share trading

[destrekor]

I am looking at a true penny stock, hell, its not even that.. each share is roughly $0.005 right now, and thus, I am looking to buy possible 5000-10000 shares in one trade.
issue comes into play... I am not opening an account of anywhere near $500-2000 like some places want, such as eTrader.. and the best places I have found are www.sharebuilder.com and www.optionsxpress.com, where optionsxpress requires either $14.95 for a max of 1000 shares, OR .015 per share when a trade consists of over 1001+ shares. that's about $75 of commission for $25 worth of stock if I purchase 5k, or $150 of commission for $50 worth of stock if I purchase 10k. sharebuilder requires $15.95 for the first 1000 shares, PLUS .015 for every share past the 1000 share mark. $75.95 in commission for 5k, $50.95 for 10k.
obviously barely any difference, but its upsetting to know I have to pay that much commission for so little in actual trade value.
does anyone know a flat-rate stockbroker that ends up being cheaper?

thanks

 

[Alienwho]

I don't have an answer for you, but I have a similar question of my own. Lets say I make an account with scottrade, and it costs $7 per transaction. Does that mean that if I buy 500 shares in whatever company, that counts as one transaction and is $7 for the whole?

 

[kranky]

I think the best answer is to skip the whole thing and save your money. Look at those commission costs as a signal to stay out of penny stocks and $50 trades.

 

[Schfifty Five]

Originally posted by: Alienwho
I don't have an answer for you, but I have a similar question of my own. Lets say I make an account with scottrade, and it costs $7 per transaction. Does that mean that if I buy 500 shares in whatever company, that counts as one transaction and is $7 for the whole?

yeah, whenever you buy a 'lot' of shares, each time it costs a commission (ie $7 at scottrade)

so if you want to purchase 500 shares of stock X at one time, it's $7 commission.

If you bought 250 on one day, then 250 on another day, it's $14 total ($7 each trade)

 

[destrekor]

Originally posted by: kranky
I think the best answer is to skip the whole thing and save your money. Look at those commission costs as a signal to stay out of penny stocks and $50 trades.

the idea is a gamble, because I expect this company, through recent events, to have the shares go up, to anywhere from $0.5 to $1. At that rate, investing that number of shares would be a GREAT idea because the profit would be extreme, even if the initial investment due to commissions were relatively high.
figure this:

10000 shares @ $0.005 (ask) + commission = $200 total investment
10000 shares now at $0.50 = $5000 total worth
selling off 5000 shares at a .50 bid = $2500 - $75 commission (if I am correct in assuming selling is also considered a trade and the same commission applies) = $2425 - $200 initial investment = $2225 profit (with 5000 shares still in the market, ready for a possible increase in share value, or ready to be sold if scared of an extreme drop in market value, plus initial investment now taken care of)

to me, that sounds as if its worth it
and if not, its only a $200 investment. problem is, if I am ready to get 5000 shares, or 10000 shares, because I am not sure if I want to invest $100 or $200 (75 or 150 in commission).. I am leaning towards $100 because I don't have a LOT of money right now, but enough that the gamble wouldn't hurt me either).

 

[Schfifty Five]

so what company is this?

 

[Specop 007]

Originally posted by: Schfifty Five

Originally posted by: Alienwho
I don't have an answer for you, but I have a similar question of my own. Lets say I make an account with scottrade, and it costs $7 per transaction. Does that mean that if I buy 500 shares in whatever company, that counts as one transaction and is $7 for the whole?

yeah, whenever you buy a 'lot' of shares, each time it costs a commission (ie $7 at scottrade)

so if you want to purchase 500 shares of stock X at one time, it's $7 commission.

If you bought 250 on one day, then 250 on another day, it's $14 total ($7 each trade)

Scottrade has different fees for stocks under $1. Delisted stocks or whatever they are. Forgive me, for I am braindead today.

Anyways, might want to check into the fees for stocks under $1.

 

[Miramonti]

10,000 shares of a stock priced at $.005 would cost $1 to purchase thru interactivebrokers.com, altho there are monthly fees if you don't trade as well as a $5k opening balance requirement.

 

[destrekor]

Originally posted by: Specop 007

Originally posted by: Schfifty Five

Originally posted by: Alienwho
I don't have an answer for you, but I have a similar question of my own. Lets say I make an account with scottrade, and it costs $7 per transaction. Does that mean that if I buy 500 shares in whatever company, that counts as one transaction and is $7 for the whole?

yeah, whenever you buy a 'lot' of shares, each time it costs a commission (ie $7 at scottrade)

so if you want to purchase 500 shares of stock X at one time, it's $7 commission.

If you bought 250 on one day, then 250 on another day, it's $14 total ($7 each trade)

Scottrade has different fees for stocks under $1. Delisted stocks or whatever they are. Forgive me, for I am braindead today.

Anyways, might want to check into the fees for stocks under $1.

anyone know a place with decent commissions that does not require a minimum account balance, at least not one greater than $200 at the most?

 

[crystal]

Originally posted by: destrekor

Originally posted by: kranky
I think the best answer is to skip the whole thing and save your money. Look at those commission costs as a signal to stay out of penny stocks and $50 trades.

the idea is a gamble, because I expect this company, through recent events, to have the shares go up, to anywhere from $0.5 to $1. At that rate, investing that number of shares would be a GREAT idea because the profit would be extreme, even if the initial investment due to commissions were relatively high.
figure this:

10000 shares @ $0.005 (ask) + commission = $200 total investment
10000 shares now at $0.50 = $5000 total worth
selling off 5000 shares at a .50 bid = $2500 - $75 commission (if I am correct in assuming selling is also considered a trade and the same commission applies) = $2425 - $200 initial investment = $2225 profit (with 5000 shares still in the market, ready for a possible increase in share value, or ready to be sold if scared of an extreme drop in market value, plus initial investment now taken care of)

to me, that sounds as if its worth it
and if not, its only a $200 investment. problem is, if I am ready to get 5000 shares, or 10000 shares, because I am not sure if I want to invest $100 or $200 (75 or 150 in commission).. I am leaning towards $100 because I don't have a LOT of money right now, but enough that the gamble wouldn't hurt me either).

Do penny stocks really make such a huge swing? i.e. 0.005 - > .50 in short term. Hope you research the company carefully.

 

[Specop 007]

Originally posted by: destrekor

Originally posted by: Specop 007

Originally posted by: Schfifty Five

Originally posted by: Alienwho
I don't have an answer for you, but I have a similar question of my own. Lets say I make an account with scottrade, and it costs $7 per transaction. Does that mean that if I buy 500 shares in whatever company, that counts as one transaction and is $7 for the whole?

yeah, whenever you buy a 'lot' of shares, each time it costs a commission (ie $7 at scottrade)

so if you want to purchase 500 shares of stock X at one time, it's $7 commission.

If you bought 250 on one day, then 250 on another day, it's $14 total ($7 each trade)

Scottrade has different fees for stocks under $1. Delisted stocks or whatever they are. Forgive me, for I am braindead today.

Anyways, might want to check into the fees for stocks under $1.

anyone know a place with decent commissions that does not require a minimum account balance, at least not one greater than $200 at the most?

Last time I was shopping, Scottrade was by far the best with the lowest fees and lowest account minimum.

 

[Al Neri]

1) PM me for my paypal account info.
2) Send me your moneys you plan to "invest" in penny stocks
Repeat 1)

 

[destrekor]

alright to update this situation: I found a place that should be perfectly suited for me, and a local branch is available here in Columbus.... and that's TD Ameritrade.
9.95 flat commission per trade, no matter the number of shares (even 10000 shares in one trade is still $9.95!!!!), and no minimum balance required when opening the account with cash.. but a minimum of $500 if funding electronically.. so I aim to go to the branch, apply for an account and put a certain amount of money in the account that would allow me to buy 10000 shares relatively easily.

stockholding, here I come (hopefully).

 

[KnickNut3]

Originally posted by: crystal

Originally posted by: destrekor

Originally posted by: kranky
I think the best answer is to skip the whole thing and save your money. Look at those commission costs as a signal to stay out of penny stocks and $50 trades.

the idea is a gamble, because I expect this company, through recent events, to have the shares go up, to anywhere from $0.5 to $1. At that rate, investing that number of shares would be a GREAT idea because the profit would be extreme, even if the initial investment due to commissions were relatively high.
figure this:

10000 shares @ $0.005 (ask) + commission = $200 total investment
10000 shares now at $0.50 = $5000 total worth
selling off 5000 shares at a .50 bid = $2500 - $75 commission (if I am correct in assuming selling is also considered a trade and the same commission applies) = $2425 - $200 initial investment = $2225 profit (with 5000 shares still in the market, ready for a possible increase in share value, or ready to be sold if scared of an extreme drop in market value, plus initial investment now taken care of)

to me, that sounds as if its worth it
and if not, its only a $200 investment. problem is, if I am ready to get 5000 shares, or 10000 shares, because I am not sure if I want to invest $100 or $200 (75 or 150 in commission).. I am leaning towards $100 because I don't have a LOT of money right now, but enough that the gamble wouldn't hurt me either).

Do penny stocks really make such a huge swing? i.e. 0.005 - > .50 in short term. Hope you research the company carefully.

If many companies made 10000% short term returns, we'd all be rich.

 

[destrekor]

Originally posted by: KnickNut3

Originally posted by: crystal

Originally posted by: destrekor

Originally posted by: kranky
I think the best answer is to skip the whole thing and save your money. Look at those commission costs as a signal to stay out of penny stocks and $50 trades.

the idea is a gamble, because I expect this company, through recent events, to have the shares go up, to anywhere from $0.5 to $1. At that rate, investing that number of shares would be a GREAT idea because the profit would be extreme, even if the initial investment due to commissions were relatively high.
figure this:

10000 shares @ $0.005 (ask) + commission = $200 total investment
10000 shares now at $0.50 = $5000 total worth
selling off 5000 shares at a .50 bid = $2500 - $75 commission (if I am correct in assuming selling is also considered a trade and the same commission applies) = $2425 - $200 initial investment = $2225 profit (with 5000 shares still in the market, ready for a possible increase in share value, or ready to be sold if scared of an extreme drop in market value, plus initial investment now taken care of)

to me, that sounds as if its worth it
and if not, its only a $200 investment. problem is, if I am ready to get 5000 shares, or 10000 shares, because I am not sure if I want to invest $100 or $200 (75 or 150 in commission).. I am leaning towards $100 because I don't have a LOT of money right now, but enough that the gamble wouldn't hurt me either).

Do penny stocks really make such a huge swing? i.e. 0.005 - > .50 in short term. Hope you research the company carefully.

If many companies made 10000% short term returns, we'd all be rich.

two years ago this company's stock was around the penny mark, and it's 52wk high is roughly .50, so i'd say its possible.. especially if the company was crap and offered nothing for awhile, and then started offering something. to me its a possibility.

btw, the company used to be known as infinium labs, and now is known as Phantom Entertainment, Inc. it's an iffy situation, but with a product now available to purchase and the recent Alienware deal, I'm thinking something might happen. not necessarily 50 cents in short term, but in a year something may brew, especially if alienware helps the lapboard catch on, which if anything alienware's deal is either going to kill the lapboard or help it get big.
never know, the product may hit retail by the end of the fiscal year if it does well with alienware's systems... the only killer is only offering a laser mouse in the bundle, and thus raising the cost to $130 for the wireless keyboard/mouse combo. regular optical mouse potentially be much cheaper and a BIG hit. i like it and want it for my PVR system, and even PS3 use, but alas, its a bit on the expensive side.