Where To Invest In Stocks and Bonds

Investing In Bonds
Chapter 1: Investing In Bonds
Chapter 2: Risks Associated With Investing In Bonds
Chapter 3: Where To Invest In Bonds

Investing In Stocks
Chapter 1: Investing In Stocks
Chapter 2: Risks Associated With Investing In Stocks
Chapter 3: Stock Investing Tips
Chapter 4: Where To Actually Invest In Stocks

A brokerage account is the first step you need to take before creating a portfolio. These accounts, managed by professionals who charge a commission, allow you to buy and sell stocks, bonds, mutual funds and several other investment instruments. Here are a few tips on how to choose the right broker to manage your brokerage account.

Types of Brokers

You can opt for a full-service broker or a discount broker, depending on the services you need. A full-service broker or the traditional broker offers many services from giving investment ideas to selling or buying stocks for you. Traditional brokers offer guidance along with complete portfolio management and investment research options.

A discount broker is more suitable for investors who like to manage their own portfolio. They are usually hired to carry out your orders for buying and selling shares and not for investment advice or research.


The commission charged by various brokers differs, based on the services you want from them – full-service, discounted service, faster service etc. Compare different offers in the market to find the right broker who can give you a good level of service for a reasonable price.

Minimum Opening balance and maintenance fee – Usually, the minimum opening balance for a brokerage account is $500-$1,000 but it could also be lower in some cases. When the opening balance is low, you need to be careful, as some firms try to cover for it by increasing the maintenance fee and other hidden charges.

Online Availability – Before opening a brokerage account, find out if the company’s trading platform is reliable. The last thing you want is a platform that doesn’t work when you need to sell some stocks or bonds urgently.

Other Channels for Investing in Bonds and Stocks

In addition to a brokerage account, you can also invest in bonds directly through government channels or through a mutual fund. The cheapest way to buy a government bond is to participate in the auctions conducted by the treasury department.

Investing in bonds and stocks through mutual funds allows diversification of your investment portfolio. When you purchase individual bonds or stocks, you may be able to invest in just one or two of them, but by investing in bond funds or stock funds, you can invest in dozens or even hundreds of bonds and stocks at a time, depending on the type of mutual fund you choose.