Has anyone ever used Sharebuilder to invest money or buy stocks?
Question:
Yes, I have and would recommend them for a new investor. They allow you to invest a certain amount of money into stocks you wish to invest in, that's what I do. I only invest small amounts so I haven't really made a lot of money. I'm thinking more long-term and that's why I chose Sharebuilder.
I havn't used Sharebuilder, but I'm not impressed with their pricing. The $4 trade is for a weekly or systematic trade. You have no control over the price you are paying. Real time trades are $15.95. (info from their web site)
I use Scottrade and pay $7 per trade. For the extra $3 I get to make Real time trades, market order or limit order.
Sharebuilder is OK to get started, but a better way is to go to the websites of the companies you are interested in and see if they have a dividend reinvestment plan. Most do such as Home Depot, Exxon, GE, etc. There is usually no charge and some even give you a perk or two.
I use sharebuilder.com and I say it is very easy, and fast. You can set up your own investment plan with ETFs or stocks that you want and put it on automatic pilot with the frequency and amount you want each month. They also have a money market account where you can hold cash for savings or other trades and earn an interest. They also have the option to reinvest your dividends that you get from your investments for free.
One thing to know, this is a do it yourself investment website, you have to learn and inform yourself before you invest in stocks or ETFs.
You can also apply for Sharebuilder visa and get points for every purchase you make with the card and those points will be transformed in cash and deposit in the sharebuilder money market account.
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