For a first time investor, what online investment company is best, and most cost effecient to use to purchase?
Posted by admin in Finance Sunday, 20 November 2011 09:54 5 Comments
I’m interested in purchasing small amounts of stock. However I’m a beginner and I don’t want to spend a lot of money on fees, etc. What company would work best for me to make those purchases, and why?
Google discount brokerage reviews = these are my two favorite sites
http://online-stock-trading-review.toptenreviews.com/
http://www.smartmoney.com/investing/stocks/smartmoney-2009-broker-survey/?hpadref=1
Keep in mind that Charles Schwab and Fidelity Investments have been around for about 35 years.
They are the top of the discount brokers – if you ever have questions – they are there.
They don’t fee you for everything – like others do.
Trades will cost you about 8 bucks with them.
Start by investing in SPY – my favorite. (ETF)
It tracks the S&P 500 and is easy to keep up with it by watching the news.
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You shouldn’t be trading until you have enough knowledge to pick a broker for yourself. Otherwise…. you may get a broker that doesn’t do trailing stops, the type of charting you want, other order types like OCO (bracket orders) and a host of other things. You need to understand the basics of trading… otherwise you’ll be the typical nut that starts trading stocks below $5 and be amazed how quickly you lose your money. Even worse… you’ll think a “robot” will make you fast, easy money.
I have been investing a long time and learned some lessons the hard way. I’ll answer your question but before I do I would like to state the following that has been my personal experience:
1. 90% of brokers are friendly, personable but won’t put 5 minutes a week into managing your account. The other 10% are the same too but not very friendly.
2. If you will learn to monitor your account every week (or every day), sell quick to cut your losses and take reasonable profits without getting greedy, you will do well.
3. Since you are a new investor, start out trading in mutual funds. This offers a little more safety since they are diversified and have a fund manager. Be careful though. You can still loose value in a mutual fund if you pick the wrong one and hold it too long. Mutual fund trades are also free (if held at least a few months) at some discount brokerage firms.
To answer your question, I like Charles Schwab ($8.95 per trade & free mutual fund trades). There are other good discount brokers such as ScottTrade and eTrade. I like the online info at Schwab and you can call a broker at Schwab, too. You can also get great info free at http://finance.yahoo.com.
Do a lot of reading. Do a lot of research. Work your account yourself. Ask for advice but chart your own course (carefully).
Good Luck.
Dear Friend,
If you are beginner, I suggest you to sign up for the Free Weekly Wealth Letter, the e-mail newsletter packed with money-making investment ideas will be delivered to your inbox every Tuesday morning.
Weekly Wealth Letter is loaded with unique insights and powerful resources for wealth building through smart investing. What is it you want to do? Get rich through smart investing? Become a millionaire? Thrive in an economic recession?
Dear Friend,
I suggest you to sign up for the Free Weekly Wealth Letter, the e-mail newsletter packed with money-making investment ideas will be delivered to your inbox every Tuesday morning.
Weekly Wealth Letter is loaded with unique insights and powerful resources for wealth building through smart investing. What is it you want to do? Get rich through smart investing? Become a millionaire? Thrive in an economic recession?