Best Investment Accounts For Young Investors in 2020

Are you an enthusiastic young student or worker who wants to save for a brighter future? Congratulations! You're on the right track that can help you secure a good present and pleasant future. There are many ways you can save money and make money through that amount. Because making $100 on the $1000 you have saved is better than that money sitting idle. There are many investment plans for youngsters that are simple and inexpensive. You can multiply your money without much complication. So, we are going to let you know what investment options you have as a young investor.

Why should you invest?

Some of you might be interested in investing at a young age, but others might not be clear about the idea. If you do not know why investing early in life is a good option, let me tell you some of the perks of investing early in life.

Self-sufficiency

Yes, you read it right! You can earn enough through investments to pay your college fees and primary expenses. Your basic job might be paying you enough for your spending. But putting money into an investment can add to the money you get.

Buying a home

Investments can be an excellent option if you are looking forward to buying a house in your home. This might not bear fruit immediately. However, in some time, you might be able to buy a house of your own. It depends on your selection of the right investment for yourself.



Saving for retirement

Early investments can be a brilliant step for you to have proper retirement savings. Usually, people tend to start saving when they are nearing retirement, but that just adds to the chaos. If you want to save money comfortably and conveniently for your retirement, it is better to start investing in your future as soon as possible!

These are only some of the reasons for you to start investing today. There are numerous other reasons to invest and save money for your future.

Benefits of best brokerages for young investors

No minimum

Having a minimum amount to invest in a business is always a pain if you like a specific investment plan but do not have the required minimum investment. But, now there are many investment options for young people that do not require any least amount for investment. A good broker would not let make you drop $1000 as a startup.

Several investment options

Always find a brokerage that provides you sufficient information about all the different investment packages and helps you choose the best one among them. A good brokerage account must have details about the best investment options for young investors.

Low commissions

Gone are the times when you had to pay $10 to the broker per trade. Now you can easily find brokers that charge $7 or $5 or even less. So, select a brokerage account that does not cost an arm and a leg as there are many options.

Excellent customer service

In this era, almost all brokers have online chat support to cater to their customers and their problems. Now you don't have to wait for hours on call to talk to your broker. You can access the broker conveniently through the app.

Mobile apps

As everything is getting digitalized, brokerages also have mobile apps for your ease. Not that all mobile apps are the same, but almost all brokers have mobile apps to cater to your queries timely.

You can find the best investment apps here to find the best one that you like.

Best Investment Accounts For Young Investors

Now you know the benefits of early investments and having a good brokerage. Let's tell you some of the best investment accounts precisely that can help you invest better in your future.

Investment account

Best feature

Wealth front

Best for small investments

Fidelity

Best for mutual funds

Vanguard

Best for retirement plans

TD Ameritrade

Best for beginners

1. Wealthfront - Best for smaller investments

Established in 2011, Wealthfront has been a top investment choice for people who want to start with a small amount. Taking investments as low as $500 , Wealthfront specializes in automated investment planning and provides credit for brokerage account clients. $500 also might seem a lot for some people, but Wealthfront does not ask for a single penny to manage your first $1,000. Any other investment accounts do not offer this, so it's a win-win.



Working with Wealthfront is simple. You need to invest $500 as a minimum, which are held at the Royal Bank of Canada. Wealthfront allocates the money to different Exchange Traded Funds (ETFs) that cost less and cover several asset classes. Some of the leading investment features of Wealthfront include Referral program, external account management, tailored transfers, retirement savings, etc. It also provides a cash account with a 2.57% interest rate and includes insurance of up to $1 million by FDIC. However, Wealthfront does not offer any discounts to larger balance accounts.

Benefits of Wealthfront:

· Offers smaller investments

· Free account management for up to $1000

· Offers cash accounts with as less as $1

· Tax-loss harvesting for all accounts

· Lesser expenses related to annual taxes

· Has an app available on both iOS and Android

· Good reviews

2. Fidelity - Best for mutual funds

Fidelity is a fool service broker and quite famous for its investment plans. Since its establishment in 1946, its assets have increased to a worth of $2.45 trillion. Fidelity is considered among the most significant investment companies worldwide. It is because Fidelity provides comprehensive investment plans for all kinds of investors. Majorly, it has been a favorite among people for its mutual funds. But now it has diversified its areas of investment to let investors benefit the most from it. Fidelity can be the perfect choice for you if you want to trade individual stocks, yet have many mutual funds at one place. Additionally, it offers CDs and new issue market bonds.

The options for accounts at Fidelity include managed accounts, IRA, 401k plan, Robo advisors, and many others. Fidelity has come in line with the competition once again with its decreased fee and commissions. Even that Fidelity is reducing the expense ratio on several mutual funds.

Benefits of Fidelity investments

· Full-service broker

· Offers a portfolio of commission-free iShares exchange-traded funds.

· More than $10,000 mutual funds options

· The cash management fidelity account has checking and ATM access.

· No monthly fee charged.

· Lowest commission and fees

· You can trade as much free iShares ETFs as you want

· Apps for iOS and Android.

3. Vanguard - Best for retirement plans

Vanguard is especially popular among young investors for their retirement plans, as many youngsters tend to start saving for their retirement at a young age. It offers over 200 different commission-free mutual funds and ETFs. Vanguard is like a personal advisor that caters to a lot of needs of its users like professional financial planning, portfolio management, and coaching services. It is quite famous among users for its low cost investing.

However, the minimum amount for account in Vanguard is $50,000, and it charges 0.3% of the total assets. The charges decrease with the increase in invested assets. Vanguard customizes portfolios according to the client's needs and requirements. Though you can trade mutual funds like any other stock broker, you save on trade commission through your Vanguard account. It offers a variety of mutual funds options to choose from. You can select the one that matches your feasibility. It is a good option for beginners, only if you have enough funds to create an account with Vanguard. And you need a sound knowledge of different mutual funds to make the most out of your Vanguard investment account.



Benefits of Vanguard

· Huge investment options

· Financial advisor advantage

· Money is in safe hands with Vanguard's Target Date Retirement funds.

· Client's customized portfolio facility.

· Apps for iOS, iPad and Android.

4. TD Ameritrade - Best for beginners

TD Ameritrade is among the top favorites of young investors nowadays. If you are wondering why let me tell you an amazing benefit of TD Ameritrade, it requires no minimum amount of investment to open the account. It has a wide range of options ranging from Basic web platforms to advanced thinkorswim platform. TM Ameritrade has competitive prices, full-service brokerage, excellent customer service, and a mobile app. Forex trading is an additional feature that allows you to trade out of 75 currency pairs. Forex, ETFs, bonds, mutual funds, stocks, and IPOs are some tradable securities at TD Ameritrade.

TD Ameritrade omitted its trading commission from the previously charged $6.95 for Stock trades and ETF. Yet, $49.99 are charged for mutual funds and $44.99 for broker-assisted trading.

Benefits of TD Ameritrade

· No minimum investment for account

· No commission on Stock trades and ETF

· A large variety of investments to choose from

· Informative, educational tools

· Research facilities keep you updated.

· You get a bonus ranging from $100 to $600 on different deposits.

· The mobile trading facility on various apps including the Apple watch

· The Webplatform provides planning tools and updates the news for your assistance.

· Thinkorswim gives you tools to analyze stocks and market scans for better strategies.

· Integrated watch lists enable you to track and monitor your investments.

· The myTrade community feature allows you to take and share advice from other investors

· TD Ameritrade's tools can help to develop ideas and new strategies for investing.

You must now be well aware of different investment accounts if you are planning to save up for your future. Some provide the best mutual funds, and others give you the perfect retirement plans. It is up to you to find out the most convenient and worthy investment account for your needs and start investing now to make the most of it!

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