| Investing & Banking stocks, bonds, banking interest rates, CDs and all other investment vehicles you want to talk about |

02-05-2007, 07:23 AM
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Buying stocks online?
If I have a very limited amount of money, say $100, and I wanted to buy stocks online, which company would you recomend and why?
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02-05-2007, 07:36 AM
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Re: Buying stocks online?
I wouldn't recommend buying $100 worth of stocks. Between account fees, transaction fees & taxes it will be really tough to turn a profit.
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02-05-2007, 11:18 AM
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Re: Buying stocks online?
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Originally Posted by autoxer
I wouldn't recommend buying $100 worth of stocks. Between account fees, transaction fees & taxes it will be really tough to turn a profit.
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o.k. what amount do you think would be a minimum?
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02-05-2007, 11:43 AM
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Re: Buying stocks online?
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Originally Posted by baking23
o.k. what amount do you think would be a minimum?
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I'd go with at least $1,000. If you pay $10 transaction fee to buy a stock and then another $10 to sell it, you're starting off at 2% down. The lower the amount you invest, the harder it is to turn in a profit. Personally, I don't bother buying individual stocks with less than $5,000, but I have a pretty large portfolio. In your case I think it makes more sense to save a few thousand and then invest that money in mutual funds, assuming you have your emergency fund in place.
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02-05-2007, 12:28 PM
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Re: Buying stocks online?
I also think mutual funds are more appropriate for smaller portfolios, because they provide great diversification. Having a mutual fund that owns many stocks reduces the risks of one stock having a big affect on your total.
What are your goals/plans for this money?
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02-05-2007, 01:41 PM
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Re: Buying stocks online?
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Originally Posted by autoxer
I also think mutual funds are more appropriate for smaller portfolios, because they provide great diversification. Having a mutual fund that owns many stocks reduces the risks of one stock having a big affect on your total.
What are your goals/plans for this money?
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It eventually is going to go into my IRA, however I already have a mutal fund and since I didn't want to risk quite that much, it might go where it was origionally intended anyway.
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02-06-2007, 06:52 AM
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Re: Buying stocks online?
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Originally Posted by baking23
which company would you recomend and why?
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Sharebuilder. No minimum to open the account and you can investment for as little as $4. You'll pay more when you sell, but if you plan on investing that $100 on a recurring monthly basis, $4 is about the best fee going.
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02-06-2007, 07:06 AM
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Re: Buying stocks online?
Sometimes it is about the learning involved and the fees become part of the tuition. If you are wanting to get your feet wet by learning about how stocks are traded, bought and sold, dividends earned, capital gains, learning to track them, etc., then it can be a nice little education. I doubt you are going to turn around and sell it anytime soon and we don't have your total financial picture to say 'in your case' really.
A nice way to do this learning in an educational setting is to join an investment club for the practice it gives you in researching a stock before you plunk down your dollars. What you learn in the club setting can then be transferred to building your own portfolio. Or NOT!
I like to try things myself and am often willing to spend a few dollars in pursuit of that intellectual gain and the YEEEEEEEEESSSSSSSSSSSS moment that comes from venturing out a little futher on the path w/o anybody holding my hand. And, I don't know if I'd have the patience to wait until I had a thousand extra laying around to get started. Wait, scratch that - I didn't have the patience and I didn't wait. I just jumped in one day and got started and I just put more money into my portfolio as I have it.
I say go for it baking 23 if you can afford the tuition costs if it tanks. If not, then don't venture there yet.
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02-06-2007, 07:21 AM
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Re: Buying stocks online?
I have used many brokers in the past and my favorite broker is Interactive Brokers hands down. The fee schedule is as low as a $1 to buy/sell a stock and you have direct access to just about any market in the world which I think is very important. So a $100 investment in a stock can potentially work.
If you also have level II quotes it can help you immensely buying/selling more illiquid stocks much more efficiently because you can take advantage of the smaller bid/ask sizes.
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02-06-2007, 11:48 AM
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Re: Buying stocks online?
I would not buy stocks through a broker, even at $4 +/- a pop, if I was only investing $100 at a time.
You might want to check out DRIP investing. It is a way to buy certain stocks with low monthly investments and not get burned on the costs of buying.
Fool.com: DRIP Investing
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02-06-2007, 01:23 PM
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$ Saving Professor
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Re: Buying stocks online?
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Originally Posted by baking23
It eventually is going to go into my IRA, however I already have a mutal fund and since I didn't want to risk quite that much, it might go where it was origionally intended anyway.
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I'm not sure what you mean here. If the money will eventually go into your IRA, why do you want to buy stock? You can't put stock into an IRA. You can buy stocks within your IRA, but you have to invest cash first, then buy the stock.
So if you buy stock now, you can't transfer those shares into an IRA without selling them first, investing the money and rebuying the shares within the IRA. But you pay transaction fees twice that way which isn't a great idea.
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02-06-2007, 01:52 PM
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Re: Buying stocks online?
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Originally Posted by usnavy_233
Sharebuilder. No minimum to open the account and you can investment for as little as $4. You'll pay more when you sell, but if you plan on investing that $100 on a recurring monthly basis, $4 is about the best fee going.
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Good to know, thanks!
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02-06-2007, 01:56 PM
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Re: Buying stocks online?
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Originally Posted by LuxLiving
Sometimes it is about the learning involved and the fees become part of the tuition. If you are wanting to get your feet wet by learning about how stocks are traded, bought and sold, dividends earned, capital gains, learning to track them, etc., then it can be a nice little education. I doubt you are going to turn around and sell it anytime soon and we don't have your total financial picture to say 'in your case' really.
A nice way to do this learning in an educational setting is to join an investment club for the practice it gives you in researching a stock before you plunk down your dollars. What you learn in the club setting can then be transferred to building your own portfolio. Or NOT!
I like to try things myself and am often willing to spend a few dollars in pursuit of that intellectual gain and the YEEEEEEEEESSSSSSSSSSSS moment that comes from venturing out a little futher on the path w/o anybody holding my hand. And, I don't know if I'd have the patience to wait until I had a thousand extra laying around to get started. Wait, scratch that - I didn't have the patience and I didn't wait. I just jumped in one day and got started and I just put more money into my portfolio as I have it.
I say go for it baking 23 if you can afford the tuition costs if it tanks. If not, then don't venture there yet.
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Thanks for the advice. I used to just wait and wait and wait to make a decision, then last year I opened an IRA, a Money Markety Mutal Fund, bought a car, etc... all with cash. I don't have debt, but I don't have a full time job either (working on that) so I'll probably buy a few stocks and sit on them for a long time. But I'm enjoing the forward momentum.
I just feel like I'm five years behind with things (parents discouraging the MMMF, IRA, etc...) since I haven't had a full-time job, and I'm not getting younger.
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02-11-2007, 05:47 AM
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$ Saving College Senior
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Re: Buying stocks online?
Don't forget that there are lots of stocks that will allow you to buy direct without paying a commission...
DripInvestor.com
has about 350 stocks that you can buy commission-free directly from the company.
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02-11-2007, 07:20 AM
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Hopeless Optimist
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Re: Buying stocks online?
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Originally Posted by LuxLiving
Don't forget that there are lots of stocks that will allow you to buy direct without paying a commission
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True, no commissions. But pay attention to any fees. Could be just as bad if someone is making frequent, small investments.
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02-16-2007, 09:44 AM
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Re: Buying stocks online?
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Originally Posted by LuxLiving
[b][size=2]Don't forget that there are lots of stocks that will allow you to buy direct without paying a commissioncolor]
[url="http://www.dripinvestor.com/subscriber_area/Keeping%20Tabs.pdf"]has about 350 stocks that you can buy commission-free directly from the company.[/font]
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Someone mentioned this upthread, it sounds great! Or maybe next time I go to put in my IRA I'll make a point to ask for the stocks I would otherwise like to buy.
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02-17-2007, 07:16 AM
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Re: Buying stocks online?
Baking23- buying individual stocks with $100 might be a fun way to get your feet wet and motivate yourself to learn more about the market. I'm doing something similar myself.
However, I consider this more of an entertainment vehicle than an investment vehicle for the reasons already outlined here.
I actuallly just wrote a piece in my blog about my first expereince with Sharebuilder. If you start with Sharebuilder make sure to use a coupon code, they are constantly being offered. eBates.com offers Sharebuilder deals from time to time, too.
My blog entry is here: <A href="http://threebeansalad.savingadvice.com/2007/02/16/lucky-me-my-20-investment-is-now-7743_22369/"> $20 investment is now $77.43 </A>
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02-18-2007, 06:10 AM
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Re: Buying stocks online?
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Originally Posted by threebeansalad
Baking23- buying individual stocks with $100 might be a fun way to get your feet wet and motivate yourself to learn more about the market. I'm doing something similar myself.
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thanks for sharing I'll take a look!
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02-18-2007, 12:26 PM
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Re: Buying stocks online?
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Originally Posted by threebeansalad
Baking23- buying individual stocks with $100 might be a fun way to get your feet wet and motivate yourself to learn more about the market. I'm doing something similar myself.
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I set it up and am excited to see how I do, defianitley wish I'd bought this stock a few years ago when it was a bit cheaper.
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02-18-2007, 02:08 PM
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$ Saving College Senior
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Re: Buying stocks online?
Does anyone here have experience with zecco.com?
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