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YAIT: Sharebuilder or Fidelity?

A

alm99

Diamond Member
Let me start here, I am a newb to investing, but I would like to just play around with some cheap stocks with a little extra money I have each month, $50-$100.

I have a 401k through my employer with their partnership with Fidelity. With the partnership Fidelity waives the minimum requirement to start investing, I think its $1k. The fees on trades are still there and I think under the bronze package its $19.95 a trade, plus I get real time trades.

I don't know a whole lot about sharebuilder other than there is no minum balance, no inactivity fee, to purchase stocks its $4. I have heard that its hella expensive to move or sell your stocks.

Can anyone give me a little insight if anyone has a sharebuilder account or a fidelity account?
 
Originally posted by: alm99
Let me start here, I am a newb to investing, but I would like to just play around with some cheap stocks with a little extra money I have each month, $50-$100.

I have a 401k through my employer with their partnership with Fidelity. With the partnership Fidelity waives the minimum requirement to start investing, I think its $1k. The fees on trades are still there and I think under the bronze package its $19.95 a trade, plus I get real time trades.

I don't know a whole lot about sharebuilder other than there is no minum balance, no inactivity fee, to purchase stocks its $4. I have heard that its hella expensive to move or sell your stocks.

Can anyone give me a little insight if anyone has a sharebuilder account or a fidelity account?
Click to expand...

Can't comment on those places. I use Ameritrade. $11 per trade.

And to be totally honest, even $4 commision is to much if you are only buying stock in $100 lots. You have to make 8% just to break even ($4 buy, $4 sell).

Hell, even at Ameritrade where it's $11, I view any lots under $5000 as a waste of time due to commisions.

Sounds like your 401K is a good place to be though. I would definitely do that. Just contribute to the 401K and whenever you get say $250+ (I'd shoot for $500+ atleast) just buy a REIT or thrift or some other high yield issue. Tax sheltered counts like 401K are the perfect place for high yielding stocks. Good place to start for high yielders:

Slowly growing stocks wih higher yields

You can also consider ALD and ACAS but some people fear these companies as they appear "shady". I personally don't look at the shady aspects as an issue.
 
Agreed you'll almost certainly lose money paying 4% - 12% up front to buy $100 in stocks then again to sell them. With that much of a house edge, Vegas makes a lot more sense.

You might be better off starting an INGDirect.com account and earning 2.x% guaranteed with no trading fees. Once you build up a few thousand you can start placing your bets in the market, or take the lazy way out like I do and just buy and hold an S&P 500 mutual fund like Vanguard.com's VFINX.
 
That would be the point though, I would buy and hold. I don't want to be a daytrader. I am looking into the long run of it.
 
Scottrade. $7 for market trades. Excellent execution and no nickel and dime fees (inactivity fees, balance fees, etc). Only $500 to open up an account. Transferred from TD Waterhouse over to them and haven't looked back since.
 
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