What is an online brokerage account and how can it work for me?
Monday, 23 December 2019
Picking a personal financial advisor or stockbroker to guide you in your investment choices may be the right move for many investors.
A professional's market expertise and experience can prove invaluable, especially if you're new to investing, don't have much interest in closely following the market, or if your assets and holdings are too complex to manage on your own.
However, if you're knowledgeable, disciplined and interested in curbing costs, you can choose to handle your own investments directly through an online brokerage account.
Investing online through services like BBVA Investments, a Division of BBVA Securities Inc., lets you buy and sell stocks, mutual funds and other financial instruments with a few clicks, based on your own research and at your own pace — even if you have a relatively small amount of cash to invest.
You can use an online brokerage for your personal investment account, your Individual Retirement Account (IRA), or both.
Online brokerage accounts offer a number of advantages, including a potentially significant discount compared to using a stockbroker — with low investing minimums and trading fees. If you enjoy taking a personal, hands-on approach to your finances, you may be a good candidate for an online brokerage.
You'll be able to make trades on your own schedule, investing in companies that you favor, without calling a broker. Perhaps you've dealt with a business personally and believe in its products or services, maybe their mission resonates with you, or you've studied it strictly from a market perspective and expect strong returns.
If you tend to be independent-minded in your financial decisions, an online brokerage account may make sense for you. It also gives you the opportunity to research markets and individual companies. One key to success will be maintaining discipline enough to avoid making impulsive moves based on panic in a downturn and understanding risks associated with investing.
There's no shortage of information, advice and tools from reliable financial sources, in print and online, to help you research companies and make sound investment decisions based on your personal circumstances, priorities and risk tolerance.
That research will be important if you rely solely on an online brokerage, without personalized, live professional advice, as you want to make informed choices. Investors may also use a self-directed online brokerage as part of a broader strategy that combines other financial vehicles and relies on proven professional advisors.
To learn more about the role that an online brokerage account can play in your investment strategy, please contact BBVA Investments.
The content provided is for informational purposes only. Neither BBVA USA, nor any of its affiliates, is providing legal, tax, or investment advice. You should consult your legal, tax, or financial advisor about your personal situation. Opinions expressed are those of the author(s) and do not necessarily represent the opinions of BBVA USA or any of its affiliates.
Links to third party sites are provided for your convenience and do not constitute an endorsement. BBVA USA does not provide, is not responsible for, and does not guarantee the products, services or overall content available at third party sites. These sites may not have the same privacy, security or accessibility standards.
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