If you buy stocks online....

[crazyme5kids]

I'm thinking about trying my hand at buying stocks online, not big investments, just $100.00 to $150.00 at a time. I just want to learn the process, not be a heavy duty buyer/trader. More of a for the fun of it type thing.

If you purchase stocks online, which web site do you use. Which one is the most user friendly (walk you through each step) for a beginner?

 

[bicker]

Personally, I wouldn't bother with stocks at that investment level. You end-up losing so much of your investment to fees that it just doesn't make sense. JMHO.

 

[crazyme5kids]

I don't think I'll do a lot of trading, at least not at first. I just thought it might be fun to tinker and watch what happens. Again, more of a hobby. It wouldn't be pie in the sky hopes of making money. Kind of like going to Vegas, expect to lose and if you win it's a bonus .

 

[Green Tea]

For what you are talking about, Sharebuilder is perfect. If you are a Costco member, get the offer from their website and you get a quarterly rebate, plus an opening bonus. Sharebuilder is different from other online brokers in that you can set up an automatic investment plan and put $100 a month into a stock of your choosing at that amount. They allow fractional shares, and most do not. So for the $100 you could get 1/3 a share of apple, or 20 shares of something else. The fee is $4. With Costco you get $3 back every 3 months.

And of course you can also buy whenever you want. That fee is $9.95 per transaction if you decided you wanted to buy something in addition to the monthly set plan.

 

[bicker]

... you can set up an automatic investment plan and put $100 a month into a stock of your choosing at that amount. ... The fee is $4. With Costco you get $3 back every 3 months.

This is what disappointments me about the arrangement. That's still 3% in fees. Even that seems way too high to me.

 

[ManMythLegend]

I don't think I'll do a lot of trading, at least not at first. I just thought it might be fun to tinker and watch what happens. Again, more of a hobby. It wouldn't be pie in the sky hopes of making money. Kind of like going to Vegas, expect to lose and if you win it's a bonus .

crazy, I'm a professional trader so obviously I get pretty good rates. One of the companies I worked for in the past decided to create a retail brokerage and one of their main advantages is their low rates. You can place a stock order for $2.95. I forget off the top of my head up to how many shares but it sounds like it should serve your purpose.

They also have a special offer now where you get 100 free commission trades and its listed on their homepage.

www.optionshouse.com

 

[Green Tea]

This is what disappointments me about the arrangement. That's still 3% in fees. Even that seems way too high to me.

But if you up your investment to $1000, it is still $4. You can't get something for nothing. There are fees involved in buying or selling stocks. You can't get around it.

 

[bicker]

But if you up your investment to $1000, it is still $4.

Absolutely. If the OP is willing to invest ten times as much as originally planned, at one time, then the fee is not really a big deal at all.

 

[DVC-Don]

I used eTrade and then switched to Scott Trade before I got out of the stock market.

 

[Imzadi]

I'm with TDAmeritrade. It is $10 a trade period. No maintenance fees, etc. I checked with eTrade which was another company I thought to go with, but eTrade actually have maintenance fees, and other hidden extras, like if you don't use them for a while.

 

[ManMythLegend]

Also learn how to "Sell short" on a stock. In this downturned economy, people have been making money by knowing how and which stocks to sell short on. The risks are greater, but, yes, people CAN make money as the stock market drops (as it is doing.)

I would not recommend this for the average investor, especially someone who is asking if they can invest $100 to $150. If you sell short and you're stock gets acquired by another company, you're in deep trouble, especially if you over extended your margin limits.

If you think a stock is going down, you can buy puts. Or you could sell short stock but by a call for protection in case it gets bought out.

 

[Coach K]

Google internet stock trading companies. Go on some stock trading forums to see what other traders are saying about the brokers they are using. Some brokers have a minimum just to open an account. Learn about TA (Technical Analysis)-there are plenty of web sites where you can get the basics. Due your research on what you want to purchase. Stay away from shorting stock until you have a number of years of experience. Stay away from the pennies-99.99% of the time, you will sell for less than you bought. Good luck.

 

[Imzadi]

You shouldn't be learning stock trading from anyone online - even me. You will get a ton of people telling you what to do with your money. Meanwhile you don't really know how well they are doing.

 

[Big Cuddly Bear]

Find a stock you like, and then put it in a Dividend ReInvestment Plan... aka a "DRIP PROGRAM".

With certain stocks, not only do you have NO FEES, but you can actually buy stock at a tiny discount to the market price.

Then the plan takes money directly from your account each month.

Some programs MAY require an initial purchase of $250 - $1000 ( or more ) to get in, but then usually only require $50 - $100 to be invested.

http://www.investopedia.com/terms/d/dividendreinvestmentplan.asp

The best part is that in most cases, you can bypass any brokerage fees if the stock lets you buy your original shares from them directly. Not every stock has such a program, however.

 

[crazyme5kids]

Thank you for all the great advice! I will indeed do some research before I start investing.