best

BEST Online Stock Brokerages for 2020

for the average beginner probably not

unless you're beginning with 10 million

bucks not me

[Music]

what up money we've we've talked about

how to buy we've talked about how to

sell and now we're gonna get into I

think an equally important topic which

is you know who handles that money who

brokers those deals when they go through

and that's something that I think you

have a good deal yeah this is a hugely

important topic because every day

somebody reaches out to me or us and and

says you know how do I make a trade I

want to start investing I don't know

what to do so when I started it in the

industry we all heard you know brokers

it's kind of a highfalutin fancy term

back in the day you know used to open up

the newspaper look at the ticker symbol

see what happened on the day before and

if you want to buy something you'd pick

up the phone call and place your order

or you call a broker and he'd recommend

something that fits your need right I

call up Leonardo DiCaprio he yells at me

and fills my order exactly and now it's

different now it's free you can go

online and trade for free and that's

huge and so it's it should be far less

intimidating for investors it's far

easier to do research to make those

trades today but a lot of folks just

don't know so our goal with this video

is just to talk about the various

options the various brokers that are out

there they're all very similar but they

each have their own little you know

pluses and minuses their nuances and a

thing so we'll go through grade the most

popular online brokerages and see which

one works best for you to make you know

your first trade you were your hundredth

straight really quick I think you

mentioned this the the idea of a full

service brokerage real quick full

service that sounds like I'm going into

an Exxon station the guy's gonna wipe my

windows what is a full service brokerage

do for you so a full service broker is

you know like you said check your

windshield pull out the dipstick looks

so if you have you know no idea what you

need to be investing in or you have you

know more wealth and and you're not the

tax concerns that sort of thing they're

the kind of guys where you say here's

what I have what's best for me now that

works for a lot of people but a lot of

people just want super cheap super easy

and nimble so that's where these

discount brokers and most of the online

broker just come from yes so what should

you look for in a broker you want

something that's cheap easy to use

offers ample selections has good

research and of course is trustworthy

all right so let's start with the big

boys then so TD Ameritrade what are the

pros what are the

yeah it's good we're starting with TD

Ameritrade this gets our Best in Show

prize whether you're a novice you know a

new investor it's very simple to use

doing our research it has the the most

options you know research strategies

that sort of thing is great for options

traders and so there's also strong forex

trading definitely the strongest of all

the brokerages and you know a lot of

people get into forex trading that's

kind of a higher-end thing but again TD

Ameritrade also really caters to that

that beginning investor real quick I can

hear people out there what's forex

trading foreign exchange so you want to

buy Canadian loonies or something and

play that you're welcome

so the really the only con to TD

Ameritrade is that if you buy an ETF

it's free unless you sell it within 30

days and you have to pay a fairly small

fee on that but again it has free ETFs

as long as you're holding it long-term

which most ETFs you probably should yes

so let's go with a slightly lesser known

name Interactive Brokers what are the

pros what are the cons sure Interactive

Brokers is more for the the seasoned

investor you know has really strong

options some more complicated strategies

you can get into and better tracking for

that but it's its overall research is a

little lacking it's a little bit harder

to use and so it doesn't get a whole lot

of merits on on that side if you're new

to investing I'd probably skip it so

next up let's go with etrade that's

that's the broker I use so hopefully

they fare well pros cons

sure so e-trade I look at the brokerage

of the masses right so it's great for

beginners you're not going to get a ton

of sorry ID appointed of you you're not

gonna get a ton of in-depth research

you're gonna get adequate research for

sure it's very good it has everything

that you could possibly need customer

service is a little more lacking so

think of this as the big commercial

thing so when you call Comcast or

something like that they provide a great

service but the customer service isn't

always great their website they don't

make it easy to you know cancel your

service transfer money out of it

that sort of thing so it's kind of the

big commercialized one everything you

need is there not a ton of bells and

whistles but it'll certainly get the job

done so it's up there I'd use it yeah I

can say they just revamped their app so

just speaking personally this isn't an

endorsement not that they

even need it but I'm a fan of what they

do I can get done what I need to do

exactly and one really cool thing that

the e-trade does is they had this Robo

advisory firm so we talked about you

know a full service brokerage what all

that means this is similar but it's all

you know based on algorithms your wealth

and it's trained to know what's best for

you and with a minimum of investment of

$5,000 which is pretty low and a point

three percent annual fee on that it'll

it'll do a pretty good job of managing

your money automatically for it so you

know new investors and offices that are

a little intimidated by you know what

should go in your IRA versus which go in

a normal trading account that's

something interesting that that e-trade

offers which which gets high marks in my

book all right so next up let's get

fancy Merrill Lynch this is a big boy

Bank yes so you're right it is a big boy

Bank it's more for the you know the the

higher net wealth folks need a little

more hand-holding don't remind Payne for

that there's no free trading I think

it's still 695 a trade the research

isn't as strong but it does have really

strong banking connections so if you're

trying to move money around that sort of

thing it's good for that it's good if

you need to pick up the phone and have

some real high quality customer service

it's good for that for the average

beginner probably not unless you're

beginning with ten million bucks not me

this would probably ranks worse for the

for the average investor you know

somebody just starting out or even the

intermediate trader has a lot of bells

and whistles and expenses that you

really don't need so we put that at the

bottom of our list

it's next up fidelity a name a lot of

people know you and I have both done

trades here what are the pros and cons

yeah so fidelity is is what I use I give

it a close second as far as bells and

whistles and service great research as

far as you know low costs and no fees

it's a pioneer which I really like other

folks have now caught up to it and are

doing pretty well

investing in the sp500 we all here you

know beat the S&P 500 that's our goal

or just go out and buy an index and used

to pay you know 1% a little bit less

than that to buy that index through

fidelity there is no fee so you can go

out there automatically do as well as

the sp500 for free which is really cool

they have the most no load or no fee no

upfront fee mutual funds it's really

good

the cons you know the forex side they

don't

for a whole lot of paper they don't

offer any paper trading so if you're a

new beginner and you want to test out a

strategy and and basically trade it you

know virtually for a while they don't

allow you to do that so there's some

complications there but as far as going

into making a trade doing some research

options that sort of thing it's right up

there and you know real close to the

best-in-class for sure

all right now let's talk about sort of

the the Millennial favorite Robin Hood

they're kind of the new boys on the

block and investing yeah so Robin Hood

came in a few years ago and really

disrupted the industry they were the

first ones to come out and do the the

no-fee you know the free training and so

of course folks once that it's real

simple app on your phone you can go and

do that not a ton of research you know

not robust at all just slowly getting

into the options game so if you're going

to you know buy shares afford you know

two three years ago is the cheapest way

to do it but now that everybody else is

going into free trades it's a it's a lot

less promising you know Snell you're

getting the same thing without all the

bells and whistles so you're there's

some big trade offs there and and so a

lot of people your next question

probably is how are these people making

money that was the big question when

Robin Hood came in how are they doing

this for free and there's some some

interesting things going on there so you

know we mentioned with Meryl the banking

ties TD Ameritrade fidelity their big

goal is to get your money into their

doors and then treat it like a bank

they're investing your cash but in

places and making money off that you're

buying other premium services from them

Robin Hood doesn't have that as much so

what they're doing is they're selling

your trading information to third party

places so and and there's some pros and

cons of that but they're true they're

selling your shares and to different

market makers so they can trade it and

take advantage of that and again there's

good and bad you get cheaper prices for

that most of the time but your your

trades are out there people can take

advantage of it so you don't always get

the best price especially with Robin

Hood so that's something we got to look

at we could go on on that but just know

they're making their money by selling

your data to other people to basically

trade on and help them make more money

okay so there you have it there's our

power ranking of popular brokerages

obviously we've got a TD Ameritrade up

at the top that's your number one choice

and then we've got fidelity just

after that but but really all of these

are a place that that you could get

started investing you know I'm hoping

this information could be useful to you

whether you are just getting started

investing if you've never invested

before this is just some useful know-how

for you to figure out where your money

will be treated the best well cheers to

that

I am we hope you found this video useful

if you did pound that like button we'll

see you next time