|Written by Administrator|
|Wednesday, 25 March 2009 01:55|
Free online investing!
If you are looking for free online investing, believe it or not there are actually a couple of brokers that allow you to open accounts with no minimum balance and offer different pricing plans where you can avoid paying fees! And these are both reputable name-brand companies, so you don't have to worry about getting scammed or doing business with a sketchy organization.
Since I hate paying fees myself, finding brokers that offer free online investing is something I had already researched when deciding on who were the best brokers. So here's what I found:
Zecco is an online broker that offers no minimum balance to open an account, and offers $0 commissions on stock trades if you open an account with a minimum of $2,500 USD. They allow you 10 free trades a month under this pricing plan. If you are in a situation where you don't have the minimum to qualify for the free trades, you can still make stock trades for only $4.50, which is still one of the lowest fees I could find even among the discount brokers. So even if you do have to pay the fee, this is still a very good value.
Sharebuilder is another online broker and is owned by ING Direct, which is a larger financial company. I have an account there myself, so I can say from first hand experience that this is a good company to do business with. At Sharebuilder you can open an account with no minimum and they have a pricing plan where you can buy mutual funds with no fee, regardless of how much you put in. This is great for someone who doesn't have a lot of money to start with, or who only can invest small amounts of money at a time. Stock trades are $9.95 per trade.
Do you plan to buy stocks, mutual funds, or both?
As you can probably see, which broker you choose will depend on if you plan to invest in mutual funds or individual stocks. But if you plan to do both, (or if you are undecided), there's no reason you can't open an account with each and do both for free. I personally prefer to have my money with a couple of different brokers anyway, just because I don't like to have all my eggs in one basket.
Whichever you choose, the important thing is that you don't have to pay fees if you don't want to. And it just makes sense - if you are in this to make money, why would anyone want to eat up all their profits with fees? :-(
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|Last Updated on Saturday, 28 March 2009 01:54|