A LOW-COST BROKERAGE account will allow you to buy individual stocks, mutual funds, exchange-traded funds and other investments outside of your employer’s retirement account. You can open an account, deposit money and execute trades online with a computer, a tablet or even a smartphone.
But first, you have to pick a brokerage firm. The one that’s right for you depends on the kinds of services you want. For starters, check out Kiplinger’s annual survey of online brokerage firms in the October issue, which rates nine online brokers on a variety of measures, from fees to breadth of investment offerings to customer service.
Getting started. Brokerage firms make it easy to open an account online, as long as you meet a few requirements. You must have a valid Social Security number and a legal U.S. residential address within the 50 states, the District of Columbia or Puerto Rico, among other things.
You’ll have to choose whether you want to open a taxable (non-retirement) account or a retirement account (such as a traditional or Roth IRA). Both types of accounts allow you to buy and sell stocks, mutual funds, ETFs and other investments.
One thing you won’t need is a ton of money. Many online brokerage firms, including Schwab and Fidelity, don’t require a minimum to open an account, though some firms may require a modest balance of, say, $500 or $1,000. And at most brokerages, trading is free.
This story is from the May 2022 edition of Kiplinger's Personal Finance.
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This story is from the May 2022 edition of Kiplinger's Personal Finance.
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