First, the most important thing is not where you invest, it’s simply that you SAVE the money and invest it on a regular basis. Most of us will make investing mistakes and move our money a few times before retirement. That’s OK. Get into the habit of saving to invest; the rest will come.
Now, choosing where to invest:
- For simple, “set-it-and-forget-it” investing we recommend Betterment.
- If you want more control of your portfolio, including the ability to trade stocks, bonds, ETFs, and other securities, a traditional online brokerage will be a better fit. Here are several great options:
TD Ameritrade
Offers a good blend of value, technology, and service.
Best for: New investors who are eager to learn and become more advanced.
Voted “Best Broker for Your IRA” by Kiplinger’s, TD Ameritrade offers solid research tools, fast customer service, and competitve pricing. If you open an account with $2,000 or more you can trade free for 60 days. Deposits of over $25,000 can also earn up to a $600 cash bonus. TD has something for everybody. For beginning investors, they offer an impressive array of mutual funds. For serious traders, TD Ameritrade’s thinkorswim advanced trading platform provides some of the most advanced professional trading tools out there like trade analysis with volatility and probability tools and real-time performance and risk monitoring.
There is no minimum funding required to open an account, however, special promotional offers may have requirements. The minimum to fund an account electronically is $500 and there is a $2,000 account minimum to get margin or option privileges.
| Minimum to Open | Trade Commission | Best For | Our Rating |
| $0 | $9.99 | Research, Service |   |
Scottrade
Low fees and strong customer service, with 500+ branches nationwide.
Best for: Frequent traders looking for low commissions or anybody who wants access to a physical branch.
Get started trading with a low minimum $500 opening deposit.
| Minimum to Open | Trade Commission | Best For | Our Rating |
| $500 | $7 | Low-cost trades and customer service | |
OptionsXpress
More than options, a technologically-advanced platform for DIY investors.
Best for: Investors who want lots of advanced trading tools or affordable broker-assisted trades.
| Minimum to Open | Trade Commission | Best For | Our Rating |
| $0 | $14.95 | Tools galore, mobile trading, broker-assisted trades | |
E*Trade
The pioneer of online investing offers great research and banking tools.
Best for: Researching investments and combining your investment account with banking products like cash accounts with ATM cards.
Also, if you deposit $2,000 or more you’ll get free trading for 60 days and up to $500 cash bonus on your deposit. See E*Trade’s site for details.
| Minimum to Open | Trade Commission | Best For | Our Rating |
| $500 | $9.99 | Research | |
Betterment
Investing made as simple as possible.
Best for: Investors who want to truly “set-it-and-forget it”.
As studies suggest that over the long-term, stock picking rarely beats overall market returns, Betterment is a great solution for long-term investors who don’t want to spend a lot of time thinking about investing. Read more in our full Betterment review.
| Minimum to Open | Trade Commission | Best For | Our Rating |
| $0 | None; small annual fee based on balance | Simplicity | |
Note: One way I’m able to support my blogging while helping you is to link to products I like and earn a referral commission if you sign up. I only link to products I trust. That said, you should know that, for some of these brokers, I earn a small amount if you follow my links and eventually open an account.
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