Investing in stocks has become as easy as ever. You can now invest in any stock you want over the internet. There are several online investment brokerage firms available that allow you to inexpensively invest in stocks online. You just have to place your order and they buy the stock you want much cheaper than if you went with a full service brokerage firm.
My favorite online stock investment brokerage firm is Sharebuilder.com. I have been using them for the past two and a half years and I have been very pleased thus far. Sharebuilder offers stocks for $4 at any amount. This means you don’t have to buy a roundlot (100 stocks) or even just one stock. Instead of putting in how many stocks you want, you can put in the amount of money worth of stock you want. For example, you can say you want $200 worth of a stock priced at $43.54. You would get approximately 4.5934 stocks.
The stocks only cost $4 for a regular trade. This means if you buy $100 of Google, you pay $4. If you buy $1,000 of Google, you still pay $4. The $4 comes out of what you put in, so you don’t have tack the commission on top. This commission fee is based on each stock meaning you can’t buy $100 each of Google, CVS, Johnson & Johnson, and Apple and pay a $4 commission. You would pay the $4 for each stock, so for this investment, it would cost you $16. That is still a bargain.
Another great benefit is that there’s no minimum investment. A lot of other online investment firms and other brokerage firms require a minimum deposit in your investment account, usually $1,000 or more. You can start with just $10 with Sharebuilder if you really want to. It’s up to you how much you want to invest, but remember the lesser you invest, the higher your commission cost is. To demonstrate, if you buy $10 of Apple, you pay $4. This would mean you are paying 28.5% commission on your investment. If you buy $100 of Apple, you still pay $4 and your investment only cost 3.8%. Just keep this in mind if you plan on buying many different stocks frequently.
Sharebuilder also offers mutual funds for those less stock savvy investors. If you feel you couldn’t do a very good job investing and choosing your own stocks, choose a mutual fund instead. Signing up with Sharebuilder is very easy. Just go to the site, sign up, send in copies of the appropriate forms for verification and your own security, and then start placing trades! Click the link below to start investing with Sharebuilder.