Guide to Share Builder
By: Anne Durrell
If you are currently
buying and selling stocks online or are interested in starting you owe it to yourself to check out
share builder. This website offers a different way to buy stocks that will appeal to a lot of investors because it is simple and it makes sense. It is easy to use and much cheaper than using a traditional broker. While these things are true of most online stock brokers,
share builder is a bit different.
Share builder offers
stock trades of any publicly traded company for $4 for any dollar amount you want to buy. This means you do not have to buy a minimum number of shares or even a round number of shares. You buy the dollar amount you want and you get the corresponding number of shares, even if it is a fractional amount. So if a stock costs $22.35 per share and you buy $100 worth, then you get 4.4743 shares.
Each transaction cost $4. So buying $100 worth of Apple costs you a $4 commission and buying $1000 worth of Apple costs the same $4 commission fee. The commission is subtracted from the amount that you want to spend instead of being added on so you know exactly how much you are spending. This makes it really easy to plan how much you can afford to invest and to invest that same amount each week or each month.
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Another good thing about
share builder is that it does not require a minimum investment so you can start off at any level you feel comfortable with. Other online sites require you to put a minimum amount of money in your account when you open it. This means you have to save before you invest. With share builder you can start investing straight away. S
Since the $4 fee is the same no matter how much you buy, however, it is worth buying larger amounts at one time if you can because then the fee is a lower percentage of the overall cost. In other words, if you were to buy $100 worth of a stock you are only paying $4, which is only a 4 percent commission. If you only bought $20 worth of stock, the same $4 fee is now a 20 percent commission, so be careful.
This also matters when you want to buy several
different stocks. The $4 fee applies to each different stock not to the total purchase. So it makes sense to consolidate your purchases of the same stock together. Instead of buying $25 each of 4 different stocks each week for a month, it would be much cheaper if you bought $100 worth of one stock each week. You would pay $4 a week in fees instead of $16 which would mean you would have $48 more invested by the end of the month. So if you are
looking for something different, give share builder a try!
I suggest you check out my other guide on
online stocks trading and
stock trading companies
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