7 Best Online Investing Platform Tools: 2022

Looking for the best online investing platforms? Read this blog to find the best online investing software for you. Technology has brought in a new age in the investment world, and learning how to invest online has never been easier. In this post, you will find the best online investing software tools in 2022. But, before that, you need to learn how to choose the right online investing software tool for you. Read on to learn more. 

How to Choose the Best Online Investing Software Tool

Some investing platforms are only open when dealing with a single broker or middleman, whereas others are not tied to any specific intermediary or broker. Take your time to investigate the broker or intermediary the software belongs to and determine their reliability before deciding to use it to manage your account and conduct trades. Verify the reputation, client satisfaction, and availability of a team of brokers for the middleman or broker. In this manner, you will have a resource to turn to if your trading account experiences any technical difficulties.

Any commissions and fees linked with your account should be a key factor when selecting an investment platform. Since these fees and commissions reduce your returns, it is almost always preferable to choose an investment platform with minimal fees and associated account transaction charges. There can be trade-offs to take into account, though.

When news or events is affecting the world economy, a smart investment tool should remain steady. Avoid being seduced by a platform’s aesthetic appeal, particularly if you are an aggressive trader who enjoys placing big, frequent trades. Look for software that is dependable and rarely crashes. However, you might be more adaptable if you are a quiet and cautious trader and do not constantly monitor the market. Web-based or desktop applications may be more appealing to you based on your hardware and software characteristics, but the stability of an investment platform should be your primary priority rather than aesthetics.

The most user-friendly investment tool is the best. It should be simple and quick to initiate or exit a transaction, and it should make managing all different kinds of trade orders simple. Your investing platform should be simple to navigate generally, and any supplemental features like news feeds, charts, and paid research tools should be simple to use. Additionally, it needs to be optimized so that opening multiple graphs simultaneously is quick.

Your trading data being compromised is certainly the last thing you would want to happen. In order to obtain a sense of how safe your data is and how it would be protected throughout internet transmission, you need to look at the sort of data encryption that your platform employs. A reliable and secure platform will protect your data with server-side and application-level security features, 2 distinct synced servers, and other measures.

7 Best Online Investing Platform Tools: 2022

Check out the list of the best online investing tools below:

1. Betterment: Best Retirement and Online Investing Platform

Betterment

Betterment is one of the most well-known and widely used robo-advisors in the industry. The app offers professionally managed portfolios employing a variety of ETFs that are adjusted to your risk appetite and the timing of your financial needs. Betterment may design socially conscious portfolios with a focus on social effects or climate change.

In taxable accounts and also individual retirement savings, you can use the Betterment to purchase additional shares of ETF index funds like the S&P 500.

Instead of allowing you to buy individual equities, the service will automatically deposit funds into tiny portions of ETFs that track an index that is matched with your portfolio’s goals.

This platform’s characteristics make it one of the finest investment applications for beginners, especially for those wishing to diversify their portfolios immediately as they make account contributions.

This effectively positions the business as a stock market for beginners solution.

The service costs a flat fee of 0.25 percent of assets under management, but its tax-loss extraction feature allows taxable trading accounts to justify this cost.

One of the features that support the 0.25 percent AUM charge for investments in a taxable account is their tax-loss extraction feature, which lowers your taxable income.

It works by locking in short-term capital losses through the sale of losses, reducing your taxable income, and investing the proceeds in a comparable investment.

Your taxable income or other capital gains are reduced as a result, and the yearly 0.25 percent AUM charge is promptly recovered.

The organization also offers investment guidance by customizing your portfolios to achieve these aims based on your desired financial goals.

Betterment paved the way for beginner-friendly investing applications and robo-advisor services by developing from a modest company to one with a sizable order book.

They have grown to be a well-liked option for those who want to pay a modest cost and invest toward specified goals without having any prior investing experience.

2. Personal Capital: Best Online Investment Platform for Beginners

personalcapital

Personal Capital is one of the best online investing platforms in the industry. Although Personal Capital contains some personal finance tools, its major emphasis is on retirement planning and investments. The service provides numerous perspectives on your investments, delivers wise tailored counsel, and projects retirement dates. Additionally, it provides capabilities for tracking cryptocurrencies and managing transactions. You may examine how your actions now affect your capacity to retire whenever you want by using Personal Capital.

Several perimeter and internal systems are in place at Personal Capital’s data centers to guard against intrusion and keep an eye out for odd activities. The use of 256-bit AES, a military-grade encryption technique, is made. Additionally, each day you receive an email including a list of all your activities from the previous day so you may check for any suspicious activity.

3. Blooom: Best Online Investing Platform Tool

blooom

Blooom works well for passive investors who want someone else to administer their retirement assets. For a variety of retirement plans, including IRAs, 403(b)s, 457(b)s, 401(k)s, 401(a)s, and thrift savings plans, this investment platform delivers tailored robo-advice.

You can also email or live chat with professionals on this site if you prefer the idea of having access to real financial gurus. Additionally, the company offers free investment research for your 401(k) and other retirement funds if you are unsure whether Blooom is the right choice for you.

Many robo-advisors get an account minimum, meaning their clients must meet this requirement to get services. This frequently means that novice investors are prohibited from using that specific trading platform. At Blooom, this is not applicable.

Beginner users have a better chance of starting on the right foot because there is no account minimum and they can have Blooom handle their accounts from the beginning.

4. Saverlife: Best Online Investing Platform Tool

Saverlife

SaverLife provides a variety of incentives to encourage saving, planning, and financial education. The main technique is a system that enables users to accumulate points that may be converted into cash rewards.

You can participate in SaverLife’s one-time savings challenges for a chance to earn bigger cash prizes. For instance, they frequently support Race to 100 competitions. That provides everyone a shot to earn another $100 if they boost the amount of their linked account by $100 before the deadline.

Last but not least, SaverLife occasionally makes lump-sum cash payouts to selected members who are struggling. For instance, at the peak of the COVID-19 outbreak, they gave away a constrained quantity of $500 and $1,000 payouts.

5. Retirable: Best Retirement Investing Platform

retirable

Retirable is an online financial solution made to aid with retirement planning and management. Retirable Paycheck, an investment management service that maintains your retirement assets and issues regular payments from your account, is the platform’s main product.

The firm has a variety of IRAs available and charges a 0.5 percent management fee. Additionally, retired investors have access to continuous one-on-one assistance from a licensed financial advisor (CFP).

All of Retirable’s CFPs have a fiduciary duty, which requires them to act in their client’s best interests. Your committed CFP can assist you with setting retirement objectives, managing costs, reducing debt, and improving cash flow.

Although Retirable accounts are open to US citizens of any age, the company claims that people who are less than ten years removed from the receipt of Social Security payments are the ideal candidates for its services.

Retirable requests information about your spending patterns, savings, debts, and retirement objectives when you join up for its service, including:

  • Projected retirement age
  • Marital status
  • Annual income
  • Expected pension 
  • 401(k), IRA 
  • Available assets
  • Outstanding debts

With the possibility to amend your information when your circumstances change, Retirable analyses this data to produce an overview of your current financial condition.

From this point on, you’ll get a call-in invitation from a Retirable advisor. In order to develop a thorough income plan for your retirement, your adviser will enquire further about your financial accounts and aspirations during this call.

Your adviser will next assist you in transferring any existing retirement savings into your new account when you open a Retirable IRA. Your money will then be invested in accordance with your budget and financial objectives.

Retirable will send you a monthly check after you’ve retired and are ready to begin receiving retirement income in accordance with your income plan. Additionally, it’s up to you how much you want to take out of each paycheck. Retirable will offer you a “safe to spend” amount when you choose to withdraw your amount so you may decide how to maximize your retirement savings.

6. HiCapitalize: Best Online Investing Platform Tool

HiCapitalize

Capitalize is a fintech firm that assists consumers with 401(k) or 403(b) rollovers. It has its headquarters in New York City and was launched in May 2019. Through Series A, Capitalize has raised $14.1 million.

To roll over their 401(k)s, people can use Capitalize. It does this for free. However, the business will get paid a commission if someone chooses one of the IRA suppliers on the Capitalize network.

Capitalize will inspect your prior employer’s 401(k) or 403(b) and guide you through the transfer process to a different financial institution. At this time, Capitalize solely allows 401(k) to IRA conversions.

An IRA typically provides more investment alternatives and is less expensive to manage than a 401(k). However, keep in mind that Capitalize won’t be able to assist you in rolling over your previous 401(k) into your current 401(k) if you already have one with your new employer.

FAQs: Things to Know Before Investing on Online Platforms

What is a brokerage fee?
The stock broker who manages your account levies a brokerage fee. Brokerage fees might include yearly dues for accessing trading platforms or maintaining a brokerage account, subscriptions for high-end research, or even inactive charges for infrequent trading. The correct broker can help you avoid or minimize brokerage account fees; most of the brokers on our list have low or no account fees. 

What is the rate of a stock broker?
Starting doesn’t cost a lot of money. It can be inexpensive to start building your portfolio with the help of many online stock brokers who enable you to open an account for nothing and don’t charge a commission when you trade or exchange-traded funds.

Is hiring a stock broker worthwhile?
The answer is yes, but you most likely don’t require a full-service stockbroker. You can start investing by creating and establishing an investment account with an online broker.  

Can you invest for free?
Stocks are typically considered to be riskier investments than exchange-traded funds (ETFs) or lengthy investments, such as retirement funds. Fortunately, many stock applications also let you make free investments in retirement plans and ETFs.

For instance, commission-free trading of ETFs, stocks, and options is available through the Webull stock trading application. The service enables you to start a Roth, Traditional, or Rollover IRA.

There are no opening, closing, or annual account fees with this service. After your initial three months, you can continue your subscription to Nasdaq TotalView for a little $1.99 per month fee.

Make sure the stock trading app you use has no account minimum because you might not have much money at first.
It’s not always true that your initial investment will determine how much money you have in the future. Everybody starts someplace. Therefore, with a minimum account balance, you might as well start without any constraints.
The investment apps mentioned here do not require a minimum account balance to trade stocks using their available brokerage account alternatives. Some states have a minimum deposit requirement to open an IRA.

The Bottom Line

The top investing platforms provide user-friendly tools for investors and reasonable fees for customers. We took into account the following aspects to compile the above-mentioned list of the best online investing platforms that consumers should think about this year:

Price: You’re in luck when it comes to costs because they have been rapidly decreasing as the majority of online brokers have lowered their trading charges on stocks and ETFs to $0. 

Broker resources: You should also think about things like the broker’s research resources and assistance, the grade of the digital trading software, and the ease with which transactions may be executed, among other things.

Strategy: Your specific investment strategy, along with how frequently you want to invest and whether you are a newbie or more seasoned, will ultimately determine the account you truly desire. We took into account the varied types of consumers to which each investing platform catered its offerings.