Low cost Broker

[EagleKeeper]

Friend has stock in Home Depot from when worked there a few years ago. Thyeewant to pump some spare $$ (100-200/month) into increasing holdings. They already have a 401K through work with max employer match.

Broker recommendations?

 

[amdhunter]

I don't have one.
(postcount ++)

 

[desk]

Originally posted by: amdhunter
I don't have one.
(postcount ++)

ugh...weren't you banned yet.


anyhow, they should probably look at sharebuilder, scott trade, or ameritrade.

 

[cjgallen]

I've been happy with Scottrade.

 

[cornbread]

check with your local credit union.. they tend to have the lowest rates.

 

[DaveSimmons]

Buying stock in just one company is a bad idea, even if they also have a 401k.

Sharebuilder.com and scottrade are the two most-recommended in other threads (Advanced Search "broker").

Best is to put money into a mutual fund (such as an S&P500 index fund) for diversification, though I seem to recall sharebuilder has a fractional-share equivalent to funds.

 

[WildHorse]

ScotTrade !

 

[Miramonti]

Great time to buy home depot...interest rates on a steady incline and gas prices soaring. And lots left over for redoing the kitchen!

 

[EagleKeeper]

Home Depot is solid and continually expanding.

Many people are now starting to refurb their places and Home Depot is able to locate stores near places of mid-high income housing expansion areas that will need their services.

 

[iwantanewcomputer]

Originally posted by: DaveSimmons
Buying stock in just one company is a bad idea, even if they also have a 401k.

Sharebuilder.com and scottrade are the two most-recommended in other threads (Advanced Search "broker").

Best is to put money into a mutual fund (such as an S&P500 index fund) for diversification, though I seem to recall sharebuilder has a fractional-share equivalent to funds.

QFT. best fees you will find are like $7 per trade. if you put in 200 per month you are taking a 3.5% hit upfront. put it in a mutual fund where you won't get transaction fees

 

[EagleKeeper]

Originally posted by: iwantanewcomputer

Originally posted by: DaveSimmons
Buying stock in just one company is a bad idea, even if they also have a 401k.

Sharebuilder.com and scottrade are the two most-recommended in other threads (Advanced Search "broker").

Best is to put money into a mutual fund (such as an S&P500 index fund) for diversification, though I seem to recall sharebuilder has a fractional-share equivalent to funds.

QFT. best fees you will find are like $7 per trade. if you put in 200 per month you are taking a 3.5% hit upfront. put it in a mutual fund where you won't get transaction fees

A mutual fund already exists along with the 401K.

Home Depot stock is what is being requested; I figured that I would ask for brokerage advice.

All actual stock that I have is inherited, and not touched/expanded due to the fees that the borkers (pun intended) wants.

I will check out the three references that have been recommended.

I concur with using a mutual fund to building a nest egg.

 

[DaveSimmons]

Originally posted by: EagleKeeper
Home Depot is solid and continually expanding.

Many people are now starting to refurb their places and Home Depot is able to locate stores near places of mid-high income housing expansion areas that will need their services.

I'm pro-diversity but at least she is doing buy-and-hold instead of trading.

At a brokerage like Scottrade she could send a check every month, but only make a purchase every other month. That would cut the hit from the trading fee in half.

 

[George P Burdell]

scottrade. do a search, there was a similar thread on brokers a few weeks ago.

 

[EagleKeeper]

Originally posted by: George P Burdell
scottrade. do a search, there was a similar thread on brokers a few weeks ago.

Thanks - did not catch such thread.

 

[Miramonti]

Originally posted by: EagleKeeper
Home Depot is solid and continually expanding.

Many people are now starting to refurb their places and Home Depot is able to locate stores near places of mid-high income housing expansion areas that will need their services.

They expand through oversaturation and cannibalism...opening up right next to a lowes even tho they have another hd a few miles away. When the home-repair market down turns, which it will...particularly with interest rates higher and gouging gas prices, and interest-only mortgages going to a variable % etc., they will be hit very hard and much of their semi-charade growth and quickly revised future earnings will be revealed.

They may be ok in the short term, but an overall stock market downturn will negate many positives that could raise their price much, and time is against them imo.

 

[Miramonti]

Actually, aside from the fact that I hate the company's stores, the real question is why hasn't home depot's stock price been exploding the last 5 years, given that housing has exploded and they have been opening up everywhere. Maybe their stock is very cheap, or maybe their upper management is horribly inept, or they are very corrupt.

 

[EagleKeeper]

Stock splits have happened.

 

[bsobel]

Originally posted by: EagleKeeper
Friend has stock in Home Depot from when worked there a few years ago. Thyeewant to pump some spare $$ (100-200/month) into increasing holdings. They already have a 401K through work with max employer match. Broker recommendations?

If this is what your friend wants, then don't use a broker use Home Depot's Direct Stock Purchase Plan...

 

[EagleKeeper]

Originally posted by: bsobel

Originally posted by: EagleKeeper
Friend has stock in Home Depot from when worked there a few years ago. Thyeewant to pump some spare $$ (100-200/month) into increasing holdings. They already have a 401K through work with max employer match. Broker recommendations?

If this is what your friend wants, then don't use a broker use Home Depot's Direct Stock Purchase Plan...

Discovered that last week. Trying to determine if because existing stock is held, the lower fee will also apply.

 

[everman]

They should be able to tell you here. It's not a bad idea, but They really should diversify into other industries. Keeping it all in one spot isn't a good idea at all.

 

[bsobel]

From my reading, other than the one time $5 fee, the charges are the same. Only requirement is the first investment be 250 or more, from then on it can be 25.

 

[Miramonti]

Originally posted by: EagleKeeper
Stock splits have happened.

Including stock splits, it was higher than it is now as recently as 3 years ago.

But I see what happened, the price got stupid high from 1998-2000, and eventually crashed and since has continued steadily upward again.