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They have another offer that gives you $100 for transferring $500 or larger brokerage accounts into them. I doubt if you can do both the $200 and the $100 offers (from the provision for only one incentive per customer), but some may find the offer that requires moving only $500 better, especially if they do not have $10,000.

In another phone call, I was told that joint accounts could be disqualified from the bonus, if both parties had received a cash bonus at any time, even if there had not been a cash bonus for a joint account before.

The rule apparently applies also to custodian accounts, and they were in my case able to locate $50 or $55 bonuses paid in 2008 on custodial accounts, so even if I wanted to give these children $10,000, they would not qualify.

kickerstarter said:   I opened an account and received confirmation. Does anyone know if the following trade promotion can be stacked?

http://www.fatwallet.com/forums/finance/1245267/

I clicked on the link and it is showing me my current promo code of Dec12Get200.


I received my $200 and now I added the new promo code and get 5 free automatic investments.

I guess even if I buy for free, I still have to pay full commission to sale?

kickerstarter said:   kickerstarter said:   I opened an account and received confirmation. Does anyone know if the following trade promotion can be stacked?

http://www.fatwallet.com/forums/finance/1245267/

I clicked on the link and it is showing me my current promo code of Dec12Get200.


I received my $200 and now I added the new promo code and get 5 free automatic investments.

I guess even if I buy for free, I still have to pay full commission to sale?


Yes, you will have to pay a commission to sell. Hence, you may not want to buy into several small positions even if you can do so for free (as you can if you take their one free month in the advantage plan).

There is a small trap here if you get the $200 bonus (as I will). You cannot withdraw it for 120 days. Thus, it either sits idle for a period, or you pay a commission to invest it (possibly as low as $4.00), and possibly another to sell it.

One possibility is to buy with your $200 a security you already own. Then when you sell all of it, you will not pay another commission. One way to get out of a position without an exit commission is to transfer it to an other account (I will be moving several very small accounts holding IYY to my new account,which is investing in IYY (a diversified fund). When I sell the IYY, I will get out of all of the family's positions in it.

You may also luck out, and the company be sold to someone for cash and then you own cash you can withdraw. Several of my children had been given very small positions in a company whose market value was less than $10, effectively locking the in. The original investment was made due to a promotion that required a purchase, and the company was chosen because at the time they included in the annual report o stockholders a coupon for one free meal at one of their restaurants (a rate of return of over 100% per year on their positions, if you could get to one of their restaurants and use the coupon). The only other dividend was making them stockholders and using this to teach them about stocks. Eventually, the small chain merged was sold for cash, and they were able to get their few dollars out.

The message is do not use the ease of getting into several companies to put yourself into position where selling commissions would eat up much of your investment. If you want diversification and have a small account, say $10,000 or so, I would pick a diversified exchange traded fund such as IYY, or SPY. When you get the $200 consider using it to add to the position.

If you still have a free trade, save it to invest the $200 and add it to an existing position, for economy in exiting.

kickerstarter said:   kickerstarter said:   I opened an account and received confirmation. Does anyone know if the following trade promotion can be stacked?

http://www.fatwallet.com/forums/finance/1245267/

I clicked on the link and it is showing me my current promo code of Dec12Get200.


I received my $200 and now I added the new promo code and get 5 free automatic investments.

I guess even if I buy for free, I still have to pay full commission to sale?


Thanks for drawing attention to this promotion which apparently can be used only once. See http://Lb4802ab5e7d23f64b8e6771fdcb188cb

I plan to get it to invest my $200 bonuses. I avoided a commission in investing my $10,000 by signing up for the advantage plan which gives one free month, and planning to cancel before the month is up. This plan give you 12 commission free Tuesday purchases,but it does not give you any free sells.

Note my discussion above of the risk of being led into owning several small positions by promotions such as this.

Update: In spite of the statement in the promotion that it would take time to get your $200, I got mine immediately.
This made it possible to use one of the free trades in the Advantage plan. Even though I had canceled the free month, it is still in effect till February.

I used this to invest the $200 (since they say you cannot withdraw immediately) in IYY. By using the ETF I was already in, I will pay only one selling commission when I eventually sell these.

If someone has not signed up for the Advantage plan, signing up and using the one free month appears wise. If you have it, using it may be wise. An approximately $10 commission to sell a $200 position is about 5%, so it is probably best to invest the 200 in a position already owned.

I just paid the $11.95 or $19.95 or whatever it was to invest in the mutual fund. The $200 has already posted into the cash sweep account. I haven't figured out a way in sharebuilder to have dividends automatically sent to my linked checking account...is that not an option?

Why don't you guys invest in NTF mutual funds? Just click on the "Research" tab. Click "Mutual Funds", then under Transaction Fees, select "No Fee". There were 469 funds. I invested in American Century funds.

kickerstarter said:   Why don't you guys invest in NTF mutual funds? Just click on the "Research" tab. Click "Mutual Funds", then under Transaction Fees, select "No Fee". There were 469 funds. I invested in American Century funds.

This is possible. However, I presume that the fund then compensates sharebuilder, (through 12b fees) and that then reduces your reduce a little, probably a quarter percent per year. Especially if one plans a holding period of what was needed to get the promotion, this may be a good choice., possibly better than an ETF, unless there were special considerations (I chose IYY so I could get the family out of several very small positions in it left over from promotions several year ago).

It looks like over a year, the quarter percent could be $25 on $10,000, while by using the ETF, and the free month, the total commissions will be about $10.

The longer the holding period, the greater the advantage of an ETF.

I am currently planning on a holding period of at least a year, so I will get long term capital gains treatment on the profits. If a loss, possibly selling earlier to make it short term.

12b-1 is still part of the overall expense ratio charged by mutual funds. I don't really care who pocket the fees. I just care about the total. EFT charges fee too. IYY's expense ratio is 0.20%. And then there is the buy/sell spread. On top of that, you pay commission to buy and sell. VFINX (not exactly apple to apple) has expense ratio of 0.17%.

I have no clue how sharebuilder purchases on Tuesday. Do they buy during the day or at the closing? They are very vague about it.

kickerstarter said:   12b-1 is still part of the overall expense ratio charged by mutual funds. I don't really care who pocket the fees. I just care about the total. EFT charges fee too. IYY's expense ratio is 0.20%. And then there is the buy/sell spread. On top of that, you pay commission to buy and sell. VFINX (not exactly apple to apple) has expense ratio of 0.17%.

I have no clue how sharebuilder purchases on Tuesday. Do they buy during the day or at the closing? They are very vague about it.


It appears they buy on the open, since when they filled my order I looked and the order was already filled early Tuesday. It appears for my IYY order they had gotten a good price, since it was already above that, and they had bought at the low for that day. However, I do not know whether that was typical, or just lucky.

You don't have to invest the funds if you are worried about commissions and losing your money in the stock market. Just leave the money for 6 months and withdraw $10200 at the end of 6 months. Easy 4% APY as compared to 1% everywhere else.

Kinasharma01 said:   You don't have to invest the funds if you are worried about commissions and losing your money in the stock market. Just leave the money for 6 months and withdraw $10200 at the end of 6 months. Easy 4% APY as compared to 1% everywhere else.

However, if your money is to be tied up there for six months, I would look for a low risk short term Exchange Traded bond fund that had a higher return.

Update on how they froze accounts on customers since 2008, at least, after they took our $10,000 and then claimed to find an error in her birth date.

After several phone calls we fund a bank that had a notary we could use at a feasible time, and after a wait, we got their birth date correction form notarized.

Later, after the notarized forms were faxed in they reported they could not read the birth date (suggesting enlarging).
With work I did discover how to enlarge the license number, and they did unfreeze the account.

After over a month, it appears the account can be used.


However, the $ 200 bonus had not been invested due to the freeze (and would have been invested under the automatic plan I had been in).


This is really bad treatment of a couple who had been customers since at least 2008. the know your customer rules could have been satisfied by noticing the long term business relationship, and that we were still had the original address and phone number, and there was no apparent problem with at least one customer, myself. a error in a birth date for a known customer is not a good reason to doing what they did for two long standing customers.


The goal of preventing money laundering was accomplished by preventing withdrawals. Preventing trades in the account just hurt their clients for no reason.

Kinasharma01 said:   You don't have to invest the funds if you are worried about commissions and losing your money in the stock market. Just leave the money for 6 months and withdraw $10200 at the end of 6 months. Easy 4% APY as compared to 1% everywhere else.
deleted

Looks like the bonus is now at $100, and you need at least $5,000 and it needs to be in the account for at least 6 months.
http://content.sharebuilder.com/mgdcon/jump/Web/welcome/allWT/WS/



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