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When I first started investing in the stock market, I thought that I needed the assistance offered by a professional financial advisor or an investment expert. I did find that it was worth the initial cost, but I have since moved away from this more traditional approach to investing. With the rise of online brokers and stock market investing accounts, I can now be in complete control of my investments with minimal fees and low account minimums.
The best stock market investing accounts for 2022 include Robinhood, M1 Finance, and SoFi. The three platforms have account minimums ranging from $0 to $100 and all feature diverse assets with zero commission fees on trades. M1 Finance has an extensive list of resources to educate.
If you think that you are ready to start investing in the stock market on your own, here is what you need to know about stock market investing accounts and which ones are the right fit for you.
What Is A Stock Market Investing Account?
According to a Minority Mindset poll, investing in the stock market is still the preferred vehicle for many people who want to grow their wealth. People prefer the stock market to both crypto (60 percent vs 40 percent) and real estate investments (54 percent to 46 percent). Investors who want to take advantage of the stock market will need an investing account.
In the modern world, most people will turn to online brokerages over the more traditional service offered by financial advisors. They will still get most or all of the perks like individualized advice for long-term wealth building and simple service to buy and sell stocks.
However, online brokers tend to have lower fees and account minimums that make them more favorable for those just looking to get started.
Opening a brokerage account or a stock market investing account means that you need to weigh the features and services that the company offers. Here are a few things that you should think about before you decide to invest your money in any given online brokerage:
- Cost and fees
- Account minimums
- Educational databases to help new investors
- Diversification of funds
The Best Stock Market Investing Accounts For 2022
Are you ready to make your first stock market investing account? There is no shortage of potential brokerages you can work with from the comfort of your couch. Here are the top three accounts and why you will want to move them to your short list.
Investors who are on the hunt for simplified investing with extremely low account minimums and fees will want to learn more about what Robinhood has to offer. For as little as $1, investors can purchase fractional shares of their favorite stocks whether that means pricey options like Apple and Netflix or more up-and-coming companies.
While there are some exclusions (notably mutual funds), Robinhood allows you to invest in a diverse array of assets, including:
One of the best parts of Robinhood is that they charge $0 in fees for those who want to buy and sell with regularity. Investors can also choose to have their dividends reinvested into the platform so that wealth can continue to grow.
The only real downside to using Robinhood is that they assume most investors already know how to invest in the stock market. They are lacking educational resources for those who want to learn more about how to effectively manage their investments. While these resources can easily be found off the platform, it is a bit inconvenient to those who are eager to get started.
A direct competitor to Robinhood, M1 Finance offers everything that prospective investors are eager to dive into. Acting as a robo-advisor, the platform makes it easy to see what and how your dollars are invested. They do have a slightly higher account minimum of $100 ($500 if you want to invest in retirement savings accounts).
For beginners, they offer more than 80 different pies that were created by experienced traders. However, they also allow you to build your own custom pie that meets your investment needs and goals. The level of involvement that an investor has in their stock market account is totally up to the individual.
Much like Robinhood, M1 Finance is known for their fee-free platform. There are zero fees for both account management and trading. Keep in mind that they do charge fees for items such as wire transfers, check requests, and more.
Investors who have questions about how the process works will want to refer to the extensive library of resources that can assist them. From questions about how the platform works to a great blog about the latest investment news, investors will love staying abreast of their investments and learning more for the future.
Another great stock market investing account that should make the list is SoFi. They offer a robust selection of assets that you can choose from such as stocks, banking needs and even some cryptocurrency. Like the other stock market investing accounts listed here, SoFi also allows you to invest in fractional shares so that all of your money can be hard at work for you.
SoFi is an excellent, all-around, investment and banking platform with no-fee stock trading and low-fee crypto transactions. It allows you to begin investing in crypto for as little as $10 or stocks (fractional shares) for $5.
Using A Stock Market Investing Account
No matter how much money you plan to invest in the stock market, there are broker accounts out there to match your investment style. Robinhood, M1 Finance, and SoFi all offer extremely low fees and competitive platforms that simplify the process. For low fees and significantly lower account minimums, you can get started quickly and easily.
While you may not receive all of the same tailored advice provided by a financial advisor, you do have access to education on how the stock market works and what you can expect from your trading experience.
If you are interested in a DIY approach to your investments with a reliable stock market investing account, you can’t go wrong with one of these three options!