I think I want to get a Roth IRA, so that I can take the profits out in five years for my first house and pay off student loans. However, I am really new to this investing stuff. I am looking at this deal through Zecco, but I don't have anything to judge them by. It looks like a good deal, http://www.zecco.com/trading/ZeccoIRA.aspx
but what are these other charges I could get? http://www.zecco.com/trading/FreeTrading.aspx?tab=WhatsNotFree
Also, if you are superr-savvy can you tell me if I get charged extra for conditional orders like a limit order etc.?
2007-03-03 06:59:38 · 10 answers · asked by Anonymous in Business & Finance ➔ Investing
If you're unloading more than 3K, I strongly urge you to look into Ameritrade. One of my friends trades with them and she is very happy. Also- consider your risk tolerance-you may find that investing in ETFs is a little more rewarding than mutuals. The best advice you can't pass up- go to www.smartmoney.com and then screen ETF- this is a multi-dimensional process and you will be very happy with the results- based on your criteria- smartmoney will populate a list of the top performing funds. Seek those that track the S&P, look into DYI and IVY.
also- if you are seeking a return over a longer term period- say 5 years- stop/limit orders are not really in the horizon for you. Those are intended for day trading, which ignores tax implications. Remember - the magic number is 15%- taxed right out of your pocket.
My rule of thumb for investing:
The longer you keep the money OUT of your pocket- the more money you eventually get to put IN your pocket.
2007-03-03 07:59:56 · answer #1 · answered by jules4128 2 · 1⤊ 0⤋
I've never heard of Zecco (I think I might have seen one of their ads). You might google them just to make sure they're legitimate before you open an account. They do list a $30 annual fee for an IRA on the list of charges, which could be fairly expensive if you're investing a small amount of money (the other stuff you probably won't encounter), but those comissions are the lowest I've seen anywhere Tradeking would be a close 2nd. FYI the cheapest well known broker is probably Scottrade.
Oh and for the record if you're new to investing, I'd recommend putting your cash into exchange traded funds unless you find the market fascinating and have a lot of time to research individual stocks. Examples that follow the S&P 500 are SPY and IVV. Good luck.
2007-03-03 07:27:12 · answer #2 · answered by Adam J 6 · 0⤊ 0⤋
I do not wish to knock Zecco. I have never heard of them. I use TD Ameritrade for my IRA accounts and am very pleased with them. $10.00 a trade. No other fees. But if you carry a credit balance they will pay you next to nothing in interest. A decided drawback. Instead of doing the Roth IRA, why don't you go ahead and pay off the student loans. Get them out of the way. To me that is a much better bet.
2007-03-03 10:40:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Zecco charges you 30 dollars per year to keep an IRA. READ THE FINE PRINT.
10 trades a day up to 40 times a month THEN.. they charge $3.50 per trade $30.00 maintenance fee.
Others will charge you ZERO to keep a NO FEE IRA. The $3.50 commission fee per trade is cheap though.
"$0 commision for any (well...almost any) kind of trade sounds pretty good. Specially when all you care about is individual stocks, index funds or ETFs. So lets analyze before I dive into opening an account and do all my future investing (I use the word "investing" instead of "trading", because that is a core part of my investing belief; more on that later, probably later posts), lets see if we can analyze it:"
2007-03-03 07:15:58 · answer #4 · answered by Geeeyaaa 4 · 0⤊ 0⤋
Next week's (March 5th) edition of Barrons has an article on the "Best Online Brokers"
The top 3 web-based were:
TD Ameritrade
optionsXpress
Fidelity Investments
(Zecco came in last)
The top 3 software based (trading platforms) were:
thinkorswim
Interactive Brokers
MB Trading
They were evaluated on Trade experience, Trading technology, Usability, Range of offerings, Research Amenities, Portfolio Analysis & reports, Customer Services & Access, and Costs.
Pick up a copy and read the whole article. You have to be a subscriber to read it online.
2007-03-03 10:31:02 · answer #5 · answered by huskie 4 · 0⤊ 0⤋
My two cents. I'm with Charles Schwab and am very happy. Good phone service, when I need it, good online trading, good web resources. They may not be the cheapest-but to really find the cheapest, there are always hidden fees to consider. I've been investing for years but stick to mutual funds these days. It sure keeps things simple, and I don't think chasing stocks or the latest ETF makes sense. No fees to trade funds with CS.
2007-03-03 09:53:46 · answer #6 · answered by Middleclassandnotquiet 6 · 0⤊ 0⤋
I use Scottrade. They pay interest on your cash balance and only charge $7 for online regular market trades. I use a mutual fund for my Roth IRA, so this is just my play money.
And anticipating any other people asking for stock tips, by one investment to date (Sirius Satellite) has been a flop. :)
2007-03-03 10:29:28 · answer #7 · answered by inpoetry1 3 · 0⤊ 0⤋
Stick with Scottrade- I tried to find a cheaper broker but I think their the best, especially for a reputable, national brokerarage firm.
Stay away from garbage that you've never heard of-- in companies and especially stockbrokers.
2007-03-03 09:06:38 · answer #8 · answered by Showbizzz 2 · 1⤊ 0⤋
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2016-12-14 09:48:09 · answer #9 · answered by hergenroeder 4 · 0⤊ 0⤋