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Wednesday, December 4th
SpeedTrader is all about…speed. Their focus has always been on using direct-access software to deliver the fastest ordering speeds and numerous routing options. They have been able to do that. Their customer service is also reported to be responsive and friendly. However, the tiered software just doesn't deliver on the level of sophistication they are selling, especially since they are exclusive to the advanced trader, and the pricing is a bit high. The company has a recent negative history with FINRA, and even its predecessor, Mint, has a history of fines with FINRA. For these reasons, we don't feel it makes the cut as a stock trading platform, and it is not included in our recommended picks.
Webull is an app-based stock trading platform, much like Robinhood. But unlike Robinhood, it is not an innovator. While it embraces tech, it has taken the path to use tech to replace good customer service and quality customer screening and has been fined by FINRA for approving customers who weren't eligible for trading, and for replacing good customer service with a terribly subpar automated solution, which abjectly failed to answer customer questions and concerns in a reasonably timely fashion. Webull is not upfront about who they are, failing to mention that although they have headquarters in St. Petersburg, Florida, they are actually owned by a Chinese holding company with employees and offices in China, as well as tied to a telecom giant that surveys and shares citizen data with the Chinese government. In an industry where trustworthiness can mean the difference between losing your life savings or not, we expected Webull to be more transparent about their origins and ownership. We cannot recommend Webull as a stock trading platform at this time.
This can be an overwhelming question for beginning investors - but that's a great place to start. First, ask yourself what level of skills or knowledge you have in investing and what your purposes for investing are. Are you brand new to the financial world of stocks, ETFs, fractional shares, and options? Are you trying to manage a large amount of wealth? Are you looking for a safe place to grow your savings over the next few decades?
Or, are you someone who has had a lot of experience in investing and wants to get back into the game or take your game to the next level? Are you wanting to take high risks, or are you more conservative in your approach? There are plenty of options out there and there are some who focus on everything and some who specialize in one or two niche markets.
For beginning traders, there are platforms that have devoted a big part of their online presence into education. Some have partnered with banks so you can do all of your investing along with your banking.
For active traders, the best platforms will have advanced charting capabilities, responsive customer service, robust toolkits, and they will also offer high-quality research resources. We highly recommend those platforms that allow for backtesting - a way to put in a particular strategy simulation and see how it might play out before committing to the trade in real life. Be sure to ask questions and double-check that whatever stock trading platform you use, they will have the tools that fit your particular needs.
For example, if you are going to be trading mostly on your mobile phone, you will want to make sure the stock trading company you choose has a strong mobile platform. Some companies do a bare-bones mobile app, and that would not be a suitable fit. Be sure to check if software platforms have a history of outages or glitches, too.
Are you the kind of investor who doesn't want to actually pull the trigger on choosing which stocks to buy on your own? You might want to look into robo-advisors or a dedicated financial advisor or team of advisors. These accounts usually come with fees as a percentage of the total amount invested, but it can be well worth the cost if you don't want to be involved in the day-to-day management and strategy on your account.
Most advisor accounts (robo or personal) involve you completing a questionnaire and/or a phone call that considers your time frame, financial goals, and risk tolerance. From there, the company will create a portfolio matching the information you gave. This portfolio will be rebalanced automatically, and you don't have to do a thing. On those types of accounts, you can find options with no fees, and the ones that do charge fees are usually much less expensive than working with a human advisor one-on-one.
Keep in mind that most of today's online stock trading platforms very proudly advertise that they charge "$0 fees." That usually just refers to a $0 commission fee. There will definitely be at least one or two fees for most accounts. Whether it's for withdrawal or broker-assisted transactions, there are going to be some extra costs associated with your account.
So, which online stock trading platform is best for you? Here are some of the criteria to keep in mind:
To help you make the most of your investments, Top Consumer Reviews has evaluated and ranked today's most popular online stock trading platforms. We hope this information helps you reach your financial goals!
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