If you are looking to invest your money in the stock market, there are many brokers and trading apps available that allow you to buy and sell stocks. However, not all brokers are created equal and some may not be suitable for beginner investors. In this article, we will take a look at the best 12 under accounts to start your investment journey.
What is an Under account?
Under accounts are brokerage accounts that allow beginner investors to buy and sell stocks with a lower minimum investment requirement than traditional brokerage accounts. These accounts typically have lower fees and provide access to educational tools and resources to help investors make informed decisions.
1. Robinhood
Robinhood is one of the most popular under accounts available. It has no account minimums, and you can trade stocks, ETFs, and options. Robinhood also has a unique feature that allows you to buy fractional shares, which means you can invest in expensive stocks like Amazon without needing to buy a whole share.
2. Webull
Webull is another popular under account offering commission-free trading for stocks, ETFs, and options. It also provides access to pre-market and after-hours trading. Webull offers a variety of research and analytic tools, including technical indicators, analyst ratings, and financial calendars.
3. M1 Finance
M1 Finance is an under account that allows you to create and manage your own portfolio for free. You can also choose from pre-built portfolios, and M1 Finance will handle the investing for you. The platform has no fees, and you can invest in fractional shares.
4. Stash
Stash is an under account that focuses on helping beginner investors learn the basics of investing. It offers fractional investing, and you can choose from themed portfolios based on your interests, values, and goals. Stash also provides educational content and a debit card that earns cashback on purchases.
5. E*TRADE
E*TRADE is a well-known brokerage that offers commission-free trades for stocks, ETFs, and options. It also provides access to mutual funds and bonds. E*TRADE has a variety of research and analytic tools and offers a mobile app for trading on-the-go.
6. TD Ameritrade
TD Ameritrade offers commission-free trading for stocks, ETFs, and options. It also provides access to mutual funds and bonds. TD Ameritrade has a robust educational center, offering courses and tools to help beginner investors learn the ropes.
7. Fidelity
Fidelity offers commission-free trading for stocks, ETFs, and options. It also provides access to mutual funds and bonds. Fidelity has a mobile app for trading on-the-go and offers a variety of research and analytic tools.
8. Ally Invest
Ally Invest offers commission-free trading for stocks, ETFs, and options. It also provides access to mutual funds and bonds. Ally Invest has no account minimums and offers a variety of research and analytic tools.
9. Charles Schwab
Charles Schwab offers commission-free trading for stocks, ETFs, and options. It also provides access to mutual funds and bonds. Charles Schwab has a variety of research and analytic tools and offers a mobile app for trading on-the-go.
10. TradeStation
TradeStation is an under account that offers commission-free trading for stocks, ETFs, and options. It also provides access to futures and cryptocurrencies. TradeStation has a variety of research and analytic tools and offers a desktop platform for advanced traders.
11. SoFi Invest
SoFi Invest is an under account that offers commission-free trading for stocks, ETFs, and cryptocurrencies. It also provides access to automated investing, where you can set up a portfolio and let SoFi do the investing for you. SoFi Invest has a variety of research and analytic tools and offers a mobile app for trading on-the-go.
12. Acorns
Acorns is an under account that focuses on investing your spare change. It links to your debit and credit cards and rounds up your purchases to the nearest dollar, investing the difference. You can also set up automatic investments and invest in pre-built portfolios based on your goals.
FAQs
1. Do I need a lot of money to start investing?
No, many under accounts have no account minimums and allow you to invest with a small amount of money.
2. Will I be charged commission fees for trades?
Many under accounts offer commission-free trading, but it’s important to check the fees for each account.
3. Can I sell my investments at any time?
Yes, you can sell your investments at any time, but you should keep in mind the tax implications of selling.
4. Can I set up automatic investments?
Yes, many under accounts allow you to set up automatic investments that will invest for you on a regular basis.
5. Are under accounts safe?
Yes, under accounts are regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to ensure that they are safe and reliable for investors.
6. Do under accounts offer research and analytic tools?
Yes, many under accounts offer research and analytic tools to help investors make informed investment decisions.
7. Can I invest in cryptocurrencies with an under account?
Some under accounts, such as TradeStation and SoFi Invest, offer access to cryptocurrencies.
8. Can I open multiple under accounts?
Yes, you can open multiple under accounts with different brokers to diversify your investments.
9. Are under accounts suitable for advanced traders?
Some under accounts, such as TradeStation, offer advanced trading platforms and tools that may be suitable for advanced traders.
10. Can I withdraw my money at any time?
Yes, you can withdraw your money from an under account at any time, but you should keep in mind any tax implications.
Conclusion
Under accounts offer a great way for beginner investors to start investing in the stock market. With low account minimums and commission-free trading, these accounts provide access to a variety of investment opportunities. When choosing an under account, it’s important to consider the fees, research tools, and investment options available to find the one that best fits your needs.
