Investment is a big world, and it is not hard to get lost in it. Unfortunately, the risk of going into a loss is overbearing, the comprehension of tough financial jargon is confusing, and the job to find the best investment is overwhelming.
However, this guide will take you step-by-step to learn what some of the best investment sites for beginners are in the market.
So, if you have been thinking about investing, don’t wait another day. Today you will learn about the complex structure, important terms, and basic strategies to get started,
What are Investment Platforms?
Investment platforms, also known as funds supermarket, is an online place that allows you to purchase, sell, and hold bonds, shares, and funds. This activity can be done independently through D2C platforms that allow direct correspondence between you and the customer.
But, for beginners, it is advised to take the help of financial advisors to make investment decisions for you.
These investment platforms provide services that make it easier to invest in mutual funds and stocks. Moreover, most of these platforms enable you to select an off-the-shelf portfolio that matches the investor’s financial goals.
The conventional method of investment was based on the help of stockbrokers. However, with the advent of technology, these expensive stockbrokers are slowly being replaced by investment platforms. This is solely due to the low-cost and straightforward process towards investing, which encourages more people to start their investment journey.
If you are interested in learning more about investing, keep reading our guide to learn the best investment strategy for beginners.
How to Choose an Investment Platform
First things first, if you are looking to dip your foot in investing, you need to know which one is the best investment site for beginners. If your knowledge of investment procedures is a bit muzzy, then you should naturally opt for a platform that guides you every step of the way.
Here are some of the things you should keep in mind before choosing an investment platform:
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- The investment platform should have a functional mobile app with good reviews on the Apple store or Playstore. Explore which platforms have the best investment apps.
- A low-cost investment site may be ideal for beginners as the performance of investment portfolios are unpredictable.
- Check the management fee breakdown of the ready-made portfolios on the site.
- Review the policy on ethical funds.
- See the investment options. Some investment platforms only let you invest in shares or funds, while others give access to both.
- Some investment sites keep you updated with the latest news in the stock market, which is helpful in the long run.
- The platform must have reputable customer service. Maybe, you can try connecting to the top contenders and see which site is the most helpful. Trust us, a customer’s service may become the best friend of a new investor.
- Review the tax policy
- Review the transaction policy
- Read the reviews on the speed at which the transactions take place.
- These platforms can serve the role of financial advisors to help beginners make the right investment choices. Look for platforms with the best stock advisor service.
How to choose a broker?
Choosing a broker is an important stepping stone in your journey towards investing. However, before you make any decisions after research through online brokers, it is pertinent that you have a clear idea about your goals.
You should know if you are looking for a retirement fund plan or day trading. Once you have a complete idea about the kind of investment you’re looking to make, you can start gauging which broker works the best for you.
However, the question remains— how do you choose a broker? Well, there are many factors to choose from, especially when the competition amongst online brokers is at an all-time high.
- Commission charges
- Dependability
- Initial minimum amount
- Account fees and taxes
- Annual charges
- Performance and implementation
- Resources
- Promotions
Do you need a broker?
While the job of an investment site and a broker may look similar to a beginner, they are actually quite different. Therefore, it is essential to learn about them both before trying your hand in investment.
Brokers execute trades and buy and sell stocks on behalf of the client, and in return, they are paid in commission. However, you can make investments directly without the help of a broker too.
Top five Best Investment Sites for Beginners
Now, let’s get to the best investment sites in the game. The best time to kick start your journey as an investor is now. The competition between the best investment sites is intense currently. This had led to the prices coming down and the services and benefits advancing consistently.
There are many best investment sites out there with varying tools and advantages. What might work for someone may not work for you. So, keep an open mind, know your financial horizon, and keep reading to find the best investment sites for beginners.
Vanguard
Are you looking to be an owner of your investment funds? Well, then Vanguard is the best trading platform as it does not involve the middle man. It is ideal for beginners and people looking to make long-term investments due to its low-cost model and extensive fund selection.
This broker is popular for its trademark of mutual funds and ETFs. So, if you are planning to make a big investment in mutual funds, then with the help of Vanguard, you might want to remove the share of stakeholders from the equation.
As the owner, you will have many advantages, such as opportunities to make the finest investments, acquire customized financial advice, and suitable market equities. This ensures that your investment will bear fruits and bring comfort to your life.
Pros
- It is best when it comes to low-cost funds
- Stocks and ETF dealings are commission-free.
- Comprehensive mutual fund selection.
Cons
- It is exclusively a trading platform only.
- Still in developing stages.
- The minimum stock you can buy is $1000, which may not be pocket-friendly for beginners.
So, if you are a long-term investor or looking for low-cost investments, then Vanguard may just be one of the best investment sites for beginners.
Nutmeg
Are you scared to make your investments? Well, what if you had an online manager who would make the financial decisions for you? Would you be able to trust it?
If you just perked up at the idea of having a digital manager, then let us introduce you to one of the best investment sites for beginners— Nutmeg.
This investment platform provides financial services to the user through its complex algorithms. These algorithms detect the pattern and provide the best solution, perfect for a clueless beginner.
To get started, all you need to do is answer a few basic questions like your income, your financial goal, and how much you are willing to invest. Nutmeg, often remembered as Robo-adviser, examines these questions, invests customers’ money where it deems appropriate, and provides the best investment strategy for beginners.
Pros
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- Different kinds of accounts for different investors
- Nutmeg’s portfolio review service
- Surrounded by professional financial advisors
- Automated features that curb the losses
- One of the best stock advisor service
Cons
- The fee for the automated tier is high.
- Not the best for fixed income tiers as the services are limited
- Mostly only high tiers benefit from site marketing.
Keep all of this in mind, Nutmeg can be a great assistant in introducing a beginner to the world of investment sites.
HSBC
Novices stepping into the world of investing their hard-earned money usually seek for easy to navigate solutions and gentle handholding along the process. HSBS is quite easily one of the best investment sites for beginners as it provides security for a global bank.
Getting started on HSBC is quite simple for an easy start investor. You don’t necessarily need to have an oversupply of investment knowledge. In fact, even if you don’t know anything about investment, that is quite okay as well.
All you need to do is fill a brief questionnaire to give an insight into your income and investment horizons.
The best thing about HSBC is that it lets you see beforehand if the investment will dive. This feature can help you plan your future moves accordingly. Moreover, it helps you maintain your portfolio, which is important for long-term investors.
Pros
- The account minimum is only $50.
- Only a small amount of the annual fee has to be paid
- Finance management tools
- One of the best investment apps to use on mobile
- The saving rate is high
Cons
- The minimum initial amount is $1000
- There is no ATM card
- The account can only be opened digitally
You can make your life easy by starting your investment journey from this best online stock trading platform.
Fidelity
Over the years, Fidelity has won the reputation of having the best brokerage accounts. This value-driven online broker is one of the best stock research sites known for acquiring $0 commissions on ETF, stocks, option trades, etc.
Have you been wondering where to invest with little money? Well, the answer might be with Fidelity because no minimum investment is required. Moreover, you will have access to educational resources on investments. So, you will learn as you go, which makes it probably one of the best investment sites for beginners.
Additionally, Fidelity helps its customers save a huge chunk of money via investor-friendly approaches. This site takes pride in its mutual funds; mostly, because the broker has the chance to score well in every fund’s type with absolutely no transaction or commission fee.
- Commission-free stock, ETF, and options trades.
- Large selection of research providers.
- Strong customer service.
- Expense-ratio-free index funds.
- Highly rated mobile app.
Pros
- Commission-free
- The research providers’ selection is vast
- Educative platform
- Excellent customer service
- One of the best investment mobile app
Cons
- Broker assisted fee is higher than usual
- No option for Forex trading
Fidelity is a unique and investor-friendly site that provides index funds with undoubtedly no expense ratio. So, if you are a beginner and worried about stepping into the world of stocks, this might be the right place to start.
Evestor
Have you been thinking about hiring a financial advisor to guide you? It’s hard, isn’t it? But, what if we tell you that you can get an online financial service provider at a low cost? Evestor may be one of the best stock advisor services in the market for you.
It offers a comprehensive set of services at the lowest possible cost. Moreover, the platform is quite simple as it only offers three portfolios to choose from— low, medium, and high-risk. This is quite helpful for beginners as it does not overwhelm the newbies with too many choices.
Additionally, it is understandable if you don’t want to dive all the way in at the start. Evestor lets you begin small amounts. In fact, you can start with just one pound.
Pros
- No transaction fee
- The money withdrawal facility is available at all points with no additional fee.
- Relatively low fund fee
Cons
- No ethical regulations
- Mobile App is in developing stages
- Slow transfers
Evestors has its own set of pros and cons. It may still be in the developing stages, but due to its low-cost ISA, it may be one of the best investment sites for beginners.
Best Investment Strategy for Beginners
Buy and Hold Strategy
The buy and hold strategy is exactly what the name suggests: you buy an investment and hold on to it for a few years. This gives you the experience to think like an owner, and along with it comes a sense of responsibility.
This is to say that you won’t be mindlessly immersing yourself in the process of buying and selling because that means there is a bigger risk of a tremendous loss.
You might get urges to sell the stock when the market takes an occasional dip, but try to act against it. Holding on to stock makes you a long-term investor and teaches you extensively about the market.
Acquiring the Index
Try to find a solid stock and then proceed to acquire the index funds based on it. It is an easy way for a beginner to get started and get amazing results, especially if you meld the buy and hold strategy here as well. Your profit will be the weighted average of the index’s assets.
Search for popular indexes that give you access to the market’s top stocks to have a diverse range of investments. Stocks can be quite risky to buy, so try to aim for diversified portfolios.
Income Investment
Income investing is a strategy that focuses on building a unique investment portfolio specifically designed to yield regular income. The main intent of income investment strategy is to induce a regular income stream, which can be in the form of dividend stocks and bonds.
This income is for personal finance. You can use it for personal needs to invest it further. Income stocks also allow capital profits. This is probably the least risky strategy to employ, but on the other hand, it is also quite predictable.
Dollar-Cost Averaging
DCA is an investment strategy that lets you add money into your investments over periodic intervals. This strategy works best if you set aside some constant amount of money every month and then keep investing regularly despite the market status. You can do it weekly or bi-monthly, but monthly is the most feasible practice for this strategy.
Frequently Asked Questions
What are the main types of investments?
The three main types of investments are stocks, cash equivalents, and bonds. You can invest in one, two, or all three of these types directly or indirectly by purchasing mutual funds.
How can I invest sensibly?
Learn to be a long-term investor and avoid the urge to sell your assets when the market is in a rough spot. Remember, taking a risk is important, but don’t forget to do your research before investing.
How much should I invest?
Most financial advisors suggest that the thumb rule should be to take out 10 – 15% of your annual income and put it aside to invest in bonds, assets, stocks, etc.
Where is the best place to invest as a beginner?
The investment comes with risks. The safest way to start your journey is to invest in high-yielding saving accounts, mutual funds, pension plans, or other retirement plans. However, it is better to stay away from the stock market until you’re well-equipped to buy stocks.
Which online investment site is best?
There is no simple answer to this question. Each investor has a different set of requirements. Start by designing your financial goals and investment plan before seeking the best investment site.
Wrap Up
It might seem a little daunting right now. But, trust us, you just need to take the first step.
Millions of people have done it before you, so you can do it too. Remember the strategies to play your best card and utilize the maximum benefits of these best investment sites for beginners.
So keep your eye on the ball, and keep investing!
