I Need Help Buying Stocks Online. I Have Looked At Zecco, Fidelity, Scottrade And E-trade?
Wednesday, June 24th, 2009 at
12:01 am
i would really appreciated if i one take time to tell me about the merit of one over another. I am really confused but i would like to invest $1000 dollars to try my luck in stock world…also suggestions for stocks are welcomed as well….Thank you
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yeah, $1000 won’t really be much. But you have to start somewhere. Every month, save $50 – $100 if you can and see your nest egg grow. If you saving anything would be help ful. Don’t forget about Vanguard.com they have the lowest fees for mutual funds. I would say Vanguard and Fidelity would rank the highest for mutual funds and low fees. Fideilty has better brokerage services but Vanguard has lower cost mutual funds that perform good. If you are a do it yourself kind of person that know the odds and ends of stocks. Choose Scott trade. Scott trade has thelowest trading fees. THey are a brokerage firm with minimum advice to beginner investors.
Many vanguard mutual funds need a minimum of $3000 to start I belive. Not too sure. I would go with vanguard, fideilty or scott trade.
BTW, I a vanguard IRA account as well as a Putnam IRA and Scottrade brokerage. I wouldn’t go with Putnam, higher fees, and not so good mutual funds. I’m planning on getting rid of that account soon.
I love the Vanguard low cost mutual funds. They perform well too.
Okay, my advice for you.
Open up a vanguard account for the low fees. IRA will make you the most money, but its also for retirement. If not open up a brokerage with scott trade if they sell vanguard mutual funds. Then, invest in a vanguard index funds. It is very low in maintaince cost and will get you around 12% rate of return looking back after ten years as history has told us. Index funds do well as the market, no more no less. But the market has indicated that it has gone up an AVERAGE of 12% every year.
What i mean by this is that some years you’ll lose money and some years you’ll gain money. This is what I’ve been taught. For every ten years, one will gain HIGH returns (20-70%) for 4 out of the 10 years. There will be 3 bad years. Also, the other 3 years will give you modest – low returns. So expect bad years and good years but in the end, you’ll see an average of 12% rate of return. In an index fund.
All of these firms have well earned reputations, all are considered good.
You have to select the firm that suits you best since your the one that will be using their platform.
If you’re looking to “try your luck” in the market you’re a fool.
Investing and trading does not work on luck, it takes efforts on your part to properly understand how and why you’re spending your money.
If you believe you can run on your luck visit so how others believe the same as you, visit http://www.stockwire.com/
There was a good saying that may fit “a fool and their money are soon parted”
The only Vanguard fund you can start to invest in with only $1,000 is their STAR fund, its a good beginner one, nicely diversified.
With Scottrade, you will not be able to reinvest your dividends (without paying their $7 commission that is). Reinvestment of dividends automatically is nice to have to help your money grow quicker.
E-Trade will sock you will very high inactivity fees. They are best for active traders with a lot more than $1,000.
Sharebuilder.com only charges $4 to buy stocks, no minimum and they let you reinvest dividends.
Many years ago, Fidelity “lost” a dividend for me. It took many calls over 4 months for them to “find” it again and give it to me. Therefore I haven’t had anything to do with them since and don’t know if they have improved.
Never used Zecco.
Suggestions for stocks: Invest in what you know.
If you know nothing about sector X and buy stock y and hear about a new product/service from stock Z, how will you know how it will effect your stock y and should you have bought Z? If you know what you are doing, and know about the sector you are doing it with, you increase the odds of making the right choices.
I have used E-Trade and the past and would use them again. I have accounts at Fidelity and they are the largest mutual fund company.
$1,000 is not much to work with. Let’s say trading costs are $10 each way. That would be 1% to buy and 1% to sell. Very difficult to make any money. If you have $10,000 then the cost would be the same but the percentage would be .1% each way. Now you costs are way down any you would be able to accrue some profits.
An index fund may be the way for you to go. Fidelity may have one of two whole market index funds with a low minimum.