July 29th, 2009
Best Bets in Online Brokerages
Consider these five online brokerages with low rates for stock trades and introductory offers whether you are a new investor or an active trader. With the Dow back over 9,000, if you are fidgeting on the sidelines, now may be the right time to get back into the market with our top picks.
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Introductory Offer
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Trade Costs
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Minimum
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Plus Points
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$100 off transfer fees when you switch to Scottrade
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$7 trades for stocks over $1, plus $1.25 commission
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$500 to open an account; $2,000 for a margin account
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Excellent customer service with service representatives available for extra service and chat support via phone, email, or at one of Scottrade’s 400 branch offices nationwide
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30 days of commission-free trading when you open your account with at least $2,000 before September 30, 2009; fund your account with $25,000 and also receive a $100 cash back bonus
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Flat-rate $9.99 commission per Internet equity trade, regardless of how many shares, account balance, or trading frequency
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$2,000 to open any non-IRA and $1,000 for IRA account
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Trading tools, like QuoteScope and Options 360, offer an extensive and well-organized trading platform, innovative resources, and educational materials; also the longest-running brokerage of these five with 30 years of experience
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Refund on transfer fees up to $150 for switching to TradeKing
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$4.95 per trade for market, limit, and broker-assisted trades; plus $0.65 per option contract, offering 19 different option chains
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No minimum account balance
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Does not charge extra for broker-assisted (call-in) trades; rated #1 in customer service by SmartMoney in 2008 for its short hold times, fast email responses, and online broker chat
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Maintain a $25,000 balance or execute 25 trades a month and you receive 10 free stock trade each month
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If you don’t qualify for the 10 free trades, stock trades are $4.50 and options trades are $4.50 plus $0.50 per contract
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No minimum balance; $2,000 minimum for a margin account
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Touted as the king of deep discount brokerages for its low commission rates, free monthly trading privileges if you qualify, and one of the lowest cost stock trades, option trades, and mutual funds in the business
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No introductory offer
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For Basic: $4 per stock trade, For Standard: 6 per month free, $2 each additional, For Advantage: 20 per month free, $1 each additional; $9.95 per option trade plus $1.50 per contract
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No account minimum; subscription fee is $0 for Basic, $12/mo for Standard, $20/mo for Advantage
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Good choice for those new to investing with Basic, Standard, and Advantage options to fit your trading needs, and the useful option of Automatic Investments, which schedules investments on a weekly, biweekly, or monthly basis
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October 22nd, 2008
Is This a Good Time to Invest?
When is the right time to invest? Even though the stock market is volatile, for many investors, this is the time that money can be made. Speculation is a risky business, but it has made empires in very little time. If you have the stomach for it, this is a great way to make money, but it is vital to realize that you are playing with fire. If you are a small investor looking to pick up stocks cheaply however, this is a great time to get started, provided you have done enough research.
Before you decide to dip your feet into the market, or jump right in, you’ll need to have the sound advice of a financial expert to guide you. Whether you are working with a personal broker or a financial advisor, it is helpful to have the benefit of their knowledge. They can assist you in figuring out how high your risks are and they can offer valuable advice that can help you avoid the pitfalls of investing when the markets are in a decline.
For most investors that just want to make a few dollars, or get in on a stock they want while it is cheap, the best strategy is to start small and to use funds that are not vital. If you have some extra money put aside that you don’t need, this is the type of funding that you should use. It is never a good idea to leverage your house on a volatile stock market, or to use money that you actually do need.
Starting small is also a good strategy, unless you are planning on speculating. You can try a few picks and see how they perform over the short term before you invest any more money. Caution is necessary when you’re using these techniques and it is better to err on this side than to lose everything you own on a bad pick.
Short term investing in a market like this one can be riskier than long term investing. There is a chance that when you buy a stock it will continue to go down. The key is finding whether or not it has a basement and if you want to hang in there. Generally, short term investing in this type of stock will prove harrowing. However, if you are willing to wait out the long term, you can do very well.
Once you have determined how much you want to invest, you’ll need to stay on top of financial news and do some fact checking on that stock before you finalize the purchase. Do some due diligence into the company and see what is happening before you make that final decision. This step can help you weed out the companies that are going under from the companies that are just going through normal stock fluctuations.
With care, and the right strategy, you can turn a down market to your advantage. Just remember that there are no guarantees and there is no “safe” investment.
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