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Anybody have a good experience with Sharebuilder? I am in muy early 20's and want to get into a regular cycle of buying some stocks for an equity portfolio.

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I don't really care for sharebuilder since the limit orders are 19.95........I pay 7.00 per trade at scottrade. Only dra... (more)

shanni (Oct. 05, 2005 @ 9:41a) |

JakeTheSnake said: <blockquote><hr>From the time I initially made a deposit, the stock went up a cent but Sharebuilder l... (more)

qkslvr (Oct. 05, 2005 @ 10:49a) |

I have found that sharebuilder is great if you don't have a lot to invest. Most mutual funds require $1000-2500 minimum ... (more)

qkslvr (Oct. 05, 2005 @ 10:51a) |

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It's a great way to dollar cost average...if SYSTEMATIC is what you're looking for, this can be a great way to do just that.

Been a customer for 5 years, haven't had a problem. One of the easiest to setup for regular automatic investing. Let's you buy fractional shares of what they offer (dollar amount rather than number of shares).

If you sign up for the basic plan it will cost you $15 to sell your shares.

Very expensive in the long run. Subpar service. However, it is a good way to start investing.

raringvt said: [Q]It's a great way to dollar cost average...if SYSTEMATIC is what you're looking for, this can be a great way to do just that.I agree and disagree. Not to say I know what you don't know but knowing you being relatively young, the fees do add up for Sharebuilder - in my humble opinion, there are better alternatives for Dollar Cost Averaging.

Cost averaging is not always a good thing. If you can buy at a lower price, wouldn't you just buy at that lower price instead of at intermediary intervals? It's just like when the utlitiy companies put you on automatic refills/average payments (particularly for oil). Wouldn't you rather buy oil when you felt it was a good price to go in? When they put you on an automatic schedule or average your costs, you are most likely not getting the best price (in fact you are most likely paying a hefty premium).

claraj said: [Q]Cost averaging is not always a good thing. If you can buy at a lower price, wouldn't you just buy at that lower price instead of at intermediary intervals? It's just like when the utlitiy companies put you on automatic refills/average payments (particularly for oil). Wouldn't you rather buy oil when you felt it was a good price to go in? When they put you on an automatic schedule or average your costs, you are most likely not getting the best price (in fact you are most likely paying a hefty premium).

Hmmm... why not just buy at the low and sell at the high? <img src="i/expressions/face-icon-small-smile.gif" border=0>


hahaha

Like you I am new to trading/investing and used sharebuilder. I found the cost of $15 a trade to expensive for my needs. I suggest to look around for other online brokers who are substancially cheaper.

interactivebrokers.com

I only signed up for sharebuilder because of the promotion they are having. Its a $50 bonus to your account if you sign up through costco or GoldenOne credit union (hint, they dont really verify you have an account with GoldenOne). With the goldenone promo, you get a $25 bonus after 6 mounth if you make 1 trade a month, each month.

UserDan said: [Q]I only signed up for sharebuilder because of the promotion they are having. Its a $50 bonus to your account if you sign up through costco or GoldenOne credit union (hint, they dont really verify you have an account with GoldenOne). With the goldenone promo, you get a $25 bonus after 6 mounth if you make 1 trade a month, each month.

I opened an account and got $75 credit, I closed my account 2 years later and found out I got charge $100 account closing fee.

Another hint: I was not joking, you got what you paid for.

Wow that sounds high. Accourding to sharebuilder:
Full account transfer out Transfers of all assets in a ShareBuilder Account to another firm $50.00

I'm not able to find it posted anywhere about the cost of selling stock.

UserDan said: [Q]Wow that sounds high. Accourding to sharebuilder:
Full account transfer out Transfers of all assets in a ShareBuilder Account to another firm $50.00

I'm not able to find it posted anywhere about the cost of selling stock.$100 does sound high. I thought $50 was the norm.

gnhcxr said: [Q]UserDan said: [Q]Wow that sounds high. Accourding to sharebuilder:
Full account transfer out Transfers of all assets in a ShareBuilder Account to another firm $50.00

I'm not able to find it posted anywhere about the cost of selling stock.$100 does sound high. I thought $50 was the norm.

I just transfered my account from Sharebuilder. They charged a $50 transfer fee to cover the expenses incurred in selling partial shares. Sharebuider takes a painful lot of time to do the transfer though.

Why wouldn't you just hold ownership of a fractional part of a share instead of closing up completely?

claraj said: [Q]If you can buy at a lower price, wouldn't you just buy at that lower price instead of at intermediary intervals?
Everyone thinks they can time the market.

barsotti0 said: [Q]If you sign up for the basic plan it will cost you $15 to sell your shares.

Yes...but the idea of this account is to accumulate shares, not to buy and sell them. For my needs, this is a great deal and a great service.
However, I do agree that if you are buying a very small amount of stock, the fees may be significant and a mutual fund may be a better bet.
I would steer clear of individual DRIPS because they don't provide any diversification and essentially all of your eggs are in one (or two) basket(s).
Figure out the fees involved for the amount you want to invest, and then either consider sharebuilder or a no-load fund family for your weekly/monthly investments.
Behavioral finance studies show that investing this way is better than sending money when you feel like it. One reason is that you end up putting more money in. The other is (and this is the behavioral finance part) that we "feel like investing" at the times when stocks are overpriced, and we shy away from investing when there is a slump. If you setup a sharebuilder weekly/monthly plan, it takes care of that for you, and you will get a average price (actually slightly less than the mean) for your stocks.

One final word about sharebuilder -- or really investing in general. Investing is all about diversification and risk management. Even portfolio managers who have access to every tidbit of information about a company, don't put more than a few percent of their assets into a single stock. This is the same thing indiviuals should do. The eaisest way nowadays is through Exchange Traded Funds...which can easily be bought on sharebuilder.

I've had Sharebuilder accounts for a little over a year and I would say the service is excellent. It is by no means meant for active trading, but if you want to accumulate some stocks that you like over the longer term (or for your kids) it is great.

I have learned how to deal a bit better with the fees. Instead of buying monthly, I'm now depositing monthly into the account and then doing a quarterly purchase. That still gives me most of the benefit of dollar cost averaging and cuts down on the fees incurred.

dandan14 said: [Q]I would steer clear of individual DRIPS because they don't provide any diversification and essentially all of your eggs are in one (or two) basket(s).Huh? Buying stock directly can be a great way to accumulate shares in many companies with NO commissions. I have a highly diversified portfolio of about twenty-five companies through direct stock purchase plans.

As for sharebuilder, think about it. If you enroll in the basic plan, you pay $4 per trade. Say you put $100 per month in your account and buy shares in four companies. In one year, you will have paid $192.00 in commissions! Your resulting investments would have to gain 19% just to break even!

dcwilbur said: [Q]dandan14 said: [Q]I would steer clear of individual DRIPS because they don't provide any diversification and essentially all of your eggs are in one (or two) basket(s).Huh? Buying stock directly can be a great way to accumulate shares in many companies with NO commissions. I have a highly diversified portfolio of about twenty-five companies through direct stock purchase plans.

As for sharebuilder, think about it. If you enroll in the basic plan, you pay $4 per trade. Say you put $100 per month in your account and buy shares in four companies. In one year, you will have paid $192.00 in commissions! Your resulting investments would have to gain 19% just to break even!

Right...I agree that if you are only investing $100/month, then sharebuilder is not a great way to go.
As for drips, if you are investing in 25 of them, you are definitely the exception to the rule. Most do not have the dicipline or the organization to open and maintain 25 separate drip accounts, and a <1% fee for a mutual fund is an acceptable option.

I just deposited $1004 because I want to buy $1000 in Home Depot stocks and the $4 was meant for the fees...It is showing $1004 toward the purchase...will the $4 fee be automatically deducted? Or should I change it to $1000 toward the purchase and leave $4 balance? Thanks!

I wanted to transfer my account from Quick and Reilly because Q&R charged very high commissions ($30 a trade) and high maintenance fees ($25 a quarter.) I tried transferring my account to share builder but they wouldn't take my master limited partnership. So I went with brokerage America instead.

JakeTheSnake said: [Q]I just deposited $1004 because I want to buy $1000 in Home Depot stocks and the $4 was meant for the fees...It is showing $1004 toward the purchase...will the $4 fee be automatically deducted? Or should I change it to $1000 toward the purchase and leave $4 balance? Thanks!

Does anyone the answer to this? I emailed Sharebuilder but haven't heard anything back.

JakeTheSnake said: [Q]JakeTheSnake said: [Q]I just deposited $1004 because I want to buy $1000 in Home Depot stocks and the $4 was meant for the fees...It is showing $1004 toward the purchase...will the $4 fee be automatically deducted? Or should I change it to $1000 toward the purchase and leave $4 balance? Thanks!

Does anyone the answer to this? I emailed Sharebuilder but haven't heard anything back.

Sorry...I don't know. I've used them for years, but always in a monthly dollar cost average account. For my type of account, they draft $x per week, and then once a month, I see a $20 draft for the commissions.
If I were you, I would put $1004 in the account and buy $1000 worth of stock.

it has been my experience with them that the $4 will be deducted from your order and you will get $1000 worth of stock

Can you sell short in sharebuilder's basic account?



As for sharebuilder, think about it. If you enroll in the basic plan, you pay $4 per trade. Say you put $100 per month in your account and buy shares in four companies. In one year, you will have paid $192.00 in commissions! Your resulting investments would have to gain 19% just to break even!

Or instead of enrolling in ANY of their plans, and say wants to invest $100 per month. Fund your plan with the $100 per month and only invest a few times per year, say, on a market dip. I do this about 3-5 times per year and at $4 per trade, my buy commisions are only $12-$20 per year.



As for sharebuilder, think about it. If you enroll in the basic plan, you pay $4 per trade. Say you put $100 per month in your account and buy shares in four companies. In one year, you will have paid $192.00 in commissions! Your resulting investments would have to gain 19% just to break even!

Or instead of enrolling in ANY of their plans, and say wants to invest $100 per month. Fund your plan with the $100 per month and only invest a few times per year, say, on a market dip. I do this about 3-5 times per year and at $4 per trade, my buy commisions are only $12-$20 per year.

streetdisciple03 said: [Q]Can you sell short in sharebuilder's basic account?

No. Their model is basic buy and hold.

The $4 fee kills the deal. If you save up $1000 you can get into a good no load mutual fund with a small annual maintenance fee. Over the long term this will increase your returns. Is the OP doing research on the stocks he/she is planning on buying or are you just picking up a "good" company out of thin air and praying for the best?

teplitsa said: [Q]The $4 fee kills the deal. If you save up $1000 you can get into a good no load mutual fund with a small annual maintenance fee. Over the long term this will increase your returns. Is the OP doing research on the stocks he/she is planning on buying or are you just picking up a "good" company out of thin air and praying for the best?

I have mutual fund options through my work's 401k and so I wanted to buy "stocks" and I am ashamed to say this but I am picking a company and praying for the best. I am not too sure how to research on a stock. On the 401k, it's easier to pick a fund because I only have 10 choices and that's relatively easy to pick...I look up the rating on Morningstar and then just pick the lesser of 2 evils. LOL...Any suggestions on how to research stocks?

Also, is it better to pick a company that gives dividends then one that does not?

Based on the basic plan, Automatic investments cost $4 per investment. Have not see the selling fee yet. How much dos it cost to buy/sell if I buy/sell all at one time a year?

check this website out to start with Investors Business Daily and pick up a copy at the news stand. Check out the free learning center. I personally love this newspaper because other than quotes they track earnings growth and performance saving you a lot of time reading and doing math. I'm looking to fork over the $235 subscription price next month.

I would start by reading some basic books like One up on Wall Street by Peter Lynch, Real Money by Jim Cramer and other books you can find about valuing companies and learning what all the acronyms mean. I would also read biographies about superstar investors and stock traders to learn what their strategy was.

If you feel you are ready go to Yahoo Finance or MSN Moneycentral or some other website, pick a few stocks and make a sample portfolio and see how you do over time. Or risk a few thousand $$$ as play money. Next go back and reread the above to see if you made any mistakes. The companies you invest in look up their past earnings, calculate the growth, calculate the estimated growth, estimate the stock price, listen to the earnings conference calls, and try to buy in at the right time. IBD is great at teaching people to buy in at the right time to minimize risk. And finally work out a strategy. Some people like to hold for long periods, others like to buy and sell after 10% - 20% profit, others rely soley on charts. If it makes you money use the strategy. If you bought Microsoft 20 years ago you would be rich. If you traded stocks every month for the last 20 years you could also have become just as rich because there were periods of several years when MS didn't move and you could have put money to work somewhere else.

Thanks teplitsa! I appreciate all your tips! I am going to go get an IBD and start there.

I had accts with them and closeded them. They were too expensive sine I only had a few companies and only wanted to invest bi/yearly

if you want to invest in large companies find an SP500 index fund. Vanguard is $7000 minimum except for IRA's but they have a tiny .18% fee. You can find another fund for around .75% fee and a smaller minimum. Or find any large cap mutual fund with a average rate of return of 10% or more over a 10 year period.

Sharebuilder is too expensive over the long run.

If you're interested in systemic purchases of certain stocks, then you can still purchase 'odd-lot' shares for $5 a trade at Ameritrade's Izone.

If you prefer mutual funds then try setting up an automatic savings plan.

JakeTheSnake said: [Q]JakeTheSnake said: [Q]I just deposited $1004 because I want to buy $1000 in Home Depot stocks and the $4 was meant for the fees...It is showing $1004 toward the purchase...will the $4 fee be automatically deducted? Or should I change it to $1000 toward the purchase and leave $4 balance? Thanks!

Does anyone the answer to this? I emailed Sharebuilder but haven't heard anything back.

You should put the "amount you want to invest" as 1004. Then they will take out the $4 and buy $1000 worth of Home Depot. Hopefully that's not too late! I just learned this the hard way.

Skipping 12 Messages...
I have found that sharebuilder is great if you don't have a lot to invest. Most mutual funds require $1000-2500 minimum initial investments. I use Sharebuider for Custodial accounts for the grandkids.



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