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Investing in the stock market may seem risky or intimidating to most novice investors, but there are many successful investors who have made a lot of money or have become rich through stock investing. What matters the most in becoming a successful stock investor is having patience and taking advantage of the best investment opportunities.
Why should you invest in the stock market? Many financial experts agree that stocks are still the best investments in terms of asset-class value. Virtually everyone should invest their money to accumulate retirement funds and help pay for other important financial needs such as purchasing a home or paying for kids to go to college. Saving your money is also a great option, but unfortunately, money held in a bank is not an interest-bearing investment that will grow in value with inflation and even a bank offering a whopping 2.5% interest rate will not keep up with inflation over a 20-30 year period.
What are the best options for buying stock? Before deciding which stocks you should invest in, the first thing you will want to do is figure out which investment platforms you should use. There are two main options for you to use:
1. Traditional stockbrokers Stockbrokers are highly-educated professionals who work with investors on an individual basis to help them get the most bang for their buck. However, it's very unlikely that a stockbroker will be your best option for buying stocks as a new investor because of the fact that most will charge 1-2% fees for each trade and some will only work with investors who have portfolios of $500,000 or more. While they do provide an invaluable service, they can be very expensive for low-budget investors.
2. Online brokers Online brokers are the best option for novice stock investors because of their low commission rates and low balance requirements. For example, the average online broker will charge a flat $5-10 commission on trades, which can save you a ton of money in the long run compared to the 1-2% trade fees a stockbroker will charge you. Online brokers also offer many different investment options other than stock (bonds, futures, options, ETF's, mutual funds, et cetera).
Why not get in touch with FinanceFinderPro for more great investment advice?