Trading online vs using a broker

[Villages PL]

I've been trading seriously for over 30 years and have done very well for myself, despite an occasional market crash. My trades have always been placed with the assistance of a broker. For the past 5 or so years, I have been aware that it's a lot cheaper to trade online but I have resisted it because I don't feel sure of my computer skills. On top of that, I went to my broker's website and I learned that it's possible to make costly mistakes.

Having said that, they have announced a new lower online rate that is much lower than what I have been paying. So now I feel like I will be throwing money away by continuing to pay for broker assisted trades.

I've been with the same broker for about 25 years and don't like the idea of switching, but I wonder if there might be some company that will handle broker assisted trades for less money. My broker is in New York City.

Is there anyone in this area that you would recommend that you think charges a reasonable rate?

[rjm1cc]

I've been trading seriously for over 30 years and have done very well for myself, despite an occasional market crash. My trades have always been placed with the assistance of a broker. For the past 5 or so years, I have been aware that it's a lot cheaper to trade online but I have resisted it because I don't feel sure of my computer skills. On top of that, I went to my broker's website and I learned that it's possible to make costly mistakes.

Having said that, they have announced a new lower online rate that is much lower than what I have been paying. So now I feel like I will be throwing money away by continuing to pay for broker assisted trades.

I've been with the same broker for about 25 years and don't like the idea of switching, but I wonder if there might be some company that will handle broker assisted trades for less money. My broker is in New York City.

Is there anyone in this area that you would recommend that you think charges a reasonable rate?

Does he make the recommendations or just place your order? Assuming you know what trades you want go to Schwab, ETrade etc and read up on the trading tools they have. Very good tools for larger investors. Then try placing a trade at night. If it goes wrong you can call for help before the market opens.
My daughter infrequently places trades but she places then so she will learn. Before she does the trade she calls the "help line" to make sure she is doing it correctly. Then inputs the trade at night. Her trades are not straight buy and sell but limits, trailing limits etc. The key is do it at night as you can cancel the trade or call for help.

[Villages PL]

Does he make the recommendations or just place your order? Assuming you know what trades you want go to Schwab, ETrade etc and read up on the trading tools they have. Very good tools for larger investors. Then try placing a trade at night. If it goes wrong you can call for help before the market opens.
My daughter infrequently places trades but she places then so she will learn. Before she does the trade she calls the "help line" to make sure she is doing it correctly. Then inputs the trade at night. Her trades are not straight buy and sell but limits, trailing limits etc. The key is do it at night as you can cancel the trade or call for help.

My broker never makes any recommendations, he just places my order. I will usually ask him for a quote first. Then I will tell him to buy or sell X numbers of shares and I will usually specify a limit.

I like your idea of placing the order before the market opens. I might give that a try.

[Shimpy]

My broker never makes any recommendations, he just places my order. I will usually ask him for a quote first. Then I will tell him to buy or sell X numbers of shares and I will usually specify a limit.

I like your idea of placing the order before the market opens. I might give that a try.

I also use Schwab and have never used a broker. It's very easy to do on line with you setting the limits of what you want to pay or what you are willing to sell for. Go into their office in lake Sumter and they will be very helpful.

[Paperboy]

I also use Schwab and have never used a broker. It's very easy to do on line with you setting the limits of what you want to pay or what you are willing to sell for. Go into their office in lake Sumter and they will be very helpful.

I have Scottrade for 7 + yrs., $7.00 per trade; VERY user friendly. Open a account with a few bucks & try it; very easy to do.
HAVE CONFIDENCE IN YOURSELF

[Jayhawk]

I have Scottrade for 7 + yrs., $7.00 per trade; VERY user friendly. Open a account with a few bucks & try it; very easy to do.
HAVE CONFIDENCE IN YOURSELF

Agree with you. Full cost stockbrokers have gone the way of 8-tracks, VHS, and buggy whips. With few exceptions, no real need for them anymore.

;)

[dewilson58]

I like Wells Fargo Advisors..............On line trading. Currently I get 100 trades FREE every year. There is a minimum balance, but that is not big.

[manaboutown]

I trade on line with several brokerages but I still retain a broker I have dealt with for over 20 years on his recommendations. That is only fair.

[Houselover]

I'm not sure but I believe that most discount brokers(Schwab, TDA, etc) have an option where you can make paper trades as a learning tool to use until you are comfortable using the "real" world on line trades..Try doing this along with the other suggestions mentioned above and you will be amazed at how easy it is. These websites also have their select lists as well as other research tools for you to use..

[Markam]

I agree with all above - especially the advice to work with Schwab, starting with their LSL office. I'm sure you could initially place trades 'on line' while there and have someone look over your shoulder to make sure you are doing it correctly. It really is quite easy.

I also use Fidelity and imagine you could do the same thing at their LSL office.

If you use Quicken to keep track of your personal finances, both Fidelity and Schwab link and update Quicken without issue.

If you are successful when doing your own research, there really isn't any need to place trades with a 'full service' broker. However, I see nothing wrong with using a trusted professional, for any service, whenever necessary.

[Lucko]

I did trade with big brokers starting in 1955, but saved thousands by going on line seven years ago -- I recommend Ameritrade and Tradeking -- Go to cboe.com to learm about anything financial -- get on line to visit sites and read business magazines -- Sit down with someone who has an online account and see how easy and safe it is -- the broker is not your friend, he is a sponge soaking up your wealth !!!!!!

[Shimpy]

Something I'd like to mention. Even though I use Schwab for all my trades and their web site for keeping track of everything, I also use Yahoo Finance for tracking everything. I like their system much better and find it provides me not only my investments but with a watch list that I can check every day looking for a pullback on stocks I am interested in.

[JP]

I have used Etrade for years and they charge me $9.99 a trade. I think their web site is very easy to use. I use google finance to track everything so I don't have to sign on to my Etrade account all the time to see how my stocks are doing. It is also easy to use. Try it with some practice stocks!

[Villages PL]

Thanks, everyone, for the encouragement. Now I'm eager and ready to learn how it's done.

[rubicon]

Two poster listed their costs per trade $7.00 and $9.99 respectively.

I am just curious as to what the costs are per year and if these posters have
computed that amount to a %?

On the other side of the equation have these posters compared their return compared to say a $500 S&P Index Fund?

If traders are beating what I am experiencing I ,ay well stat do my own trading

[justjim]

I switched 90% of my portfolio to mutual funds three years ago. The other 10% I trade on my own. It is less stressful and I have more time to do things left on our bucket list. This has worked out well for me and my wife.

Life is too short.

[gustavo]

Two poster listed their costs per trade $7.00 and $9.99 respectively.

I am just curious as to what the costs are per year and if these posters have
computed that amount to a %?

On the other side of the equation have these posters compared their return compared to say a $500 S&P Index Fund?

If traders are beating what I am experiencing I ,ay well stat do my own trading

When I buy $100k+ of an ETF or stock for $5 at ETrade the % cost for the commission is insignificant. Also, any time I call up with an issue the rep usually tells me he's coding the account with 10 free stock trades. Bonds are higher $1 per $1000 bond but still insignificant IMO.

[samhass]

When I buy $100k+ of an ETF or stock for $5 at ETrade the % cost for the commission is insignificant. Also, any time I call up with an issue the rep usually tells me he's coding the account with 10 free stock trades. Bonds are higher $1 per $1000 bond but still insignificant IMO.

I pay 4.99 per trade at etrade and trade often. I love it.

[JP]

Two poster listed their costs per trade $7.00 and $9.99 respectively.

I am just curious as to what the costs are per year and if these posters have
computed that amount to a %?

On the other side of the equation have these posters compared their return compared to say a $500 S&P Index Fund?

If traders are beating what I am experiencing I ,ay well stat do my own trading

The costs per year are basically insignificant because I don't trade that much and I have quite a large amount in my account. If a broker or such took even 1% that would be a significant amount of money and for me unnecessary. By the way, Etrade has no IRA fees, no ATM fees and there is no minimum to open an account. Just as a side note, I have all my kids and parents "monies" under my accounts umbrella to make it easier to keep track of everything for everyone which I enjoy doing.

[Villages PL]

I went to Schwab's website today and they have a sample of how to place an order online. It's a small box that's crowded with information in very small print. That's their teaching tool but it seems like something is missing. There are no written instructions, no checklist of what to do.

Example of written instructions might be as follows:
1) Fill in the name or symbol of the company: "GE", "PFE" or other.
2) Number of shares to be purchased or sold
3) Price limit
4) Click here to submit your order: *
5) Wait for online confirmation

But there are no written instructions at all. How much would it cost them to do that and make every step perfectly clear?


I started an online "chat" with someone at Schwab and he tried to be helpful but nothing worked. He gave me a couple of links but the examples given had small print that was too small to read. One link didn't work at all.

I should say that I don't have an account yet. That might help, but I just happen to think that it would be nice to know in advance.

Why I doubt it when people say that it's easy: Everything is easy once you have learned it. :-)

[Shimpy]

Example of written instructions might be as follows:
1) Fill in the name or symbol of the company: "GE", "PFE" or other.
2) Number of shares to be purchased or sold
3) Price limit
4) Click here to submit your order: *
5) Wait for online confirmation


Why I doubt it when people say that it's easy: Everything is easy once you have learned it. :-)

That's exactly how it is with Schwab. Go to trades and fill in the blanks. If it wasn't easy they would have lost me 3 years ago.

[rjm1cc]

I went to Schwab's website today and they have a sample of how to place an order online. It's a small box that's crowded with information in very small print. That's their teaching tool but it seems like something is missing. There are no written instructions, no checklist of what to do.

Example of written instructions might be as follows:
1) Fill in the name or symbol of the company: "GE", "PFE" or other.
2) Number of shares to be purchased or sold
3) Price limit
4) Click here to submit your order: *
5) Wait for online confirmation

But there are no written instructions at all. How much would it cost them to do that and make every step perfectly clear?


I started an online "chat" with someone at Schwab and he tried to be helpful but nothing worked. He gave me a couple of links but the examples given had small print that was too small to read. One link didn't work at all.

I should say that I don't have an account yet. That might help, but I just happen to think that it would be nice to know in advance.

Why I doubt it when people say that it's easy: Everything is easy once you have learned it. :-)

Try this link and look around
Software Trading - Place Trades: Active Trader: Charles Schwab (http://www.schwab.com/public/schwab/active_trader/trading_tools/trading_software/place_trades)

[villagerjack]

NEVER. place orders at MARKET...use LIMIT orders.

[Villages PL]

Try this link and look around
Software Trading - Place Trades: Active Trader: Charles Schwab (http://www.schwab.com/public/schwab/active_trader/trading_tools/trading_software/place_trades)

I used your link and just noticed there is "Software Trading" and "Web Trading". I hadn't noticed that before. The one I was complaining about was the software trading. If I'm supposed to use "Web Trading" it's a good thing I didn't just go ahead and try it. I might have messed up. Or am I supposed to use "software trading"?

[Villages PL]

That's exactly how it is with Schwab. Go to trades and fill in the blanks. If it wasn't easy they would have lost me 3 years ago.

Did you automatically know the difference between "software trading" and "web trading" when you first started? What happens if you pick the wrong one and start filling in the blanks?

Another question: I was told by someone at Schwab that brokerage accounts are insured up to $149 million per account. That sounds too good to be true. I tried to find it on their website but couldn't. What is your understanding of the amount of insurance coverage? How much are they insured for over the standard SIPC coverage of $500,000.?

[AJ32162]

My recommendation to open an account with an online broker (Scottrade, E-trade, etc,) that that offers virtual trading and play until you heart is content. I will cost nothing.

[Villages PL]

NEVER. place orders at MARKET...use LIMIT orders.

Thanks, that's very good advice that I unfortunately learned the hard way when I first started investing. But it doesn't hurt to be reminded of it.

[rjm1cc]

Schw has an office in the villages
l would go to the office for
help

[Villages PL]

I opened an account with Schwab a couple of weeks ago. Today, after the market closed, I submitted my first buy order for some shares of stock. But now I don't know how to check the status of my order. I would like to check it after the market opens tomorrow. Can anyone tell me how that's done?

I'm making progress but still have questions. :024: :)

[ivanhoe]

I have Scottrade for 7 + yrs., $7.00 per trade; VERY user friendly. Open a account with a few bucks & try it; very easy to do.
HAVE CONFIDENCE IN YOURSELF


ditto

[Villages PL]

I opened an account with Schwab a couple of weeks ago. Today, after the market closed, I submitted my first buy order for some shares of stock. But now I don't know how to check the status of my order. I would like to check it after the market opens tomorrow. Can anyone tell me how that's done?

I'm making progress but still have questions. :024: :)

I contacted a broker this morning and got a lot of questions answered. My first online trade, that I thought I had messed up, went much better than expected. I'm a happy (Schwab) camper today.

Thanks again to everyone for all the words of encouragement. :)

[2BNTV]

There is a Schwab office in LSL and Robin Morgan is the first you see when you walk in the door. A knowledgeable and helpful person

I have been in a Schwab managed account for several years and found it to be the best thing for me. It allows me to not have to worry about my investments as there is a great diversity. I still retain my Schwab broker from CT, as he has always given me great advice. He takes the time to listen to one's goals and then advises me what is best for me, and not him. I found him to be very ethical.

Liz AnnSonders, (VP Investments at Schwab), was one of the few people who predicted the stock market downfall several years ago. I got out, when it started to free fall, and got back in, when the market starting heading up. It is now double the value, of when I jumped back in. :smiley:

I realize some people, who are more knowledgeable than me, want to invest themselves. To each his/her own.

Wish you the best with your investments. :smiley:

[Villages PL]

There is a Schwab office in LSL and Robin Morgan is the first you see when you walk in the door. A knowledgeable and helpful person

I have been in a Schwab managed account for several years and found it to be the best thing for me. It allows me to not have to worry about my investments as there is a great diversity. I still retain my Schwab broker from CT, as he has always given me great advice. He takes the time to listen to one's goals and then advises me what is best for me, and not him. I found him to be very ethical.

Liz AnnSonders, (VP Investments at Schwab), was one of the few people who predicted the stock market downfall several years ago. I got out, when it started to free fall, and got back in, when the market starting heading up. It is now double the value, of when I jumped back in. :smiley:

I realize some people, who are more knowledgeable than me, want to invest themselves. To each his/her own.

Wish you the best with your investments. :smiley:

Thanks, I'm glad to hear that everything is working out well for you. It's nice to hear stories like yours where someone doubles their money.

I'm very close to doubling my money (since the crash) and expect a lot more by the time this recovery is over. It wasn't because of an advisor because I've never had one in all my years of investing. It was because of a strange series of events.

I had some rather large investments in a few companies that were bought-out and taken private. So I had no choice but to take cash for my shares. My first thought was to reinvest the money in the shares of other companies. But after doing a lot of research, mostly in Valueline, I couldn't find anything that looked compelling. I couldn't see buying in to the market just to be in it. Either something looks good or it doesn't and nothing looked good to me. So I just gave up on the idea of reinvesting in the market, at least for the time being.

So I decided to park the money in CDs that were paying about 5 to 5.5%. Unfortunately, I did it the hard way. I contacted the banks myself, first in The Villages area and then, eventually, out-of-state banks. At that time, deposits were only insured up to $100,000. So I created quite a record-keeping job for myself, what with renewal notices, statements and soforth. Never again!

I suppose if it ever comes to that again, I can just get CDs through Schwab.

But here's the best part: After the market began its decline, I slowly reinvested the money back into the stock market as the CDs reached maturity. And it was a good thing they didn't all mature at the same time because the market went down more than I expected. I just kept buying bigger and bigger bargains until it hit bottom.