I love talking stock picks but how do you
get started investing?
How do you know which investing website is
best for your needs and which have the lowest
In this video, I’m revealing the five websites
for stock investing that I use to grow my
From no-cost sites to the best stock research
you’ll find, we’re talking investing sites
today on Let’s Talk Money.
Make your money work for you.
Creating the financial future you deserve.
Let’s talk money.
Joseph Hogue with the Let’s Talk Money channel
here on YouTube.
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We talk a lot about stocks on the channel
but not necessarily the how of investing,
the websites you can use to invest.
It’s something I wanted to highlight in
this video because that HOW is more important
than most investors know.
Paying a $10 per trade commission will set
you back almost $120,000 over thirty years.
That’s compared to a no-cost or low-cost
investing platform like we’ll talk about.
Fidelity found that the average investor makes
88 stock trades a year between buying and
Not only is that $880 lost to commissions
every year but all the money you’d make
on it otherwise.
Those fees are a killer but the lowest-cost
option might not always be the best choice
I have accounts with five sites and have reviewed
dozens of platforms for the blogs.
The idea is to find a low-cost option with
the features you need as an investor.
So I’m going to reveal the five investing
sites I use for different types of investments
and different needs, the five most recommended
by readers on the blog.
I’d love to hear which sites you use and
why so be sure to scroll down and tell us
in the comments below the video.
The first site here, voted best for no-cost
investing, is one I’m using for our 2019
stock market challenge here on YouTube, M1
M1 is completely free to use, no monthly fees
like a lot of the apps and no trading fees.
When you open an account, you pick the stocks
and funds you want in your portfolio.
The site then applies any money in your account
to those investments, in the percentages you
Another great part about M1 is that it’s
You can set up for a monthly withdrawal from
your bank and the platform will automatically
invest that cash commission-free into your
It will also reinvest dividends in your account
once they hit a certain level.
I’m using M1 Finance for the 2019 stock
market challenge here on YouTube.
I’ve created a portfolio of ten dividend
stocks and will be tracking it through the
year against some of the biggest channels
The portfolio is already beating the stocks
in the S&P 500, I’ll leave a link to it
in the video description below if you want
to check out the stocks in my portfolio.
You can add or remove stocks from your portfolio.
If you want professional help, M1 also features
expert portfolios which it calls pies, that
you can use for your investments.
There are expert pies in about every theme
conceivable like dividend investing and tracking
pros like Warren Buffett.
I know the Robinhood is popular here on YouTube
for no-cost investing so I want to address
why I picked M1 instead.
While there’s no fees on Robinhood, there’s
also no retirement account option available.
Now you know I love retirement investing in
an IRA or Roth.
This is some of the best investing you can
do, especially with dividend investing because
you don’t pay taxes on that cash flow each
So if you’re investing on Robinhood, just
know that you’re going to need another site
for your retirement accounts and you get the
same no-cost option on M1 Finance.
Our next investing site, voted best overall
financial website, is Ally Invest.
I’ve had an account since it was the standalone
TradeKing brand but was really happy about
the move to merge with Ally and create an
all-in-one financial site.
Between the investing platform and Ally Bank,
you could do everything you need through the
Ally Invest charges just $4.95 per trade and
$3.95 for frequent traders or accounts over
a hundred grand.
That makes it a strong runner-up for best
low-cost investing and it has commission-free
ETFs in every theme and strategy.
The savings rate at Ally Bank is 2% which
is unheard of and the bank even pays up to
0.6% on checking accounts.
The bank offers home and auto loans, both
original and refinancing with mortgage rates
from 3.75% on fixed and adjustable terms.
The Ally credit card offers 2% cash back and
a 10% bonus on your rewards when they’re
deposited into an Ally Bank account.
And that’s on top of a $100 sign-up bonus.
I don’t get quite the stock research on
Ally Invest compared to ETrade but they do
offer analyst reports from CFRA which is the
old Standard & Poors as well as from Seeking
Overall a great all-in-one solution.
Our third site, my favorite p2p site and voted
best for alternative investments, is Lending
A lot of people are going to disagree with
me here but I truly believe everyone needs
some exposure to alternative assets in their
portfolio, whether that’s managed futures
or private equity or peer-to-peer lending.
These types of investments are going to give
you the returns of stocks but help diversify
away some of those roller-coaster prices you
see in the market.
For example, I earned seven and a half percent
last year on my Lending Club account while
stocks did little better than break even.
And Lending Club really makes it easy to invest
and get that diversification.
I’ve got a video on the channel that details
the loan criteria I use to get above-average
returns and low defaults that I’ll link
to in the video description below.
The minimum to invest on Lending Club is $1,000
but this isn’t really an issue.
You invest as little as $25 in the loans that
meet your criteria so a grand is only going
to get you 40 loans in your portfolio.
What I usually recommend is investing at least
$2,500 so you can invest in 100 loans and
no single loan is more than one percent of
Another great feature on Lending Club is that
it makes the process completely automated.
By setting up the auto-invest function, any
cash that comes into the account is instantly
invested in new loans.
Since you’re getting payments back on invested
loans every month, that’s a lot of cash
that needs reinvested so it’s nice to not
have to manage it myself.
Our fourth investing site, the one I’ve
had longer than any other and voted best for
research, is ETrade.
I had a Brown and company account while I
was in the Marine Corps and kept it when ETrade
acquired them in 2005 so that’s about 18
years with this account.
The site used to be one of the lowest-cost
on fees though it’s kind of fallen back
on that against those no-cost options.
Investing on ETrade still isn’t expensive
at $6.95 a trade or about five dollars for
Options and futures trading is about the same
as other sites with $0.75 per option contract
and $1.50 for futures.
The strength for ETrade is in its research
and data available.
The site has the best selection of third-party
research and it’s own analytics I’ve seen.
There are a lot of research providers aggregated
Trefis provides a sum-of-parts analysis for
each stock, a look at each product segment
or division at a company and how much it’s
worth to the stock price.
ETrade also brings in analysis from TipRanks,
which follows Wall Street analyst recommendations,
to show average targets and a ranking of each
You’ll get access to professional reports
by Credit Suisse and Morningstar.
One of the best pieces of research, something
you won’t find anywhere else, is the earnings
and revenue data which shows what Wall Street
is expecting as well as the company’s history
of beating or missing expectations.
Fifth on our list, voted best real estate
crowdfunding site, is peerstreet.
PeerStreet is another from that idea of alternative
investments, giving you exposure to real estate
but without the down payment and stress of
buying individual properties.
The site has a team of finance and real estate
experts that analyze the underwriting on loans
backed by commercial property.
The platform charges a management fee from
0.25% to 1% on payments collected so you only
pay a fee on the money you get back.
Investors can then buy a chunk of each loan
for the principal and interest payments, much
like with Lending Club.
What I like about PeerStreet is that access
to real estate and a completely managed process.
The site manages the loans and passes payments
through to investors.
Loans are normally shorter-duration with most
from six- to 24-months and a loan to value
below 75% with properties diversified across
property type and geography.
That’s important because most real estate
investors don’t get that diversification
if you’re just buying single-family rentals
or individual properties.
Your portfolio is at risk completely on just
one property type and location.
Another feature I like on PeerStreet is the
automated investing function.
Just like on Lending Club, you can set up
your criteria and the platform will automatically
reinvest any money in your account making
it as passive as possible.
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I love talking stock picks but how do you