when they say " only $4 a trade" on online stock broker sites what does this mean?

Question

does it mean if i buy 20 stocks for 40 dollars do i have to an extra 80 dollars or four dollars everytime buy and trade those stocks

Answer 1

$4 a trade means just that whatever you trade in whatever amounts (usually) its $4. However if this is sharebuilder its $4 to BUY ONLY! $15 something to sell ...NOT WORTH IT!

Cheaper is not always better especially when you go lowball like sogo or zecco.

Answer 2

"A trade" is per stock bought or sold, so, given your ridiculously cheap stock purchase scenario, yes, you would spend $80 for the 20 stocks @ $40 for a total of $120.

Consider this: when you divide $120 by 20 (assuming you bought just one share per stock), you paid only $6 per share. These days, that's very reasonable.

Again, your scenario is very "cheap", and not very practical. If you "up" the stock price to a more reasonable price of, say, about $10/share (which is still quite low for virtually any Fortune 500 stock), those 20 stocks would then cost $200 plus the $80 for all 20 trades, which is now less than what you paid (again, it's also more realistic!).

Answer 3

What it means is that everytime you buy shares, $4 is the spread per lot that the broker charges you for its service. However, you will still need some funds in reserve in your account to cover for any downward fluctuation in the price of your shares.

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Answer 4

$4.00 a trade. there may be other cost invloved as well. any sec fees. possible higher cost on pink sheet stocks (
penny stocks)
and $4.00 when you sell too.

Answer 5

sharebuilder charges $4 per buying transaction - whether you buy 1 share or 100 - it costs 15.95 or more per sales transaction with them