Investing in the stock market can help individuals grow their wealth, build a retirement fund, and enjoy the benefits of passive income. Retail investors are the lifeblood of the stock market, composed of non-professional market participants who generally invest smaller amounts than larger, institutional investors.

Retail investors buy and sell stocks and other securities through investment accounts with a brokerage firm. These accounts enable retail investors to trade publicly traded stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other assets in the US and international markets. For each trade, retail investors often pay broker commissions and fees that can range from free to several hundred dollars depending on the broker and the size of the transaction.

Retail investors can access a vast range of information and tools to make informed investment decisions. Brokerages commonly offer real-time market news, analyst commentary and reports, technical charts, and research to help investors choose the best stock or security. Online brokers also provide other services, such as low minimum deposits on accounts, access to products not ordinarily available to smaller investors, or margin accounts that give investors the ability to borrow money for investments.

For those who want some assistance, robo-advisors are a popular option for retail investors. These services provide automated, algorithm-based portfolio management tailored to investors’ goals, risk tolerance, and timeline. Many robo-advisors charge lower fees than human advisors and require a minimum account balance that’s often lower than the traditional brokerages.

Retail investors should keep abreast of regulations, cost structures and risk management practices when selecting a broker or advisor to ensure they’re getting the best value for their investments. In addition to understanding the role of fees and commissions, investors must also understand the tax implications of their investments and manage their portfolio accordingly. As always, diversification and a well-defined strategy remain key to success in the stock market. Whether it’s through a traditional brokerage, an online broker, or a robo-advisor, retail investors should do their research to determine which type of service is the best fit for their needs.