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Best Investing Websites in 2021

Author: Jim Mwangi

Given the recent pandemic and such happening as the GameStop saga, many people have begun considering putting some of their money into online financial trading-- the best investing websites make this a possibility.

Contingent upon how you plan and execute your trades, online investments can yield handsome returns or be a losing gamble. But like with most other investments, due diligence and proper strategizing will go a long way in securing your gains.

Highlighted in this post are some of the features of- an ideal selection criterion for the best online investing websites out there.

What Is an Investing Website?

Warren Buffet once said that investing isn't rocket science; neither isn't a game of brains where the person with a higher IQ does better than the one with a lower IQ. Online trading makes the game of investing even easier and potentially more profitable.

Online trading websites let you trade stocks, Exchange-Traded Funds (ETFs), bonds, and more seamlessly without charging you a fortune for their services. 

When trading through an investing website, you can buy and sell financial products with ease and instant execution. You can additionally close or cancel open positions without any interference from traditional brokers. In short, online trading gives you complete control over your trades. 

To make money through a trading website, you must know how the financial market moves, what factors fuel the movement and how you can accurately predict future movements.

3 Ways You Can Benefit from an Investing Website

In recent months, most financial markets have been surging on positive covid-19 vaccine news and most economies opening up. Hence, online trading has taken off with evidence of numerous small investors dabbling in the markets as a side hustle.

The sensible option of investing in online financial trading is inspired by the many benefits you stand to reap, including:

1. Convenience of investing

There will be no hassle looking for time to physically visit a financial institution for you to trade. Online trading sites let you take up positions in different markets from wherever you might be with a single click. All that’s needed is good internet and a device that allows you to browse through the website.

2. Real-time trading

Online trading websites give their clients insights into what is happening in the financial markets in real-time. 

Logging into the site, on mobile or PC, lets the user monitor trades and assets at all times and receive the most up-to-the-minute update of how things are going. 

Most websites also go an extra mile in making available the most recent financial reports, which guide investors in making the best trading decisions.

3. Speedy execution

You no longer have to wait for hours for your trades to be confirmed. You additionally can withdraw your earnings in an instant. 

Almost everything on the website, including most transactions, happens instantaneously.

Our Picks for The Best Investing Website

Covid-19 brought about so much economic uncertainty that people begun to look for alternative means of income supplementation. Consequently, there’s been an upsurge in online financial trading activity, and with that, many online trading platforms have mushroomed over the past year. 

A good number of these trading platforms stand out as respectable and trusted providers whose operations comply with the various policies and guidelines set aside by their regulating authorities.

Here are our picks for the best online trading services providers.

How Do Investing Websites Work?

Several reputable firms offer online trading services. Through their websites, you can open an account, deposit some money and then decide which financial securities you want to buy and sell.

Opening up an account is easy. Most investing websites ask for personal identification documents and will most likely attempt to confirm your identity in one way or another.

You will then deposit the amount of money you wish to invest in the markets.  

Once you are ready to begin trading, there are various assets to choose from. Typical assets include stocks, ETFs, bonds, cryptos, commodities, and currencies. 

Nonetheless, you will receive no advice on which assets to trade or how and when to place your trades. You also will have no recourse to compensation should you lose money when trading.

3 Steps to Using an Investing Website

1

Open a free account

Making an account is a free and easy sign-up procedure that mainly involves identity and data verification designed to protect investors from fraud.

2

Make a deposit

Some online platforms have a specified minimum amount of money that you ought to deposit into your account before you can start to trade. Making the deposit will clear you for live trading.

3

Start trading

You can now begin making money buying and selling different assets in the financial markets. Remember to use a demo account to brush up on your trading strategies.

What Are the Advantages of Using an Investing Website?

One of the most notable things that investing websites have done is to break brokerage bias. In doing so, they have placed investments in the hands of the investors/traders who own them. 

There are many other different ways in which online trading benefits investors, including:

Affordability - the fees payable when using an online trading platform are significantly lower than the commissions charged by a traditional broker.

Faster transactions-- unlike a brick-and-mortar brokerage where you have to set an appointment or make a phone call to initiate or close trades, online trading transactions are executed instantly.

No broker bias-- traditional brokers would sometimes advise their clients based on what they think would benefit the broker most. Online websites let you make decisions that you think are best for you.

Access to cutting-edge technologies and tools-- investing websites provide their clients access to an array of valuable, high-end tools to help them analyze the markets and get the most out of their trading experiences.

Complete control over your portfolio-- you decide your trading strategies and how best to execute them. 

Round-the-clock trading-- online trading platforms allow you to buy and sell assets in diverse markets worldwide-- 24 hours a day, Monday to Friday.

1
Min. Deposit
$1
Exclusive promotion
Our score
10
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Start trading
Pros:
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Payment methods
Full regulations list:
2
Min. Deposit
$250
Exclusive promotion
Our score
9.3
CFTC Regulated exchange based in the US
Trade around the clock, how you want, when you want
100% defined risk trades on Forex, Stock Index Futures and Commodities underlying markets
Start trading
Pros:
CFTC Regulated exchange based in the US
Trade around the clock, how you want, when you want
100% defined risk trades on Forex, Stock Index Futures and Commodities underlying markets
Payment methods
ACH, Debit Card, Wire Transfer
Full regulations list:
CFTC
Trading on Nadex involves financial risk and may not be appropriate for all investors.
3
Min. Deposit
$50
Exclusive promotion
Our score
8.7
Access over 220 of the most popular company shares
Trade on spreads from 1 pt on UK shares
Go long or short on global top companies
Start trading
Pros:
Access over 220 of the most popular company shares
Trade on spreads from 1 pt on UK shares
Go long or short on global top companies
Payment methods
Debit Card, Bank Wire, ACH, Credit Card, PayPal
Full regulations list:
NFA, CFTC, FCA, FSA, IIROC, CIMA, FFA Japan, MAS, SFC of Hong Kong
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
4
Min. Deposit
$10
Exclusive promotion
Our score
8.5
0% Commission Account
Low Spreads
Eco-Account Option
Start trading
Pros:
0% Commission Account
Low Spreads
Eco-Account Option
Payment methods
Bitcoin, Credit Card, Debit Card
Full regulations list:
Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice.
5
Min. Deposit
$500
Exclusive promotion
Our score
7.9
Trade out-of-hours on over 70+ US stocks
Get exposure to a wide range of popular UK, US and international stocks
Enjoy flexible access to more than 17,000 global markets, with reliable execution
Start trading
Pros:
Trade out-of-hours on over 70+ US stocks
Get exposure to a wide range of popular UK, US and international stocks
Enjoy flexible access to more than 17,000 global markets, with reliable execution
Payment methods
Credit Card, Debit Card, Bank Transfer, PayPal
Full regulations list:
FCA, ASIC, FINMA, is a licensed bank (IG Bank in Switzerland)
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

What Are the Disadvantages of Using an Investing Website?

Being able to buy and sell your assets with a single click without even having to consult a broker has many advantages. But it comes with several demerits.

Some downsides of investing online include:

Faster transactions might lead to faster spending-- all you need is to click a mouse to add money into your account. With another mouse click, you'll have executed a trade. It's thus easy for novice traders to get carried away, causing them to spend more than they originally planned to on investing

An unreliable internet connection can cost you-- trading online means that you ought to have good, strong internet connectivity. An interruption in the connectivity can lead to untold losses

You are in charge of risk management-- being in total control of your portfolio means that you will be responsible for managing risks so that you don't lose money

A simple error can cost you-- failing to close a trade in time can lead to great losses. Similarly, other seemingly trivial mistakes can eat into your profits

Expert Tip on Selecting an Investing Website

Online trading has many other risks besides market volatility. A trader must be wary of cybercrimes, including identity theft, scams, phishing, hacking, and more. Given that you will be putting money you worked so hard to get into your trading account, you should never let yourself fall prey to cybercriminals who wish to steal from you. Therefore, make deliberate steps to secure your trading by: Properly vetting the online trading website to ascertain its security and legitimacy of services offered Looking out for signs of scam and fraud in every deal you make Using a secure network when trading Ensuring that your passwords and usernames are stored safely Executing other necessary protocols to prevent cybersecurity attacks

How to Choose the Best Investing Website

Much ink has been spilled on what makes an online trading platform great. Indeed, it is quite difficult to find a trading website that ticks all the boxes. 

Nevertheless, here are some of the must-haves for a good, reliable, and trustworthy online broker.

Is the Investing Website Regulated?

Sometimes, novice investors can be lured by unscrupulous brokers who are out to make money with little care for the beginners who might not fully understand the risks involved.

 In one particular case, a popular trading platform was accused of unfair business practices and infliction of emotional distress which lead to a 22-year old college student committing suicide.

Regulators like the UK's FCA ensure that investing websites are a safe place where everyone learns and invests responsibly. So, be sure to work with providers who are registered by and regulated by reputable agencies.

What Fees and Charges Apply? 

Reducing the cost of investing will be a massive boost to the profitability of your online trading/investing endeavors. 

Different brokers charge differently based on your trading portfolio. It is, however, vital that you carefully analyze your preferred broker to find out if there are any hidden charges that you might pay.

What Devices Can You Use?

Since an investing website operates online, it must be able to offer a real-time representation of the market through most if not all of the devices that people generally use. 

Being available on multiple devices proves their commitment to business and their clients, which is a quality that you seek in a trading website.

What Are the Available Assets to Trade on Investing Websites?

There are diverse markets that you can get into. Therefore, your brokerage websites should give you access to markets that suit your preferences regardless of whether you wish to trade, forex, stocks, CDF, commodities, ETFs, Indices, cryptos, among many other instruments.

Is There A Demo Account?

Online investing is a game where only those with robust trading strategies achieve big wins. 

One way to practice and perfect your strategies in a risk-free manner is by trading in a demo account-- which is something that any online brokerage worth their salt should endeavor to provide.

What Is the Account Minimum?

Most online trading platforms have outlined a certain minimum amount of cash that customers require to open and operate a trading/investing account. 

You should go for a broker who allows you to start a brokerage account within your budget. Also, you might consider looking at some discount brokers who have zero account minimums.

What Educational Resources Are Available?

It is incredibly risky to start trading without a firm grasp of how the different markets behave and what factors influence that behavior. 

Therefore, your broker should provide enough educational resources in the form of tutorials, videos, or in-person training sessions to help their clients grow.

Is There Help and Support Available? 

In addition to providing access to voice-to-speak customer support via phone, the best trading websites offer timeous responses via email and chat. 

Online trading is highly time-sensitive. Hence your trading platform ought to provide quick, proactive support, which is accessible 24/7 through easily understood, multilingual communication lines

Can I Use This from Anywhere?

A good trading website provides a flexible, convenient, and easy-to-access platform, irrespective of a trader's geographic location. 

Note, however, access to the website is contingent upon your internet connection's strength and reliability.

Frequently Asked Questions

  1. Traders should only work with trading platforms that are registered, recognized, and regulated by reputable, well-established authorities such as the UK's Financial Conduct Authority (FCA).

  2. It's important for novice investors to partner with a broker who provides them with the right support and tools to help them grow to be successful traders/investors.

  3. Different investors prefer different trading strategies. Hence, premium trading sites have an array of tools and instruments that clients can use to plan and execute their different trading strategies.

  4. Signing up is easy and quick. All you do is provide a few details and verify your identity and the info you provide.

  5. The fees that are openly listed on most trading websites are marginal- most will add up to less than 1% of the traded amount. However, brokerage firms may pile on additional charges, if you aren't keen enough, might break your trading experience. This is their way of making money, and you ought to watch out for any hidden charges.