Investing in the stock market is a sure way of preparing for my future with ease. Besides giving me a chance to delve into the world around me, it is also a source of fun as I enjoy the sheer thrill of profiting from my choices. Whether that be through cryptocurrency on platforms like https://cryptoevent.io, or through more conventional platforms, the feeling is the same. However, the challenge lies in choosing an investment firm. Below are some of the factors that I consider:
Fees
When choosing an investment firm, fees charged top the list of the things that I consider. Transaction fees vary from one firm to another, and I take time to compare them. Some may charge small fees which increase with time. Regarding trading fees, most firms offer a flat rate, usually ranging from $4 to $10 for every simple stock trade.
I find options trading more expensive, but with ETFs, the fees can be waived provided that the ETFs are in-house. Learning about the fees equips me with crucial information that helps me to make critical decisions. Experts warn that investors like me can easily be priced out of the investment company if I didn’t check the fees properly. Normally, I don’t trade with firms that charge more than 10% on fees.
Products and services
When scouting for an investment company, I always keep an eye on the type of investments that they’re offering. This is because whereas some companies diversify to options like ETFs and IPOs, some offer stocks only. Still, there are those where I can get Roth IRAs, or buy insurance from them.
As a good practice, I always note the kinds of investments that I want to trade in before I start searching for an investment firm. Another crucial aspect of this search is to establish whether the investment firms accept fractional shares. After getting companies that offer the kind of investments that I want, it then becomes easier to narrow down to a specific firm that resonates well with my investment style.
Like most people, I’m always biased towards a company that is associated with my bank. From experience, trading with a bank-based firm guarantees more care and attention. When I need to seek clarity over an issue, I just pop in my bank branch and I will get assistance as soon as possible. I cannot get this kind of immediacy if I were dealing with an app or an online bank as customer care agents take a long time to respond. In some instances, I might pay higher fees if I need a hands-on approach from my investment company.
Convenience
I’m one of those persons who loathe staying on a call to negotiate with a broker while placing the order. I’d rather prefer those brokerages that have apps through which I can make my investment. With an app, I can easily access my portfolio and proceed with my transactions. So, I give little consideration to investment firms that do not have apps.
Another form of convenience comes when investing in my bank since it’s easier to move money since I use my banking app to conduct my investment operations. However, I occasionally make physical visits to brick and mortar for an in-person consultation.
Unlike the old generation which had to endure tech-averse investment processes, the apps have made it increasingly friendly to my generation. Nevertheless, I must caution that investment apps will vary from one individual to the next.
When choosing an investment app, I consider the following:
- Ease of Use: an app should allow me to access both my portfolio and retirement account
- Navigation: A good app should allow me to navigate through different screens with ease
- Stocking data: It should be able to display data in various forms such as ratios, P/E, and charts
- Speed: Speed is of the essence especially when making fast transactions.