What are the best tools and brokerages for a beginner investor?
Posted by admin in Finance Thursday, 17 November 2011 21:17 5 Comments
I have very little starting capital and experience. I am trying to understand the difference between an ETF and a dividend (I think I have it) Should I just open an brokerage account and read MSN Money for example and jump in? Which is the best brokerage- E*Trade with ther $10 trades, or Tradeking or sharebuilde or who? What are some tips/tools you use when investing and what are some important things you have learned and would share with a beginner?
There are two books at libraries or bookstores that will break this down for you.
Idiots Guide to Investing
Investing for Dummies
They will both have a chapter of different brokerages and their fees.
A book on investing is something everyone should really own for reference.
ETF is just a group of stocks.
Dividend is the money a single company pays out.
Please go get a book – please…
Look up Mutual Funds and study that. A beginner who tries investing in individual stocks is foolish. You are set to lose your butt with E-Trade becuse you haven’t a clue.
I started investing right around your age, was 17, and my first brokerage was sharebuilder. The best thing about it is its cheap. It doesnt have many of the nice features you would get with thinkorswim or some of the other big names. I have since moved onto scottrade and I really like it although I can see myself moving onto thinkorswim sometime later.
All the brokers you mentioned are mediocre or worse. Your “job” right now is not to find a broker. Take the next 6-12 months to learn what it’s all about. I know this will appear to be “bad” advice because you want to get started now…. but you avoid many typical newbie mistakes with some basic knowledge…. you stand to make money both now & in the future… rather than opening an account and eventually getting discouraged by losses….. or worse making money with bad habits… only to lose much more later.
Start with the dummy series;
Stock Investing For Dummies
Mutual Fund Investing For Dummies
Then find some books that will be more specific. Don’t read books written by TV personalities. Find people who are truly experts in their field, whose books have good reviews by peers & readers alike.
Don’t just hoop right in. Take some time to know the ins and outs of trading. Stock trading is hard to grasp and needs constant learning.
There is no really best tool for it, what you need is to know is where to invest and what stocks to buy. There are websites that tackles and explain well the basics and the fundamentals of stock market for free.