What online brokerage is best for me?

Question

Im 16 and I am relatively new to investing. I don't have a lot of money to invest. I only have around $1000-2000. My parents let me use their account on fidelity and let me create my own portfolio, but I don't have control of the stocks and it is annoying to have to make my parents make all of my moves. Is there an online brokerage that a 16 year old can use? (I don't know if that is even legal or not.) If so which is best for me? On an e-trade commercial they said they were giving $300 to anyone who creates a new account. Is that still true, because that is a significant amount of money to me?

Answer 1

All online brokerages require you to be at least 18 years old to open an account.  I would not recommend a full-service broker.  Yes, they offer financial advise, but they are extremely expensive and as a young investor you probably can't afford that.  Therefore, I believe that you should go with an online discount brokerage.

I currently use Firstrade http://www.firstrade.com/.  They are much cheaper than big name brokers like ETrade.  They are $6.95 per trade and they have no maintenance or inactivity fees.  Their website is very easy to use, perfect for beginners.  In addition, there are no minimum deposit requirements, so you can start investing with as little as you want, thereby preventing you from losing too much.  I would definitely recommend Firstrade.  Check them out.

As for the ETrade commercial.  I never heard of that promotion.  However, I would guess that the $300 bonus would require a minimum deposit.

Answer 2

Since you are minor, you will need your parent assistance in opening a brokerage account. Scottrade seems to fit your needs. 7 per trade isnt that bad

Answer 3

Online services are a fad in my opinion. Affordable yes. Personal service - NO. You are just a number and a username on an online trade service. My opinion is spend a little more for personal service where a financial advisor looks after your best interest at all time and gives you sound advice. With online services, you are on your own to make good decisions without much insight or help. Being a young investor, seek out wiser advice from an experienced planner service.