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Cheapest Online Stock Trading Sites on the Internet

By Edited Nov 18, 2013 0 0

When it comes to the stock market you obviously want to get the most bang for your buck. After all, you want your investments to make you money not take your money. Therefore, if you're new to the stock investor's game, you may want to start using a simple stock trading website, where the price to invest is the cheapest possible. This way you won't be spending tons to make trades. The more you spend on trades, the less you can possibly make from the stock going up or down. In this article you'll learn about a few of the cheapest online stock trading sites on the internet.

There's plenty of investment companies which have online trading websites available to use. You've probably heard of the well known companies like eTrade and Scottrade from television. Both of these websites allow investors to open up accounts so they can trade stocks online in real time. The problem with the big name companies is generally they will require you to have several thousand dollars in your account to invest with them. For example, eTrade requires investors to have at least $1,000 in their account. They also charge relatively high fees for trades, making it hard for the new, smaller investor to get their feet wet with online stock trading. There are more suitable online trading sites for investors who are just starting out.

One of these cheapest online trading sites is BuyandHold. The reason BuyandHold is great for the novice or newbie investor is that they offer no real minimum to fund a stock account. The minimum trade you can make is as little as $20 at a time. The great thing is that the charge will be $2.99 each time you make a trade, no matter how much you are buying. So you could purchase $20, or $2,000 of a stock and still be charged just $2.99 for that online stock trade. BuyandHold offers regular stock trading accounts online without any fees. If you choose a Roth IRA or Traditional IRA with them you will pay a yearly fee of $25 to maintain your account. It's important to note that the BuyandHold stock investment site has fees associated with various functions such as having a stock certificate issued to you or terminating a IRA account.

The other online stock website is run by ING Direct. They merged with the Sharebuilder site which is very similar to BuyandHold. ING Sharebuilder offers a $4 fee for each stock purchase you make. The catch with Sharebuilder is they only make these investments on Tuesdays of each week. You can schedule your investments to happen weekly, biweekly or monthly. The reason I mention this site second is because they tend to lack the flexibility BuyandHold offers. With BuyandHold you can make those $2.99 stock trades on any day of the week. Both sites also offering real time trading for a much higher per trade fee, but again if you want to get your feet wet with the stock market and start trading stocks online, these two sites may be your best bet.

The beauty of the two cheap online stock trading sites mentioned in this article is that you're not paying commissions or tons of fees for having the account. There will be fees to do things like cash out a Roth or Traditional IRA completely, but those are necessary. The only fees on trading are the small window trade fees of $2.99 or $4 the two sites. That's what you'll pay to buy and sell stock online during specific times the company chooses to buy. So while you don't have the flexibility of real time trading for that low price, you can still dollar cost average, and get your feet wet investing in the stock market.



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