Online investing can prove lucrative, but only if you know what you’re doing. Choose the best online investment sites and robo-advisors, and you could generate a significant amount of income from the comfort of your own home. Feeling a little confused? Here are the answers to some of the most common online investing questions.
Online investing is a trading method that involves buying and selling securities on the internet. All you need is a computer and an internet connection — you don’t need to place orders over the phone.
Automated investment services manage all your online investments for you. This can be a good idea if you want to watch your investments grow over time without any of the effort. Also known as robo-advisors, there are loads of these services online. Do your research and find the best robo-advisors for you based on your personal circumstances. Websites like Wealthfront, Betterment, and Swell let you automate your online investments at a low cost. Read our review of Wealthfront vs. Betterment to get an idea of which service will fit you better.
This all depends. Some companies require an initial minimum investment, which can range from a few hundred dollars to several thousand dollars. As a first-time investor, you might not have this amount of money to invest. This is why you should find an investment service that caters to your budget.
Reputable investment services will hold your cash in a brokerage account, which provides you with the peace of mind you need. You can access your money at any time and add funds to your account safely.
Yes, most online investing tools let you withdraw your funds whenever you like. You can usually do this by logging into your personal account on the investment website you use or speaking to a customer rep over the phone. The process should be simple.
Again, it all depends. If you make wise investments over time, you could make a significant return. The best online investment platforms have financial planning tools which will help you achieve better financial outcomes.
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