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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Buying stocks online?
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Re: Buying stocks online?
Originally posted by autoxerI 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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Re: Buying stocks online?
Originally posted by baking23o.k. what amount do you think would be a minimum?
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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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Re: Buying stocks online?
Originally posted by autoxerI 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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Re: Buying stocks online?
Originally posted by baking23which company would you recomend and why?
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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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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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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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Re: Buying stocks online?
Originally posted by baking23It 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.
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.Steve
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Originally posted by usnavy_233Sharebuilder. 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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Re: Buying stocks online?
Originally posted by LuxLivingSometimes 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.
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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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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Re: Buying stocks online?
Originally posted by LuxLivingDon't forget that there are lots of stocks that will allow you to buy direct without paying a commission
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