what's best way to buy stock online or broker?if online than what would be a good website.Investing only $1000

Question

Hy i am college student and i wana invest about Onetime $1000.00 how should i go about doing it and i would hate to lot of fees.

Answer 1

Open an account with etrade or one of the others mentioned by someone else. Stay away from penny stock or "hot tips". The primary rule of investing is, "If it's too good to be true it's too good to be true." This is followed by the corollaries, "Pigs get slaughtered" which means be happy with your profit and "Know when to get out". Do your research. I'd recommend buying a membership on Mornigstar.com. It's about $100.00 but worth every penny; you can try it out for free but you won't get all the features - trust me, its worth it and they don't badger you to buy services like The Motley Fool.

Don't day trade. Any money you make in the intraday movement of the stock will be eaten up by your in and out commissions; especially at the levels you're starting to invest.

Good luck and have fun. What you're going to learn for a minimal investment will be worth a fortune later on.

To add - someone mentioned mutual funds. Most of those require a minimum investment so you won't qualify (Mornigstar is wonderful at anlyzing and research on funds). Beside, you want to manage your own account and learn from it, I think.

Answer 2

A mutual fund is a good way to go too. For instance, T Rowe Price, which has many no-load funds to choose from. No individual stocks but fees are less. There are many others too-check Yahoo Finance in the mutual fund family section. Many won't charge even a yearly fee with minimum investment of $500 and $25 monthly. Choose a company with lots of different funds. I like Charles Schwab but think it's unsuitable for a small amount. I have lots of investing experience, but mainly hold good mutual funds, which are a collection of stocks that someone else manages. (I'd rather not watch my investments daily). Good luck-it's smart to save and invest!

Answer 3

This is my personal opinion. I would go with a discount broker first of all. Then I would find a few other people who would like to invest a small amount like you. This would give your "group" greater investing power. Whether you buy stocks, or even even options, this would decrease the amount of fees each individual person paid on their investment amount. But MOST IMPORTANT, make sure you invest with others that you trust and have the same views as you when it comes to investing.

Answer 4

etrade.com is fine and relatively cheap ($12.50/trade)... buy stocks... 1 or 2 orders should be plenty with that relatively small amount

check out reputable analyst research, buy on their recommendation.
even if the analysts don't know much more than us, investors will follow their advice and increase the value of their picks

buy stocks of a big company with a good track record if you are in for the long haul. playing penny stocks is a tiny bit better than expecting to win in Las Vegas. mutual funds are OK if you want to give a bigger chunk to someone to manage your money. if you can't afford to lose 20% in next year or 2 don't buy stocks

Answer 5

It depends on what you want to do. Online brokers are very limited on what you can do. If you are in the more complicated forms of trading, or want to trade in foreign stocks and bonds, then you will need to go through a broker over the phone or in person.

Answer 6

http://sogoinvest.excellentabc.com beats all the other brokers on low costs. They have a promo running now where every trade is just a $1 for the 1st 90 days. This site will help preserve your $1,000 before it gets eaten up by all the fees.

Good Luck!

Answer 7

1

Answer 8

you can play penny stock, it's perfect for your 1000

Answer 9

Zecco is FREE.

Answer 10

www.ameritrade.com
www.etrade.com
www.scottrade.com