Commissions for equity and options trades are $6.95 with a $0.75 fee per options contract. To qualify for $4.95 commissions for equity and options trades and a $0.50 fee per options contract, you must execute at least 30 equity or options trades per quarter. To continue receiving $4.95 equity and options trades and a $0.50 fee per options contract, you must execute at least 30 equity or options trades by the end of the following quarter. Regulatory and exchange fees may apply.

News sites such as Yahoo Finance and Google Finance serve as a great resource for beginners. For in depth coverage, look no further than the Wall Street Journal and Bloomberg. By monitoring the markets each day and reading headline stories investors can expose themselves to trends, 3rd party analysis, not to mention economic concepts and general business. Pulling quotes and observing fundamental data can also serve as another good source of exposure.


How much money do I need to start investing in stocks? The amount of money you need to buy an individual stock depends on how expensive the shares are. (Share prices can range from just a few dollars to a few thousand dollars.) If you want mutual funds and have a small budget, an exchange-traded fund (ETF) may be your best bet. Mutual funds often have minimums of $1,000 or more, but ETFs trade like a stock, which means you purchase them for a share price — in some cases, less than $100).
Find a good online stock broker and open an account. Become familiarized with the layout and to take advantage of the free trading tools and research offered to clients only. Some brokers offer virtual trading which is beneficial because you can trade with play money (see #9 below). A great tool for comparing online brokers can be found at StockBrokers.com.
Choose your trading partner wisely. To trade stocks you need a broker, but don’t just fall for any broker. Pick one with the terms and tools that best align with your investing style and experience. A higher priority for active traders will be low commissions and fast order execution for time-sensitive trades (like our picks for best online platforms for active traders/day traders). Investors who are new to trading should look for a broker that can teach them the tools of the trade via educational articles, online tutorials and in-person seminars (see NerdWallet’s round-ups for the best brokers for beginners). Other features to consider are the quality and availability of screening and stock analysis tools, on-the-go alerts, easy order entry and customer service.

The 2010s have been a boom era for online stock brokers. According to Statista, between 10% and 15% of all U.S. adults used an online broker at least once in 2018. While some major brokerages have remained the same (Charles Schwab), others have gone through mergers and acquisitions (E*TRADE acquired OptionsHouse; TD Ameritrade and Scottrade merged; TradeKing is now Ally Invest), and a new generation of millennial-focused brokers (like Robinhood and Acorns) has kept the old guard on its toes by lowering commission rates and minimum deposits. After digging into 25 trading platforms, here are the factors that set our top picks apart from the crowd.
Like Fidelity and Vanguard, Charles Schwab is one of the older brick-and-mortar investment brokers that successfully modernized its trading platform for the Internet Age. Of all our picks, Charles Schwab is the best option for advanced traders who want a full buffet of options (stocks, ETFs, options, bonds, mutual funds, futures) and an impressive suite of research tools. Best of all, even with all the perks Charles Schwab offers, it’s still one of the lowest-cost trading platforms, with cheaper fees than E*TRADE or TD Ameritrade on most trades.

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Have you ever asked yourself, "What is stock?" or wondered why shares of stock exist? This introduction to the world of investing in stocks will provide answers to those questions and show you just how simple Wall Street really is. It may turn out to be one of the most important articles you've ever read if you don't understand what stocks represent. Find out the answer to "What is Stock?" and how it comes to exist ...
That said, learning the logistics of how to buy stocks and earmarking a small sliver of your investable assets to buying individual stocks online can be fun and profitable. And at worst? As long as you don’t put money you can’t afford to lose on the line, stock trading will be a temporary diversion that leads to limited losses, lessons learned and a few self-deprecating stories to entertain dinner guests.

Devote no more than 10% of your portfolio to trading. Even if you find a talent for investing in stocks, allocating more than 10% of your portfolio to individual stocks can expose your savings to too much volatility. Other ground rules to manage risk: Invest only the amount of money you can afford to lose, don’t use money that’s earmarked for near-term, must-pay expenses (like a down payment on a house or car, or tuition money) and ratchet down that 10% if you don’t yet have a healthy emergency fund and at least 10% of your income funneled into a retirement savings account.
TD Ameritrade has been a powerful player in the online stock trading ecosystem for years. The flipside to such robust platforms? Cost. Even though TD Ameritrade lowered its fees in 2017 from $9.99 to $6.95, pretty much every other major discount broker slashed its prices, too. TD Ameritrade remains one of the more expensive options out there, even with more than 100 commission-free ETFs. Though its pricing structure is more expensive than those of some of the other discount brokers, there are many traders who think it's a best-in-class trading platform.

In addition to attractive pricing, Ally offers a quality platform that gives you access to the entire universe of stocks and ETFs. Where some discount brokers focus on only one kind of trader (for example, options traders or high-net-worth investors), Ally Invest provides an excellent experience for investors of all kinds. A focus on discounted costs can sometimes be a red flag for quality, but Ally truly delivers with sophisticated calculators, profit-loss estimators, and more. Ally also offers a robust research library that incorporates visual slides and interactive media into its market data.


TD Ameritrade offers two best-in-class platforms, designed for two different types of investors. Both platforms are free to use for any investor with a TD Ameritrade account. The web-based Trade Architect, though often in the shadow of thinkorswim, is streamlined and easy to use. It will appeal to beginning investors or anyone who prefers a simplified educational interface. Its tab-based navigation lets users flip between trading tools and account overview, plus charts, stock screeners, heat maps, and more.

Commissions for equity and options trades are $6.95 with a $0.75 fee per options contract. To qualify for $4.95 commissions for equity and options trades and a $0.50 fee per options contract, you must execute at least 30 equity or options trades per quarter. To continue receiving $4.95 equity and options trades and a $0.50 fee per options contract, you must execute at least 30 equity or options trades by the end of the following quarter. Regulatory and exchange fees may apply.
The Equity Summary Score is provided for informational purposes only, does not constitute advice or guidance, and is not an endorsement or recommendation for any particular security or trading strategy. The Equity Summary Score is provided by StarMine from Refinitiv, an independent company not affiliated with Fidelity Investments. For more information and details, go to Fidelity.com.
Robo-advisors like Wealthsimple, Wealthfront, and Betterment use algorithms to determine your investment strategy. You just plug in your time frame and risk tolerance and their computers do the rest. And because they’re targeted for a younger crowd, fees are rock bottom. Wealthsimple and Betterment both have no account minimum, while Wealthfront requires $500. Wealthsimple charges an annual 0.5% advising fee; Wealthfront and Betterment charge just 0.25%.

In addition to attractive pricing, Ally offers a quality platform that gives you access to the entire universe of stocks and ETFs. Where some discount brokers focus on only one kind of trader (for example, options traders or high-net-worth investors), Ally Invest provides an excellent experience for investors of all kinds. A focus on discounted costs can sometimes be a red flag for quality, but Ally truly delivers with sophisticated calculators, profit-loss estimators, and more. Ally also offers a robust research library that incorporates visual slides and interactive media into its market data.


Devote no more than 10% of your portfolio to trading. Even if you find a talent for investing in stocks, allocating more than 10% of your portfolio to individual stocks can expose your savings to too much volatility. Other ground rules to manage risk: Invest only the amount of money you can afford to lose, don’t use money that’s earmarked for near-term, must-pay expenses (like a down payment on a house or car, or tuition money) and ratchet down that 10% if you don’t yet have a healthy emergency fund and at least 10% of your income funneled into a retirement savings account.


Not everyone who buys and sells stocks is a stock trader, at least in the nuanced language of investing terms. Most investors fall into one of two camps. Depending on the frequency in which they transact and the strategy driving their actions, they’re either “traders” (think Gordon Gekko in the movie “Wall Street”) or “investors” (as in Warren Buffett).
Thinkorswim, on the other hand, is a powerhouse designed for the advanced. This desktop application regularly racks up awards for its superior tools and features, things any other broker would charge a premium for — research reports, real-time data, charts, technical studies. Also included: customizable workspaces, extensive third-party research, a thriving trader chat room, and a fully functional mobile app.
Common Stocks – When you invest in stock, you acquire an ownership stake in an actual operating business, along with your share of the net earnings and resulting dividends produced by the firm. Although you don't have to invest in stock to get rich, over the past could of centuries, equities (stocks) have been the highest returning asset class and have produced the most wealth. To learn more, read What Is Stock? which will break down the fundamentals.
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