the market’s direction and answer questions posed by fellow traders and investors.
Top Five Investment Platforms For Beginners
We have used our ratings, compiled by independent research firm Fairer Finance, to pinpoint the cheapest trading platforms in the market.
We also considered how well they would work for a novice investor to buy or sell stocks.
Our best platforms for beginners all have top five-star ratings, which means their total costs are below the sector average, and they do not impose any nasty exit penalties or additional high fees or charges.
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Identify Your Investing Goals
If retirement accounts are your main priority, you might consider Fidelity for their ease and breadth of the retirement space . But if you are interested in trading something more exotic like futures or cryptocurrency, then a broker like Interactive Brokers might be a better fit as it provides more offerings for advanced investors.
Top Equity Crowdfunding Websites
Crowdfund investing is naturally risky, and some platforms may only be open to accredited investors.
Investing small amounts of money can minimize your portfolio risk, while simultaneously providing an opportunity for potentially higher returns. .
This list shares some of the best equity crowdfunding sites for investors.
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Our Selection Of The Best Websites For Investors
Before listing all the 100+ best websites for investors, we want to share something even more valuable with you to help you avoid getting lost among vast number of websites for investors.
Based on our experience, and through talking to hundreds of different investors, this is the ultimate stack of websites and apps for those looking to make smart investment decisions:
And now, a little on how to use these sites:
Acorns: Best Investment App To Learn Financial Literacy
- Available via Apple iOS and Google Android.
With more time, these recurring contributions and rounded up deposits from your purchases will grow into a larger portfolio. Hence the companys name, Acorns: start small like an acorn but grow strong into a mighty oak tree.
Because portfolios start with small balances most often through Acorns, the service has no account minimum.
The robo-advisor micro investing app charges a monthly fee for users for providing investment advice through its robo-advisor functionality. Though, it doesnt charge trading commissions when your gets invested on your behalf.
Instead, it charges an account fee depending on the subscription plan you select for your account.
Currently, the service has two offerings including Acorns Personal for $3/mo and Acorns Family for $5/mo.
These subscriptions provide various products which fit well for goals of young adults like investing young and managing your money prudently.
The service easily acts as one of the best money apps for kids with its all-in-one platform .
Their plans come as follows:
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Stockpile Buy And Sell Stocks At 0% Commission From $1
Stockpile is a great option for complete beginners that wish to gain exposure to the US stock market with a small amount of capital. This app for iOS and Android devices allows investors to risk just $1 on each stock that they buy.
Moreover, Stockpile does not charge any commissions, so small investments are not penalized. Deposits via both ACH and domestic bank wires are fee-free. However, those making a withdrawal via a domestic bank wire will be charged $25. In addition to stocks, the provider also offers commission-free access to ETFs and ADRs.
The Stockpile app also allows parents to set up a separate investment account for their children. This is completely supervised, so orders will only be executed after approval from the parent. Another gimmick feature offered by Stockpile is the ability to gift a stock to someone.
- No support for crypto
Fidelity Investments: Best Overall For Beginners
Fidelity may be the most investor-friendly broker out there, making it a top choice for beginners. This broker offers it all and does it at a high level, with remarkable customer service, too, especially by phone, where you can get an answer to your detailed question in seconds.
The research resources here are deep, with a variety of reports available. Youll get all the basics on how to invest smartly and so much more. You can attend webinars or view recorded ones that cover almost any area of investing, so youll be knowledgeable in no time.
Fidelitys site is easy to navigate, and youll find what youre looking for quickly without much fuss.
- Cost per stock/ETF trade: $0
- Minimum balance to open an account: $0
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How Much Money Is Needed To Start Investing
The good news is that you dont need much money to start investing. Most online brokers have no account minimums to get started and some offer fractional share investing for those starting with small dollar amounts. For just a few dollars you can purchase ETFs that allow you to build a diversified portfolio of stocks. Micro-investing platforms will even let you round up purchases made through a debit card as a way to get started with investing.
What About Robinhood
The question of Robinhood remains a difficult one for our review team. The reality is that many new investors are coming into the market through Robinhood. Despite this fact, Robinhood has never taken home our best for beginner’s recommendation, nor does it win any categories in this list. For new investors looking to enter the market, Robinhood provides the path of least resistance.
At the same time, though, this discount broker does next to nothing to prepare investors to be successful. In addition to an overall lack of screeners and other basic tools, Robinhood’s use of gamification tactics may be hurting investors1 more than its publicity grabbing GameStop debacle2 or high payment for order flow.3
When using Robinhood’s trading app, system prompts seem to encourage users to trade more, which allows the company to make more money through payment for order flow. All that aside, Robinhood is a middle-to-low-end broker with a well-optimized app when run through our scoring criteria. As such, we don’t recommend it for new investors, even though we recognize that many new investors are coming into the market that way.
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What Is A Recession
Other Online Stock Trading Platforms We Considered
The following companies were evaluated by us but did not make it into our list of best online trading companies.
- Limited selection of investment products and account types
- Lack of reliable customer support
Cash App is unique in that its both a peer-to-peer payment service and a stock broker. Think of it as a blend of Venmo and Robinhood: You can send and receive money and spend with a debit card from your account, all the while trading stocks in the same app. However, Cash App is not a dedicated investment platform, and its basic selection of securities will leave more involved traders wanting for more. At the time of this writing, Cash App offers access to only 1,600 stocks.
- No mutual funds or options trading
Public stands out as one of the few investing platforms that offers engaging social media features. You can follow other Public users, exchange trading ideas and share market news all within the same platform. Public also lets you explore investing themes. These are stock lists based on a particular topic like metaverse which lists individual stocks of companies creating virtual experiences and women in charge, which lists companies with female CEOs. Beginners can look through Publics content library to learn about the basics of investing.
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Why Are The Right Tools For Investors So Important
Investing is a tough game that you must be really smart about. There are four general advantages you can have as an investor, the first two being related to having the right tools, and choosing the best websites and apps for investors.
The four advantages of investing are:
- Informational advantage
- Behavioural advantage
- Technological advantage
The informational advantage is about having the right information, at the right time, and that information being accurate. Market data, stock charts, macro news, quarterly reports, announcements, etc. this is all crucial information needed to make good investment choices.
Many of the websites for investors listed below can provide you with this advantage. You still must know what to focus on, but the first step is having an outstanding information flow.
The analytical advantage is about what data you focus on, which analytical techniques you use, and how well you do your analysis. As we know, there are many ways to analyze a stock, many of them being half-art and half-science.
Which combination of analytical techniques you use and how well you apply them is definitely a big part of winning the investing game. The list of the best websites for investors can be a great help in providing the right analytical tools.
Last but not least, in todays era of technology and algo trading, we must not forget about the technological advantage. Many institutional investors use advanced software solutions to choose and execute trades.
Investing In Your Own Skills
Are there any skills that you could acquire that could bring you up to the next level in your career? Think in terms of learning a new computer application, a foreign language, or taking a public speaking- or sales course.
Its possible that you could acquire certain career-enhancing skills that would enable you to either get a promotion in your current job or even transfer to a new, higher-paying position with another employer.
A few hundred dollars is often all it takes to take a course to learn that kind of skill.
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Clark Calls Out Vanguard Customer Service Entering 2022
Clark has been a customer of all three of these companies for decades. But he recently for lackluster customer service. He specifically noted the companys heavily criticized app as well as customers having difficulty getting representatives on the phone.
I love Vanguard. Ive been a customer of Vanguard for decades. But the customer service has got to become a focus.
youre a little errant right now. Youre off the path. If youre going to continue to be the company of the future and not the past, youve got to get this together.
The Details: Vanguard has earned a reputation as the low-cost index fund superstar, and its easy to understand why.
For starters, Vanguard founder Jack Bogle invented index funds. The company also offers more than 3,100 mutual funds with zero transaction fees and a large number of proprietary low-cost index funds.
According to Morningstar and Vanguard, its average expense ratio for mutual funds and ETFs was 0.09% as of December 2020, the lowest of any brokerage firm and well below the average of 0.54%. The company got rid of commissions, announcing free trades on equities like stocks, in early 2020.
Vanguard is an ideal place to follow Clarks two primary investment recommendations: Put every dollar into a target date fund or buy three index funds .
Self-directed investors who use a low-cost, well-diversified buy-and-hold strategy have loved Vanguard for decades, as evidenced by its $6.2 trillion assets under management as of January 2020.
How To Pick A Brokerage
Youll also need to decide the type of brokerage account youll want, the fees involved, and how involved you want to be, day-to-day, with your account.
Also consider your investment preferences such as need for research, tools, and portfolio tracking features to ensure the broker you end up choosing will be a match.
You can also read our guide to choosing the right online broker for additional assistance in choosing the right brokerage account.
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The Ultimate List Of The Best Websites For Investors
If like the websites for investors listed above and you want more, weve got you covered. If our recommended stack of the best websites for investors doesnt cover your needs, we have listed more than 100 of the best websites for investors below.
The best way to go through these websites is to visit, explore, try what they offer and select the ones that suit you best.
When selecting the websites you should consider trustworthiness, accuracy of data, the features they offer, user experience, and if they meet all your personal preferences and what you like best. These sites are very similar when it comes to the value they offer, so you should rely mostly on what fits your needs best.
Just dont get stuck in analysis-paralysis when exploring these sites. Make your selection and then focus on building your own superior investment strategy.