Best Investment Brokerage Platform for US Stocks 2023

When owning shares, it indicates that you have partial ownership of the company you have invested in. You can earn returns from investing in shares via dividend paid out by the company or selling of the shares when the share price is higher than it is bought at.

ETFs is a collective investment where you are investing in a basket of stocks (or bonds). An ETF aims to track a particular index. For example, the SPDR S&P 500 Trust ETF tracks the S&P 500 Index. The returns of an ETF are meant to match the index that it tracks. So for those who are unable to choose which stocks to invest in, you can consider investing in ETFs instead.

Mutual fund (also sometimes known as Unit trust) is an actively-managed investment tool. It is a collective investment similar to an ETF. However, it does not track an index unlike an ETF. A mutual fund is a professionally managed investment fund that pools money from many investors into a common portfolio.

There are many stock exchanges worldwide and it can be a form of diversification when you invest in stocks from different countries. If you have plans to but do not want to be limited to the US stocks, you may prefer to find a broker that has access to not only the US market but also securities markets of other countries.

Different brokerages have different platforms such as websites and mobile apps. It would be advisable to pick brokerages with platforms that you are more familiar or comfortable with. Do also take note of the interface and how user friendly are the platforms and it will affect your overall trading experience.

While selecting your preferred brokerage account, consider what you are planning to invest in. If you want to invest in other asset classes such as in currency (FOREX), CFDs, gold, bonds, you would then consider finding a broker that allows you to invest in these investments.

One of the most common concerns when choosing a brokerage firm is the fees. There are various types of fees but there are two that most would take note of. Firstly, it is the commission fee, which is the fee charged for every transaction. This is especially important for those who trade frequently. Another would be the minimum fee which is essentially the minimum fee charged regardless of the amount invested. This is usually a concern for small time investors.

While for the most part when using online brokerage, it is more of an independent task. However, at times there may be situations that arise where you require assistance and clarification so customer service comes in handy. One thing to note as due to the time difference between Singapore and the US, it can be helpful if the brokerage has 24/7 customer service such as a hotline or live chat.