Question: Simple Questions about buying stocks from online Broker?
So i am not really good at stocks, but i am trying to learn as much as i can in my free time.
my Questions are:
1. when you open an account with lets say Etrade or Scottrade, Do they charge you fees for every single Stock you buy and than sell? Does that fees differ depending on the company whose stocks you are buying/selling?
2. Lets say that you bought 10 stocks in the first month and you keep those stocks and does no activity in the 2nd month. Do those Broker still charge you money for not buying or selling stocks in that month? In other words, Is it required to buy/sell at-least one stock every month?
Plz give me Simple explanations. thanks you.
Answer:
1) The brokers charge a transaction commission. For example, let's say the commission was $8 - when you buy 1 share of a company at $10, the transaction costs $18..if you bought 100 shares at $10 each, the transaction would cost $1008 ($1,000 for 100 shares @ $10 and the $8 commission). When you sell that portfolio, you again pay the $8 commission/ If you buy 10 shares of company A and 10 shares of Company B, those are two different transactions, so a $16 commission. Commissions may vary not based on the company but based upon the price of the share (penny stocks usually carry a higher commission) or the number of shares (less than 100 shares bought or sold is called an odd lot and some brokers charge more).
2) You MIGHT be charged extra for not buying and selling - some brokers charge an account maintenance fee (usually on a quarterly basis) if you do not make enough trades during the quarter or year. read the account terms of service before sending any money.
1. Etrade and Scottrade charge a flat fee every time you buy and sell. It doesn't matter how much you buy or sell, or what stock you buy or sell, the fee is the same.
2. Neither charge money for inactivity, though there may be a fee if your account is below some minimum amount.