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Unread 06-11-2010, 12:47 PM   #1
03rubiconMG
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what stock trading company should i use

I am thinking about playing around with the stock market a little bit and am wondering what is the most fairly priced company for small money investments under $200.

Im not talking about companys to invenst in im talking about companys like ameritrade to handle the investing.

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Unread 06-11-2010, 12:50 PM   #2
jb4
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scottrade or e*trade - i know both allow dummy accounts with real structure and pricing so you can mess around with live prices but virtual money...

but what are you going to be trading?
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Unread 06-11-2010, 12:57 PM   #3
2010Rubicon
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Speculative account funding under $200? None of them. Wait until you have $10,000.
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Unread 06-11-2010, 08:57 PM   #4
robojeep
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Originally Posted by 2010Rubicon View Post
Speculative account funding under $200? None of them. Wait until you have $10,000.


with $200 you won't notice even large fluctuations in stock prices... you'll get bored.
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Unread 06-11-2010, 10:53 PM   #5
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200 is way light, unless you really want to pay attention and play full time pennies.

I thought e-trade needed a grand to open something to play with??
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Unread 06-12-2010, 07:30 AM   #6
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You won't even be able to open a trading account with less than 10K. There are laws regarding this...
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Unread 06-12-2010, 08:43 AM   #7
bobjp
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Originally Posted by 2010Rubicon View Post
Speculative account funding under $200? None of them. Wait until you have $10,000.
^^Here's some bad advice more than likely from a yestergeneration. No wonder things went to ****. Save a lot of money and then throw it into the stock market at once without any experience.


And here's some advice that's just wrong...

Quote:
You won't even be able to open a trading account with less than 10K. There are laws regarding this...

I have been looking to open a trading account myself but haven't done it yet. I have done some research. I think Scottrade has a minimum of $500 and other places are around $1000. Also, I think the cheapest trade fee is Scottrade with a rate of $7.00 per trade. Considering this, $200 is too little to invest. You would have to wait for more than a 3.5% increase before it would make financial sense to trade. You'll just be watching the stock like you could be right now. I would up your investment to $500 or $1000. It isn't too much to lose (if you have income), and you'll be more inclined to trade.
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Unread 06-12-2010, 08:59 AM   #8
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$500 is the minimum for most places.

I say find/make friends with a local guy...cheaper in the long run.
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Unread 06-12-2010, 09:00 AM   #9
rentalguy1
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Originally Posted by bobjp View Post
^^Here's some bad advice more than likely from a yestergeneration. No wonder things went to ****. Save a lot of money and then throw it into the stock market at once without any experience.


And here's some advice that's just wrong...




I have been looking to open a trading account myself but haven't done it yet. I have done some research. I think Scottrade has a minimum of $500 and other places are around $1000. Also, I think the cheapest trade fee is Scottrade with a rate of $7.00 per trade. Considering this, $200 is too little to invest. You would have to wait for more than a 3.5% increase before it would make financial sense to trade. You'll just be watching the stock like you could be right now. I would up your investment to $500 or $1000. It isn't too much to lose (if you have income), and you'll be more inclined to trade.
Keep looking...

You have to have enough on hand in the account to meet the minimum govt requirement, and then enough to trade in 100 share blocks on top of that. You're not going to make much money trading penny stocks, so you need to plan on making trades in the $2500+ range for each stock.

You're giving advice based on your experience of what, looking in to opening a trade account at a online brokerage firm? I medically retired a couple years ago at age 35. How do you think I was able to afford that, and continue to live as I always have? I don't live like a king, but I don't owe anything either. The only exception is the house that I just bought, but that's ok, because the rent from the other house that I bought 6 years ago with cash pays my mortgage.

Edit: I just checked, and sure enough, you can open a trading account for as little as $500, but I wouldn't suggest it. Why in the hell would you want to do all the work researching before you make a trade, pay all the trade fees involved, and deal with all the end of year tax crap to clear $17.50? Stick the money in a money market account, and save up until you have at least 10K. Then you can purchase a few quality options and make some real money. At least it is worth the trouble you have to go through.
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Unread 06-12-2010, 09:42 AM   #10
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Keep looking...

You have to have enough on hand in the account to meet the minimum govt requirement, and then enough to trade in 100 share blocks on top of that. You're not going to make much money trading penny stocks, so you need to plan on making trades in the $2500+ range for each stock.

You're giving advice based on your experience of what, looking in to opening a trade account at a online brokerage firm? I medically retired a couple years ago at age 35. How do you think I was able to afford that, and continue to live as I always have? I don't live like a king, but I don't owe anything either. The only exception is the house that I just bought, but that's ok, because the rent from the other house that I bought 6 years ago with cash pays my mortgage.

Edit: I just checked, and sure enough, you can open a trading account for as little as $500, but I wouldn't suggest it. Why in the hell would you want to do all the work researching before you make a trade, pay all the trade fees involved, and deal with all the end of year tax crap to clear $17.50? Stick the money in a money market account, and save up until you have at least 10K. Then you can purchase a few quality options and make some real money. At least it is worth the trouble you have to go through.
So basically your first paragraph is full of miss information. Great, why don't you delete it?

I didn't claim to be an expert. I am in the same position as he is; don't have a lot of money, but want to learn to trade. I gave information (which, as opposed to yours, is correct) based on what I had found thus far. Go ahead, tell me what exactly is wrong with doing that.

Suggesting that someone should have a minimum investment of $10,000 is rediculous. You have two homes and are retired at age 35 (here's the e-pat on the back you're looking for), good for you. You've got a lot of money, the rest of us don't.

The guy wants to learn without losing all of his money. Sounds pretty intelligent to me. ****ing around with large sums of money while having no experience is not intelligent.
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Unread 06-12-2010, 10:59 AM   #11
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The guy wants to learn without losing all of his money. Sounds pretty intelligent to me. ****ing around with large sums of money while having no experience is not intelligent.
Going to have to agree with this.

I'd suggest virtual trading before throwing any real money into the volatile market. cboe.com has a great and free virtual trading system, but I'm sure there's some others out there as well. It'll let you get your feet wet and grasp a feel for the market without any real risk. I enjoyed playing around and following the market with it. You'll also be able to set aside cash in the interim as you get a feel for trading and how the market reacts on a day to day basis.

However what others have stated about saving to 10k is applicable as well. With $200, your trades are going to cost you $9.95-$14.95 per execution, or roughly 10% of what you're budgeting. Unless you're getting in on a IPO or buying penny stocks, there's not a lot of room for margin trading. If I were in your boat, I'd probably play around with a virtual trade for the next 6 months and save up $2,500-$5,000. This will allow you to buy shares in 100 blocks. Your next step will be to find a no frills low-service brokerage firm that only charges you a trade fee, unless of course you want trading tips and advice, which firms will be glad to offer for a fee as well.

Since you're new to trading, I'd suggest indexed stocks such as those in the DJI - it'll be easy for you to follow as your stock will generally increase as the index value increases.
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Unread 06-12-2010, 12:33 PM   #12
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If you want to start small, there are companies that allow you to purchase directly through them or an intermediary (such as computershare.com or bnymellon.com). Some require minimum monthly investments to maintain the account (i.e. $50/month).

It is an option to get started. The plans vary by company and are all over the place. You won't make much to start, but you can build it up over time.
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Unread 06-12-2010, 01:31 PM   #13
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^^Here's some bad advice more than likely from a yestergeneration. No wonder things went to ****. Save a lot of money and then throw it into the stock market at once without any experience.
Obviously, you have extremely limited or NO experience. No wonder you are part of the generation that wants everything NOW.

Trading with a $200 account will get you nowhere. In fact, during the era of Internet stock trading mania it was undercapitalized, amateurs who often began with small or tiny amounts and then lost everything. Some of them thought they would trade smart by purchasing options instead of stocks because they had $1,000 or much less in their account. They too lost everything.

When you don't have several thousand dollars in a trading account, then wait until you can afford it. Thinking that you can learn stock market mechanics by trading with a tiny account will only lead to failure. No one picks a winning stock every time. If you want to trade successfully, you will make NUMEROUS mistakes. It takes a lot of money to learn how to trade, not just a couple hundred dollars and losses that can be measured with small bills.
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Unread 06-12-2010, 02:09 PM   #14
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Obviously, you have extremely limited or NO experience. No wonder you are part of the generation that wants everything NOW.
Says the guy with the new Jeep. How do you like those car payments? And I seem to be one of the few not telling him to do something stupid with his money so I'm not sure how your generalization applies.

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Trading with a $200 account will get you nowhere. In fact, during the era of Internet stock trading mania it was undercapitalized, amateurs who often began with small or tiny amounts and then lost everything. Some of them thought they would trade smart by purchasing options instead of stocks because they had $1,000 or much less in their account. They too lost everything.

When you don't have several thousand dollars in a trading account, then wait until you can afford it. Thinking that you can learn stock market mechanics by trading with a tiny account will only lead to failure. No one picks a winning stock every time. If you want to trade successfully, you will make NUMEROUS mistakes. It takes a lot of money to learn how to trade, not just a couple hundred dollars and losses that can be measured with small bills.
So you'd rather him trade as an over capitalized amateur? (I like the sound of that; it's so fitting for those responsible for the economy.) He's 24 years old. Do you really think he has $10,000 cash, no debt, and enough assets that he can afford to lose $10,000? Tell me, how much did you start trading with? Something tells me it wasn't $10,000 (and you can't include employer stock options.)

Do you not have less than $10,000 in any one stock? The first thing anyone with that kind of investment money would do is diversify. And they'd probably end up owning less than $1000 in at least one stock. So what's wrong with buying just that one stock and not spending another $9000? There is nothing wrong with it.
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Unread 06-12-2010, 08:14 PM   #15
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Says the guy with the new Jeep. How do you like those car payments?
What payments? I don't have any. Once again you are WRONG.

By the way, newbie, A JEEP IS NOT A CAR!

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So you'd rather him trade as an over capitalized amateur? (I like the sound of that; it's so fitting for those responsible for the economy.) He's 24 years old. Do you really think he has $10,000 cash, no debt, and enough assets that he can afford to lose $10,000?
Of course he doesn't, fool. That's why he should wait.

$10,000 is NOT overcapitalized. You obviously have NO savings because this amount seems like a lot to YOU personally.

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Do you not have less than $10,000 in any one stock? The first thing anyone with that kind of investment money would do is diversify. And they'd probably end up owning less than $1000 in at least one stock. So what's wrong with buying just that one stock and not spending another $9000? There is nothing wrong with it.
WRONG again. Diversify when you have the MEANS to do it.

$10,000 is nothing these days. In fact, it buys only 200 shares of a $50 stock -- not including the commission charge.
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