Stock investments; what am I getting into?
March 23rd, 2011 Filed under: Investing Tips — Investing Author
pansywaste asks the question: I’m considering starting to invest on discount brokers. They advertise “7$ a trade!” or “$4 a trade!” but if you dig deeper there are a lot of fees that confuse a new investor.
Account Transfer Fees
Wire Out Fees
Certificate Fee
Not only a lot of hidden, and unexplained fees, but they go into a deep amount of talk about “schedules” this and that, with a bunch of figures beginners just don’t understand.
Commission Schedule
Rate Schedule
Rate Schedule – Margin Rates
Discount brokers advertise as if you could get online, pay a one time $4 fee to buy each stock, and start collecting checks. But could one do this? I’d like to get on and practice at it and see if I could make some money, with small figures. Will my interest cost me more than $4 a trade?
Answer:Your best bet is to go through the promo material you have and write down your questions, then call the broker. Many will not effect you such as wire transfer fees but it is good to know about them. Once you have the answers it will be easier to compare brokers.(Investing)
