Quick Question.

[Jason G]

Hi everyone.

I have a quick question that doesn't pertain to business. I’m looking to purchase a stock and I’m in need of a stockbroker. I was wondering if anyone had used Scottrade, Ameritrade, or e-trade. I have read most of the policy/fees. I’m think I would come out better in the long run using a broker, but the percentage ratings are outrages. This won’t be an active day trading. Any recommendations?

[dre]

I have used sharebuilder and scottrade. I would go with scottrade because they have low commisions, only $7 per trade.

[Lilmoneymaker]

I agree with dre, because if you do want to want to become an active trader later on its very very cheap. Even if you dont want to be an active trader i dont think that they have inactivity fees

[Jason G]

Thanks for the advice, greatly appreciated

[joshw]

It depends on the amount of $ you intend on trading. Give me a ballpark figure.

[Jason G]

Josh,


I'm looking to invest 5,000

[joshw]

For that amount, go with whichever has the lowest trade costs. Make sure you find out the costs of buying and selling.

That said, if I were in your situation, here's what I would do rather than playing with the stock market:

1. Get organized: set a budget and create a financial filing system (let me know if you would like help with that).

2. Create a savings account (at a bank or a money market) of at least $1000 for use in an emergency.

3. Increase your 401k contribution (if you have one) to 15% and make sure that your money is diversified.

4. Set up a systematic investment plan of at least $50/month into a solid mutual fund.

In 20 years you will probably be very wealthy. Good luck!