Hello everyone! Welcome back for the latest installment of Bevo Markets and Bear Markets. I appreciate you coming to look at the newest post and am especially excited about the topic this week because it focuses on something very interesting: getting more young people directly involved with investing.
Once funds have been made available, a mechanism to make necessary trades is needed. This mechanism is an online trading platform, and today Bevo Markets and Bear Markets will be looking at various platforms available to the public. These platforms, including E*TRADE, TradeKing, and TD Ameritrade, are available to young people looking to take their crack at making some money from the market.
The first platform is the lesser-known TradeKing, a trading interface that is quickly gaining popularity with newer traders. Despite little advertisement in the typical finance media such as the Wall Street Journal, CNBC and Bloomberg News, this platform has grown tremendously. Offering a miniscule fee of $4.95 per trade, this platform is excellent for new traders because it will not drain one’s funds with unnecessary fees (it was not long ago when a trade fee of $15 or $20 was common).
(http://www.thesunsfinancialdiary.com/wp-content/uploads/tradeking11.png)
Additionally, there is no minimum account balance, so new traders can be at ease knowing they won’t be penalized for not having a massive balance.Finally, a well-documented knack for customer service and incredible trader education set TradeKing apart from other discount trading platforms. Overall, TradeKing is a lesser known but incredibly competitive option for any trader, especially a rookie looking for experience and access to all the necessary securities to diversify one’s portfolio.
Another popular online platform, TD Ameritrade, has grown to be quite popular with new traders. The brokerage gives its users access to trade the normal securities in a highly efficient trading system, which offers some of the quickest trade executions in the business. While certainly more expensive than TradeKing (the fee is $9.99 per trade), TD Ameritrade makes up for it with advantages to new traders. For example, there is no minimum balance to maintain and features a fully customizable and interactive “control panel” that is widely regarded as being incredibly easy to use.
(http://www.mobilecommercedaily.com/wp-content/uploads/2011/02/td-3.jpg)
Paired with strong customer service options, it is no wonder this platform has widely grown since its launch. However, the dramatic increase in trade fees and lack of education resources makes this a platform novice traders should avoid.
The final platform is E*TRADE, perhaps the most popular online financial services company in part because of the “E*TRADE baby’s” wit and wisdom. The platform has trading fees on the more expensive end ($7.99-$9.99 per trade), but this is the lone disadvantage of using the program. During my time looking at various options, the educational resources offered by E*TRADE are thorough and informative, while not being so mundane or long-winded to cause the user to become uninterested in what is being presented. Furthermore, E*TRADE offers its users the full-range of securities, including the ability to trade in six global markets.
With free, real-time streaming quotes, a customizable workstation, and in-depth applications offered on smart phones and the iPad (seen below), E*TRADE is one of the safest choices for a market greenhorn.
(http://www.mobilemag.com/2010/04/07/e-trade-app-lets-you-trade-like-a-pro-on-your-ipad/)
Upon entry into trading, it is difficult to determine what platform would be best suited for a new trader. After substantial research and deliberation, Bevo Markets & Bear Markets chose E*TRADE as the means to make money work in the market. Trying to get into online trading is an intimidating, vast landscape of websites and downloadable programs. Do not be overwhelmed, however, as every successful day trader started at this same junction.
It is the goal of this blog that these analyses of a small fraction of the available platforms offers a stable starting ground for finding a program you are comfortable with and powerful enough to offer you a trading advantage. In addition to this input, opinions from trading veterans such as those found here are incredibly valuable. As always, if you have any questions about the different trading options or have had experience with these or any of the available platforms online, please sound off in the comments.
See you next week for another installment of Bevo Markets and Bear Markets, and you all enjoy the rest of your spring break!
Thanks!
Joe Kelly
Hey Joe- literally a week before reading this blog I started looking into day trading, then saw your status about this blog on my Facebook newsfeed. As a rookie in this field, its good to hear from another (but way more experienced) newbie. Great job broda, see you around the ‘Dale.
-Colin Corvino
Colin – good to hear from you and I’m really glad you liked what you read. Hope the blog has helped a little bit. Let me know if you need any help getting started.
Joe, great information. I have heard a lot about TD Ameritrade and E*TRADE through advertisements and financial journals, but never anything about TradeKing. It is great to know there is a legitimate competitor with cheap trading fees.
Happy Trading,
Andrew Dick
Andrew,
I appreciate you letting me know that my blog has helped you learn a little more about financial markets. Feel free to contact me if you have any further questions, I’d love to help.
-Joe