Who Are the Best Online Stock Brokers for Beginners 2022?
Before the pandemic, most people, especially millennials, were not very concerned with the state of their finances. According to Yash, a 26 years old MBA currently working at a major Indian retailer, “I was earning well and did not have to support my family. Since I had just started my career in 2019, I did not think of saving or investing my money. All I wanted to do was buy the things on my wish list, and travel as much as possible.” However, when the pandemic struck in 2020, Yash found himself reviewing his financial decisions. “I was lucky to still keep my job as my company had a major online presence and could afford to shift me to a work-from-home position. However, many of my friends were not so fortunate. Some of the most brilliant people I knew were suddenly out of jobs and there was no company willing to hire relative newcomers in amid the pandemic. If I had lost my job, I would have had to go back to depending on my parents as I had no savings to sustain me,” he mused.
Yash was among a multitude of millennials who found themselves worried about the future and the potential for other unprecedented events. One of the biggest learnings from the pandemic was the need to save money and keep aside a nest egg to tide over unforeseen circumstances. However, with the inflation rates at such high levels, and the cost of living rising daily, could Yash and his peers survive with just their savings? Or was it important for them to get aboard the investing bandwagon and start sustainably accumulating wealth?
The Importance of Investing
If Yash left his savings in his bank account, it would attract an interest of 5 to 6%. Given the inflation rate of around 6.7%, his savings would be losing value every day, and the interest on his savings account wouldn’t help him offset this loss. However, if he invested in the stock market, he could stand to earn around 15 to 20% returns every year, and more so on a longer-term basis! There was no confusion there – Yash had to start investing, and soon. Further, investing his money would help Yash realise passive income as his savings would be working for him, even as he earned his monthly income, making it a win-win scenario. He would also enjoy the power of compounding as he was starting his investment journey at a relatively young age. While there was no doubt about what he had to do, Yash did have multiple doubts about how he should do it.
Challenges Along the Way
The biggest problem for Yash was the fact that he did not know much about the stock market. “I had heard of the BSE and the NSE, and the Nifty. I knew companies like Britannia and HDFC were offering great returns. But I did not know how to invest, where to invest, how long to invest for… I was not prepared to invest on my own,” he said. Add to it the fact that, with a regular job, Yash would not be able to track the market regularly or research extensively, and it made his journey all the more challenging. That is when Yash’s friend Pratham told him about the best online stock brokers for beginners 2022.
Best Online Stock Brokers for Beginners 2022
One of the names Pratham mentioned, among the best online stock brokers for beginners 2022, was Stoxbox, an online trading platform that offered subscription plans and the ability to simplify their stock market investments in just three steps. It was especially beneficial for beginners dipping their feet into equity investing since it offered access to well-researched trading calls, quality and actionable insights, information about IPOs, ready-made portfolios, and stock screeners, making the process extremely simple and efficient.
With Stoxbox by his side, Yash would not need to undertake lengthy and time-consuming research to come up with investing options. He could just enter his investor details and create a unique profile featuring his risk appetite, return requirements, financial goals, and investment horizon. His unique profile would help him access ready-made portfolios tailored to his exact requirements, helping him access strong returns without worrying about tracking the market or taking decisions for himself.
“I had heard of many people who ended up losing money when investing in the stock market. My friend Rohan lost a lot of money when he invested in the Paytm IPO and had to cut his losses. He could not stay invested as he had taken the bet in the hope of listing gains. I did not want to face a similar situation where my savings end up going down the drain and I return to square 1. I am willing to take the risk for higher returns but I want to take educated and well-informed risks,” Yash shared. And, with Stoxbox, he could do just that. From guidance and nudges in the right direction to a monthly and annual subscription model which helped him plan his movements optimally, Yash found all his investing needs being met by the platform. Further, for people who preferred the traditional broking model, Stoxbox also offered a standard brokerage plan with comprehensive features.
If you have also been looking for the best online stock brokers for beginners 2022, you can stop your search and try out the Stoxbox app to gain a better understanding and grasp of stock market investments.
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