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Wed 15 Feb, 2006 06:18 pm
I am a college student with an interest in the stock market. I want to build a portfolio of my own; however I have no experience with trading. I have taken classes in this area; I read business newspapers and magazines on my own along with other web related articles. I think it's time for me to get started. But how?!
I don't have thousands of money to invest with. Maybe 1 to 2 thousands at most. So what I am wondering is this: is there any discount brokerages out there that charges low commission and allows trading of hundreds of dollars?
Are there any other options or resources that I can go to?
Thanks
Check out TDWaterhouse. You can trade online with them
and get investment info from their website as well.
I've been using them for years without any problems.
www.tdwaterhouse.com
Re: Stock Investing: Online Discount Brokerage
werthn wrote:I am a college student with an interest in the stock market. I want to build a portfolio of my own; however I have no experience with trading. I have taken classes in this area; I read business newspapers and magazines on my own along with other web related articles. I think it's time for me to get started. But how?!
I don't have thousands of money to invest with. Maybe 1 to 2 thousands at most. So what I am wondering is this: is there any discount brokerages out there that charges low commission and allows trading of hundreds of dollars?
Are there any other options or resources that I can go to?
Thanks
You are completely insane if you want to trade stocks with only 2k to invest. Get help!
BTW I have got a better investment, there is a REALLY beautiful bridge just a couple miles from here. I am going to start making shares available to all those interested. PM me, I will tell you how to wire me the money.
Roxxxanne wrote:BTW I have got a better investment, there is a REALLY beautiful bridge just a couple miles from here. I am going to start making shares available to all those interested. PM me, I will tell you how to wire me the money.
Um, as if what you have just suggested me isn't risky let alone scam like. Handing money out to complete strangers on the web is a definitely no-no for me. I think I will take my chances with the online trading with my 2k money.
Lots of online trading companies allow small trades. Some allow you to open an account with as little as $500.
I use Etrade and Scottrade.
Scottrade has $7 trades but there are other ones that are in that same cost range.
Trading costs will eat up profit quickly with a small amount in your account. Don't expect to be doing a lot of trading and make a lot of money quickly.
Open an account, put a little bit in monthly. Research and buy 10-20 shares of a couple of decent stocks and sit on them for a while. Stay away from margin trading until you have more money.
Quite a few companies allow you to purchase stock directly from the company. Then, as a shareholder you can enroll in the Dividend Reinvestment Plan and make monthly or quarterly investments - all apart from a broker. The initial purchase might have to be as high as $500. Subsequent purchases would be in the $50 to $100 range.
Years ago I opened such accounts for our children in GE and Proctor and Gamble, hoping to kindle some interest in their parts on investing. No such luck.
To find out if a company offers this option, go to their website. Then find the link for "investor information" or "shareholder services" or something similar. If they offer this option, that's where the description will be.
I agree with Jim, you can start a number of DRIPs (dividend reinvestment programs) with many companies. When I first started investing I opened accounts with Motorola, what is now ExxonMobil, Intel, Tribune corp, and McDonald's. There are hundreds of other companies that allow you to open accounts with as little as $100 and then you can add to it over time with small (or large) investments.
Google "DRIP" and there are a number of resources that will help you get started. Good luck!
Another alternative for the small investor is to find a mutual fund that is diversified and has an associated risk level that you are comfortable carrying. Not all mutual fund companies are created equal so do some research before chosing on to ensure your investments aren't eaten up by fees.
Reading MONEY magazine, or other individual investor journals, for a few months is a good idea to help pick companies or fund managers.
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