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Unexpected Car Repairs? 10 Tips and Tricks to Save Your Wallet

Joshua Rodriguez
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Unexpected Car Repairs? 10 Tips and Tricks to Save Your Wallet

When it comes to car repairs, the unexpected is always something we worry about. No one wants to be caught off guard by a big bill they can’t afford. But don’t worry, we’ve got you covered! Here are 10 tips and tricks to help you save your wallet when those unexpected car repairs come up.

1. Keep Up With Routine Maintenance: a Checklist

Check your oil level and quality

You should check your oil at least once a month, and more frequently if you notice it starts to look dirty sooner. If it’s been a while since your last oil change, now is a good time to get it done. 

Inspect Your Tires

Check the tread depth and air pressure of all four tires. If you need new tires, spring is a great time to get them because many stores run specials. 

Clean Your Headlights and Taillights

Over time, the plastic lenses on your headlights can become cloudy and yellowed, which can reduce your visibility while driving at night.

A quick cleaning with some soapy water can help improve their clarity. While you’re at it, check your brake lights and turn signals to make sure they’re working properly. 

Test Your Battery

A dead battery is one of the most common causes of car trouble, so it’s important to test it regularly and replace it if necessary. Most auto parts stores will test your battery for free. 

Flush and Fill Your Coolant System

This is something that should be done every two years or so, but if you haven’t done it in a while, now is a good time. 

Check All Your Fluids

In addition to coolant, you should also check your power steering fluid, brake fluid, transmission fluid, and windshield wiper fluid levels and top them off if necessary. 

Clean Out Your Car

Over the winter months, our cars tend to become cluttered with all kinds of things: snow gear, road salt, receipts, fast food wrappers…the list goes on. Take some time to clear out the clutter and give your car a good cleaning inside and out. 

Get an Alignment (if needed)

If you notice that your car seems to be pulling to one side when you’re driving or that your steering wheel is no longer centered when you’re driving straight, then you may need an alignment. Many tire stores offer this service for free or at a discounted rate, so it’s worth checking into if you think you may need one. 

Get a Tune-Up (if needed)

Just like any machine, over time our cars’ engines start to lose efficiency as parts begin to wear down or become dirty. Getting a tune-up can help restore lost power and improve fuel economy by replacing worn parts and cleaning dirty ones. Many mechanics will offer discounts on tune-ups this time of year as well, so be sure to ask about that when you take your car in.

2. Don’t Ignore Your Check Engine Lights

If you’re like most drivers, you probably don’t pay much attention to your car’s check engine light until it comes on. And when it does, you might be tempted to ignore it, thinking it’s just a false alarm.

However, ignoring your check engine light can actually lead to more expensive car repairs down the road. The check engine light is designed to alert you to problems with your car’s engine, and if you ignore it, the problem is likely to get worse.

As a result, you could end up facing a hefty repair bill instead of a simple fix. So next time your check engine light comes on, don’t ignore it. Take your car in for a tune-up so you can avoid costly repairs down the road.

3. Drive Like You Want to Save Money

One of the best ways to keep your car in good shape is to drive safely. Accidents not only put a dent in your bank account, but they can also cause long-term damage to your vehicle.

Even a minor fender bender can result in bent frame components or alignment issues. And if you’re unlucky enough to be involved in a serious collision, you could be facing repairs that cost thousands of dollars.

If you want to save money, it’s important to practice safe driving habits. That means obeying the speed limit, using turn signals, and always being aware of your surroundings. By taking care on the road, you can help keep your car in good condition and avoid expensive repairs down the line.

4. Find Reputable Repair Shops

Any homeowner knows that there are certain repair jobs that are best left to the professionals. But when it comes to car repairs, even the most mechanically inclined among us can be hesitant to open up our hoods and take a look.

That’s why it’s so important to find a reputable car repair shop that you can trust. A good mechanic will be honest about what needs to be fixed and will give you a fair estimate of the cost. They should also be able to answer any questions you have about the work they’re doing.

Furthermore, a good car repair shop will stand behind its work and offer a warranty on parts and labor. By taking the time to find a reputable shop, you can save yourself money in the long run by avoiding bad workmanship.

5. Shop Around for Repair Estimates

When your car needs repairs, it can be tempting to just take it to the first shop you find and get the work done as quickly as possible. However, this may not be the best option if you’re looking to save money.

Instead, it’s a good idea to shop around for repair estimates. You may be surprised to find that there is a wide range of prices out there for the same service. By taking the time to compare estimates, you can be sure that you’re getting the best possible deal on your car repairs.

You may also want to ask around for recommendations. Talk to friends, family, and colleagues who have had recent experiences with car repairs. They may be able to point you in the direction of a good mechanic who can do the job at a fair price.

6. Invest in an Extended Warranty

No one likes paying for car repairs, but it’s an unfortunate reality of car ownership. Thankfully, there is a way to help offset the cost of repairs—an extended warranty.

An extended warranty is an insurance policy that covers the cost of repairs to your vehicle after the manufacturer’s warranty expires. 

An extended warranty can save you money in a number of ways.

  • It can help you avoid costly repairs
  • It can give you peace of mind knowing that if something does go wrong with your car, you’re covered
  • It can provide discounts on parts and labor

If you’re thinking about buying an extended warranty, there are a few things you should keep in mind.

  1. Make sure you understand what is and is not covered by the warranty.
  2. Consider the length of the warranty and whether it’s worth the cost.
  3. Compare different warranties to find the one that best meets your needs. 
  4. Read resources like Protect My Car reviews to make sure you are well-educated on the topic. 

What Is Covered by an Extended Warranty? 

An extended warranty typically covers major components of your car such as the engine, transmission, and suspension. It may also cover electrical components, air conditioning, and navigation systems. Some extended warranties even cover routine maintenance such as oil changes and tire rotations. 

It’s important to note that not all extended warranties are created equal. Some only cover certain parts of your car while others cover just about everything. Be sure to read the fine print so you know exactly what is and is not covered by your warranty. 

How Long Does an Extended Warranty Last? 

Extended warranties typically last for one to four years after the expiration of your manufacturer’s warranty. The length of the warranty will affect the price, so be sure to choose a length that makes sense for you based on your driving habits and budget. 

How Much Does an Extended Warranty Cost? 

The cost of an extended warranty varies depending on the length of the coverage and the make and model of your car. In general, you can expect to pay between $500 and $1,500 for an extended warranty. 

An extended warranty is an insurance policy that covers the cost of repairs to your vehicle after the manufacturer’s warranty expires. It can save you money in a number of ways by helping you avoid costly repairs, providing peace of mind, and giving discounts on parts and labor. 

7. Educate Yourself on What’s Necessary for Common Car Repairs

As your car ages, it will inevitably need repairs. Some of these repairs may be simple and easy to do yourself, while others will require the help of a qualified mechanic.

However, regardless of the complexity of the repair, it is important to educate yourself on what is necessary to fix the problem. This way, you can spot when a mechanic is trying to take advantage of you. For example, if your car needs a new battery, a mechanic may try to sell you a complete tune-up.

However, if you know that a new battery is all that is needed, you can save yourself time and money by finding a mechanic who is honest about the necessary repairs. In short, by educating yourself on common car repairs, you can avoid being taken advantage of by dishonest mechanics.

8. Buy Your Own Parts

It’s no secret that car repairs can be expensive. Whether you need a new engine or simply an oil change, the costs can quickly add up.

One way to save money on car repairs is to buy your own parts. This way, you can be sure that you’re getting high-quality parts at a fair price.

Some mechanics will buy parts and then upcharge you for the parts in addition to the labor costs. By buying your own parts, you can ensure that you’re getting a good deal and avoiding any markups. 

However, not everyone is comfortable with shopping for car parts. But, if you’re willing to do some research and get your hands dirty, buying your own parts can be a great way to save money on car repairs.

9. DIY Easy Auto Repairs

With today’s cars, it’s easy to forget that they’re still machines that need regular maintenance and repairs. But just because your car is a complex machine doesn’t mean that you can’t do some of the repairs yourself! Here are 8 easy auto repairs that you can do yourself, with no mechanic required.

Fix a Scratched Paint Job

If your car has a small scratch in the paint, you can easily fix it yourself with a little touch-up paint. Just make sure to buy the right kind of paint for your car’s make and model.

Get Rid of Dents

Dents are unsightly and can devalue your car, but they’re surprisingly easy to fix yourself. All you need is a plunger and some boiling water. First, boil a pot of water and pour it over the dented area. Then, place the plunger over the top of the dent and push and pull until the dent pops out. Let the area cool and dry before touching it or driving your car.

Replace Your Headlight Bulbs

Headlight bulbs burn out eventually, but you don’t need to go to a mechanic to replace them. Just pop open the hood of your car and find the headlight assembly. Then, twist out the old bulb and screw in the new one. It’s really that simple!

Change Your Oil

This is one repair that you definitely don’t want to put off for too long. Changing your oil regularly will extend the life of your engine and keep your car running smoothly.

To change your oil, just locate the oil drain plug under your car and remove it with a wrench. Then, let all of the old oil drain out into a pan before replacing the drain plug and adding new oil to the engine. 

Fix a Loose Door Handle

A loose door handle can be annoying, but it’s an easy fix. All you need is a screwdriver! Just remove the screws holding the door handle in place and tighten them until they’re snug but not too tight. 

Replace Windshield Wipers

Windshield wipers are another crucial component of your car that you don’t want to neglect. They should be replaced at least once per year, but more often if they start leaving streaks on your windshield.

To replace them, just lift up on the wiper arm until it pops off, then remove the old wiper blade by sliding it off of its metal frame. Snap on a new wiper blade in its place, then repeat on the other side. 

Fix a Sticking Key

If your key gets stuck in the ignition or door lock, there’s an easy way to fix it! Just spray some WD-40 into the keyhole and wait a few minutes before trying again. The lubricant will help loosen up any rust or grime that’s preventing your key from moving smoothly. 

Bleed Your Brakes

If your brakes feel spongy when you press down on them, it’s time to bleed them! This process releases any air bubbles that have gotten into the brake lines, which can prevent your brakes from working properly.

To bleed your brakes, first, find the bleeder valve on each wheel (it will look like a small knob or lever). Then, open up each valve slightly and have someone press down on the brake pedal while you watch for fluid to come out without any bubbles.

Close up each valve when fluid starts coming out steadily, then move on to the next wheel until all four have been bled! 

10. Make Sure You Have Great Insurance Coverage

It’s a pain to pay for, and even more of a pain when you get into an accident. But there are ways to save money on car insurance, and we’re here to help you find them!

Shop Around and Compare Rates

Just like with anything else, it pays to shop around when you’re looking for car insurance. There are a lot of different companies out there, and they’re all competing for your business.

That means that you can find some great deals if you take the time to look. Be sure to compare rates from at least three different companies before you make a final decision.

Consider Raising Your Deductible

Your deductible is the amount of money you have to pay out of pocket before your insurance company starts paying for repairs.

Raising your deductible can be a great way to save money on your premiums. Just be sure that you have enough money saved up in case of an accident so that you don’t end up having to pay for everything yourself.

Take Advantage of Discounts

Many insurers offer discounts for things like having a good driving record, being a member of certain organizations, or taking defensive driving courses.

Be sure to ask about any discounts that might be available to you so that you can take advantage of them and save yourself some money.

Bundle Your Policies

If you have more than one type of insurance policy with the same company, you may be able to get a discount by bundling them together.

This is especially common with things like homeowners and auto insurance, but it can also apply to other types of insurance as well. It’s definitely worth asking about if you’re looking for ways to save money on your premiums.

Review Your Policy Regularly

Even if you’ve found what you think is the perfect policy, it’s important to review it regularly and make sure that it still meets your needs and that you’re still getting the best possible rate.

Things can change over time, and you may find that another company offers a better deal or that you no longer need certain coverage options that are included in your current policy. By reviewing your policy regularly, you can be sure that you’re always getting the best possible value for your money.

Final Thoughts

No one ever plans on getting their car repaired, but it’s something that we all have to face at some point in our lives. The cost of car repairs can be expensive, and it’s important to know how to save money on them. Here are a few actionable steps that you can take to reduce the cost of unexpected car repairs.

  1. Get multiple quotes before you choose a repair shop

Don’t just take your car to the first repair shop that you find. Get multiple quotes from different shops to compare prices. You may be able to save a significant amount of money by doing this.

  1. Ask for a discount

If you’re paying for repairs out-of-pocket, don’t be afraid to ask for a discount. Many repair shops are willing to give a discount to customers who pay in cash.

  1. See if you can do the repairs yourself

If you’re mechanically inclined, you may be able to do some of the repairs yourself. This can save you a significant amount of money.

Frequently Asked Questions

1. How do I save money on unexpected car repairs?

There are a few things you can do to cut costs when your vehicle needs unanticipated repairs. First, if you have an emergency fund, use it to pay for the repairs. If you don’t have an emergency fund, try to negotiate with the repair shop for a lower cost. You can also look into getting a car repair loan from a bank or credit union.

2. What are some tips for negotiating with a repair shop?

If you’re not comfortable negotiating with the repair shop, you can ask a friend or family member to help you out. It’s also helpful to do some research on the average cost of the repair so you have an idea of what a fair price would be. When you’re speaking with the repair shop, be polite and firm in your negotiation.

3. Where can I get a car repair loan?

There are a few places you can get a car repair loan. You can start by checking with your bank or credit union to see if they offer any type of personal loan. You can also look into online lenders that specialize in car repair loans. Make sure to compare interest rates and terms before you choose a lender.

4. How do I prevent unexpected car repairs?

There’s no guaranteed way to prevent unexpected car repairs, but there are a few things you can do to reduce the likelihood of needing them. First, make sure to regularly maintain your vehicle according to the manufacturer’s recommendations. This includes things like getting oil changes and tire rotations on schedule. You should also avoid driving recklessly and keep your car in good condition.

5. What should I do if my car needs an unexpected repair?

If your car needs an unexpected repair, the best thing you can do is to stay calm and follow the steps above. By being prepared and knowing what to do, you can save yourself time, money, and stress.

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How to Save Money on Groceries: 12 Proven Methods

Joshua Rodriguez
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How to Save Money on Groceries: 12 Proven Methods

Groceries are a major expense for most American families. Families across the country spent an average of $5,259 on groceries in 2021, and that expense is rising. Economists expect 2022 grocery spending to be significantly higher thanks to record inflation levels. 

Everything from bread to meat, milk, and veggies cost nearly 10% more in September 2022 than it did in September 2021. 

The good news is that you don’t have to spend as much as the average family to eat. You can save quite a bit of money by making small changes to your shopping and consumption habits. 

12 Ways To Save Money on Groceries

As prices continue to rise, it’s more important now than ever to save money on groceries. There are 12 different things you can do that can put a dent in your grocery bill. 

1. Clip Coupons

You’ve seen coupons before, but have you ever taken the time to clip any on your own? You might be amazed at how much you can save by looking for coupons in newspapers and mailers for products you already buy. 

You could save more by taking things a step further. 

When you create your grocery list, go online and look for coupons for each item on the list. Chances are you’ll be able to save quite a bit. 

Take Clipping Coupons to the Next Level

You can take clipping coupons to the next level by ignoring specific brands on your shopping list. For example, if you can’t find a coupon for Bush’s baked beans, consider another brand that you have a coupon for. 

2. Shop the Outer Edges of the Store

Most grocery stores offer their fresh meats, dairy products, and produce in refrigerators that line the outer edges of the store, though there are some exceptions. You can save quite a bit of money by shopping in these sections rather than venturing into the center of the store. 

Pre-packaged meals may seem inexpensive, but you’re only buying a limited number of servings. When you make food at home, fresh ingredients go far further than pre-packaged meals. 

There’s another major benefit to cooking your own food too. It’s the healthiest option. This step doesn’t just cut costs on groceries, it cuts unhealthy preservatives out of your diet. 

Take Outer-Edge Shopping to the Next Level

Take this tip to the next level by looking for low-cost recipes online. You might be surprised by how many different meals you can make for your family for under $10. 

3. Use Your Rewards Credit Card

You can earn cash back and other rewards every time you swipe your rewards credit card. For example, with the Wells Fargo Active Cash card, you earn 2% unlimited cash back on all purchases. 

However, this is a conditional tip. 

You should only use rewards credit cards for groceries if you are going to pay the entire credit card balance off each month to avoid interest. If you don’t, you’ll pay more in interest than you earn in rewards, defeating the purpose of using the card in the first place. 

Take Rewards Credit Cards to the Next Level

You can take this tip to the next level by using multiple rewards credit cards. Some cards have maximum rewards caps or offer more rewards for specific purchase categories. When you make a purchase, use the rewards card that offers the most value for that specific type of purchase. 

4. Join Grocery Store Loyalty Programs

There are countless brands that reward their customers’ loyalty. Why not take advantage of the rewards that are available to you? In most cases, all you need to do is provide a phone number. 

Rewards programs may not seem like much, but you typically earn 1% or more in savings. If you spend $5,000 on groceries every year, that adds up to $50. 

Take Grocery Store Loyalty Programs to the Next Level

One way to maximize your savings from loyalty programs is to download the mobile apps for the brands you join. In many cases, you’ll find in-app discounts you won’t be able to find anywhere else. 

5. Plan Your Meals & Stick to Your Plan

Do you meticulously plan your meals each week? If not, doing so can save you quite a few bucks.

When you shop without a plan, you shop based on what looks good. You may also buy more or less than you need for specific recipes, which can lead to food waste. 

You may be able to save significantly by planning your breakfasts, lunches, dinners, and snacks for each day of the week. This gives you the opportunity to buy exactly what you need and avoid wasting food and the money you spent buying it. 

Take Meal Planning to the Next Level

It’s easier to stick to a meal plan when planning your meals is exciting. Consider looking online for new recipes and incorporating at least one of them into your meal plan every week. This may not save you any more money, but it will add a level of excitement to the meal-planning process. 

6. Shop at Cost Plus 10% Stores

Grocery stores are independent businesses that are in business to make money. As independent businesses, they’re free to set their own prices. That means prices may be significantly different from one store to the next. 

Cost plus 10% stores aren’t in every neighborhood, but if there are any near you, you’re in luck! 

These stores charge their customer their cost of goods plus a 10% markup. You could save big bucks when stores only charge a 10% markup. 

Take Shopping at Cost Plus 10% Stores to the Next Level

You can take the savings from shopping at cost plus 10% stores to the next level by clipping coupons and shopping on the outer edges of these stores. 

7. Get a Wholesale Club Membership

Wholesale clubs sell products in bulk quantities. Why would you want to buy in bulk? Because it’s typically far less expensive per unit when you do. 

The exchange is that wholesale clubs like Costco and Sams Club charge membership fees if you want to join. Those fees typically range from $45 to $120 per month, depending on the type of membership and membership rewards you’d like. 

It’s worth the fee. You could easily save $40 or $50 with one well-planned trip to a wholesale club.

Taking Wholesale Club Membership to the Next Level

Many wholesale clubs also offer rewards credit cards. You could add to your savings by using the rewards credit card for the brand you’re shopping at. 

8. Take Advantage of Sales

There’s nothing like a big sale. Although sales aren’t always happening on the products you use regularly, consider trying new things and taking advantage of sales when they’re available. 

9. Compare Prices Online Before You Shop

As mentioned above, most grocery stores are for-profit companies that operate independently. As such, they’re free to set their own prices. That’s why prices in one store may be far higher for some products and far lower for others. 

Before you shop, go to the websites of the stores you plan to shop at and look for the items on your list. Compare prices at all of your planned stops. Make a note on your list of which stores have the best prices so you know what to buy and where.

Take Price Comparisons to the Next Level

As you compare prices, consider looking into prices at stores where you don’t typically shop. If there are enough savings at another location, it might be worth adding another stop to your shopping trip.  

10. Don’t Pay for a Name

There are some things that only taste right when they have a specific brand name printed on their labels, but those items are few and far between. In most cases, generic brands taste almost exactly like their brand-name counterparts, and in some cases, even better!

That’s especially true for non-prepared foods like rice, dried beans, and other produce. 

Generic foods are usually far less expensive than brand-name foods. It doesn’t make sense to pay extra for a brand when a blind taste test shows lower price options have a nearly identical flavor profile. 

Take Generic Shopping to the Next Level

You can save on more than groceries when you shop generic. That’s especially true when it comes to over-the-counter medicines and healthcare products. Take a look at the ingredients of that expensive headache medication you use. Now, take a look at the label on the generic brand. You won’t find any material differences between the two. 

11. Save Your Receipts for Rebate Apps

There are tons of apps you can use to get rebates every time you shop. The process is usually very simple and involves one of two options:

  1. Saving Receipts. Some apps ask you to take a picture of your receipt. When you do, they credit you a percentage of your purchase back as a rebate. 
  2. In-App Shopping. Other apps require you to shop at popular brands in their apps and reward you with rebates for doing so. 

No matter which you choose, you stand to save a meaningful amount of money on your grocery bill when you take advantage of them. 

Some of the most popular options include:

  • Ibotta
  • Acorns
  • Checkout51
  • Shopkick
  • Fetch Rewards

Take Your Rebate Apps to the Next Level

If you’d like to increase your savings from rebate apps, simply sign up for multiple options. Some apps offer larger rewards for shopping at some stores than others. So, use the rebate app that gives you the most bang for your buck with each purchase. 

12. Grow Your Food

Another way to save money on food is to grow your own. You may not have a green thumb, but you really don’t have to. There are some crops that are so easy to grow, everyone should be doing it, and when you do, you don’t have to buy them. Some essential, yet easy-to-grow crops include:

  • Potatoes
  • Onions
  • Scallions
  • Lettuce
  • Strawberries
  • Citrus (Oranges, Lemons, Satsumas, Grapefruit)
  • Stone Fruit (Peaches, Pears, Plums)

Take Your Food Garden to the Next Level

If you want to take your gardening to the next level, consider looking into the crops that grow best in your area and start growing them. Also, follow YouTube channels like Self Sufficient Me to learn how to become a better gardener. 

Don’t Forget the Back of Your Pantry

Nobody likes to dig to the back of anything. A pantry is no different. You may be buying canned and dry goods you already have plenty of. Instead, go on a pantry hunt to see what you already have waiting to be eaten. 

Take Your Pantry Hunt to the Next Level

If you’d like to take your pantry hunt to the next level, challenge yourself not to purchase anymore dry and canned foods until your pantry is 100% empty. It may be difficult to find recipes for everything, but doing so can cut back on waste and save you money. 

Pro Tip. Round up as you create your grocery list. You’ll stay on or under budget every time you shop if you do. 

The Bottom Line

You can save hundreds or even thousands of dollars per year on groceries by following the tips above. What are your plans for all of that savings? Consider investing your savings online to build yourself a secure financial foundation. 

Frequently Asked Questions About Saving Money on Groceries

The increasing cost of groceries is a pain point for just about everyone. So, it’s not surprising that there are so many questions about grocery savings circling the web. Answers to some of the most common questions are below. 

What Is the Best Way To Save Money on Groceries?

There are multiple ways to save money on groceries, but the best way to save is to employ multiple options at the same time. Consider challenging yourself to take advantage of all 12 ways to save on groceries listed above. 

How Much Money Should I Spend on Groceries per Person per Month?

The average cost of food per person per month in the United States typically ranges from $150 to $300. If you’re spending more than $300 per person, you’re spending far too much. If you’re able to eat for less than $150 per month per person, you’re a grocery savings star. 

How Do You Eat Healthy on a Budget?

The best way to eat healthy on a budget is to buy fresh produce and meats rather than prepared meals. When you buy fresh, you’re not paying the cost of someone else cooking and packaging your food. Not to mention, home-cooked meals are almost always more healthy than pre-cooked meals. 

What Are Some Cheap Healthy Meals?

Some cheap and healthy meals you can make include:

MealRecipe
Vegetarian Tortilla CasseroleRecipe
Breaded Pork Chops with Apple Cabbage SlawRecipe
Chicken Pepper & Corn Stir FryRecipe
Quinoa with Chicken & LentilsRecipe
Beefy Stuffed Sweet PotatoRecipe

These are just five of the countless options available to you. A quick search online will give you a never-ending cookbook of low-cost healthy meals. 

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What’s the Difference Between a Broker & a Trading Platform?

Joshua Rodriguez
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What’s the Difference Between a Broker & a Trading Platform?

As you get your feet wet, you often hear the terms broker and trading platform. Although these terms are commonly used interchangeably, there are distinct differences between the two. 

So, why are the terms often used interchangeably? Because you use both brokers and trading platforms to trade or invest in stocks. In fact, some of the best trading platforms are offered by brokers, further muddying the waters. So, what’s the difference between the two?

What Is a Stock Broker?

A stock broker, also commonly called a broker, broker-dealer or brokerage, is a company that acts as an intermediary between investors and the stock market. Brokers facilitate trades for investors, exchanging cash for shares and vice versa. 

Brokers have traditionally charged commissions for these services. Even today, full-service stockbrokers charge between 1% and 2% commissions for their services. However, that doesn’t mean you have to pay commissions to invest. We’ll talk about fees more later in this article. 

Thanks to technological innovation over the past few decades, there are several brokers that operate online. Discount online brokers have made investing in stocks online easy and relatively inexpensive. 

What Are the Best Online Brokers?

Every broker is its own business, and they all have their own unique fee structures and features. The best stockbroker for me may be different from the best broker for you, depending on the differences in our investing styles, capital capabilities, asset interests, and more. 

Although I can’t tell you which broker will be the best for your unique situation, I can tell you that the most popular online brokers in the United States include (in order starting with the most popular by number of customers):

  1. Fidelity. Fidelity is one of the most trusted financial institutions in the United States. The company has been serving customers for more than seven and a half decades. 
  2. Charles Schwab. Charles Schwab is another traditional full-service broker that evolved with the market to also provide discount online brokerage services. The company has been serving the investing community for nearly five decades. 
  3. Robinhood. Robinhood is strictly an online brokerage that was founded nearly a decade ago. The company caters to millennials and has become a favorite among young active traders.  
  4. Webull. Founded in 2017, Webull is the youngest broker on this list, but don’t let that fool you. The company has quickly grown to become the fourth most popular discount brokerage online by number of customers.  
  5. TD Ameritrade. TD Ameritrade is another brokerage that’s been serving investors for decades. The company has evolved to become a leading online player and is considered a top pick in the active trading community thanks to its thinkorswim platform. 

Although the brokers mentioned above are the most popular online options in the United States, there are several other options to choose from. Before signing up for a brokerage’s services, compare your option and consider which option is best for your unique situation. 

How to Compare Brokers Online

As mentioned above, each online broker is its own business, with unique qualities that may or may not appeal to you, so it’s important to compare your options before choosing which stockbroker you’ll work with. Consider the following as you compare your options:

  1. Fees. Many online brokers don’t charge trading commissions, and other fees are minimal. Others may charge commissions and exorbitant fees to manage your account. It’s best to choose a broker that offers the lowest fees for the products and services you plan to access. 
  2. Asset Availability. Some brokers only focus on stocks and exchange-traded funds (ETFs), while others make mutual funds, currencies, bonds, cryptocurrencies, and more available. Consider the types of assets you’re interested in trading and ensure the broker you choose has those assets available to trade. 
  3. Research Tools. Some brokers focus strictly on providing a platform where you can buy and sell stocks. Others offer a wide range of research tools, helping you make educated decisions as you invest and trade. Of course, educated trading decisions typically result in higher profits. Think about the tools each broker offers and how they may help you improve your investing and trading experience. 
  4. Technical Analysis Tools. If you’re a pattern day trader, you rely on technical analysis tools to predict moves in the market and exploit them for quick profits. Even investors use technical analysis to determine the best entry and exit points as they adjust their portfolios. Think about your technical analysis needs and which broker is best at meeting them. 
  5. Promotions. Finally, if you end up with two or three options you think are a good fit, consider promotions. Some brokers, like Robinhood and Webull, offer free shares of stock just to sign up and make your first deposit. 

What Is a Trading Platform?

A trading platform is a tool used by investors and traders to buy and sell assets. Online brokers typically offer their own trading platforms, but there is a wide range of third-party trading platforms to take advantage of as well. 

Investors and traders alike commonly use third-party platforms for access to tools like technical indicators, trading simulators, and historical data as they make investment decisions. 

What Are the Best Trading Platforms?

There are several trading platforms to choose from, each offering its own unique capabilities. So, there’s no one-size-fits-all best trading platform. Some of the most popular trading platforms include:

TD Ameritrade – thinkorswim 

Best for Active Traders

Although this is a broker-provided trading platform, it’s one of the most popular in the industry, especially among active traders. That’s because the platform was designed by traders for traders and includes all the bells and whistles even the most active market participants need. 

As with most broker-provided platforms, thinkorswim is absolutely free to use, you just pay standard contract fees on derivatives. 

Merill Edge

Best for Fundamental Research

Bank of America, one of the world’s largest banks, owns Merill Edge. The Merill Edge trading platform is an impressive offering, especially if you like to mix fundamental research into your trading strategy. 

The platform offers some of the most robust stock research tools available. These tools are so impressive they make the huge signup bonus and technical tools look like nothing more than icing on the cake. 

If you’re a Merill Edge customer, you get free access to the platform. 

E*Trade

Best for a Mix of Long-Term Investments & Short-Term Trades

E*Trade is one of the internet’s premier discount online brokers. Like the other options listed here, the company doesn’t charge for domestic stock and ETF trades. Moreover, it offers multiple trading platforms. This gives the company the ability to cater to the active trader as well as the long-term trader who takes a more fundament approach. 

How to Compare Trading Platforms Online

There are a few factors you should consider when you decide which platform is best for you. Some of the most important factors include:

  • Available Tools. Think about your trading or investment strategy and decide which tools are important for you. For example, if you’re a day trader, you need top-of-the-line technical analysis tools and indicators. On the other hand, if you’re a long-term investor, you take a more fundamental approach to market decision-making. 
  • Cost. Most broker-provided trading platforms are free to use. If you use a third-party platform, you may have to pay a monthly, annual, or one-time software licensing fee. You may also have to pay data subscription fees regardless of who provides the platform. Make sure you compare all platform-related expenses before you sign up. 
  • Layout. The market moves on a second-by-second basis. It’s important that your trading platform is structured to make the trading and investing processes as efficient as possible. Some platforms even allow you to structure your own layout so your trading desk shows the exact information you need on the home screen. 

Key Differences Between Brokers & Trading Platforms

There are several differences between brokers and trading platforms. The most important to consider are the services and fee structures you’re likely to experience with each. Here’s how these crucial differences compare from one to the next. 

Services Provided

Brokers and trading platforms offer two completely different types of services. 

Services Provided by Brokers

Brokers are the middle-man between you and the market itself. Brokers earn money by facilitating buy-and-sell trades for their customers. In some cases, the money they earn comes from their customers. In others, it comes from the market makers they use for order fulfillment in a system known as payment for order flow (PFOF). 

Services Provided by Trading Platforms

Trading platforms are tools investors and traders use to place trades. These pieces of software offer market data, technical analysis tools, news, and other information that can help you make larger profits in the market. 

Although you use a trading platform to place trades, your trades are placed with brokers. Once you place your trade, the broker executes it as requested. 

Fees

Because brokers and trading platforms are two completely different services, they charge different types of fees. 

Broker Fees

In the not-so-distant past, brokers typically charged commissions on all trades. Over the past decade or so, commission-free trading has taken the market by storm. Now, most brokers don’t charge commissions for domestic stock and ETF trades. They earn PFOF checks from market makers instead. 

There are other fees to consider though:

  • Contract Fees. If you trade options or futures, you should pay close attention to contract fees. These are fees brokers charge to execute derivatives contracts. 
  • Margin Rates. Some traders borrow money from brokers to facilitate trades in margin accounts. As with any other loan, margin trades come with interest rates. If you trade on margins, make sure to look into interest rates when you choose a broker. 
  • Service/Maintenance Fees. Some brokers charge a monthly, quarterly, or annual service fee if you don’t either maintain a minimum balance in your account or if you miss minimum trade activity requirements. The good news is the most popular players don’t typically charge these fees. 

Trading Platform Fees

The vast majority of trading platforms are free to use, especially when your broker provides them. In some cases, you may encounter one of three common third-party trading platform fees:

  1. Licensing Fee. This is a monthly, quarterly, annual, or one-time fee you pay in order to use the trading platform. 
  2. Data Fees. Some trading platforms give you access to high-level market data in exchange for a monthly or annual subscription fee. 
  3. Indicator Fees. Finally, some trading platforms lock their best technical indicators behind paywalls. 

Broker vs. Trading Platform FAQ (Freqently Asked Questions)

I’ve yet to come across a financial topic that isn’t met with questions. Some of the most common questions about the comparison between brokers and trading platforms include the following:

Is a Broker a Trading Platform?

No, a broker is not a trading platform. Investors use trading platforms to place market orders. Those market orders are then routed to your broker who executes the trade on your behalf. 

Which Broker Has the Best Trading Platform?

The best trading platform for you depends on your unique needs as an investor or trader. However, TD Ameritrade’s thinkorswim platform is a top-ranked option according to various sources. 

Which Trading Platform Is Best for Beginners?

E*Trade is a compelling option for beginners because it offers multiple trading platforms alongside easy-to-use trading tools. 

The Bottom Line

The bottom line here is simple; if you’re investing or trading, you’re going to need a broker and a trading platform. The good news is that some of the best trading platforms are free when you choose to work with the broker that developed them. 

Now that you know what you need to start trading, it’s time to give it a go. You can also further your trading education with our friends at Trade Ideas. 

Article Resources

How to Invest in Stocks Online

Joshua Rodriguez
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How to Invest in Stocks Online

The investing process has changed over time. People had to work face-to-face or over the phone with a trusted broker to get involved in the market in the past. It wasn’t until the 1990s that stocks became available online. Today, everything happens online.

Hundreds of brokers and trading platforms make it easy for you to invest in stocks online.

Unfortunately, the stock market isn’t something most people learn in grade school. At the same time, finance is a taboo topic. So, you may feel left in the dark, unaware of how to get started. Don’t worry. Follow the steps below to learn how to invest in stocks online… Successfully.

Step #1: Choose the Best Online Broker

Stock brokers are the middlemen between the investor and the publicly traded company. They make it easy for you to buy stocks online and off. So, the first thing you’ll need to do is find a broker to work with.

Your broker should make it easy to buy stocks, ETFs, and other exchange-traded products. There are several brokers to choose from. Five of the most popular include:

  • Fidelity. Founded in 1946, Fidelity is a traditional brokerage firm that quickly adjusted to the times as technology took hold on Wall Street. Today, the company is the most popular online discount broker by amount of customers and shows no signs of giving up its lead. 
  • Charles Schwab. Charles Schwab is also a more traditional broker, founded in the mid-1970s. Like Fidelity, Schwab led the charge as discount brokers changed the landscape of Wall Street, becoming one of the leaders in the market to this day. 
  • Robinhood. Robinhood was founded in 2013 as an online broker for the everyday investor and trader. The platform appeals most to millennials and is well known for offering fractional shares and even free shares of stock just for signing up. 
  • WeBull. Webull is the newest brokerage on this list, founded in 2017. However, the company quickly rose to the top, offering a simplified, low-cost approach to investing and trading. 
  • TD Ameritrade. Founded in 1975, TD Ameritrade is another traditional brokerage turned discount online broker as the change in tides on Wall Street took place. The company is well known for its advanced trading technology and low-cost trading experience. 

Keep in mind that each broker is unique. So, it’s crucial that you compare your options. Never sign up for the first online brokerage you come across. The most important factors to compare include:

Fees & Commissions

You’re investing to make money, not to spend it. Your online broker is in the business to make money. So, chances are that you’ll pay fees at some point in your investing career.

There are several online brokers that offer commission-free trading. Though commission-free trading only applies to domestic stocks and ETFs in most cases. International stock trading will come with added fees. The same is true for futures and options trading.

Pay attention to all fees in your comparison to make sure you’re getting the best deal.

Nonetheless, it’s easy to keep your investments in commission-free assets. Doing so will reduce your cost of investing.

Security Features

When you work with an online broker, you’re signing up for a financial service. Your broker will be responsible for keeping your investment dollars safe. So, it’s important to make sure the broker you choose takes proper measures to protect your data.

The best brokers offer the following security features:

  • Encryption. Encryption is a must in online broker data transfers. Encryption mixes letters and numbers. So, if hackers do get ahold of your data, they won’t be able to read it.
  • Activity Notifications. Activity alerts notify you whenever you buy or sell stock in your account. You’ll also receive notifications when you transfer money and for all other activities.
  • PIN. Some brokers allow you to set up a PIN Number. You’ll use your PIN any time you buy, sell, or take any other action on their platform.
  • Two-Factor Authentication. Finally, the most secure brokers offer two-factor Authentication. This means when you log in, you’ll enter a unique code sent via text or email to access your account. 

Consumer Reviews

Consumers love to share their opinions about products and services. This has led to a sea of online reviews to sift through. Look for reviews about the brokers you’re interested in signing up for.

Chances are you’ve found a great broker if the majority of its investors are happy. You’ll want to look for other options if most investors have had a bad experience.

Product Offerings

You’re going to want to focus on the traditional idea of investing in stocks in the beginning. But, as you gain more experience, you may want to venture into futures and options trading. You may even want access to margins.

Take some time to look into the different product offerings from each broker you compare. The best brokers tend to offer a wide range of products.

Regulation

FINRA regulates online stock brokers that provide services in the United States. FINRA regulation ensures your broker has your best interest in mind. Never work with an unregulated broker.

Step #2: Get an Understanding of Order Types

There’s more to investing than simply buying and selling stocks. There are several different ways to place orders in the stock market. Many order types give you more control over how, and when, you execute online stock orders.

Some of the most common order types include:

Market Orders

Market orders are the traditional order buy and sell orders that most beginners use. Your broker will execute these orders as soon as they’re placed at the best possible price.

For example, say you place a market order to buy 10 shares of Apple stock. You’ll buy the next 10 shares available at the best price possible.

Limit Orders

Limit orders set limits on the amount of money you’re willing to spend or accept to buy or sell stock. For example, ABC stock is trading at $10.50 per share, but you want 10 shares at $10.45 per share. You place a buy limit order to buy 10 shares at $10.45 each. When the price falls, the order will convert to a market order at a price closer to your goal.

Limit orders give you more control over your entry and exit prices. Conversely, your broker will never execute them if the trigger price isn’t met.

Stop-Loss Orders

Stop-loss orders are designed to give you more control over the risk you accept when making a trade. These orders have an execution price. When the execution price is met, the stop-loss becomes a market order to exit your position. 

For example, you bought XYZ stock at $10.00 per share hoping the stock would move upward. However, you’re not willing to take more than a 5% loss on the trade. So, you set a stop loss at $9.50 per share. If XYZ falls to $9.50, the stop-loss order is triggered and your shares will be sold at $9.50, limiting the bleeding on bad moves in the market. 

Take-Profit Order

Take-profit orders are the exact opposite of stop-loss orders. These orders are designed to lock in profits at a certain level to protect you from a reversal that could eat into your gains. 

For example, you purchase XYZ stock at $10.00 per share and hope to earn a 5% profit. So, you set a take-profit order at $10.50 per share. Once the stock reaches $10.50, the order converts to a market order and your shares are sold to lock in your profits. 

Trailing Stop-Loss Order

Finally, the trailing stop-loss order works just like the stop-loss with one big advantage. When the stock moves up, the stop-loss order moves with it, helping to both limit losses and lock in profits. 

For example, you buy ABC stock at $10.00 per share. You’re willing to accept a 5% loss and set a trailing stop loss at 5%. So, if the stock falls to $9.50 per share, the order becomes a market order to sell your shares and you automatically exit your position. 

A month goes by and you look at your holdings to find that ABC has climbed to $11.00 per share. As a result, your trailing stop-loss followed the stock up. Now, the stop-loss will be triggered if the ABC falls below $10.45 per share, a 5% loss from the high of $11. Should this be the case, you’ll lock in a 4.5% gain. 

Step #3: Choose an Investment Strategy

Successful investors often say the most important part of investing is choosing and sticking with an investment strategy. A strong investment strategy tells you which stocks to buy when to buy them, and when to sell them. 

You can find countless investing strategies online, but they all tend to funnel into one of five categories. 

Growth Investing

Growth investing is most popular during bull markets. Growth investors specifically target stocks with a strong performance across multiple growth categories. Though each investor looks for a unique set of statistics that point to sustained upward momentum, most typically at least look at:

  • Revenue Growth. Revenue growth is the amount of money a company makes over a predetermined time compared to the previous period. For example, growth investors look for companies that see consistent revenue growth quarter-over-quarter and year-over-year. 
  • Earnings Growth. A company can generate incredible revenue growth, but still not qualify as a growth stock. After all, if revenue is eaten away by expenses, it doesn’t mean much. That’s why growth investors pay close attention to earnings growth as well. 
  • Stock Price Growth. Finally, growth investors attempt to tap into defined upward trends. So, a stock must be experiencing a trend of price appreciation to qualify as a growth stock. 

Growth investing is best for you if you’re moderately risk-tolerant and want to produce greater-than-average market returns. However, growth stocks often come with high valuations and experience high levels of volatility – both of which are a turnoff to risk-averse investors. 

Income Investing

Income investing is the process of investing in assets that produce regular, reliable income. If you deploy the income investing strategy in the stock market, it means you invest in stocks that pay high dividends. 

There is a tradeoff here. 

Quality dividend stocks are known for slow steady growth, rather than robust price appreciation. So, this isn’t the strategy for you if you’re interested in beating average market returns. Nonetheless, if you’re a risk-averse investor, income investing is a great way to tap into market gains while generating regular dividend payments. 

Some of the best stocks for income investors are known as dividend aristocrats. Companies labeled dividend aristocrats haven’t missed a dividend payment and consistently increased base dividends annually for a period of 25 years or longer.  

Value Investing

Value investors look for stocks that the market has largely ignored. These stocks have great revenue and earnings data, compelling products, and strong intellectual property, but their share price doesn’t reflect their success. 

Value investors believe that when they tap into these undervalued stocks, they purchase shares at a discount – opening the door to more profitability when the market realizes what it’s missing. 

Several investing gurus, including Warren Buffett, live by this strategy. 

According to Warren Buffett, understanding intrinsic value is crucial to success as an investor. In fact, Buffett’s mentor, Benjamin Graham is known as the Father of Value Investing.  

Value investing is an effective way to increase your portfolio returns without adding significant risk. The key in doing so is research. In some cases, value stocks may be undervalued for a reason. For example, revenue and profits may have been going well for some time but projections suggest a plateau ahead. Nonetheless, with enough research, you can find diamonds in the rough that pay serious dividends in the long run. 

Factor Investing

Factor investors look for risk-premium factors when they invest. This means they look for opportunities to accept minimal amounts of increased risk that are heavily correlated with maximum profitability. 

For example, many investors focus heavily on small-cap stocks. 

Small-cap stocks are traditionally riskier than their large-cap counterparts. On the other hand, they also typically produced higher annualized returns than large-cap stocks over the long run. 

So, when you invest in small-cap stocks you accept more volatility – which equates to more risk. However, in the long run, you’ll likely come out ahead when compared to large-cap stocks in the same sector. 

Factor investing is best for long-term investors who have moderate risk tolerance. These investors are capable of watching the market ebb and flow without letting emotions get involved. They also have a knack for researching and choosing early-to-mid-stage companies with the potential to captivate a large target audience over time. 

ETF Investing

Exchange-traded funds, or ETFs, are bucket investments that use money from a large group of investors to invest in a diversified group of stocks or other securities. These funds trade on major stock exchanges, just like stocks, making them easy for you to access. 

Each ETF is managed by a team of professional investors who follow strict strategies outlined in the fund’s prospectus.

There are ETFs built around just about any investment strategy you can think of – from growth to income, value, and yes, factor investing. You can also use these funds to build diversified portfolios of domestic or international stocks or a mix of the two. 

ETF Investing is best if you’re a busy investor who doesn’t have the time to manage a diversified portfolio comprised of individual stocks. Whether you’re looking for income, price appreciation, or a mix of the two, there’s a strong chance you can find a mix of ETFs that meets your investment objectives.  

Step #4: Find & Analyze Opportunities

Now that you know how the stock market works and you have your strategy in place, it’s time to decide which companies you’re going to invest in. It’s important to choose stocks that are in line with your investment strategy and have a high probability of long-term growth. Learn how to pick the best stocks below.

Start With a Stock Screener

There are thousands of publicly traded companies on the United States stock market alone. Add in the rest of the world and you have more opportunities than you can analyze in a lifetime. The best way to make your way through the figurative haystack to find the needle you’re looking for is to use a stock screener. 

The best stock screeners let you set the exact parameters of the stocks you’re looking for. That could mean stocks that have produced a specific annual percentage growth over a predetermined period of time or stocks that trade with a P/E ratio that points to an undervaluation. 

Some of the best stock screeners online include:

  • Finviz. Finviz has become a household name in the investing community because it offers a wide range of tools, including a stock screener, for free. The company offers an elite membership that unlocks tools like backtesting and advanced charting for just under $25 a month, but if you just want a screener, the free membership is all you need. 
  • TC2000. TC2000 has been around for two and a half decades and benefits from significant refinement through experience. The platform features one of the most robust sets of fundamental and technical settings, making whittling thousands of stocks down to a handful that matches your criteria possible. You can get a basic account for $9.99 per month, but if you really want to unlock the power of the screener, the Gold plan is only $29.99 per month. You can unlock savings by signing up for an annual or bi-annual subscription. 
  • Trade Ideas. Trade Ideas isn’t just a screener, it’s a complete trader education program that unlocks the power of artificial intelligence as you learn. The Trade Ideas screener incorporates artificial intelligence into the screening process. The technology at Trade Ideas is second-to-none and education is a must for any beginners who want to turn the market into a career. 

Make a Watchlist

A watchlist is a list of stocks you plan on paying close attention to. These can be stocks or funds you’re already investing in or assets you’re considering. You’re free to create a watchlist using a pen and pad, or even an Excel or Google Drive spreadsheet, but the best way to do so is by taking advantage of free online tools. Some of the best watchlist providers include:

  • Yahoo! Finance. All you need to do is create a free Yahoo! account. Once you have your account you can create your own watchlist at Yahoo! Finance.
  • StockTwits. StockTwits is likely the most popular stock market-related social network online. The network is free to join and you won’t pay a penny to create a watchlist.   

Research Each Company

The best investments tend to be the most well-researched ones. So, take your time and research each company. As you do, pay close attention to the following:

  • Revenue & Earnings Growth. The best companies produce consistent growth in topline revenue and bottom-line profitability. Dive into earnings reports for at least the past four quarters to ensure the company is growing. 
  • Valuation. In many cases, companies that are doing overwhelmingly well are also overvalued. That means there may not be much room for growth ahead. Look into valuation metrics like the P/E ratio (price-to-earnings ratio), P/S ratio (price-to-sales ratio), and P/B ratio (price-to-book ratio) in comparison to the company’s peers to determine if it’s undervalued, overvalued, or trading at a fair market value. 
  • Dividend Yield. Dividends aren’t a must for a solid investment, but they are a sign that the company is doing well. They also provide reliable income through your investment that you are free to either enjoy or reinvest to expand your exposure to the compounding power of financial markets. 
  • Future Prospects. Consider the company’s handle on its target audience and potential growth ahead. If the company has already completely saturated its market, it may be headed for a plateau, but if it’s successfully growing its market share, there may be plenty of room for growth. 

Look Into Growth, Income & Value

There are tons of different investment strategies to choose from, but the vast majority fall into one of three categories – growth, income, and value. It’s important to decide which type of strategy you’ll follow to help you dial down the best investment opportunities for your portfolio. Here’s how these three strategies work:

  • Growth. Growth investing is best for the aggressive investor who’s willing to accept increased risk in order to beat average market returns. Growth stocks have a strong history of producing revenue and earnings growth as well as consistent price appreciation. 
  • Income. Income investing is best for the risk-averse investor. This type of investing typically involves buying blue-chip stocks with stable and growing dividends. Though these stocks won’t grow in value as fast as growth stocks, they tend to withstand bear markets impressively. 
  • Value. Value investors take a middle-of-the-line approach to risk. As a value investor, you buy stocks with clear undervaluations – much like using a coupon to receive a discount at a retail store. The goal is to beat the market as the stocks you buy climb to more fair market valuations. 

Keep Diversification in Mind

Diversification is the process of spreading your investment dollars over a large list of investments. This protects you because if one or two stocks in your portfolio take a dive, the gains from the remaining stocks in your portfolio lighten the blow. 

A properly diversified portfolio includes at least 20 stocks with no more than 5% of your total portfolio value invested in any individual asset. Although some portfolios are far more diversified. 

If you’re not comfortable maintaining a portfolio with so many assets, don’t worry. You can also invest in exchange-traded funds (ETFs). These funds collect investment dollars from several investors and typically use those dollars to invest in a list of hundreds, or even thousands of stocks. There are ETFs for all styles of investors, centered around all sectors. 

Step #5: Buying Your First Stocks & ETFs

It’s time to start adding stocks and ETFs to your portfolio. Considering everything you’ve learned above, build a diversified group of stocks, or invest in a few ETFs that provide diversified exposure to different areas of the market. Although each broker is different, the process of making an investment is typically very similar. Follow the steps below:

  1. Log In. Log into the brokerage account of your choice. If you haven’t already signed up, it’s time to do so. 
  2. Search. Most online brokerages have a search bar at the top left, or top right, hand corner of the screen. Search for the full name of the company or ticker that represents the company on the market. 
  3. Click “Buy”. Once you navigate to the page representing the stock you’re interested in, click the “Buy” button. In some cases, the button may be labeled “Trade,” followed by “Buy” and “Sell” buttons. 
  4. Input Your Order. Type either the number of shares you want to buy or the dollar amount worth of shares you want to buy and submit your order. 
  5. Confirm Your Order. Review your order details and click “Confirm” or “Submit” to finalize your stock or ETF purchase. 

Step #6: Add a Safety Net With Fixed-Income Investments & Other Safe Havens

Balance is important in any investment strategy. Investors typically balance out the volatility of the stock market with fixed-income and other safe haven investments. This way, if the market crashes, your safe haven allocation helps you avoid significant losses. 

Corporate Bonds

Corporate bonds are loans you make to corporations in exchange for a predetermined interest rate and payment of your principal investment in full at a later date. In the event of a liquidation, bondholders are paid before stockholders, making these a safer bet. 

Treasury Debt Securities

Treasure debt securities like Treasury Bonds, Treasury Bills, and Treasury Notes, are loans made by you, the investor, to the United States Treasury. These loans are backed by the full faith and financial security of the United States government, making them some of the safest investments on the market. 

However, there is a tradeoff. 

Because of the safety of these investments, they’re known for the lowest yields and often fail to produce gains equal to or greater than the rate of inflation. 

Precious Metals

Finally, precious metals like gold, silver, and platinum have long been used as safe haven investments. These metals are known as effective stores of value, both outpacing inflation and performing well in the face of market downturns. 

Step #7: Rebalance Regularly

Over time, some assets in your portfolio will perform better than others. This means that as time passes, your portfolio will fall further and further out of balance. As a long-term investor, you don’t have to worry about rebalancing weekly or monthly, but it is a good idea to assess your current asset allocation and rebalance it according to your strategy at least bi-annually. 

Of course, there’s no shame in quarterly, or even monthly rebalancing as this will only serve to keep your portfolio in order to protect you against any unexpected events in the market. 

The Bottom Line

The bottom line here is simple. Investing in stocks online likely isn’t as difficult as you think. It’s all about finding quality opportunities, doing your research, and making educated investment decisions. 

Keep in mind, this guide is for investing in stocks, not trading them. If you’d like to learn how to trade, I strongly recommend taking advantage of Trade Ideas’ educational series and trading tools.

Investing In Stocks Online Frequently Asked Questions (FAQ)

Investing is a complex topic. It only makes sense that there are several frequently asked questions about investing in stocks online. Here are the answers to some of the most common:

How Can I Invest $100?

It may be difficult to properly diversify individual stocks with a $100 starting portfolio value. So, your best bet is to invest in a couple of highly diversified ETFs. This will give you exposure to the market while protecting you by spreading your money across hundreds or even thousands of different stocks. 

Which Online Investing Site Is Best?

The best online brokerage for me may be different from the best brokerage for you. The most popular online brokerages include Fidelity, Charles Schwab, Robinhood, Webull, and TD Ameritrade. Your best bet is to compare these options and choose the one you believe fits you best. 

How Do I Invest With No Money?

You need money to invest, but you don’t need a ton of it. Even if you’ve only got $15 or $20 to invest, you can sign up for any of the top online brokers and purchase fractional shares to get your portfolio going. 

The key is acting now. The longer you wait, the more compound gains you give up! 

Is It Better to Buy in Shares or Dollars?

For allocation purposes, I find that it’s better to buy stock in dollar amounts. It can be hard to purchase exactly 5% of your portfolio’s total value in a single stock if you’re buying a whole share at a time. Chances are, you’ll need fractional shares to ensure proper allocation. 

Can I Buy Amazon Stock?

Amazon stock’s ticker is AMZN and it’s one of the most popular stocks on the market. You can buy the stock with just about any broker online. 

At What Age Should You Start Investing?

My 12-year-old son started investing this year and I think that was too late. The simple fact is, the earlier you start, the better.  

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How to Sell a Car That Doesn’t Run

Joshua Rodriguez
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How to Sell a Car That Doesn’t Run

Cars don’t last forever and when problems start, they tend to grow. That’s why so many lemons become yard and driveway ornaments that do little by way of adding curb appeal. 

Did you know that a rust bucket sitting in your driveway could put hundreds or even thousands of dollars in your pocket?

Junk cars are sold every day, and depending on the year, make, model, and what’s wrong with the car, yours might be worth far more than you think. If you have a car that doesn’t run, here’s what you need to know in order to sell it. 

How to Sell a Car That Won’t Start

You’ve had it with your lemon and you’re ready to sell, but how do you go about doing it? 

Determine How Much You Can Sell Your Non-running Car For

The first thing you’ll need to do before you sell your junk car is figuring out how much money you’ll get for it. Most people aren’t experts on scrap metal values, the amount of money you can get for used car parts, or anything else having to do with pricing a junk car. 

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You don’t have to be either. 

There are multiple companies out there that make their bread and butter buying and scrapping or fixing junk cars, and they’ll be happy to tell you what they think your car is worth to them. There are two things you should do when the right price:

  1. Get a Quote From Peddle. Peddle is the premier online buyer of cars, both junk cars and those that are in great condition. All you have to do to figure out how much they’ll give you for your car is fill out this form. In the end, you’ll be given a quote, and if you accept it, a tow truck will come to pick up your junk car and you’ll get paid. 
  2. Call Junk Yards Near You. Junk yards make money by selling parts out of cars that don’t run anymore as well as scrapping the metal used to make them. Chances are, you’ve got a few junk yards within 10 or 20 miles of your home. Call them and see what they’ll pay. 

Scrap Your Junk Car for Parts

Junk yards and companies like Peddle are in the business to make money. So, when you get quotes from them, there’s room in those quotes for these companies to turn a profit. If you’d rather put some work in, and turn the profit for yourself, you may want to scrap your car yourself. 

Of course, you’ll need some mechanical knowledge, and you’ll need to put in some sweat equity, but the returns are often worth it. 

Start taking the parts that you know work well out of your junk car and cleaning them up. Once cleaned, take a few pictures to publish with sale listings. Then, use websites like Craigslist.org, or Facebook Marketplace to list your parts for sale. 

Pro Tip. When listing your parts, look for other similar parts to determine the best pricing. You don’t want to list your parts for prices that are going to scare potential customers off and you don’t want to be the lowest-priced option on the list either. Be competitive, but try to get the biggest buck for your bang. 

Donate Your Car for a Tax Write Off

So, junk yards and Peddle didn’t offer enough to make a sale worthwhile and you’re not interested in parting your junk car out yourself. Are there any other options?

You could donate your car, regardless of its condition. 

Cars Helping Charities is just one of many companies that makes this possible. These companies pick up junk cars, part them out, or fix them up, in an attempt to generate a profit, and donate those profits to the charity of your choice. 

If you go this route, you’ll not only be able to sleep well at night knowing that you’ve done something that will benefit a meaningful cause, you’ll get a tax write-off as the profits generated from your property were donated to charity. 

Trade-In Your Non-Running Car

If your car has recently become a lemon, chances are you’re in need of another. In many cases, dealerships run “push, pull, or drag it in” promotions, offering thousands of dollars in trade-in credit for junk cars. 

Call the dealerships near you and ask if any of these promotions are going on. If not, ask if they accept junk cars as trade-ins. They’ll often give you something toward your down payment, even if it’s only a couple hundred bucks. 

Consider Fixing Your Car

Depending on what’s wrong with your car, you may be able to fix it for a low cost and sell it as a running car for far more money than you’d get for a junk car. 

Talk to your friends and family and ask if anyone will help you figure out what’s wrong. If not, and you don’t think the problem is too costly, consider having it towed to a mechanic for a diagnosis. 

If you find that making a $500 fix will increase the value of your junk car from $300 to $2,000, the fix becomes a no-brainer. 

Of course, there is the risk that what’s wrong with your car is costly, in which case, you’ll lose money from the cost of towing to the mechanic and diagnosis fees. Nonetheless, with such a big potential payoff, the potential returns may be worth the risk. 

Selling Cars That Don’t Run Frequently Asked Questions (FAQ)

You’re human, so you’re inquisitive. Find the answers to some of the most commonly asked questions about selling cars that don’t run below:

How Do You Sell a Car That Is Not Running?

You have several reasons to sell a car that’s not running. Here are the steps to selling a car that doesn’t run:

  • Step #1: Determine how much money your car’s worth based on the different options above.
  • Step #2: Decide how you’re going to sell your non-running car. Will you junk it, donate it, trade it in, or fix it?
  • Step #3: Take action. Follow the guide above to prep and sell your non-running car. 

Can You Get Money for a Car That Doesn’t Run?

Yes, you can get money for cars that don’t run. The amount of money you get will depend on the year, make, and model of your car, why it’s not running, and the way you decide to sell it. 

Will CarMax Buy My Car if It Doesn’t Run?

Yes. CarMax makes offers on all types of cars and trucks, running or not. However, you may get a better offer from other providers like Peddle. So, make sure to shop around. 

The Bottom Line

We’ve all heard the old adage, “one man’s trash is another man’s treasure,” and it’s no more true when it comes to junk cars. While that car sitting in your driveway may not have been a running machine for some time, giving you headache after headache along the way, to some, it’s worth at least a few hundred bucks. 

Don’t let your junk car continue to be an eyesore in front of your house. Getting rid of it won’t just help your curb appeal, it will help your pocket. 

Article Resources

© CNA Finance, LLC. All rights reserved.

This website is not intended to provide personal financial advise. Instead, it should be viewed as an educational source to help you make your own educated financial decisions. CNA Finance has affiliate relationships with advertisers and may be paid if you purchase a service after clicking a link on our website 

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