View Full Version : Stock purchasing, where?
Im interested in a specific stock. I assume as I know what stock and what I want to buy at, I don't need a broker and an online source with low fees is best. What do you use/recommend? ETrade, Ameritrade, etc, etc. ? Many choices I have not researched to make an informed choice. Or, as newbie to purchasing individual stock, am I better off using a broker? I don't plan on doing much individual stock purchases, but there's a tech stock i feel is currently under valued and will go up.
Devildawg2531
02-01-15, 11:09
Will I have my IRA's in Fidelity and opened a brokerage account at Fidelity to trade individual stocks / funds online. It's self guided and transaction fee's are very low. Lots of free research /data available as part of the Fidelity site. I can't comment on the others as I haven't used them.
Averageman
02-01-15, 11:14
Will I have my IRA's in Fidelity and opened a brokerage account at Fidelity to trade individual stocks / funds online. It's self guided and transaction fee's are very low. Lots of free research /data available as part of the Fidelity site. I can't comment on the others as I haven't used them.
Fidelity, these guys have been very good to me.
Mauser KAR98K
02-01-15, 11:28
Stock purchasing, where?
Bravo Company USA. :cool:
Stock purchasing, where?
Bravo Company USA. :cool:
Wise guy. :moil:
Take a look at Vanguard as well. An interesting comparison between Vanguard and Fidelity (http://www.marketwatch.com/story/fidelity-vs-vanguard-which-is-best-2013-05-07).
Let's start by noting a fundamental difference between these two companies. Vanguard is actually owned by the shareholders of its mutual funds. If the company is profitable (and it is), those profits go to the people who own Vanguard funds, not to outside investors.
This is an unusual business model, similar in some ways to that of credit unions and other cooperatives that ultimately operate for the benefit of their customer-members. Fidelity, on the other hand, is owned by the company's employees and by a series of family trusts.
This brings us to the topic of fees and expenses paid by investors. Vanguard has no incentive to charge any more than necessary to keep the company healthy. But the owners of Fidelity do better when the company charges more to investors. So Fidelity's incentive is to charge what the traffic will bear.
And as most investors know, higher charges mean lower returns. Two funds can have identical portfolios, but if one of them levies higher charges, its investors will have lower returns. There's just no way to get around that equation.
Devildawg2531
02-01-15, 13:17
Take a look at Vanguard as well. An interesting comparison between Vanguard and Fidelity (http://www.marketwatch.com/story/fidelity-vs-vanguard-which-is-best-2013-05-07).
I've used Vanguard as well and highly recommend their no load mutual funds. Vanguard is a great company; however I've not used their brokerage service.
I've used Vanguard as well and highly recommend their no load mutual funds. Vanguard is a great company; however I've not used their brokerage service.
Not looking at funds, but at purchasing a specific stock, just to keep thread on topic.
To purchase a stock, you need to open a brokerage account, i.e. using a broker :)
I opened a brokerage account at Vanguard (it was very simple), but haven't done any stock purchasing. Any reputable company you choose should also have phone support (I know Vanguard does) that will walk you through if necessary.
The only issues you need to look out for (timing, fee, etc) usually only apply if you intend to actively trade/time the market to the second.
Will,
I think you could safely go with Fidelity, E-trade, or Vanguard, Ameritrade.
Basically you fill out an account application online, then fund it whether by electronically moving the money online from your bank account, or writing a check and sending it in to the company. Alternately you can fund the account by going to a branch office of the company as you would opening a bank account. This of course depends which company has a branch near you. Each company has a minimum amount of money you need to open an account. It's usually between
Take a look at Vanguard as well. An interesting comparison between Vanguard and Fidelity (http://www.marketwatch.com/story/fidelity-vs-vanguard-which-is-best-2013-05-07).
That article is confusing and somewhat bizarre. It reads like an article written on ARs by someone doesn't know the difference between a Colt and a Franken AR, and then goes on to assert that one produces a higher muzzle velocity without telling you what ammo was fired, whether the same ammo was fired in each gun, and what length barrels each gun has.
For example the author writes:
"Let's start by noting a fundamental difference between these two companies. Vanguard is actually owned by the shareholders of its mutual funds. If the company is profitable (and it is), those profits go to the people who own Vanguard funds, not to outside investors.
I'm not sure what the author is trying to say. The performance of your mutual fund is based on the performance of the underlying financial instruments, less any trading costs and management fees. An investor in mutual funds does not get a financial payout based on how much the company managing the fund makes.
He also writes:
"On a one-time investment of $10,000, the Fidelity portfolio (with all earnings reinvested) produced $21,193 versus $23,892 at Vanguard. That difference, $2,789, represents nearly 28% of the entire initial investment."
Is he referring to investing in a mutual fund managed by each company, or individual stocks, or what? If he invested the same amount of money in the same shares of stocks held at either company, the return would be the same. If he is talking about mutual funds, both Fidelity and Vanguard have a variety of mutual funds with different objectives, different managers, and different stock holdings, that perform differently. The author needs to specify what mutual funds he is comparing talking, if that is indeed what he is talking about, and the funds would have to be similar funds for the comparison to be valid.
Averageman
02-01-15, 23:13
To be honest you're going to have to stay on your toes and have pen, paper and a calculator handy when you talk to these guys.
You should be able to weed out the sharks during the conversation, don't be shy asking questions and being a bit harsh if you feel you're being BS'ed.
One guy from Raymond James I spoke to was very egotistical and a bit of a dick. I simply moved all of my money except for a small fund they seemed to have a handle on. I figure WTF, I hired them, they are getting a fee and they aren't doing me any favors. After I moved my money I also spoke to his boss and explained why I left. Since I left my Sons college fund with R/J I have been with 4 different investment representatives with them in 8 years and I don't wonder why.
Never forget these guys work for you.
To be honest you're going to have to stay on your toes and have pen, paper and a calculator handy when you talk to these guys.
You should be able to weed out the sharks during the conversation, don't be shy asking questions and being a bit harsh if you feel you're being BS'ed.
One guy from Raymond James I spoke to was very egotistical and a bit of a dick.
Fidelity, Vanguard, E-Trade, Ameritrade, Charles Schwab, and certain other firms are not like that in that you do not have a broker or account executive assigned to you. You make your own investment decisions and go online or call them to buy or sell stock, mutual funds, bonds, etc.
I do not buy individual stocks but like you I had a few things I wanted to take a gamble on. I used share builder and have not had a problem with them in almost ten years.
https://www.sharebuilder.com/sharebuilder/default.aspx
Sent from my iPad using Tapatalk HD
Averageman
02-02-15, 05:29
Fidelity, Vanguard, E-Trade, Ameritrade, Charles Schwab, and certain other firms are not like that in that you do not have a broker or account executive assigned to you. You make your own investment decisions and go online or call them to buy or sell stock, mutual funds, bonds, etc.
The people I have spoken with at Fidelity over the years have all been extreamly professional and very helpful. The ability to write things down and look at the numbers before and during the call is key.
The Raymond James guy pretty much ruined Raymond James for me in a three minute conversation.
Will,
I think you could safely go with Fidelity, E-trade, or Vanguard, Ameritrade.
Basically you fill out an account application online, then fund it whether by electronically moving the money online from your bank account, or writing a check and sending it in to the company. Alternately you can fund the account by going to a branch office of the company as you would opening a bank account. This of course depends which company has a branch near you. Each company has a minimum amount of money you need to open an account. It's usually between
Thanx for the intel, that's likely what I will do.
I've used scottrade for over 10 years now and have been more than pleased with them. Their online system is really good IMO and they even have a streaming quote/trading platform you can use. Market and limit orders are both $7. I'm surprised to see their minimum to open an account is $2500. It used to be a lot less...like $250 or something like that.
Crow Hunter
02-02-15, 09:45
Thanx for the intel, that's likely what I will do.
I personally don't advise "gambling" on individual stocks as the likelihood of you have knowledge that "Mr. Market" who has loads of highly intelligent people who do this for a living don't already have and have already priced in is very low. Unless you have insider knowledge and act on it (which is illegal:fie:)
However, if you must, go with one of the low fee self directed investment houses like Ed suggested. Make sure you understand the different types of orders. Limit order, market order, etc. before you start.
http://www.bogleheads.org/wiki/Orders#Limit_Order
Stay away from the "investment houses" like Edward Jones or Raymond James, etc.
Now on my soap box which you should feel free to ignore;):
If you have some extra cash that you want to invest, a broadly diversified total market index fund with a low expense ratio is really a better choice. Mutual fund (VTSMX) is my fave or if you are going to get a brokerage account anyway, the ETF (VTI).
http://www.bogleheads.org/wiki/Three-fund_portfolio
Mr. Taylor Larimore, a veteran of Bastogne (101st), recommends the 3 fund portfolio and that is what I use.
I've been banking and using Charles Schwab for a few years now. You can do what you are asking with their brokerage account, which is the first account you open with them. If you want a checking account/savings account/roth IRA/traditional IRA/futures trading accounts you can also open those.
I want to say their transaction fee for stocks is 7.99 a trade.
I have a brokerage account(you have to have this) and have used it a few times for buying/selling IPO's.
I have a roth IRA.
I have a checking account which I use 100% as my personal checking account/debit card use. They dont charge ATM fee's(you actually accept the charge and they credit your account at the end of the month). This aspect is what sold me as an airline pilot I can get money from any atm anywhere and never pay a fee. They have been GREAT the 3 or 4 times in the past 5 years I have had fraud on my account. No international fee's, you just make your purchase and they give you the exchange. The only down side is they dont really have "bank" branches so if you deposit cash at one of their offices it usually takes 10 days to hit your account. Ive never tried depositing cash in a normal ATM and seeing if it hits my account. I can deposit checks via their phone app up to 10k dollars.
They basically provide almost 100% of the data morningstar produce's so you can really research things well before jumping into them. They also rate stocks, mutual funds, ETF's, etc...
If you want to get into mutual funds they have a lot that are very highly rated with no load and no transaction fee's and very reasonable carrying costs. Im currently in a Schwab Health Care fund for my Roth and it has done really well(beating the overall market).
I just opened a futures trading account with them, but I dont know if I will do anything with it. I hate to be an oil speculator, but its hard to not want to buy a few oil futures right now when oil is cheap since I am damn sure its going to go back up. As far as silver and gold, its in there, but I am more a physical silver and gold guy.
I personally don't advise "gambling" on individual stocks as the likelihood of you have knowledge that "Mr. Market" who has loads of highly intelligent people who do this for a living don't already have and have already priced in is very low.
Not to mention the rise of multiple exchanges and dark pools which have enabled high freqency traders to front run everything. I won't lie, I consistently make a little money trading, but the amount I trade has declined significantly in recent years because the areas where you can actually make $ are few and far between. I mostly sit in cash and wait for opportunities these days...
I personally don't advise "gambling" on individual stocks as the likelihood of you have knowledge that "Mr. Market" who has loads of highly intelligent people who do this for a living don't already have and have already priced in is very low. Unless you have insider knowledge and act on it (which is illegal:fie:)
However, if you must, go with one of the low fee self directed investment houses like Ed suggested. Make sure you understand the different types of orders. Limit order, market order, etc. before you start.
http://www.bogleheads.org/wiki/Orders#Limit_Order
Stay away from the "investment houses" like Edward Jones or Raymond James, etc.
Now on my soap box which you should feel free to ignore;):
If you have some extra cash that you want to invest, a broadly diversified total market index fund with a low expense ratio is really a better choice. Mutual fund (VTSMX) is my fave or if you are going to get a brokerage account anyway, the ETF (VTI).
http://www.bogleheads.org/wiki/Three-fund_portfolio
Mr. Taylor Larimore, a veteran of Bastogne (101st), recommends the 3 fund portfolio and that is what I use.
Thanx for the info. I'm well aware of the inherent risks of purchasing individual stocks. I'm fairly well diversified but would like to put a portion in a volatile tech stock I feel is worth the risk. I follow a simple rule: only gamble what you can afford to lose. I'm very risk averse as a rule, but some times you have to take some (calculated) chances to keep life interesting. I'll look into those funds also.
Thanx for the info. I'm well aware of the inherent risks of purchasing individual stocks. I'm fairly well diversified but would like to put a portion in a volatile tech stock I feel is worth the risk. I follow a simple rule: only gamble what you can afford to lose. I'm very risk averse as a rule, but some times you have to take some (calculated) chances to keep life interesting. I'll look into those funds also.
My only advice is to think about what you are trying to accomplish with the money and how much time you have to accomplish it....IE: What is your age and when are you likely to need the money, if ever.
Crow Hunter
02-02-15, 14:11
Thanx for the info. I'm well aware of the inherent risks of purchasing individual stocks. I'm fairly well diversified but would like to put a portion in a volatile tech stock I feel is worth the risk. I follow a simple rule: only gamble what you can afford to lose. I'm very risk averse as a rule, but some times you have to take some (calculated) chances to keep life interesting. I'll look into those funds also.
I don't personally, but I have seen quite a few people on the investing site that I frequent who keep 5-10% of their total net worth in "play money" that they invest in individual stocks, puts, shorts and other such things for entertainment/excitement.
There was a pretty good one going on when the Alibaba IPO came out. Of course there was also an "I told you so" recently when it tanked.
As long as you go in with both eyes open and understand what you are doing you should be fine.
I don't understand enough about it to feel comfortable doing it. I inherited some AT&T and Comcast stock last year and it was stressful for me in just the month or so that I owned it before I sold it. I was even more stressed when I sold the AT&T stock and it immediately went up by $1.50 a share. Of course I now feel much better about it now that it is down $3+ a share since I sold.:o
I would rather get my excitement playing video games.:D
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