Online stock "brokers"

[joker7037]

Has anybody used any of the many online brokers to buy stock? I was wanting to buy only few shares, and didn't want to be tied to a monthly fee. Any help or opinions in this matter are appreciated.

Chris

 

[bmemily]

I have used Zecco.com in the past without any problems.

 

[PEARCE]

I used sharebuilder without any issues. No monthly fees, and 9.99 real time trades. They don't keep real-time prices, so I look at yahoo and google for near real-time results. The type of online broker you go with just depends on how often you buy and what type of trader you are. Share builder is nice way to get started.

 

[melensdad]

I use Vanguard. No monthly fees. They provide real time quotes. If you have a large enough portfolio they eliminate all the normal fees and give you all sorts of services too. Maybe not the best if you are just starting out, however. On the other hand if you have an IRA, some mutual funds, stocks, bonds, etc and want to consolidate the record keeping all into one brokerage you can do that for free and make the end of year tax accounting much easier.

 

[slacker]

Both of my parents use Scot Trade (Online Stock Trading, Discount Brokerage Firm, Investment Accounts, Stock Research, Online Broker, Retirement Investing, IRA - Scottrade) and they seem happy with it.

 

[Feign]

Are there any that don't require a minimum starting balance? Say if I just wanted to drop $100 on a certain stock and let it sit...? And what happens if I hold onto a stock and the broker that I use dissolves or whatever? How would I control my shares/dollars at that point?

 

[melensdad]

Are there any that don't require a minimum starting balance? Say if I just wanted to drop $100 on a certain stock and let it sit...?

None that I know of. Most want something like an initial $2000 or $2500 investment. Once you put the money in an account at the brokerage, then you can choose to buy $100 worth of stock if you like. That, however is not really very smart. If you buy $100 worth of stock and your trade cost you $9.99 or $12.99 or $15 or whatever, then you have to factor that into your break even and/or profit analysis because it will cost you the same 'fee' to sell that stock later. So if you buy $100 in stock, it costs you $10 to buy, and $10 to sell, you have to sell that stock for $120 just to break even. A 20% gain is going to translate into ZERO $ profit for you.

On the other hand, buy $1000 of the same stock, the fee are the same as they are if you buy $100. So if the $1000 goes up 20% you have $1200, deduct your $20 to $30 in fees and you pocket a profit of $170 to $180.

And what happens if I hold onto a stock and the broker that I use dissolves or whatever? How would I control my shares/dollars at that point?

If a brokerage firm closes or sells out then you still own your shares in the company you purchased, simply transfer your account to a different brokerage.

 

[Cwood]

Are there any that don't require a minimum starting balance? Say if I just wanted to drop $100 on a certain stock and let it sit...? And what happens if I hold onto a stock and the broker that I use dissolves or whatever? How would I control my shares/dollars at that point?

I use ShareBuilder, they do not require a minimum starting balance.

 

[melensdad]

I use ShareBuilder, they do not require a minimum starting balance.

But they charge a $12 per month fee don't they? At least their standard package does.

They also charge to purchase 'no load' mutual funds, and that is sort of bizarre since no load funds, by definition are not supposed to charge fees when bought or sold. They also ding you big time for options. Can you set stop loss limits and exercise other trading programs with them?

 

[Cwood]

No, the 12 a month fee is a option for up to your first 6 automatic investments.

There still is no account minimum or fee.

https://www.sharebuilder.com/sharebuilder/Fees/Default.aspx

 

[melensdad]

So a real time trade is $14.95? ($9.95 + $5.00)

And the $0.00 fee for mutual funds (according to the link) only applies to the "ING" mutual fund family with "Class O" shares?

The monthly subscription fee is for people who set up automatic purchases (like an automatic contribution to an IRA or 401K)?

 

[Cwood]

So a real time trade is $14.95? ($9.95 + $5.00)

Correct

And the $0.00 fee for mutual funds (according to the link) only applies to the "ING" mutual fund family with "Class O" shares?

I have not done anything with the Mutual Funds, Have to check the website

The monthly subscription fee is for people who set up automatic purchases (like an automatic contribution to an IRA or 401K)?

Correct again

 

[Cwood]

I started using ShareBuilder for the fact that I could set up an automatic investment. Not having alot of money to sink into a brokerage account this was my best option to start investing. I have been using it for 6 years now and I still like it. It has changed hands three time now. It was originally self owned, then Wells Fargo bought it and now ING owns it. Through all of it it has remained the same.

 

[Feign]

No, the 12 a month fee is a option for up to your first 6 automatic investments.

There still is no account minimum or fee.

https://www.sharebuilder.com/sharebuilder/Fees/Default.aspx

B.A. Thanks.

 

[singlestacksig]

sharebuilder has many types of accounts..
I have no monthly fees & real time trades are only $9.95 .. even limited ones are that..

if you are just getting started , ude a basic no fee account ad buy on the "automatic" plan , $4 per trade..
and just set it for one time..
then you can get into a stock for only $4 , and you can reinvest the dividends back into the same stock for free..

then to get out it is only 9.95
so round trip its $13.95 instead of $20

 

[Feign]

sharebuilder has many types of accounts..
I have no monthly fees & real time trades are only $9.95 .. even limited ones are that..

if you are just getting started , ude a basic no fee account ad buy on the "automatic" plan , $4 per trade..
and just set it for one time..
then you can get into a stock for only $4 , and you can reinvest the dividends back into the same stock for free..

then to get out it is only 9.95
so round trip its $13.95 instead of $20

That every Tuesday thing is throwing me off. I plan on picking up some AIG and letting it sit.

Now if I buy $100 of AIG tomorrow and sell it for a profit on Thursday will I have men in dark shades and three piece suits knocking on my door Friday morning?

 

[singlestacksig]

if you purchase AIG through a broker and happen to make a profit, the MIB won't care as long as you report your capital gains.

IIRC the only way to purchase a set $ amount is via the auto investments. if you place an open trade you have to purchase whole shares.

 

[Feign]

if you purchase AIG through a broker and happen to make a profit, the MIB won't care as long as you report your capital gains.

IIRC the only way to purchase a set $ amount is via the auto investments. if you place an open trade you have to purchase whole shares.

I can deal with full shares, no problem.

Will I get a statement from ING that has my realized capital gains for tax time should I have any?

 

[singlestacksig]

I can deal with full shares, no problem.

Will I get a statement from ING that has my realized capital gains for tax time should I have any?

you will get a statement of what you bought and sold and the price.. but you have to figure your gains based on other stuff you do..
if you are just getting into stocks, you should fist start with a good financial software package. One that has stock accounts, I use quicken small biz. version.
your cap gains or loss can span years..
and you have to report what you sold and how much you purchased it for in the tax year you sold it. so you want to keep your own records.

Quicken will download data straight from shareuilder...

also you can have more than 1 broker and capital losses from one will ofset some of the gains from another... so the broker can not tell what your real capital gains are..

 

[Feign]

And 18 shares of AIG purchased.