{"id":34307,"date":"2022-01-20T10:55:05","date_gmt":"2022-01-20T15:55:05","guid":{"rendered":"https:\/\/env-hardbacon-dev.kinsta.cloud\/?p=34307"},"modified":"2022-02-18T09:40:44","modified_gmt":"2022-02-18T14:40:44","slug":"self-directed-investing-and-online-brokers-win-gold","status":"publish","type":"post","link":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/investing\/self-directed-investing-and-online-brokers-win-gold\/","title":{"rendered":"Why Self-Directed Investing and Online Brokers Are Right For You"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"34307\" class=\"elementor elementor-34307\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-533734a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"533734a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6dc08ad\" data-id=\"6dc08ad\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a284fd3 elementor-widget elementor-widget-text-editor\" data-id=\"a284fd3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.13.3 - 22-05-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">It\u2019s a money revolution and it\u2019s all online with fifty-five million Google searches alone. It\u2019s self-directed investing and it can save you money. Online brokers provide low-fee access to professionally managed investments. You retain control over your choice of funds and can change investment direction at any time from your desktop, tablet or smartphone.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">It used to be that finding an asset management firm to manage your investments was challenging, as they would cater exclusively to wealthy clients. And real-time information on price movements in stocks, bonds, futures, and other financial instruments was hard to come by, especially for the average investor. Today, online brokers and robo-advisors give the average investor far greater access to the markets than ever before. Whether you are new to investing or a seasoned pro, online brokers have a lot to offer.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-cc82880 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"cc82880\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d99cad9\" data-id=\"d99cad9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7f853d7 elementor-widget elementor-widget-html\" data-id=\"7f853d7\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t<div id=\"5f53d0f44d1911503113caf9\">\n  <div class=\"hb-widget hardbacon-comparator-widget\"\n       data-comparator=\"brokers\"\n       data-key=\"64f359b2-4b69-422f-a67f-e56ffd94cbe8\"\n       data-hideanchor=\"true\"\n       data-hidecopyright=\"true\"\n       data-language=\"en\"\n       data-products=\"5f53d0f44d1911503113caf9\">\n  <\/div>\n  <!-- \/!\\ Only add this tag once per page -->\n  <script src=\"https:\/\/hardbacon-resources.s3.amazonaws.com\/comparator\/index.js.gz\"><\/script>\n<\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d43788e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d43788e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6d42a78\" data-id=\"6d42a78\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-592499c elementor-widget elementor-widget-text-editor\" data-id=\"592499c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3><span style=\"font-weight: 400;\">Self-directed investing is easy if done right<\/span><\/h3><p><span style=\"font-weight: 400;\">Investing doesn\u2019t need to be complicated. A well-diversified investment portfolio that protects your wealth against inflation and generates a respectable return is relatively easy to assemble.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">With the help of an online broker, or even a robo-advisor, you can create a solid investment plan that will help you achieve your financial goals \u2013 and with minimal risk. There\u2019s no need to spend a fortune on pricey financial advisors and software.<\/span><\/p><p><span style=\"font-weight: 400;\">Yes, investing\u00a0can\u00a0be complicated \u2013 and even intimidating. But these domains are typically reserved for highly knowledgeable and motivated individuals seeking to earn returns that vastly exceed those of the market.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">These individuals include day traders who fanatically scrutinize stock charts to predict how a stock might move in the next five minutes, quants with PhDs who develop sophisticated trading algorithms, and value investors who conduct exhaustive research of publicly traded companies, with the hope of finding the next Facebook before its stock price skyrockets.<\/span><\/p><p><span style=\"font-weight: 400;\">Most people have no intention of devoting themselves full-time to the financial markets. Their goals with investing are typically to build up a sizable nest egg for retirement and have sufficient income to maintain their desired lifestyle. These attributes may also describe you, and that\u2019s perfectly okay \u2013 you don\u2019t need to be a market wizard like Michael Burry, Warren Buffet, or Jim Simons.<\/span><\/p><p><span style=\"font-weight: 400;\">Perhaps the most straightforward yet elegant investment strategy you can adopt is investing in index funds.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Index funds are investment products that track a specific stock market index, such as the S&P\/TSX Composite Index. The goal of an index fund is to mimic the returns of an index. Investment fund firms accomplish this feat by investing in securities according to their weighting in the index.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">For example, suppose Shopify currently makes up 7% of the S&P\/TSX Composite Index. In that case, the fund manager will direct his trading team to purchase enough Shopify shares to match this percentage in the index fund they oversee.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Index funds are excellent investment vehicles because they provide broad exposure to the financial markets, enabling you to diversify your portfolio correctly. By including index funds in your portfolio, you\u2019re simultaneously invested in hundreds, if not thousands of stocks. There\u2019s no need to monitor your portfolio closely and evaluate which stocks to acquire and which ones to dump \u2013 you\u2019ve already purchased the whole market!\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The simplicity of index funds is the primary reason for their enduring popularity. It\u2019s a passive investing strategy that requires little oversight from the investor and few trades each year to keep it running.<\/span><\/p><p><span style=\"font-weight: 400;\">With the help of an online broker, you can select from a wide array of index funds: domestic large-cap equities, international small-cap equities, short-term domestic bonds, long-term international bonds, etc. Then, you can set up fixed monthly deposits that will automatically invest in the index funds you\u2019ve chosen. This consistent deposit strategy is called dollar-cost averaging.<\/span><\/p><p><span style=\"font-weight: 400;\">You may need to do some periodic balancing every quarter or so. Still, for the most part, it\u2019s a low-maintenance investing strategy. Just set it and forget it!<\/span><\/p><h3><span style=\"font-weight: 400;\">You get more control and flexibility<\/span><\/h3><p><span style=\"font-weight: 400;\">DIY investing with an online discount broker or robo-advisor provides you with complete control over how you invest and manage your portfolio. You can pivot your investment strategy whenever you wish, experiment with different products to enhance your returns, and employ creative tactics to minimize your risks.<\/span><\/p><p><span style=\"font-weight: 400;\">There\u2019s a whole assortment of investment strategies and philosophies in the investing world \u2013 and a financial advisory firm can\u2019t be an expert in every aspect of each one. Each financial professional you approach for investment advice will have their biases, preferences, and expertise. Should you allow them to manage your investments, they\u2019ll likely do it in a way that feels most comfortable for them, rather than you.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Financial advisors may pressure you into staying the course with your current portfolio when it\u2019s apparent that changes are needed. Or they may attempt to sway you into allocating your funds to investments you believe aren\u2019t in your best interest.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">With self-directed investing, you can make decisions independently, without having to appeal to an advisor who may disagree with your reasoning, thus avoiding drama and conflict.<\/span><\/p><h3><span style=\"font-weight: 400;\">Your investments are aligned with your goals and values<\/span><\/h3><p><span style=\"font-weight: 400;\">When investing on your own, there\u2019s a high probability you\u2019ll occasionally blunder, especially when markets are volatile or a recession ravages the economy. But even when your portfolio experiences some turbulence, you\u2019ll at least have peace of mind knowing each decision you make aligns with your goals and values.<\/span><\/p><p><span style=\"font-weight: 400;\">Most investment professionals are highly skilled and ethical people who do everything in their power to meet their clients' needs. But there\u2019s always the risk of a conflict of interest emerging.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Investment advisors are motivated by money, like everyone else. There\u2019s nothing nefarious about this, as everyone has bills to pay and families to care for. However, some advisors may be motivated to only maximize their revenue, even at your own expense.<\/span><\/p><p><span style=\"font-weight: 400;\">For example, your financial advisor may attempt to convince you to purchase investment products that will net them the highest commission. Many advisors are compensated as a percentage of the sales they generate for their firm. Not surprisingly, they have a powerful incentive to promote expensive products, which may not be appropriate for you in every circumstance.<\/span><\/p><p><span style=\"font-weight: 400;\">Investment professionals often face immense pressure to generate returns on clients\u2019 portfolios that exceed the market, or at the very least, the returns of their competitors. This intense rivalry is especially true with mutual funds, where fund managers are judged on their performance quarterly and annually. Their compensation, often in the form of lucrative bonuses, is often tied to these periodic metrics, as well. As a result, they may prioritize investment strategies and tactics that favour short-term gains.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Unfortunately, most investors are looking to realize returns over the long term, so there's a clear misalignment of goals and incentives between them and the advisory firms managing their money. This conflict of interest could inevitably lead to meagre returns or sizable losses in clients\u2019 investment accounts should it persist for too long<\/span><\/p><h3><span style=\"font-weight: 400;\">You pay nearly no management fees<\/span><\/h3><p><span style=\"font-weight: 400;\">One of the most enticing benefits of DIY investing is the costs you can save from minimizing management fees.<\/span><\/p><p><span style=\"font-weight: 400;\">Investment management, like any other service, comes with a price. Most financial advisors charge a management fee that ranges from 1% &#8211; 2% of the value of your investments. So, if you have a portfolio worth $100,000, you could pay anywhere from $1,000 to $2,000 per year in fees to your advisor. You\u2019re obligated to pay this fee whether you realize a return on your investments or not.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">At first glance, these fees may seem trivial, but over the long run, they can erode a considerable chunk of your investment portfolio\u2019s value. The reason for this is because not only is your balance reduced by the annual fee, but you lose the opportunity to generate compounded returns\u00a0on\u00a0those fees.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">For example, suppose you invest $50,000 with an asset management firm that charges a 1.5% fee per year based on your portfolio\u2019s total value. You decide to contribute $500 per month to your portfolio for the next 25 years.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Let\u2019s assume your investments grow at 7% annually. At the end of 25 years, your portfolio will be worth $505,247. Sounds nice, doesn\u2019t it?<\/span><\/p><p><span style=\"font-weight: 400;\">However, the truth is that you could have earned a superior return were it not for the 1.5% management fee. Had there been no fee, your balance at the end of the 25 years would have been $662,893. The management fee would end up costing you $157,646 during this time frame \u2013 nearly 24% of your portfolio\u2019s value!<\/span><\/p><p><span style=\"font-weight: 400;\">In addition, there are other fees you may have to contend with should you choose to hire an advisory firm to manage your investments. These include commission fees, wire fees, sales loads, account maintenance fees, transfer fees, and many others. Over time, these fees can quickly add up, further eroding your portfolio's balance.<\/span><\/p><p><span style=\"font-weight: 400;\">Should you choose to manage your investments on your own with the aid of an online brokerage, you can escape or dramatically reduce these fees. As a result, you'll realize higher returns over the long run.<\/span><\/p><p><span style=\"font-weight: 400;\">While online brokers do charge fees, they\u2019re negligible compared to what traditional asset management firms typically charge. Most online brokers impose a small fee on accounts with a balance of less than $25,000, but it\u2019s only around $25 per quarter, which works out to be only 0.4% per year. Plus, if your balance is high enough, they may reduce your fee or even waive it altogether.\u00a0<\/span><\/p><h3><span style=\"font-weight: 400;\">Online Brokers have low transaction costs<\/span><\/h3><p><span style=\"font-weight: 400;\">Anytime you execute a financial transaction, you must pay a transaction cost to the broker, who facilities it. In the past, transaction costs were steep, to the point that retail investors\u2019 returns would get wiped out if they engaged in too much buying and selling of investments. Quite simply, the cost of maintaining an investment portfolio was prohibitive. Only investors with a substantial net worth could justify the transaction fees.<\/span><\/p><p><span style=\"font-weight: 400;\">Today, things are much different. If you\u2019ve been paying close attention to the stock market in 2021, you're likely familiar with the mania that enveloped GameStop. The buying frenzy that erupted around this firm's stock was made possible in part due to the low transaction costs charged by investing apps, namely Robinhood. The affordability of these platforms enabled anyone with a few bucks to spare to partake in the chaos.<\/span><\/p><p><span style=\"font-weight: 400;\">The transaction fees Robinhood charged were not just exceedingly low \u2013 they didn\u2019t exist, period!\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">That\u2019s right. You can now trade stocks for free.<\/span><\/p><p><span style=\"font-weight: 400;\">Though Robinhood is not currently available in Canada, you can open an account with\u00a0<\/span><a href=\"https:\/\/my.wealthsimple.com\/app\/public\/promo?code=hardbacontrade&locale=en-ca\" data-lasso-id=\"13808\"><span style=\"font-weight: 400;\">Wealthsimple Trade<\/span><\/a><span style=\"font-weight: 400;\">, a self-directed trading app offered by Wealthsimple. The trading platform charges no transaction fees on both the purchase and sale of stocks and exchange-traded funds (ETF). It holds the distinction (for the time being) as the only broker to offer commission-free trading in Canada.<\/span><\/p><p><span style=\"font-weight: 400;\">Other discount brokers charge transaction fees, but they\u2019re relatively small compared to their full-service counterparts. For example,\u00a0<\/span><a href=\"https:\/\/www.questrade.com\/?refid=hardbacon\" data-lasso-id=\"13808\"><span style=\"font-weight: 400;\">Questrade<\/span><\/a><span style=\"font-weight: 400;\"> only charges between $4.95 and $9.95 for transactions involving stocks and selling ETFs (purchasing ETFs is free).\u00a0<\/span><span style=\"font-weight: 400;\">If you\u2019re adamant about minimizing your transaction fees, opening an account with an online broker is a no-brainer.<\/span><\/p><h3><span style=\"font-weight: 400;\">Start investing with little to no money<\/span><\/h3><p><span style=\"font-weight: 400;\">DIY investing is no longer restricted to the wealthy elite. Gone are the days where you needed to amass tens of thousands of dollars to open an investment account with a broker or asset management company.<\/span><\/p><p><span style=\"font-weight: 400;\">Today\u2019s online brokers cater to virtually anyone who aspires to manage their investment portfolio. For example, the minimum deposit to open an account with Questrade is only $1,000. Even better, Wealthsimple Trade and\u00a0<\/span><span style=\"font-weight: 400;\">Virtual<\/span><span style=\"font-weight: 400;\"> <\/span><span style=\"font-weight: 400;\">Brokers<\/span><span style=\"font-weight: 400;\">\u00a0have no minimum deposit requirement.<\/span><\/p><p><span style=\"font-weight: 400;\">As with transaction costs, low or zero initial deposits have made investing affordable and accessible to more consumers than ever before.\u00a0<\/span><span style=\"font-weight: 400;\">Suppose you feel apprehensive about your first foray into DIY investing. In that case, you can start with a small sum of money to gain some experience and build your confidence gradually. You no longer need to risk your life savings to begin your investing journey.<\/span><\/p><h3><span style=\"font-weight: 400;\">Gain access to popular investment options<\/span><\/h3><p><span style=\"font-weight: 400;\">By embarking on your investing journey on your own terms, you gain access to a much more extensive universe of investment products than if you entrusted your money with a financial advisor who works for an asset management firm.<\/span><\/p><p><span style=\"font-weight: 400;\">Each asset management company has its investment philosophy and a series of strategies to manage clients\u2019 portfolios. Depending on their templates and guidelines, they may restrict clients\u2019 access to a narrow pool of investment products. If you\u2019re interested in allocating a portion of your portfolio to an asset class or specific investment they don\u2019t deal in, you\u2019re out of luck.<\/span><\/p><p><span style=\"font-weight: 400;\">With DIY investing using an online broker, you have an abundance of options at your disposal. You can refine, tweak, and alter your portfolio as you see fit.\u00a0<\/span><span style=\"font-weight: 400;\">Are you keen on adding obscure and emerging investments products like cryptocurrencies to your portfolio? Do you want to purchase fractional shares of stocks? Are you looking to load up on zero-fee ETFs? All these options and more are at your fingertips today \u2013 there are endless portfolio customization possibilities.<\/span><\/p><p><span style=\"font-weight: 400;\">Depending on the online broker you choose, you can put your money to work in:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Domestic and international equities<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Domestic and international bonds<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Options<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Commodities<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cryptocurrencies<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Initial public offering (IPO) equities<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ETFs<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Guaranteed investment certificates (GIC)<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Over the counter (OTC) assets<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Futures<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Foreign currencies<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mutual funds<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">By having greater access to the plethora of investment products available in the market, you can tailor your portfolio to better align with your goals, objectives, and risk tolerance.<\/span><\/p><p><span style=\"font-weight: 400;\">In addition to personal and margin accounts, most online brokers offer you the ability to manage your investment in various tax-advantaged accounts, such as Registered Retirement Savings Accounts (RRSP), Tax-Free Savings Accounts, Registered Retirement Income Funds (RRIF). So not only do you retain complete control of your portfolio, but you benefit from generous tax savings, as well.<\/span><\/p><h3><span style=\"font-weight: 400;\">Benefit from sophisticated analytical and monitoring tools<\/span><\/h3><p><span style=\"font-weight: 400;\">To evaluate investment opportunities, optimize your asset mix, and gauge the direction financial markets might be headed, you need access to timely and accurate data.<\/span><\/p><p><span style=\"font-weight: 400;\">In the past, getting hold of the information need to make sound investing decisions was time-consuming and fraught with difficulty. Even when you were able to acquire it, analyzing it to extract meaningful insight was cumbersome.<\/span><\/p><p><span style=\"font-weight: 400;\">Today, online brokers provide investors with platforms with a wide variety of tools to analyze investments, measure portfolio performance, and conduct extensive research.\u00a0<\/span><span style=\"font-weight: 400;\">While it's true that some brokers offer a minimalist setup and limited features, many go all out and provide users with an impressive arsenal of analytical and portfolio monitoring tools. Depending on your broker, these can include:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Real-time streaming quotes. Real-time quotes allow you to view the exact price of a security at any moment in time.<\/span><\/li><\/ul><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Screeners. These tools enable you to scan and filter for stock, bonds, ETFs, and other assets according to your specific criteria, saving you valuable time.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Alerts and watchlists. Receive instant notifications about a security\u2019s price movements to identify favourable trading opportunities.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Portfolio tracking. This suite of tools allows you to gauge how your portfolio is performing and provides suggestions for enhancements. You can compare your portfolio against various benchmarks, indices, and hypothetical portfolios.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Research centres. Garner the latest and most valuable news and analysis that pertains to the investment products you hold in your portfolio and use it to conduct detailed fundamental analysis.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Technical Analysis. Perform detailed technical analysis using various charts and indicators to determine where a stock\u2019s price might end up in the future based on current price and volume action.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Education. Some brokers provide a vast library of educational materials to help you become a knowledgeable and skilled investor. These may include webinars, videos, blogs, glossary of financial terms, FAQs, and more. You may also have the chance to practice with trading simulators and paper trading accounts to test your investing strategies and hone your trading skills.<\/span><\/li><\/ul><h3><span style=\"font-weight: 400;\">Final thoughts<\/span><\/h3><p><span style=\"font-weight: 400;\">As you can see, there are numerous benefits to striking out on your own as an investor using only the services of an online broker. You\u2019ll benefit from lower fees, have access to a wide range of investment products, and have the freedom to customize your portfolio to your exact specifications.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Before you dive into the world of DIY investing and online brokers, you should step back and assess what type of investor you are or aspire to be. Are you content to merely employ dollar-cost averaging and purchase a few index funds to hold for the long term? Or is your goal to beat the market and realize above-average returns on your portfolio?<\/span><\/p><p><span style=\"font-weight: 400;\">If the latter describes you, you must be prepared to devote considerable time and effort to crafting, testing, and refining your investment strategy.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Your approach to investing will also influence the online broker you choose. Suppose you're looking to implement a basic, no-frills investment strategy that requires minimal trading and rebalancing. Selecting a broker that offers the cheapest fees, few analytical tools, and a clean, user-friendly interface will likely be the ideal option for you.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">On the other hand, let's say you anticipate designing a more sophisticated portfolio with complex investment products that require constant supervision and adjusting. You\u2019d be better off with a broker that provides more features and access to a broader array of products, even if it means paying more.<\/span><\/p><p><span style=\"font-weight: 400;\">The fusion of finance and technology has made DIY investing entirely accessible for the average retail trader. Online investing platforms are becoming increasingly sophisticated, but at the same time, more user-friendly and cost-effective. There\u2019s never been a better time to get into DIY investing.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>It\u2019s a money revolution and it\u2019s all online with fifty-five million Google searches alone. It\u2019s self-directed investing and it can save you&#8230;<\/p>\n","protected":false},"author":156,"featured_media":34461,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":""},"categories":[155,274],"tags":[],"acf":[],"nelio_content":{"isAutoShareEnabled":true,"autoShareEndMode":"default","automationSources":{"useContentSentences":true,"useSocialTemplates":true,"useCustomSentences":false,"customSentences":[]},"followers":[],"suggestedReferences":[],"includedReferences":[],"efiUrl":"","efiAlt":"","highlights":[]},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.2.1 (Yoast SEO v19.14) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Self-Directed Investing and Online Brokers Are Right For You | Hardbacon<\/title>\n<meta name=\"description\" content=\"Online brokers and robo-advisors give the average investor far greater access to the markets than ever before.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Self-Directed Investing and Online Brokers Are Right For You\" \/>\n<meta property=\"og:description\" content=\"Online brokers and robo-advisors give the average investor far greater access to the markets than ever before.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/investing\/self-directed-investing-and-online-brokers-win-gold\/\" \/>\n<meta property=\"og:site_name\" content=\"Hardbacon\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/hardbaconca\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-20T15:55:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-18T14:40:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/08\/austin-distel-EMPZ7yRZoGw-unsplash-scaled-e1629215101595.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mark Gregorski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@hardbaconca\" \/>\n<meta name=\"twitter:site\" content=\"@hardbaconca\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark Gregorski\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"13 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Why Self-Directed Investing and Online Brokers Are Right For You | Hardbacon","description":"Online brokers and robo-advisors give the average investor far greater access to the markets than ever before.","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"Why Self-Directed Investing and Online Brokers Are Right For You","og_description":"Online brokers and robo-advisors give the average investor far greater access to the markets than ever before.","og_url":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/investing\/self-directed-investing-and-online-brokers-win-gold\/","og_site_name":"Hardbacon","article_publisher":"https:\/\/www.facebook.com\/hardbaconca","article_published_time":"2022-01-20T15:55:05+00:00","article_modified_time":"2022-02-18T14:40:44+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/08\/austin-distel-EMPZ7yRZoGw-unsplash-scaled-e1629215101595.jpg","type":"image\/jpeg"}],"author":"Mark Gregorski","twitter_card":"summary_large_image","twitter_creator":"@hardbaconca","twitter_site":"@hardbaconca","twitter_misc":{"Written by":"Mark Gregorski","Est. reading time":"13 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/investing\/self-directed-investing-and-online-brokers-win-gold\/#article","isPartOf":{"@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/investing\/self-directed-investing-and-online-brokers-win-gold\/"},"author":{"name":"Mark Gregorski","@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/#\/schema\/person\/1d70a345059d260f04410efac8d54ce0"},"headline":"Why Self-Directed Investing and Online Brokers Are Right For You","datePublished":"2022-01-20T15:55:05+00:00","dateModified":"2022-02-18T14:40:44+00:00","mainEntityOfPage":{"@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/investing\/self-directed-investing-and-online-brokers-win-gold\/"},"wordCount":2915,"publisher":{"@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/#organization"},"articleSection":["Investing","Online Broker"],"inLanguage":"en-CA"},{"@type":"WebPage","@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/investing\/self-directed-investing-and-online-brokers-win-gold\/","url":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/investing\/self-directed-investing-and-online-brokers-win-gold\/","name":"Why Self-Directed Investing and Online Brokers Are Right For You | Hardbacon","isPartOf":{"@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/#website"},"datePublished":"2022-01-20T15:55:05+00:00","dateModified":"2022-02-18T14:40:44+00:00","description":"Online brokers and robo-advisors give the average investor far greater access to the markets than ever before.","inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/investing\/self-directed-investing-and-online-brokers-win-gold\/"]}]},{"@type":"WebSite","@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/#website","url":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/","name":"Hardbacon","description":"Comparez les cartes de cr\u00e9dit, les courtiers en ligne et plus.","publisher":{"@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-CA"},{"@type":"Organization","@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/#organization","name":"Hardbacon","url":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/#\/schema\/logo\/image\/","url":"https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/04\/hardbacon-application-financiere.png","contentUrl":"https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/04\/hardbacon-application-financiere.png","width":1079,"height":1079,"caption":"Hardbacon"},"image":{"@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.instagram.com\/hardbaconca\/","https:\/\/www.linkedin.com\/company\/hardbacon","https:\/\/www.pinterest.ca\/hardbaconca\/","https:\/\/www.facebook.com\/hardbaconca","https:\/\/twitter.com\/hardbaconca"]},{"@type":"Person","@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/#\/schema\/person\/1d70a345059d260f04410efac8d54ce0","name":"Mark Gregorski","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/#\/schema\/person\/image\/","url":"https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/05\/Medium-thumbnail-150x150.jpg","contentUrl":"https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/05\/Medium-thumbnail-150x150.jpg","caption":"Mark Gregorski"},"description":"Mark is a freelance writer who specializes in writing content for firms in the financial services industry, including fintech. He has written articles about personal finance, mortgages, and investing and is passionate about educating people on making wise financial decisions. Mark graduated from the Northern Alberta Institute of Technology with a degree in finance and has more than ten years of experience as an accountant. Outside of writing, he enjoys playing poker, going to the gym, composing music, and learning about digital marketing","sameAs":["charles.lheureux"],"url":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/author\/mark-gregorski-en\/"}]}},"uagb_featured_image_src":{"full":["https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/08\/austin-distel-EMPZ7yRZoGw-unsplash-scaled-e1629215101595.jpg",1200,800,false],"thumbnail":["https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/08\/austin-distel-EMPZ7yRZoGw-unsplash-150x150.jpg",150,150,true],"medium":["https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/08\/austin-distel-EMPZ7yRZoGw-unsplash-300x200.jpg",300,200,true],"medium_large":["https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/08\/austin-distel-EMPZ7yRZoGw-unsplash-768x512.jpg",768,512,true],"large":["https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/08\/austin-distel-EMPZ7yRZoGw-unsplash-1024x683.jpg",1024,683,true],"1536x1536":["https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/08\/austin-distel-EMPZ7yRZoGw-unsplash-1536x1024.jpg",1536,1024,true],"2048x2048":["https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/08\/austin-distel-EMPZ7yRZoGw-unsplash-2048x1365.jpg",2048,1365,true],"ebor-admin-list-thumb":["https:\/\/env-hardbacon-dev.kinsta.cloud\/wp-content\/uploads\/2021\/08\/austin-distel-EMPZ7yRZoGw-unsplash-60x60.jpg",60,60,true]},"uagb_author_info":{"display_name":"Mark Gregorski","author_link":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/author\/mark-gregorski-en\/"},"uagb_comment_info":0,"uagb_excerpt":"It\u2019s a money revolution and it\u2019s all online with fifty-five million Google searches alone. It\u2019s self-directed investing and it can save you...","_links":{"self":[{"href":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/wp-json\/wp\/v2\/posts\/34307"}],"collection":[{"href":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/wp-json\/wp\/v2\/users\/156"}],"replies":[{"embeddable":true,"href":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/wp-json\/wp\/v2\/comments?post=34307"}],"version-history":[{"count":1,"href":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/wp-json\/wp\/v2\/posts\/34307\/revisions"}],"predecessor-version":[{"id":151468,"href":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/wp-json\/wp\/v2\/posts\/34307\/revisions\/151468"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/wp-json\/wp\/v2\/media\/34461"}],"wp:attachment":[{"href":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/wp-json\/wp\/v2\/media?parent=34307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/wp-json\/wp\/v2\/categories?post=34307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/env-hardbacon-dev.kinsta.cloud\/en\/wp-json\/wp\/v2\/tags?post=34307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}