Ask Terry Questions Online Investing Companies

Online Investing Companies

By Terry Savage on January 23, 2019 | Investments

Terry, I remember a few months ago, you were on WGN and talking about some online companies to use to start investing in stocks. My New Years resolution is to start taking a more active position with my spending money, so rather then buy that cup of coffee or a drink when I go out, use that money for a better purpose. I was wondering what might be some good Stock Trading companies to go to, that have low trading fees and hopefully no ongoing costs (I’m a buy and sit type of investor, so think safe stocks that tend to be consistent with dividends). Also we aren’t talking about loads of money either, but to buy a share or two here or share or two there during the month after each check.

Terry Says

Well, I’d much rather see you open an Individual Retirement Account at Fidelity or Vanguard (make it a Roth IRA if your income meets the limits) and then choose a diversified fund like their S&P 500 stock index fund.  Yes, it will take $1,000 to open the fund, but then you can have $100 a month automatically deducted from your checking account to add to the fund.  That way you don’t have to pick stocks — and the money will grow tax deferred (or tax-free in case of a Roth) for your retirement.

If you are actually looking to buy shares or fractional shares of individual stocks that you pick, then go to www.Stockpile.com, where you can open an account with no minimum.  But you can’t set limit prices or trade during the day.

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