What Online Stock Broker Should I Use?
brett.c.brown
market. What online stock broker should I use if I am only going to
make 0 - 5 trades per quarter? Or maybe an online stock broker is not
the best option for me at all.
I thought it would be as simple as opening an account with eTrade but
it looks like there are all sorts of fees for having an inactive
account (i.e. not making enough trades in a quarter).
Is there anything else I should be considering?
Thanks in advance for the help.
Ron Peterson
> I am 24 years old. I want to invest ~$500 dollars in the stock
> market. What online stock broker should I use if I am only going to
> make 0 - 5 trades per quarter? Or maybe an online stock broker is not
> the best option for me at all.
An online broker will be better for you. A full service broker will
have more charges unless you have a large account.
> I thought it would be as simple as opening an account with eTrade but
> it looks like there are all sorts of fees for having an inactive
> account (i.e. not making enough trades in a quarter).
eTrade's 40/quarter inactivity fee is higher than most of the others.
> Is there anything else I should be considering?
It's nice if they have a local office.
It's important that you get a good summary of your transactions for
taxes.
Look at optionsXpress or Scottrade.
--
Ron
JC
"Ron Peterson" <r...@shell.core.com> wrote in message
news:1188364189.6...@r34g2000hsd.googlegroups.com...
I've switched everything to Scottrade. And there is no inactivity fee.
--
That's my story and I'm stickin' to it!
JC
Blash
>>> I am 24 years old. I want to invest ~$500 dollars in the stock
>>> market. What online stock broker should I use if I am only going to
>>> make 0 - 5 trades per quarter? Or maybe an online stock broker is not
>>> the best option for me at all.
With $500 and 1 trade a week, don't be surprised if it's all gone in 6
months.....
NB
Do they let you sell specific shares?
Alan Bowler
> I am 24 years old. I want to invest ~$500 dollars in the stock
> market. What online stock broker should I use if I am only going to
> make 0 - 5 trades per quarter? Or maybe an online stock broker is not
> the best option for me at all.
5 trades a quarter with $500 is not investing, it doesn't even
qualify as gambling. It is just giving the money away.
You will get a better after tax return just giving the cash
to some charity.
Unless you expect to see a lot more $500 amounts, then an
online broker is not what you want. Phone up some no-load
mutual fund company like Vanguard, put the money in some
broad based low MER index fund (either S&P 500 or total market
type. not some narrow sector index). Arrange to set up
a monthly purchase of $50 to $150 (depending on what you
can afford).
I particularly mention Vanguard because they
have rock-bottom low cost SP500 index fund. I think Fidelity
also does. Most of the mutual fund competition doesn't
come close, Fidelity also has an array of more expensive funds.
Later, when you have a couple of thousand free to invest,
and expect to have more similar sized chunks in the future
you will want to look into a broker.
JC
"NB" <nobu...@gmail.com> wrote in message
news:1188399587.1...@w3g2000hsg.googlegroups.com...
I've never had any trouble buying or selling anything I want.