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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.


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.


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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