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I'm looking to take about a grand and put it into the stock market to play with. I don't know much about Share Builder but is it a good place to start trading stock.
I don't think you can go wrong with Scottrade. ShareBuilder is not exactly for trading, which is what you want to do. I advise against trading btw, but I think Scottrade is still better for investing.
I use it and have been pleased so far. There was a time when Sharebuilder's networks were being overloaded causing the site to go down, but that has been resolved and it works fine now. Sharebuilder's biggest draw are the $4 automatic trades every Tuesday (a price that I don't think any other online broker meets).
I've used Sharebuilder for the last 8 months and have never had any problems at all. Love it. I do not recommend it if you are going to be doing active trading (lots of buy and sell). Sharebuilder charges $9.95 for real time trades, which is a bit high. I don't trade a lot, so I just use the $4.00 automatic buy plan, which is cheap for me. If you plan to activly trade, shop around, you can get a better deal than Sharebuilder. Good luck!
NOT a trading account, but if a "balanced fund" is acceptable consider the Vanguard Star Fund.
"Vanguard charges a $20 annual account service fee for each Vanguard fund with a balance of less than $10,000 in an account. This fee does not apply if you sign up for account access on Vanguard.com and choose electronic delivery of statements, confirmations, fund reports, and prospectuses."
I don't mean to discourage you but $1K is a bit short to "play" in the market. Most brokerages require buys in round lots of 100 shares (there may be ways to purchase odd lots but I suspect it would be more costly, I've never done it and have no knowledge thereof). With 1K in capital you're very, very limited in the securities you could buy. I'm no expert but I don't think many brokerages will even open an account at that level. Yes, major companies were down to very low values but don't count on that continuing. A grand really limits your opportunities. If this is essentially a play money account, you might want to look at my favorite area (after you've educated yourself) - selling covered calls as an alternative to straight equities. I'm not familiar with the minimum account balance necessary to open an account, something you will have to research. I've had excellent service with a company called Options Xpress. As in all investment areas, you do need to seriously do your homework and become educated about whatever area of the markets you want to invest or speculate in, ignorance is very expensive. I strongly suggest that you first run a "proxy account" before do anything for real. By proxy I mean you pretend to have made an investment/speculative buy and then track how your assumptions play out. Its good way to learn the ropes without risk. A word of serious advice - don't ever play with money you can't afford to literately burn. Investing and speculating can be a great deal of fun but never risk your "necessity funds". JMO. Good luck.
Last edited by Pilgrim21784; 08-03-2009 at 11:30 PM..
Most brokerages require buys in round lots of 100 shares (there may be ways to purchase odd lots but I suspect it would be more costly, I've never done it and have no knowledge thereof).
That's not true these days. Most, if not all, brokerages now allow trading in odd lots and there's no extra cost. Also, several brokerages have account minimums of $1000 or less.
But I agree that, with a $1000 account, commissions will be a factor.
Good to know LongArm, thanks for the info. I'm used to buying round lots in stocks because covered calls are only issued in 100 units, at least with my broker.
NOT a trading account, but if a "balanced fund" is acceptable consider the Vanguard Star Fund.
"Vanguard charges a $20 annual account service fee for each Vanguard fund with a balance of less than $10,000 in an account. This fee does not apply if you sign up for account access on Vanguard.com and choose electronic delivery of statements, confirmations, fund reports, and prospectuses."
I was going to recommend the same fund. It's one of the best funds to get started with if you have $1,000.
I generally think trading is a great way to lose money. It's fine if you put a small amount of 'mad money' aside for that purpose, but most people don't do that.
sticaltygmyer- I'd have to agree with you regarding active trading for a non-professional. My experience in active trading was generally non-productive (strictly mad money, of course). I migrated to the area of selling covered calls on a select group of high quality companies and have found it to be a nice way to turn a modest profit. These have been very good times to take positions in great companies, hold for the long term and do the covered sale gig. JMO.
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