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5 Best Investing Websites | Investing for Beginners - YouTube
Channel: Let's Talk Money! with Joseph Hogue, CFA
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I love talking stock picks but how do you
get started investing?
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How do you know which investing website is
best for your needs and which have the lowest
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fees?
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In this video, I鈥檓 revealing the five websites
for stock investing that I use to grow my
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wealth.
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From no-cost sites to the best stock research
you鈥檒l find, we鈥檙e talking investing sites
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today on Let鈥檚 Talk Money.
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Beat debt.
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Make money.
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Make your money work for you.
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Creating the financial future you deserve.
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Let's talk money.
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Joseph Hogue with the Let鈥檚 Talk Money channel
here on YouTube.
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I want to send a special shout out to everyone
in the community, thank you for taking a little
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of your time to be here today.
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If you鈥檙e not part of the community yet,
just click that little red subscribe button.
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It鈥檚 free and you鈥檒l never miss an episode.
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We talk a lot about stocks on the channel
but not necessarily the how of investing,
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the websites you can use to invest.
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It鈥檚 something I wanted to highlight in
this video because that HOW is more important
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than most investors know.
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Paying a $10 per trade commission will set
you back almost $120,000 over thirty years.
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That鈥檚 compared to a no-cost or low-cost
investing platform like we鈥檒l talk about.
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Fidelity found that the average investor makes
88 stock trades a year between buying and
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selling shares.
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Not only is that $880 lost to commissions
every year but all the money you鈥檇 make
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on it otherwise.
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Those fees are a killer but the lowest-cost
option might not always be the best choice
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either.
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I have accounts with five sites and have reviewed
dozens of platforms for the blogs.
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The idea is to find a low-cost option with
the features you need as an investor.
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So I鈥檓 going to reveal the five investing
sites I use for different types of investments
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and different needs, the five most recommended
by readers on the blog.
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I鈥檇 love to hear which sites you use and
why so be sure to scroll down and tell us
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in the comments below the video.
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The first site here, voted best for no-cost
investing, is one I鈥檓 using for our 2019
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stock market challenge here on YouTube, M1
Finance.
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M1 is completely free to use, no monthly fees
like a lot of the apps and no trading fees.
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When you open an account, you pick the stocks
and funds you want in your portfolio.
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The site then applies any money in your account
to those investments, in the percentages you
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choose.
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Another great part about M1 is that it鈥檚
automated.
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You can set up for a monthly withdrawal from
your bank and the platform will automatically
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invest that cash commission-free into your
stocks.
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It will also reinvest dividends in your account
once they hit a certain level.
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I鈥檓 using M1 Finance for the 2019 stock
market challenge here on YouTube.
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I鈥檝e created a portfolio of ten dividend
stocks and will be tracking it through the
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year against some of the biggest channels
on YouTube.
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The portfolio is already beating the stocks
in the S&P 500, I鈥檒l leave a link to it
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in the video description below if you want
to check out the stocks in my portfolio.
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You can add or remove stocks from your portfolio.
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If you want professional help, M1 also features
expert portfolios which it calls pies, that
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you can use for your investments.
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There are expert pies in about every theme
conceivable like dividend investing and tracking
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pros like Warren Buffett.
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I know the Robinhood is popular here on YouTube
for no-cost investing so I want to address
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why I picked M1 instead.
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While there鈥檚 no fees on Robinhood, there鈥檚
also no retirement account option available.
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Now you know I love retirement investing in
an IRA or Roth.
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This is some of the best investing you can
do, especially with dividend investing because
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you don鈥檛 pay taxes on that cash flow each
year.
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So if you鈥檙e investing on Robinhood, just
know that you鈥檙e going to need another site
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for your retirement accounts and you get the
same no-cost option on M1 Finance.
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Our next investing site, voted best overall
financial website, is Ally Invest.
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I鈥檝e had an account since it was the standalone
TradeKing brand but was really happy about
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the move to merge with Ally and create an
all-in-one financial site.
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Between the investing platform and Ally Bank,
you could do everything you need through the
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one website.
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Ally Invest charges just $4.95 per trade and
$3.95 for frequent traders or accounts over
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a hundred grand.
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That makes it a strong runner-up for best
low-cost investing and it has commission-free
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ETFs in every theme and strategy.
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The savings rate at Ally Bank is 2% which
is unheard of and the bank even pays up to
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0.6% on checking accounts.
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The bank offers home and auto loans, both
original and refinancing with mortgage rates
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from 3.75% on fixed and adjustable terms.
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The Ally credit card offers 2% cash back and
a 10% bonus on your rewards when they鈥檙e
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deposited into an Ally Bank account.
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And that鈥檚 on top of a $100 sign-up bonus.
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I don鈥檛 get quite the stock research on
Ally Invest compared to ETrade but they do
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offer analyst reports from CFRA which is the
old Standard & Poors as well as from Seeking
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Alpha.
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Overall a great all-in-one solution.
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Our third site, my favorite p2p site and voted
best for alternative investments, is Lending
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Club.
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A lot of people are going to disagree with
me here but I truly believe everyone needs
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some exposure to alternative assets in their
portfolio, whether that鈥檚 managed futures
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or private equity or peer-to-peer lending.
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These types of investments are going to give
you the returns of stocks but help diversify
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away some of those roller-coaster prices you
see in the market.
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For example, I earned seven and a half percent
last year on my Lending Club account while
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stocks did little better than break even.
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And Lending Club really makes it easy to invest
and get that diversification.
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I鈥檝e got a video on the channel that details
the loan criteria I use to get above-average
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returns and low defaults that I鈥檒l link
to in the video description below.
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The minimum to invest on Lending Club is $1,000
but this isn鈥檛 really an issue.
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You invest as little as $25 in the loans that
meet your criteria so a grand is only going
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to get you 40 loans in your portfolio.
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What I usually recommend is investing at least
$2,500 so you can invest in 100 loans and
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no single loan is more than one percent of
your portfolio.
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Another great feature on Lending Club is that
it makes the process completely automated.
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By setting up the auto-invest function, any
cash that comes into the account is instantly
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invested in new loans.
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Since you鈥檙e getting payments back on invested
loans every month, that鈥檚 a lot of cash
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that needs reinvested so it鈥檚 nice to not
have to manage it myself.
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Our fourth investing site, the one I鈥檝e
had longer than any other and voted best for
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research, is ETrade.
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I had a Brown and company account while I
was in the Marine Corps and kept it when ETrade
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acquired them in 2005 so that鈥檚 about 18
years with this account.
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The site used to be one of the lowest-cost
on fees though it鈥檚 kind of fallen back
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on that against those no-cost options.
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Investing on ETrade still isn鈥檛 expensive
at $6.95 a trade or about five dollars for
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active traders.
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Options and futures trading is about the same
as other sites with $0.75 per option contract
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and $1.50 for futures.
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The strength for ETrade is in its research
and data available.
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The site has the best selection of third-party
research and it鈥檚 own analytics I鈥檝e seen.
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There are a lot of research providers aggregated
on ETrade.
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Trefis provides a sum-of-parts analysis for
each stock, a look at each product segment
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or division at a company and how much it鈥檚
worth to the stock price.
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ETrade also brings in analysis from TipRanks,
which follows Wall Street analyst recommendations,
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to show average targets and a ranking of each
analyst.
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You鈥檒l get access to professional reports
by Credit Suisse and Morningstar.
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One of the best pieces of research, something
you won鈥檛 find anywhere else, is the earnings
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and revenue data which shows what Wall Street
is expecting as well as the company鈥檚 history
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of beating or missing expectations.
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Fifth on our list, voted best real estate
crowdfunding site, is peerstreet.
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PeerStreet is another from that idea of alternative
investments, giving you exposure to real estate
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but without the down payment and stress of
buying individual properties.
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The site has a team of finance and real estate
experts that analyze the underwriting on loans
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backed by commercial property.
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The platform charges a management fee from
0.25% to 1% on payments collected so you only
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pay a fee on the money you get back.
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Investors can then buy a chunk of each loan
for the principal and interest payments, much
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like with Lending Club.
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What I like about PeerStreet is that access
to real estate and a completely managed process.
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The site manages the loans and passes payments
through to investors.
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Loans are normally shorter-duration with most
from six- to 24-months and a loan to value
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below 75% with properties diversified across
property type and geography.
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That鈥檚 important because most real estate
investors don鈥檛 get that diversification
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if you鈥檙e just buying single-family rentals
or individual properties.
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Your portfolio is at risk completely on just
one property type and location.
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Another feature I like on PeerStreet is the
automated investing function.
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Just like on Lending Club, you can set up
your criteria and the platform will automatically
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reinvest any money in your account making
it as passive as possible.
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We鈥檙e here Mondays, Wednesdays and Fridays
with the best videos on beating debt, making
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more money and making your money work for
you.
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If you鈥檝e got a question about money, just
subscribe to the channel and ask it in the
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comments and we鈥檒l answer it in a video.
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