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bodyguard · 07-19-2006, 09:01 PM

I am a new investor and I have been spending days trying to figure out which online broker to use. I first came across ShareBuilder and thought this is cool and I signed up but I havn't made any investments yet because after doing some more research I now realize that ShareBuilder is not that good.

I do not have much money so I need an online broker that has no start up fee. I think I got my search narrowed down to either Firstrade or TD Ameritrade.

Firstrade has no minimum start up balance and a flat rate commision of $6.95 per trade.

I'm not sure yet if TD Ameritrade has a minimum start up balance or not. Their flat rate commision is $9.99 per trade.

I am a noob so I'm not sure what to do, any suggestions?

BOB+ · 07-19-2006, 09:02 PM

Scottrade is pretty reasonable.

If you want to build a large position in a single stock over time, let me suggest that you choose stock with a dividend reinvestment program that will accept additional cash contributions. Make your initial purchase through a broker, but then *take delivery* of the shares in certificate form. Then you will have a direct relationship with the company's transfer agent, which usually means you will not be charged ANY commission to buy more shares and only a small commission to sell shares.

deli08 · 07-19-2006, 09:02 PM

I don't know anything about Firstrade. The info stated on the website looks pretty good. But honestly, I know zip about their reputation. You might want to check into their capitalization, who's the custodian of the securities, stuff like that. Check them out on the SEC website: http://www.sec.gov/investor/brokers.htm

I can vouch for the reputation of TD Ameritrade and Scottrade. I use both of them.

bill_gatez · 07-19-2006, 09:12 PM

I would do some research before signing up with a brokerage firm. There are alot of web based options for investing that could be much cheaper. I use sharebuilder myself. It is simple and cost efficient - 2 strong points for a begining investor.

titan22 · 07-31-2008, 03:56 PM

Fidelity has a lot of options for investors. It can be very basic in the beginning. They even offer an in branch class on how to use the online trading. Very informative. After you get more experienced, they have a high-tech for day traders where you can learn trailing stops, straddles, and call/put options.

A new company that i haven't heard much from is www.zecco.com they offer no trade fees with a minimum of $2500 account balance.

Look into when the trade settles though. Some settle instant, and some only settle 1 day a week.

briansol · 07-31-2008, 05:16 PM

fidelity sucks for fees. 19.95 a trade

titan22 · 07-31-2008, 05:34 PM

Quote:

Originally Posted by briansol

fidelity sucks for fees. 19.95 a trade

$8 if you have $50k there (includes retirement accounts) and make 120 trades/year.

$10 if you have $25k and 36 trades.

briansol · 07-31-2008, 07:37 PM

i only have around 10k with them... so i get owned.

07-19-2006, 09:01 PM	#1
bodyguard Greenhorn Join Date: Jul 2006 Posts: 27 Rep Power: 5	Online broker question I am a new investor and I have been spending days trying to figure out which online broker to use. I first came across ShareBuilder and thought this is cool and I signed up but I havn't made any investments yet because after doing some more research I now realize that ShareBuilder is not that good. I do not have much money so I need an online broker that has no start up fee. I think I got my search narrowed down to either Firstrade or TD Ameritrade. Firstrade has no minimum start up balance and a flat rate commision of $6.95 per trade. I'm not sure yet if TD Ameritrade has a minimum start up balance or not. Their flat rate commision is $9.99 per trade. I am a noob so I'm not sure what to do, any suggestions?

07-19-2006, 09:02 PM	#2
BOB+ Piggy Bank Join Date: Jul 2006 Posts: 96 Rep Power: 5	Scottrade is pretty reasonable. If you want to build a large position in a single stock over time, let me suggest that you choose stock with a dividend reinvestment program that will accept additional cash contributions. Make your initial purchase through a broker, but then take delivery of the shares in certificate form. Then you will have a direct relationship with the company's transfer agent, which usually means you will not be charged ANY commission to buy more shares and only a small commission to sell shares.

07-19-2006, 09:02 PM	#3
deli08 Piggy Bank Join Date: Jul 2006 Posts: 51 Rep Power: 5	I don't know anything about Firstrade. The info stated on the website looks pretty good. But honestly, I know zip about their reputation. You might want to check into their capitalization, who's the custodian of the securities, stuff like that. Check them out on the SEC website: http://www.sec.gov/investor/brokers.htm I can vouch for the reputation of TD Ameritrade and Scottrade. I use both of them.

07-19-2006, 09:12 PM	#4
bill_gatez Savings Advisor Join Date: Jul 2006 Posts: 132 Rep Power: 5	I would do some research before signing up with a brokerage firm. There are alot of web based options for investing that could be much cheaper. I use sharebuilder myself. It is simple and cost efficient - 2 strong points for a begining investor.

07-31-2008, 03:56 PM	#5
titan22 Super Moderator Join Date: Aug 2006 Location: West Coast Posts: 773 Rep Power: 6	Fidelity has a lot of options for investors. It can be very basic in the beginning. They even offer an in branch class on how to use the online trading. Very informative. After you get more experienced, they have a high-tech for day traders where you can learn trailing stops, straddles, and call/put options. A new company that i haven't heard much from is www.zecco.com they offer no trade fees with a minimum of $2500 account balance. Look into when the trade settles though. Some settle instant, and some only settle 1 day a week.

07-31-2008, 05:16 PM	#6
briansol Administrator Join Date: Aug 2006 Location: Central CT Age: 30 Posts: 739 Rep Power: 10	fidelity sucks for fees. 19.95 a trade

07-31-2008, 07:37 PM	#8
briansol Administrator Join Date: Aug 2006 Location: Central CT Age: 30 Posts: 739 Rep Power: 10	i only have around 10k with them... so i get owned.

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