Best Online Stock Broker...

**deltaf508** · October 5th, 2005, 10:44 AM

Just wondering. I'd like to evenutally buy some stock and am not sure how to start out online. I know I can walk into my bank and use them, but I was hoping for something I can administer a little more. Can anyone give me some recommendation for a good online stock broker or should I use my bank.

I know all the big names - ameritrade, etrade, scottrade, etc. In everyone's experience who is the best. Also, I don't have like $2 grand to plop down. So I'd like to find one where there not such a high minimum. I'm looking to start out with investing less than $500. Is there a place that will let me start out this low?

Any advice is welcome...and no I will not hold anyone responsible for my potentially back stock choices...

Gary

**aj654987** · October 6th, 2005, 12:23 AM

Well if you could manage to get $1000 then I would recommend the Vanguard STAR fund, check out vanguard.com, its a fund of funds, which means the STAR fund is invested amongst their other funds so you get exposure to a wide variety of companies and bonds. With only $500 to invest, stocks could be a bad option just because the commisions are going to eat away at your profits.

If you really want to do stocks, Scottrade is a good online brockerage service and also they have local branches, I think like 200+ all over the US so they probably have a branch next to you. The employes arent brokers and theyre not allowed to give stock picks or things like that, but they can help you with general questions such as how limit orders work, ect. Scottrade is $7 per trade and I think that is amongst the lowest out there, there may be some places lower, but I havent used them.

But you can see with 7/500 that you're already playing 1.4% of your investment to commisions.

The good thing about a mutual fund is that if you buy directly from the fund, they wont charge you commision, but you will have to meet the minimum investment amount.

My advice:
check out either Emmigrant-direct or ING-direct online banks. They are both at 4% right now, which is better than some CD's and you can move money from them at anytime, unlike CD's. I would put the $500 in the savings at %4 and take some time to do some research on mutual funds and on stocks and while your studying up on that stuff you'll be getting good %4 rates, way better than a normal bank. (for mutal funds make sure you understand all the nasty surprises such as 12b-1 fees, load fees and expense ratios, vanguard is a good company because they have low fees)

I had a sweet internship this summer and I invsted some of the money with vanguard in both the reg STAR fund and in a Roth IRA. I also use Emmigrant-direct with my normal credit union and havent had any problems so far.

-AJ

**deltaf508** · October 6th, 2005, 10:22 AM

Wow! Thanks for the great info. Yeah, I know it's not a lot and I'm really not sure what I want to invest in yet. All I know is that I really need to start something for my future. I'll check into your places & ideas....

Thanks

Gary

**jkrohn** · October 6th, 2005, 11:08 AM

Ok you just graduated, so it is easy. You should NOT be investing in individual stocks unless you really know what you are doing. It has been proven time and time again that the vast majority of investors cannot beat the market average growth rate.

At your age you should be investing in one thing. Growth mutual funds. You are investing for the long term, and in the long term these will by far provide the best returns.

With such a little amount, look at Vanguard. They have plenty of no load mutual funds you can invest in with the minimum investment of $1000. They do assess a $10 per year fee though until your account reaches I believe $10000.

Really you should be, if you can afford it, maxing a Roth or Traditional IRA for tax purposes. I would reccomend a Roth for your age. It is only $4000 a year, but dump that into a good growth fund or even a simple index fund if you are more adverse to temporary losses and it will grow very nicely.

Ok, well this is strange as I went to your website and will ask you some questions that may seem jerky

But they will heal greatly in helping give advice for you to invest.
1) You have CF right? If so, sorry gotta do it, how long do you expect to "be around".
2) If you don't think you will be around till 65 to retire, what you are goals for this money? What do you want to use it for? How much growth do you want to see?

Jkrohn

**electric** · October 11th, 2005, 10:10 AM

http://www.robtv.com/

click on beat the street excellent show on investment

an i believe someone here at Techmo likes KIm

**ForbidInjustice** · October 14th, 2005, 12:13 AM

Could anyone give me some good tips? I am 21 years old, and just getting started in investing. Other than TSP [Thrift Savings Plan.. the Federal Government's 401k plan, I guess..], I need to start planning for the future. I have been looking into stocks right now, but since I don't have big money to invest right now, I heard that's a bad option, especially since I don't know what I'm doing.

I am looking into putting $100 a month or so toward whatever I do.. maybe more. I just want to see my money grow, and am not a high risk taker. I hear mutual funds are good.

Any advisements are greatly appreciated!

**jkrohn** · October 14th, 2005, 12:28 AM

If you don't want risk, get into a no load mutual fund. Get into something like the S&P 500 or a total market index.

Start out with a Roth IRA into one of the above mutual funds. Take a look at vanguard, they are no load with basicly zero expenses.

Jkrohn

**electric** · October 14th, 2005, 10:35 AM

Originally Posted by ForbidInjustice

Could anyone give me some good tips? I am 21 years old, and just getting started in investing. Other than TSP [Thrift Savings Plan.. the Federal Government's 401k plan, I guess..], I need to start planning for the future. I have been looking into stocks right now, but since I don't have big money to invest right now, I heard that's a bad option, especially since I don't know what I'm doing.

I am looking into putting $100 a month or so toward whatever I do.. maybe more. I just want to see my money grow, and am not a high risk taker. I hear mutual funds are good.

Any advisements are greatly appreciated!

you may want to look into a drip investment,most large companies have these
such as GE,Home Depot for example

drip plans use the dividend to buy more shares for no cost to you

google -drip investment

**ForbidInjustice** · October 15th, 2005, 12:12 AM

Thanks.. I have done many searches for information, and looked on etrade and sharebuilder, etc.. and I can't find the answer to my question of: where is the best place that I can go online to get involved in the S&P and do the Roth IRA?

.. sort of lost on exactly where to start. How are the risks with this? Returns?

**ForbidInjustice** · October 31st, 2005, 01:32 AM

Someone please give me an answer to this question... I am thinking of dropping money into the Vanguard STAR fund.. is this just like a stock.. can I take out money [sell shares] whenever I want to, and not get penalised for it?

I am planning on buying directly from Vanguard, and not through another broker. Please advise; thanks!

**electric** · October 31st, 2005, 10:27 AM

Originally Posted by ForbidInjustice

Someone please give me an answer to this question... I am thinking of dropping money into the Vanguard STAR fund.. is this just like a stock.. can I take out money [sell shares] whenever I want to, and not get penalised for it?

I am planning on buying directly from Vanguard, and not through another broker. Please advise; thanks!

http://flagship3.vanguard.com/VGApp/...FundIntExt=INT

i would say yes ;after reading whats on their site but i would
also give them a call to confirm