Introduction
If you’re looking to invest in the stock market, you’ll need a reliable, user-friendly trading platform. In this article, we’ll highlight some of the best trading platforms of 2021, their features, and why you should consider using them.
What is a Trading Platform?
A trading platform is an online software that allows you to buy and sell stocks, exchange-traded funds (ETFs), and other securities. There are various types of trading platforms, including discount brokers, full-service brokers, and robo-advisors.
Discount Brokers
Discount brokers are online platforms that offer low commission fees and minimal assistance. They’re suitable for self-directed investors who prefer to manage their own portfolios.
Full-Service Brokers
Full-service brokers offer a wide range of investment options and personalized assistance. They’re suitable for investors who need guidance on investment decisions.
Robo-Advisors
Robo-advisors are algorithm-based platforms that use artificial intelligence to manage your portfolio. They’re suitable for investors who prefer a hands-off approach to investing.
The Best Trading Platforms of 2021
1. Robinhood
Robinhood is a popular discount broker that offers commission-free trading for stocks, ETFs, and cryptocurrencies. It’s user-friendly and has a mobile app, making it easy to trade on-the-go. However, it doesn’t offer mutual funds or bonds.
2. TD Ameritrade
TD Ameritrade is a full-service broker that offers a wide range of investment options, including stocks, ETFs, bonds, mutual funds, and options. It has a user-friendly platform and offers extensive educational resources. However, it has higher commission fees compared to some discount brokers.
3. E*TRADE
E*TRADE is a popular discount broker that offers low commission fees and a user-friendly platform. It offers a wide range of investment options, including stocks, ETFs, and mutual funds. However, it doesn’t offer commission-free ETFs like some other discount brokers.
4. Charles Schwab
Charles Schwab is a full-service broker that offers commission-free trading for stocks, ETFs, and options. It has a user-friendly platform and offers extensive research and educational resources. However, it has higher commission fees for mutual funds compared to some other full-service brokers.
5. Wealthfront
Wealthfront is a robo-advisor that offers a hands-off approach to investing. It uses artificial intelligence to manage your portfolio and offers low management fees. However, it doesn’t offer as many investment options as some full-service brokers.
Conclusion
Choosing the right trading platform is important for your investment success. Whether you prefer a discount broker, full-service broker, or robo-advisor, there are plenty of options to choose from. Consider your investment goals, trading style, and fees when selecting a trading platform. With the right platform, you can make informed investment decisions and achieve your financial goals.
