Opinions on Sharebuilder.com

Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History
rated:
I just got off the line with a customer service rep from Sharebuilder.com and I would like to propose a theory. They make their trades for the automatic investment plans only on certain Tuesdays of each month. You are able to pick the frequency of these investments as weekly, monthly, etc.. but it will always fall on a Tuesday. The thing is, there is no set time for them to make the trade during that day. I was unfortunate and found that my shares weren't bought until the close of the market, which presented an almost $.25 per share difference from the opening price of that day. This isn't a lot of money, but it is still my hard earned cash.

I was just thinking that something seems fishy here. Does anyone think that Sharebuilder could be monitoring the market to buy at the lowest estimated price, sell the shares to you at a higher price, and keep the difference? I've had only good experiences with them so far though, so this is just a thought. I'm interested in learning some other opinions on this broker. <img src="i/expressions/face-icon-small-happy.gif" border=0>

Member Summary
Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.
Thanks for visiting FatWallet.com. Join for free to remove this ad.

Look here linky

joeyjoejoe said: [Q]I just got off with them so far though, so this is just a thought. I'm interested in learning some other opinions on this broker. <img src="i/expressions/face-icon-small-happy.gif" border=0>You actually raised a good point. I used them for a # of years and realized that its a little cheaper to utilize DRIPS instead of sharebuilder. I realized that after 4 years and all the sharebuilder fees, it absolutly killed a portion of my gains. So now i use sharebuilder to purchase the mininium needed to start a diviend reinvestment plan! It also helps that i get 1% of my CC purchases back in sharebuilder $$$. This makes starting the drips inexpensive!

I received this Young Investor starter kit with $25 bonus, the Automatic Millionare book, a free 1-year subscription to both Money and Young Money magazine, and $10 in iTunes money (and then another $20 or $30 after so many investments) for around $30. Wish I would've seen the $50 deal first.

The book isn't a bad read, it just explains the benefits of having the automatic investments set up, skipping the everyday spending that can cause a dent in your disposable income (ie: lattes, candy, pop), and depositing your money through direct deposit before you even have the chance to spend it. I'm currently sending 10% of each paycheck to the American Dream savings account through Emigrant Direct (4.0% APY!!!). I've actually gotten used to not having that 10%. You just need to condition yourself to live without it, which is easier said than done.

Buddino said: [Q]joeyjoejoe said: [Q]I just got off with them so far though, so this is just a thought. I'm interested in learning some other opinions on this broker. <img src="i/expressions/face-icon-small-happy.gif" border=0>You actually raised a good point. I used them for a # of years and realized that its a little cheaper to utilize DRIPS instead of sharebuilder. I realized that after 4 years and all the sharebuilder fees, it absolutly killed a portion of my gains. So now i use sharebuilder to purchase the mininium needed to start a diviend reinvestment plan! It also helps that i get 1% of my CC purchases back in sharebuilder $$$. This makes starting the drips inexpensive!

I have thought of doing the same thing, but I am wondering about the costs of transferring the shares to my name. Aren't they held in street name by sharebuilder? What do they charge to register in your name?

joeyjoejoe said: [Q]I received this Young Investor starter kit with $25 bonus, the Automatic Millionare book, a free 1-year subscription to both Money and Young Money magazine, and $10 in iTunes money (and then another $20 or $30 after so many investments) for around $30. Wish I would've seen the $50 deal first.

The book isn't a bad read, it just explains the benefits of having the automatic investments set up, skipping the everyday spending that can cause a dent in your disposable income (ie: lattes, candy, pop), and depositing your money through direct deposit before you even have the chance to spend it. I'm currently sending 10% of each paycheck to the American Dream savings account through Emigrant Direct (4.0% APY!!!). I've actually gotten used to not having that 10%. You just need to condition yourself to live without it, which is easier said than done.

Good job - now cut another 10%.

One of the best pieces of advice I ever heard was learn to live on no more than 70% of your income. THe source suggested 10% to long term savings (retirement, perhaps house for those still renting) 10% to short-term (for large necessary purchases, cushion for unemployment/hard times) and 10% to charity. Then, when you're compfortable with that, reassign an additional 10%....and so on.


It costs $40 to get the certificate in your name.
After that you may open a drip plan.
Most drips will "safe keep" the stock certificates for you, check with the company's investor relations department or transfer agent.

You would be better of with BuyandHold.com

$6.99/month Includes the first two (2) buy, sell or E-ZVestsm window trades in a given month.

No min.

anyone else use this?

WhiteGuy said: [Q]You would be better of with BuyandHold.com

$6.99/month Includes the first two (2) buy, sell or E-ZVestsm window trades in a given month.

No min.

anyone else use this?

buyandhold is much better then sharebuilder. The fees are better and if you decide to sell shares, it is included in the monthly fee. Sharebuilder you will get eaten up on selling fees.

impoverished said: [Q]Buddino said: [Q]joeyjoejoe said: [Q]I just got off with them so far though, so this is just a thought. I'm interested in learning some other opinions on this broker. <img src="i/expressions/face-icon-small-happy.gif" border=0>You actually raised a good point. I used them for a # of years and realized that its a little cheaper to utilize DRIPS instead of sharebuilder. I realized that after 4 years and all the sharebuilder fees, it absolutly killed a portion of my gains. So now i use sharebuilder to purchase the mininium needed to start a diviend reinvestment plan! It also helps that i get 1% of my CC purchases back in sharebuilder $$$. This makes starting the drips inexpensive!

I have thought of doing the same thing, but I am wondering about the costs of transferring the shares to my name. Aren't they held in street name by sharebuilder? What do they charge to register in your name?They charge $ 30.00. Since i use my reward points from my credit c ard to fund the sharebuilder, the costs are negligible to me! PLus at 4.00 an investment...it pays for itself in 7 mths!

Buddino said: [Q]They charge $ 30.00. Since i use my reward points from my credit c ard to fund the sharebuilder, the costs are negligible to me! PLus at 4.00 an investment...it pays for itself in 7 mths!

$30 is for a wire transfer.
It's free to dump your liquid funds into a linked checking account!

IMO sharebuilder sucks for trading, but its a great way to pick up a few bucks from sign up bonus money.

Spugbug said: [Q]Buddino said: [Q]They charge $ 30.00. Since i use my reward points from my credit c ard to fund the sharebuilder, the costs are negligible to me! PLus at 4.00 an investment...it pays for itself in 7 mths!

$30 is for a wire transfer.
It's free to dump your liquid funds into a linked checking account!$39.00 is there fee for processing the stock into your name and printing the certificates in your name. There is no wire transfer fees, if that was the case it would be impossible to transfer money cost effectivly!

joeyjoejoe said: [Q]I was just thinking that something seems fishy here. Does anyone think that Sharebuilder could be monitoring the market to buy at the lowest estimated price, sell the shares to you at a higher price, and keep the difference? I've had only good experiences with them so far though, so this is just a thought. I'm interested in learning some other opinions on this broker. <img src="i/expressions/face-icon-small-happy.gif" border=0>

Nothing fishy about it. All marketmakers, brokers, and traders make money on the spread. They can do this because they purchase the shares and sell it to you. Since there is nothing that says they have to give you the price as of xx:00 AM/PM, they can purchase anytime and give you any price [within reason] that it was during that day.

It's very similar to the discussion about placing market order vs limit order.

tazzy531 said: [Q]Nothing fishy about it. All marketmakers, brokers, and traders make money on the spread. They can do this because they purchase the shares and sell it to you. Since there is nothing that says they have to give you the price as of xx:00 AM/PM, they can purchase anytime and give you any price [within reason] that it was during that day. This isn't the appropriate place to discuss market mechanics but what you have posted above falls somewhere between misleading and outright false.

ShareBuilder won't let you trade MLP's. <img src="i/expressions/face-icon-small-sad.gif" border=0>

Hypersion said: [Q]ShareBuilder won't let you trade MLP's. <img src="i/expressions/face-icon-small-sad.gif" border=0>Not to sound like an idiot, but whats a mlp?

Buddino said: [Q]Hypersion said: [Q]ShareBuilder won't let you trade MLP's. <img src="i/expressions/face-icon-small-sad.gif" border=0>Not to sound like an idiot, but whats a mlp?

master limited partnership

Don't forget to google next time.

Regarding OPs point about Sharebuilder doing market timing or step-aheads w/ orders, seems to me that it could just as possibly run in OPs favor if stock trends down during day.

Regarding concern about it being a very expensive way to do dollar cost averaging if your transactions are low (even w/ a $4 trx fee):

If you configure Sharebuilder to buy automatically each week, then yes you might get nailed on fees as % of transaction.

However, if you pool your funds over a few pay periods, then establish recurring scheduled buys (which run only once) you'll lower your fees dramatically. And you're still going to be getting dollar cost averaging... just getting in a couple times a quarter rather than a couple times a month.



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014