Recommended Brokerage Companies:
1. Ally Invest
3. Vanguard
Recommended Motifs (My pre-built index funds for you)
1. Dow Jones Industrial Average (No-Fee Index)
Full Show Notes
I’m going to begin by discussing what I think the priorities are when choosing a brokerage company. Then I’ll discuss some of the distractions that might seem like priorities. Finally, I’ll provide a list of brokerage companies that I recommend.
Key Priorities:
1. Stock or Mutual Fund/ETF availability (Also includes countries you want to invest in)
2. Low Costs (AS LOW AS POSSIBLE)
3. Much lower priority – Customer Service (Almost considered not including) This could include things such as a Mobile App.
Stuff that doesn’t matter:
1. Stock research (Do your own research)
2. Stock charting tools (Technical Analysis is based on a lie – Efficient Market Hypothesis) Your focus should be on fundamental analysis
3. Stock screeners (You want to start with what you know anyway – Circle of Competence) Most providers will have some sort of stock screening tool available. This isn’t really a differentiating feature.)
Three Types of Investors:
- These investors are on a range from passive to active.
- Purely passive investors should choose Vanguard (index funds)
- Mostly passive, but willing to learn even just a tiny amount of investing should use Motif Investing
- Everyone else I would recommend to choose Ally Invest. Fidelity is a great alternative as well.
*I am an affiliate of Ally Invest and if you open an account with them I will receive a small commission at no additional cost to you.
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