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| Question #8: How Do I Buy or Sell Mutual
Funds, Stocks, and Bonds Online?
To have a fully functioning account, brokerages are
required to have your signature on file. After they have your signature, you can buy or
sell as much as you want, 24 hours a day/ 7 days a week. However, you orders aren't executed until the
market opens.
After you open your account, you can log onto the
Internet, go to your brokerage Web site, and enter orders by completing the online form.
You can access your account at any time, check all your investments, and monitor your
investments by using online news or quote services. |
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| Checking out your broker
The
Securities Investor Protection Corporation (SIPC) insures brokerage accounts in a way that
is similar to how the Federal Deposit Insurance Corporation (FDIC) insures bank accounts.
Each customer's account is insured to $500,000, and some brokerages have additional
insurance. In other words, if your brokerage firm fails, your investment is covered.
Investors are wise to look into the background of
a brokerage firm before investing. The Central Registration Depository (CRD) files are
available at your state securities agency or the National Association of Securities
Dealers (NASD). Additionally, each month the New York Stock Exchange releases a
disciplinary action list at www.nyse.com. |
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| Trade online
using a brokerage that meets your individual needs
The table below shows a
reviews of the top five brokerages. Read the reviews and select a brokerage
that meets your unique needs.
| Brokerage |
Web
Address |
Features |
|
E*Trade |
http://www.etrade.com |
E*Trade and Schwab have the highest fees of
the top five. You can trade in six different currencies. Minimum account
balance $1,000. $6.99 to $12.99 per market order. 100 free trades for
opening a qualifying account. 15+ retail centers. ATM and checking. Tax
information. Dividend reinvestment. |
|
Charles Schwab & Company |
http://www.schwab.com |
Schwab and e*Trade have the highest fees of
the top five. However, if your account balance exceeds $50,000 you will
only incur fees for trades ($9.95 per trade). Schwab has over 270
branches spread throughout the United States. $1,000 to open an
account. Minimum account balance $1,000. Open and fund an account for 50
free trades. ATM and checking. Tax information. Dividend reinvestment.
|
|
TD Ameritrade |
http://www.tdameritrade.com |
$2,000 to open an account. Minimum account
balance $2,000. $9.99 per market order. 45 days of free trades of
opening an account. 100+ retail centers. ATM and checking. Tax
information. Dividend reinvestment. |
| Fidelity
Investments |
http://www.fidelity.com
|
$2,500 to open and account. $2,500 minimum
account balance. Market order $8.00 to $19.95. No free trades for
opening an account. ATM and checking. Tax information. Dividend
reinvestment. |
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