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Investing 101: What to Look for in a Good Online Investment Platform
Your 2-Minute dose of Genius!
Sika Republic
January 23, 2024
Investing is a smart way to grow your money, but it can be difficult to decide where to invest and how to get started. Online investment platforms are making it easier but how do you choose the right platform for you?
In today’s 2-Minute Masters, we’ll walk you through key things you should look for in a good one.
Fees and Charges
When choosing an online investment platform consider its fees and charges. While many online platforms offer zero commission trades on certain stocks, and zero account maintenance fees, this varies from platform to platform, so look out for platform fees, management fees, trading fees, and other charges that may apply. Do your research and find a platform that offers the best value for your money.
User-Friendliness
The platform's interface should make the process of investing as simple as possible. It should be easy to navigate, and should include essential tools, such as real-time market data, watchlists, and customizable dashboards, to help you monitor and manage your investments. It should offer educational tools that help you understand the stock market and how to make informed investment decisions. The best user-focused platforms will have this covered.
Diversity of Investment Options
A good online investment platform should offer a wide variety of investment options. This includes stocks, exchange-traded funds (ETFs), mutual funds, bonds, and more. Consider what types of investments you want to make and look for a platform that offers a range of investment opportunities and asset classes.
Account Minimums
While some online investment platforms require you to deposit a certain amount of money to get started. There are many online platforms that require no minimum deposit at all. It's important to know this before signing up.
Security Measures
Look for platforms that have robust security measures in place, such as two-factor authentication, end-to-end encryption, and fraud monitoring to protect your investments and personal information. You want to invest with the confidence that your personal and financial information is being protected at all times.
Customer Support
No matter how user-friendly a platform is, there may be times when you need help or have questions. Look for a platform that offers comprehensive customer support, such as phone and email support, as well as FAQs.
Strong regulatory compliance
Compliance with financial regulations is critical in protecting you from unscrupulous organizations. Before you select any platform, check its regulatory status, which you can usually find at the bottom of the webpage, or in the About Us section. Ensure that the platform is registered with reputable regulatory authorities, such as the Financial Industry Regulatory Authority (FINRA) in the US, or the Financial Conduct Authority (FCA) in the UK.
Today’s Takeaway:
Choosing an online investment platform is an important decision that can have a big impact on your investments. By considering things like fees, investment options, user experience, security, and customer support you can feel confident that you're making smart investment decisions to achieve your financial goals.