7 best investment platforms for Oct. 2024: Low-cost options to put your money to work
Your investment platform is your door to the U.S. and global markets. It defines your experience, accessibility, fees and more, making your platform choice a key part of your journey, whether you’re a new or seasoned investor. After years of using various platforms, I’ve narrowed down the best options that suit different investment styles and needs. My top picks are:
Let’s dive in to explore each platform’s features, fees, available assets and drawbacks.
1. Best overall: Charles Schwab
2. Best for beginners: SoFi
3. Best for retirement savings: Fidelity
4. Best for automated investing: M1 Finance
5. Best for social trading: eToro
6. Best for real estate: CrowdStreet
7. Best for active traders: Robinhood
How to choose the right investment platform for you
It can be challenging to choose a single investment platform out of the many available in the market today. But you can simplify your decision by considering these questions:
Are you new to investing? As a new investor, it’d make more sense to choose a robo-advisor or a platform that offers a simple interface so you’re not overwhelmed with information.
What is your investment goal? If your goal is to build long-term wealth, you might prefer set-it-and-forget-it investments that robo-advisors, mutual funds and ETFs offer. If your goal is short-term investments to capitalize on daily price movements, you’d be better off with a platform that supports active investing and provides you the information and research you need.
What assets do you want to invest in? While most platforms offer access to stocks and ETFs, not all platforms allow you to invest in bonds, mutual funds and more. Make sure that your platform provides you with the assets you want to invest in.
What account type do you want to open? Many platforms on our list support taxable brokerage accounts and tax-advantaged individual retirement accounts (IRAs). Confirm that your platform offers the account type you need.
What assets can I invest in?
The investment platforms on our list offer a wide range of investment assets. Some, such as stocks, ETFs, bonds and mutual funds, are great for new and experienced investors alike.
Stocks. These represent portions of ownership in a company, enabling you to play a part in the firms that you believe in their potential success.
Exchange-traded funds (ETFs). These are large asset baskets, each containing many stocks, bonds and more. Each ETF trades on a stock exchange, offering a simple method to invest in all the assets it contains by buying its shares.
Bonds. These are assets that governments or companies issue to borrow money from investors. They typically provide regular interest payments called dividends.
Mutual funds. These are large baskets of stocks, bonds and other assets that trade once a day after the market closes. They offer diversification similar to ETFs.
Other assets, like options, IPOs, futures, crypto, forex and real estate, can be more complicated and volatile, making them a better fit for experienced investors.
Options. These are contracts that give you the right to trade an asset at an agreed-upon for a specific period. Options are more technical and riskier than stocks, ETFs and mutual funds.
Initial public offerings (IPOs). These represent the first patch of stocks that a company sells as it transitions from a private company to a publicly traded company.
Futures. These are a form of contract to buy or sell a specific asset, such as gold or oil, at a specific price on a future date. They can be more risky due to their future speculative nature.
Cryptocurrencies. These are digital currencies that were introduced in 2009 and include bitcoin and ethereum. They allow for payments and money transfers outside the traditional network of banks. Cryptocurrencies are risky since their market isn’t as regulated as stocks, ETFs and more established markets.
Foreign exchange (Forex). This is the global market for trading conventional currencies, such as the U.S. dollar and the British pound. This is a highly liquid market but it can be volatile as currency prices rapidly fluctuate on a daily basis.
Real estate. These are residential or commercial buildings that provide income through rent and potential increase in value over time. However, they’re typically highly illiquid and require significant amounts of money to invest in them.
FAQs: Using investment platforms
How much money do I need to start investing?
Many investment platforms, including Charles Schwab, SoFi and Fidelity, allow you to start investing with as little as $1, making it easy to join the market with a small amount. Many platforms also offer robo-advisors, a form of automated investing tools that take care of your portfolio setup and management for you.
Can I have more than one investment account?
Yes, you can open multiple investment accounts with more than one platform. For example, you can use one platform for your IRA, another for your active trades and a third for real estate investments. However, having multiple accounts complicates your financial picture, so develop a clear strategy for each account’s purpose.
How do I pay taxes on my investments?
Your investment platform will provide the necessary tax documents for reporting and paying your taxes. You’ll typically receive 1099 forms that detail your investments, profits and losses for the entire tax year. You can provide these forms to your tax preparer or use tax software to upload your tax forms and automatically pull the information needed. Some tax software can also connect to your investment accounts to import this information and reflect it on your tax return.
How we choose the best investment platforms
We evaluate the investment platforms on our list based on several criteria, including:
Fees. We favor platforms that offer $0 trading commissions for stocks and ETFs and low advisory fees for automated investing. This allows you to keep more of your money toward your investments and minimizes the associated costs.
Investment options. We consider the full range of investment options each platform offers. This gives you a wider range of assets to invest in based on your preferences and investment experience.
User experience. We choose investment platforms that offer streamlined investing and trading experiences that range from simple to informed. This helps you find the platform that best fits your knowledge level while enjoying the smooth functionality these platforms provide.
Account features. We review each investment platform based on the features it has, including research tools, portfolio management and educational materials. This helps you decide the platform that best fits your needs.
First-hand experience. We utilize my professional experience as a certified educator in personal finance (CEPF) and personal experience with various investment platforms. This provides you real experience based on professional credentials and real-world testing.
About the writer
Yahia Barakah is a personal finance writer at AOL with over a decade of experience in finance and investing. As a certified educator in personal finance (CEPF), he combines his economics expertise with a passion for financial literacy to simplify complex retirement, banking and credit topics. He loves empowering people to make informed financial decisions that improve their everyday and long-term wellness. Yahia's expertise has been featured on FinanceBuzz, FX Empire and EarnForex. Based in Florida, he balances his love for finance with freediving, hiking and underwater photography.
Article edited by Kelly Suzan Waggoner