Lux Investing
I am new to investing in stocks. Which is best for a beginner...Sharebuilder, Sogoinvest, or Firstrade?
I do not have the thousands of dollars most companies need as a minimum. I will not be putting alot in the market or be tracking stocks on the regular, but I want to start somewhere. I understand that bothe Sharetrader and SogoInvest have automatic options, Sharetrader is $4 to buy and $16 to sell. Sogoinvest is $3 to buy, and $3 to sell. It seems to be a no brainer, but I have heard only good things about Sharebuilder and few things about Sogoinvest...plus Sogoinvest requires a $500 minimum. Please give me the pros and cons of each. I am also looking at Firstrade as an alternative...from what I have read, it is geared more to an intermediate/advanced user, and is more expensive than the other two. Any help would be appreciated. Well, I looked in the Bank of America advise (I have a Bank of America Campus Edge account also)...Their rate is $10...not $5. I really wanted to go with Zecco, but I am not comfortable puting in $2500 into a company that's as new as it is. Therefore, I am focussing on Sharebuilder and Sogoinvest. I feel these are my best bet. Sharebuilder is so darn high in terms of selling, but I believe your money earns interest as it sits, has been around longer, and the website seems easy to navigate. Sogoinvest is super cheap to sell, but is fairly new to the game, and the website isnt as clean in my opinion. Now, the question is...which of these two my best bet? Keep in mind that I plan on a "buy and hold" strategy with the occasional (if that) sell once I get the swing of playing the stock market. I also have a 401K plan that is my primary security blanket. This little venture will serve as a secondary nest egg.
Public Comments
- I use Sharebuilder and have had success thus far. I have a 401K plan and that is my primary security blanket. I use the Sharebuilder account as more of a leisurely investment account. I invest there almost like a gambler places bets. I have my gains and losses, but it is okay, since I never invest more than I can afford to lose. I think the $15.95 for trading fees for Sharebuilder is a bit steep. When I calculate whether to buy or sell stock, I always include the transaction fee because that often cuts deep into my profits (I usually buy/sell in increments of $500 at a time). Although I don't do it, I recommend you look into some of the ETFs (I think that is the name). Basically, you complete a questionaire that determines your goals and risk tolerance. Sharebuilder then recommends funds that satisfy your needs. The idea is that you invest in funds that combine several companies, as opposed to gambling that 1 or 2 companies will do well. You should make informed decisions, rather than decisions you grow to regret. Good luck.
- Sogoinvest is very good online brokeage to trade. You get to have 90 days to buy/sell for only $1, then it is $3 if you subscribe to bronze.
- if you want free trades and don't want your money or profits eaten up by commisions go to zecco.com they have up to 40 free trades per month but you will need to deposit $2500. I know if your only putting in a few hundred dollars or less per stock your going to need gains of anywhere from 5-20% just to break even with a commision so free trading will be a great advantage. Otherwise sogo is the cheapest I know of with no minimums But Beware the cheaper brokerage firms charts and information available is substantially less than what you would get at a online broker like td ameritrade $10 a trade with advanced charting, fundamentals and much more. You could put enough money in an account like td ameritrade that has great charts and use their charts and info. which when I started with ameritrade there was no minimum. Then use the advanced charts of your one broker and trade with your discount broker.
- I too have heard lots about Sharebuilder and little about Sogo - but that may only mean Sogo is just newer kid on block. Some things to consider though: 1. Depending on how you wish to invest, Firstrade or similar brokerage may not be more expensive. For the automatic programs, you are paying an initial fee and/or a set commission every month. $4 a month for several months adds up. But if you buy a stake one time and then hold it (rather than adding to it monthly) then with the right brokers you will pay $10 or less. 2. Don't know how good Firstrade is, but similar options include tdameritrade.com and scottrade.com There are many companies where the initial minimum is $1,000 or less to start investing. So your options are plenty. You may also want to consider mutual funds. No commissions for the right ones (such as troweprice.com and vanguard.com ) - and you have professional managers investing in multiple stocks for you (rather than you trying to do your own stock-picking). Instant diversification is another advantage (getting pieces of many companies for that same initial investment you may throw all at just one or two companies via the options you mention). And again, investment minimums are low with many of them. (T Rowe Price will even let you set up automatic investments of at least $50 / month without any initial up-front investment!) I strongly recommend this route unless you really want to be a stock-picker.
- Hey, THE MAN, Is that right? If I invest $2500, there is no charge? I need more details how can I do that.
- Best answer right here. Im Currently with Banc of America Brokerage, Which is off of the bank Bank of America. I pay only $5 per trade no matter how small or big. No inactivity Fees No Start up fees. Just get a free student checking account at bank of America with online banking, and then open a banc of America investment brokerage account online for free and transfer some cash, they have decent material but no doubt they will upgrade as for now, Use QuoteTracker to research and Stream Your Real-Time Quotes, Only $5 a Trade Everywhere else Charges you more!!! In Fees or In the trade itself, Banc of America HAS NO EXTRA FEES if you do everything online,
