5 Best Investing Websites | Investing for Beginners
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5 Best Investing Websites | Investing for Beginners


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

30 Comments

  • Derrick M

    I enjoy your videos and appreciate the quality content. Previous videos have referenced your success in the real estate market. In the future, do you plan on doing any videos in regards to buying property with the VA Home Loan (Specifically Multiplexes)?

  • Rick Jenkins

    M1 is only a buy and hold style of investing only. Robinhood lets me invest how i want, and i can trade stocks whenever i want. I like Robinhood better.

  • Bryan Guerra

    Made the mistake of choosing Robinhood myself before realizing they had no Roth IRA accounts. Wish I’d seen this vid a few months back when I was weighing my options lol. I guess it doesn’t matter if you’re planning to invest more than 6K this year though 👍

  • Mr Ragnarokk

    I think most of m1 is great but i don't like the dividends reporting. Doesn't show a clear history of pending. I hope they can make it as transparent as robbinhood's

  • Greg Kamei

    Thanks for providing different options. What are the pros & cons of investing in RE through buying REIT stocks or a platform like Peer Street?

  • XxCi5c0xXPDXx503

    I use fidelity, it’s easy to use and you can basically invest in anything. It does have a 4.95 Buying and selling fee tho. Great videos, and keep up the hard work 👍😀👍

  • TWL6469

    hi many thanks for sharing and great video indeed.
    I would like to ask which your above recommend investment platforms available outside of USA, I have equired M1 Finance but it does not provide it services in Singapore, hence I have signed up a TD-AmeriTrade account and it has a great charting tools.
    I look forward to hear from you soon.

    Best Regards.

  • HansGruber

    I don't like the auto allocation of M1, I want more control. Robinhood does not have DRIP. Fidelity and Merrill Edge have free trades for accounts over 100K, so essentially free, awesome. Merrill has better research, but Fidelity has free ETF's. The Etrade platform interface and research looks excellent, but you pay for it with 6.95 per trade. I think I will open smaller account at Etrade and transfer a few buy and hold positions there (and get the sweet aggregated research), then have balance of portfolio at Fidelity or Merrill and do my free trading there. Best of both worlds and no fees. Chaaching!

  • Jennifer G

    Have you looked at Firstrade? I've been wanting to learn about their platform and whether I want to use them, but no one is really covering them.

  • C Coldwell

    M1 finance sounds great for no fees, but I don't think I would want a retirement account there because of insurance. I like Fidelity because it sweeps the cash in your account to FDIC insured banks behind the scenes. It will disperse between multiple banks so you have FDIC insurance up to $1,250,000. I believe M1 Finance is SIPC insured.

  • Raphael Paré

    Hello Joseph. Could you do something on socially responsible investing, I think it is important in this day and age. For me, not all money is created equal.

  • Aleksander K. Ivanov

    The more I follow this and other "Talk Money" -like channels, the more I get frustrated about how few investment options there are here in the EU…

  • DreadMike73

    I got Robinhood, I only use to hold dividend, and occasional penny stock trading. I got Acorns and Stash as my buy and hold app. I signed up to M1 Finance but I'm trying to get my Robinhood and Stash up to $200+ and I'm going to put money in M1 Finance. You answer my question about Peer Street, its real estate loans, it's the real estate version of Lending Club.

  • The Munoz Squad

    Thanks for your videos I really appreciate the motivation I just want to let you know I did open three accounts today Lending Club M1 finance and I have to open fundrise since I wasn't able to open the one with peer Street I'd be Tuesday ASAP 500 General Mills General Electric Amazon and Haines why you think of my picks thank you

  • The Survivor78

    I am new to the investing scene. I have signed my contract with the USMC and was wondering what was the best way to get started before I leave for boot-camp. Semper Fi

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