August 5, 2009
When you use an online stock trading company and they say per trade what does that mean?
alex asked:
When you use an online investment company such as lets say they say 3.99 per trade does that mean I can buy as many stocks in a company for 3.99? So lets say I wanted to buy 1000 shares in Coca Cola would it just cost me 3.99 with commission? More for clarification purposes before I shoot myself in the foot.
When you use an online investment company such as lets say they say 3.99 per trade does that mean I can buy as many stocks in a company for 3.99? So lets say I wanted to buy 1000 shares in Coca Cola would it just cost me 3.99 with commission? More for clarification purposes before I shoot myself in the foot.
Thanks in advance.
Titus
Comments on When you use an online stock trading company and they say per trade what does that mean?
Zaria
Hey. Yes and no to your first question. You can buy as many shares of stock in a company for a set price with several online trading firms but if you get into bulk amounts of stock (10,000 shares) than you may have additional fees. Doo plenty of research on those firms and the real deal with their pricing policies.
A lot of companies advertise $3.99 trading but there is a catch. One company that I can think of offers cheap stock trading fees if the checking account that you are linking to your stock trading account has funding of $50,000 or more.
So be VERY careful and read the fine print. Consult an investment representative at a local bank or investment firm too just to see what programs they have to offer.
I would suggest watching CNBC and reading on Yahoo Finance also.
Dallas
It all depends on the fine print of your broker. When I started using Scottrade, they had a 5,000 share limit for the $7 commission. Today, I don’t think they have such a limit, but you can explore their site for more info:
Second, if my brokerage had “3.99″ commission and I wanted to buy “1000 share in Coca Cola” it would cost me 1000 times the price of KO (closed at 49.00 today, so that is the neighborhood of what you would buy it for, some $49,000 PLUS 3.99 (which IS the commission).
Francis
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