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Best Brokerage Accounts for Beginners

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Jason is a longtime Investor and an advocate for having a personal finance strategy and personal savings to have financial freedom.


As of 2022, we have dozens upon dozens of investing platforms to choose from and each one can bring something different to the table in terms of bringing value to becoming a customer. During 2020 and 2021, many investing platforms had a huge surge in popularity due to the amount of money people were getting sitting at home in lockdown and many made the decision to invest it into a booming market, which resulted in platforms such as Robinhood and Webull to take more notice. However one thing we have learned since 2020, many retail investors have treated the stock market as a casino over having a long-term plan or vision in mind for their investment portfolios.

This article is geared for those who maybe are new to investing and not sure where to begin, and perhaps have an idea in place of what their strategy is to be. The following are brokerage platforms that I personally have experience with and I find to be great for new investors or passive investors. These platforms also have had a much longer historical basis to learn from and track.


Fidelity Investments

Fidelity is a long running investment firm, having been founded in 1946, and offers brokerage services and retirement services. Fidelity can be a great first start into the investing world, especially if you have no idea how or where to begin. It is relatively simple to open a brokerage account and you can invest as passively or as actively as you choose.

What I like about Fidelity is the fact they have been around for nearly 80 years and continue to be one of the leaders in the investment world with no signs of slowing down.

From my experience and what I have witnessed, most people that go through Fidelity are those who do not want to actively manage their investment portfolios personally or often times are rolling over a 401k from a previous job into Fidelity. Perhaps either of these options apply to you and Fidelity may be a perfect option for you.


The Vanguard Group

Vanguard could arguably be the best start for any new investor, particularly because of the ETFs and index funds they offer that give a steady long-term growth to your investment. Perhaps the most famous ETF they offer is the Vanguard S&P 500 ETF, or VOO, that invests you into the S&P 500, which has historically averaged a 10% return annually over the last century. Of course some years are going to be much lower and some years are going to be much higher in percentages, but it ultimately balances out to around 10%. This is arguably the easiest and safest ETF you can invest in and have consistent long-term growth. It is not an investment you have to actively manage on a daily basis and you can continue investing passively over the course of your life.

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To give an example of this ETF based upon historical returns, if you are fortunate enough to start investing into this fund at 18, by contributing $200 a month over the course of 45 years with the average 10% return, you would have roughly $1.7 million by the time you are 63.

Of course, Vanguard has dozens of different ETFs that you can invest into, ranging from the green sector to the tech sector. The key is find the strategy that works for you and invest what you are comfortable with for the long-term.

Overall, Vanguard is a great first avenue to get your foot in the door to investing and the ETFs offered are not something you generally have to manage on a daily basis, allowing you to invest passively and with the least amount of stress as possible.


E-Trade Financial Corporation

E-Trade is the first brokerage account I opened and have continued to use over the last several years. Founded in 1982, it has continued to be a major player in the brokerage world with no sign of slowing down. What I personally like about E-Trade is the infinite amount of options available, ranging from the Vanguard ETFs, index funds, and even commodity investments. I have found E-Trade typically has more options for individual stocks and will allow you to make your own risk assessment buying, particularly penny stocks and otc stocks.

I will elaborate more on penny stocks and otc stocks in a separate article, but there can be a time and a place for these type of investments if you do your due diligence and are comfortable taking the risk. One of the most common complaints I have heard from various investors, particularly those that use Robinhood or Webull are the restrictions in place for penny stocks and otc stocks, limiting how much they can buy or even not being listed at all. Of course, this could be contract issues and perhaps that will change in the future, only time will tell. Some trading platforms refuse these type of stocks because they are limiting the liability of investors taking their own risk. Regardless, E-Trade has continued to allow me as the investor to make my own risk assessment and invest into what I choose.

As I stated previously, E-Trade has been around for 40+ years and has continued to be a reliable brokerage platform for long-term and short-term investors.

Final Thoughts

I am sure there are several other brokerage platforms that offer reliable and unique options for investors, but these three are those I am most familiar with and have historically continued to be most reliable for most investors. All three are great first choices for making that initial move into the world of investing and are easy to setup.

Remember, when it comes to investing, only invest what you are comfortable affording and potentially to lose. Additionally, always do your due diligence and have a plan in place and visualize what you are investing in and why you are investing into it. I hope you found this article helpful and wish you the best in your investing endeavors.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2022 Jason

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