ING completes acquisition of Sharebuilder

[sweeps]

Sharebuilder will now be included as part of the ING Direct suite of services.

It's a yawner for me (ING doesn't pay enough interest on its savings, and I think there are better brokerage choices than Sharebuilder), but some people may be interested.

Newswire

[jacquelynrose]

I think this is excellent news!

I enjoy both ING and Sharebuilder, for my Online Financing. I like ING's interest rate.

[poundwise]

I like ING's interest rate.

While one can't say ING's rate is poor, not compared to the vast majority of brick & mortar institutions anyway, compared to a multiplicity of offerings, ING's rate leaves a great deal to be desired.

[BTC]

I think it's a good move for ING.

[poundwise]

I think it's a good move for ING.

Yes, from the company's point-of-view, I agree.

[BTC]

ING was a great place to work, and their service is excellent, imo. It's too bad they refuse to open up their piggy bank. I was a Netbank customer, so I'm now an ING Electric Orange checking account holder, in addition to already having a savings account with them. From a service standpoint, I've had very few, if any, complaints.

[Skooby]

and I think there are better brokerage choices than Sharebuilder),
Newswire

Who would you reccommend other than sharebuilder.

[sweeps]

Who would you reccommend other than sharebuilder.

My beef with Sharebuilder is the $4 trading commission only applies to buys, not sells. And even that only applies to bulk buys that occur on Tuesdays. If you're a dyed-in-the-wool buy-and-hold investor, it might be good for you.

But if you ever sell (or trade a stock/ETF for another), or you like to buy on a big dip (that's me), you'll have to pay a $16 commission.

I'm a fan of Scottrade. The minimum balance is low, they don't ding you with fees, and I've always gotten smooth, realtime trades at $7 a pop.

[Mistawho]

My beef with Sharebuilder is the $4 trading commission only applies to buys, not sells. And even that only applies to bulk buys that occur on Tuesdays. If you're a dyed-in-the-wool buy-and-hold investor, it might be good for you.

But if you ever sell (or trade a stock/ETF for another), or you like to buy on a big dip (that's me), you'll have to pay a $16 commission.

I'm a fan of Scottrade. The minimum balance is low, they don't ding you with fees, and I've always gotten smooth, realtime trades at $7 a pop.

Hey i'm really interested in going into the stock market. How much money is needed to start off in the stock market? Or whats a good amount of money to start with. Currently contributing to 401k and ROTH IRA right now, but would like to get into stocks also

[sweeps]

Hey i'm really interested in going into the stock market. How much money is needed to start off in the stock market? Or whats a good amount of money to start with. Currently contributing to 401k and ROTH IRA right now, but would like to get into stocks also

Really tough to say... Depends on your budget, depends on your goals, etc.

A few things to keep in mind. Individual stocks and targeted ETFs can be much more volatile than stock funds. You can win big and you can lose big. Also commissions (even at a low $7) can really eat into your returns if you're not careful. Buying $100 worth of stock means you're paying 7% in sales charges. Buying $500 worth of stock means you're paying only 1.4% in sales charges.

[nanamom]

i have had a sharebuilder account for almost two years now and just discovered what a big mistake I may have made. The first year I bought stock A every month and then let it stay while this year I bought stock B every month figuring that stocks are long term investments. I though that since I was only putting in 25 per month I should stay with one a year and diversify each year. Well I did ok, never made anything but kept thinking long term, and stick with it. I checked my current purchase every month and ignored the rest. The other day I thought to check my stock A and discovered I had really blown it. The stock is down to like a dime a share and I lost most of my money. Not really a major loss since I only put a bit into it but a pricey lesson never the less. i decided to see what happens with it since getting out now will be more expensive than staying and watching it die. Maybe some great company will buy it and it will be worth something. No I don't really believe it but I can dream!

[poundwise]

The major flaw with Sharebuilder (or BuyandHold.com) comes in the form of the commission you pay for the regular, systematic investing approach you are buying into.

If you, for instance, invest $100 a month every month for a year using their basic plan then each month, you pay $4 per investment, or 4%. At the end of the year you have invested $1200 and have paid $48 in commissions. That stinks! (And that's not even considering selling stock, which sweeps points out above is quite costly with Sharebuilder.)

Even though Sharebuilder markets the ability to invest small amounts regularly, I really wouldn't use Sharebuilder unless I was investing $400 or more per month, or not investing every month but investing at least $400 each time you make a purchase. This keeps your commission paid to 1% or less of the investment purchase price.

I am aware that they have other plans but you have the same basic problem, if you are investing a small amount, you are paying, percentage-wise, a high commission, period.

For investing small amounts regularly, I would much prefer the approach of either investing a no-load, no transaction fee, mutual fund - many brokers make it easy to make regular automatic investments if you wish. Or, for stocks, look into establishing a DSP/DRIP.

[Skooby]

My beef with Sharebuilder is the $4 trading commission only applies to buys, not sells. And even that only applies to bulk buys that occur on Tuesdays. If you're a dyed-in-the-wool buy-and-hold investor, it might be good for you.

But if you ever sell (or trade a stock/ETF for another), or you like to buy on a big dip (that's me), you'll have to pay a $16 commission.

I'm a fan of Scottrade. The minimum balance is low, they don't ding you with fees, and I've always gotten smooth, realtime trades at $7 a pop.

The major flaw with Sharebuilder (or BuyandHold.com) comes in the form of the commission you pay for the regular, systematic investing approach you are buying into.

If you, for instance, invest $100 a month every month for a year using their basic plan then each month, you pay $4 per investment, or 4%. At the end of the year you have invested $1200 and have paid $48 in commissions. That stinks! (And that's not even considering selling stock, which sweeps points out above is quite costly with Sharebuilder.)

Even though Sharebuilder markets the ability to invest small amounts regularly, I really wouldn't use Sharebuilder unless I was investing $400 or more per month, or not investing every month but investing at least $400 each time you make a purchase. This keeps your commission paid to 1% or less of the investment purchase price.

I am aware that they have other plans but you have the same basic problem, if you are investing a small amount, you are paying, percentage-wise, a high commission, period.

For investing small amounts regularly, I would much prefer the approach of either investing a no-load, no transaction fee, mutual fund - many brokers make it easy to make regular automatic investments if you wish. Or, for stocks, look into establishing a DSP/DRIP.

I'm definitly a buy and hold person. I was thinking about EFTs. But I'm going to be buying in small amounts ($50-100 a month). So I would be better off doing like poundwise suggested, just buying about three times a year and saving on those commisons.

Since i'm a holder and a low buyer would sharebuilder still be a good place to invest at?

[sweeps]

Update... ING has lowered the commissions for real-time trades on Sharebuilder to $9.95. While still higher than Scottrade, this does make it worth a second look, IMO. You could do delayed buys at $4, and then if you have a desire to sell or buy immediately, you're not getting gouged.