what does stock trade fees mean ?

Question

like $7 for a trade.
if i place buy shares for one company lets say 50 shares will it count as one trade ?
how about i buy stocks for 5 diff companies ?
i want to start investing in stocks but i am new. please advise

Answer 1

Anytime you buy stock or sell stock, you incur a fee. Different companies charge different fees. The on-line no frills services charge very little. I would only use Charles Schwab, one of the highest rated low cost firms. One trade means you purchase a certain number of shares at a certain price. Example; I buy 100 shares of HP at one time for one price, I pay one fee for that. If you buy from 5 different entities, that would be 5 different trades.

If you are new to investing, you need to fully understand what you are doing. One of the best ways to learn is check out Suze Orman's books on wealth, money and investing in the library. She is the best and really spells things out in simple terms, and she's honest, rare in that line of work. She has a website too.

You really need to understand that you invest only what you are willing to loose, because the stock market is very volitile. In fact, this past week, it took a major nose dive because the feds were saying we are close to inflation and they are raising rates. That plus other things affect the market, it's very quirky...actually bordering on silly at times given the fluctuations and reasons for them.

Answer 2

Yes you are right..
If you buy 50 shares .. then also you have to pay $7, or related commission plus exhchange & SEC fees.

So it is adviced for you to go for per share deal.
Like if you buy 100 shares you pay $1, or if you buy 1000 shares you pay $10..
simple..

So Go for direct access brokers...

Let me know if you want to know more about trading or want to learn how to day trade stocks risk-free.

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Answer 3

1) $7.00 (In the case of Scottrade)
2) Yes.
3) You pay $35.00

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