I’ve had questions with people asking me how to get started. Obviously, one should begin by learning a little bit about stocks. In my bookstore tab I listed several books that helped me learn about picking individual stocks. Others had to do with building the right mentality. After all, one of the most important investing skills is managing one’s behavior. In addition, there are other dividend blogs, investing sites, and YouTube channels that cover this material. In order to keep it simple, I listed a few sites that I personally use regularly.
Many of the best investing tools can be found after you sign up with a brokerage. Brokers are like the middlemen between traders. To buy and hold stocks you need to sign up with one of these services. The most reputable brokers include Ally Invest, TradeStation, Merrill Edge, E*Trade, Fidelity, and TD Ameritrade. However, I’ve seen new investors continually flock to Robin Hood. The Robin Hood app operates under the same regulatory framework but offers very little in the form of tools and customer service. As of 2019 they have no dividend reinvestment plan. However, Robin Hood has commission free trades. If you’re starting with just a couple hundred dollars, Robin Hood might make sense. I personally opted to use TD Ameritrade.
The cost per trade is $6.95, but the company has impeccable customer service, numerous tools, and a solid dividend reinvestment plan. They will evaluate the risk of your portfolio, help you to open IRAs, and provide numerous analyst reports. Ameritrade is also the first broker to support 24/5 trade (25 hours a day, 5 days a week). Its platforms, tools, research, education, and mobile apps are all award winning. So even though it costs a little bit above average per trade, you get the support needed, especially if you are a newer investor. I’ve been with the company since I had a custodial account in 2007. And as you can see, the interface used to buy/sell stock is pretty straightforward.
I usually enter a stock trade as a “market” order. This means I buy the stock at market price. I can, however, enter a “limit” order and set the price I’d like to buy at. But again, the reason I’m still with the company is because of their excellent customer service. So yes, you might have questions with market, limit, or stop-loss orders. Thankfully, Ameritrade has an 800-number available 24/7. You always talk to a real person, and in my experience, I’ve never been dissatisfied. Overall, to get started you need only take the first step! Learn the basics about investing and sign up with a broker. With a good broker, you can continue to learn and make responsible investing decisions.
Disclosure: Dividendgrowthinvest.com is NOT affiliated with Ameritrade or any of the services/sites mentioned above. Dividendgrowthinvest is affiliated with Amazon and receives compensation if you click on one of the product links on the “bookstore” page. It’s costs money to run DGI and we appreciate the support!