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Burgerwars

Zero stock trading commissions is becoming the standard. It's a race to the bottom.

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5 hours ago, cv91915 said:

If someone wants one share of one individual stock but can't afford the entire $210...  that would suggest a sub-optimal investment approach for that person's financial situation.

My McDonald's is down to $201 today.  :( .  No biggie.  I've owned shares for longer than many people on Creditboards have been alive.

 

Schwab also has a line of mutual funds.  Minimum initial investments are as low as $1.  If someone only has $1 to their name, they're in luck.  

Edited by Burgerwars

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On 10/22/2019 at 11:54 AM, Burgerwars said:

My McDonald's is down to $201 today.  :( .  No biggie.  I've owned shares for longer than many people on Creditboards have been alive.

 

I sort of feel the same way about my HD stock...lots of it in the sub-$20 range.  That pales compared to mom and the XOM holdings that are often referred to as the $2 shares.  Through all of the splits and ESOP acquisitions since the 60's, she actually makes more per year from the dividend than many of the shares actually cost to purchase...

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21 hours ago, hegemony said:

The thing with fractional shares is I had a fraction of Google/Alphabet in my Sharebuilder account that became ING Direct that became Capital One Investing that became E*Trade. Once E*Trade acquired my account they informed customers they don't support fractional shares and the fractions would be sold. No biggie, but it looks like all the big brokerages will eventually support fractional shares.

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On ‎10‎/‎27‎/‎2019 at 9:23 AM, Burgerwars said:

The thing with fractional shares is I had a fraction of Google/Alphabet in my Sharebuilder account that became ING Direct that became Capital One Investing that became E*Trade. Once E*Trade acquired my account they informed customers they don't support fractional shares and the fractions would be sold. No biggie, but it looks like all the big brokerages will eventually support fractional shares.

Have you started an account with a brokerage that supports fractional shares?

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6 hours ago, Allkindabroke said:

Have you started an account with a brokerage that supports fractional shares?

SoFi supports fractional shares on a select group of stocks. The minimum transaction amount is $1. For the heck of it I bought a small amount of Tesla. It does work.

Another brokerage is InteractiveBrokers. I opened their IBKR Lite account but haven't tried fractional trades. The IBKR Lite website and Android app is not straightforward. It's a wrestling match trying to buy an ETF. The website prompts you multiple times to re-enter your two-factor authentication (password and text message) in entering transactions. I've also needed to login many times for no reason. Maybe their IBKR Pro service is better, but I'm not an active trader. Anyway, I feel there are many other brokers easier to use than IBKR Lite.

 

Edited by Burgerwars

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Another poor policy of Interactive Brokers is their hold policy.  If you do an ACH transfer in, you can't purchase stocks, etc., with that money for 4 business days.  That's OK.  Where it gets crazy is if you want to use those funds with the Interactive Brokers debit card, that you can get for free with an account.  You can't make a debit card purchase with ACH funds for 44 business days.  That's almost 9 weeks.  It can be over 9 weeks if there are a couple holidays in there.  The same 44 day business day hold applies to using that money to do an ACH outbound transfer to a different bank.  I'm guessing these longest ACH holds in history have to do with that Interactive Brokers wants you to use the account for investments, and not as a bank.  If you're thinking of using this account for these types of ACH transfers or debit card transactions and you don't usually leave cash in your account for long periods of time, you're better off looking for an account elsewhere. Also, with the debit card, transactions over $1,000 they say need to be pre-authorized.  I've only used the card once, at a coffee shop, so I'm unsure how that's done, but there's probably a choice somewhere on their website.

Edited by Burgerwars

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43 minutes ago, Burgerwars said:

Another poor policy of Interactive Brokers is their hold policy.  If you do an ACH transfer in, you can't purchase stocks, etc., with that money for 4 business days.  That's OK.  Where it gets crazy is if you want to use those funds with the Interactive Brokers debit card, that you can get for free with an account.  You can't make a debit card purchase with ACH funds for 44 business days.  That's almost 9 weeks.  It can be over 9 weeks if there are a couple holidays in there.  The same 44 day business day hold applies to using that money to do an ACH outbound transfer to a different bank.  I'm guessing these longest ACH holds in history have to do with that Interactive Brokers wants you to use the account for investments, and not as a bank.  If you're thinking of using this account for these types of ACH transfers or debit card transactions and you don't usually leave cash in your account for long periods of time, you're better off looking for an account elsewhere. Also, with the debit card, transactions over $1,000 they say need to be pre-authorized.  I've only used the card once, at a coffee shop, so I'm unsure how that's done, but there's probably a choice somewhere on their website.

9 weeks is absurd.

 

I got an erroneous trading violation email message from Merrill last week after transferring money from my BoA checking and then buying a handful of ETF shares in one of my Merrill CMAs.

 

The bank was closed on Monday for Veterans Day, but the market was open, so the internal BoA>>ML transfer didn't post before my trade did.

 

I called in and they acknowledged that there was no issue.  I wrote the whole thing off as a COMPUTER GLITCH.

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I am trying to get out of robinhood and transfer to ally.  Unfortunately my employee stock purchase plan still charges, $30 per trade!!

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38 minutes ago, aroberson said:

I am trying to get out of robinhood and transfer to ally.  Unfortunately my employee stock purchase plan still charges, $30 per trade!!

To buy AND sell?  

 

My employer's ESPP is with Fidelity, and until recently they were charging $7.95 to sell. 

 

$30 is insane in the membrane! 

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29 minutes ago, cv91915 said:

To buy AND sell?  

 

My employer's ESPP is with Fidelity, and until recently they were charging $7.95 to sell. 

 

$30 is insane in the membrane! 

to sell, I get 15% employer match on my contribution, but I have reduced my contribution greatly recently, just going to invest that money instead.  I wish it was with one of the major traders

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5 hours ago, aroberson said:

I am trying to get out of robinhood and transfer to ally.  Unfortunately my employee stock purchase plan still charges, $30 per trade!!

I see Robinhood charges $75 for any transfer out. See if Ally reimburses for that. So brokers charge less or nothing for a partial transfer out. If that's the case, with now zero commissions, buy one share of some penny stock, then transfer everything but that one share.

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On 11/20/2019 at 11:19 AM, aroberson said:

to sell, I get 15% employer match on my contribution, but I have reduced my contribution greatly recently, just going to invest that money instead.  I wish it was with one of the major traders

Why wouldn't you take the instant 15% return on the ESPP shares?  Maybe I missed something.  :) 

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Charles Schwab Corporation To Acquire TD Ameritrade.

 

Press Release/further information:  

 

https://www.amtd.com/news-and-stories/press-releases/press-release-details/2019/acquisition-information-center/default.aspx

 

https://pressroom.aboutschwab.com/press-release/corporate-and-financial-news/charles-schwab-corporation-acquire-td-ameritrade

 

https://s2.q4cdn.com/437609071/files/doc_news/SCHW_FAQ.pdf

 

I'm not looking forward to the #1 and #2 discount brokerages combining.  Maybe it won't be approved.

 

 

Edited by Burgerwars

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28 minutes ago, Burgerwars said:

Charles Schwab Corporation To Acquire TD Ameritrade.

 

I'm not looking forward to the #1 and #2 discount brokerages combining.  Maybe it won't be approved.

There's enough brokerages on Wall Street both discount and traditional that I think it will go through especially with these FinTech startups like Robinhood in the market.

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1 hour ago, IndyPoolPlayer said:

There's enough brokerages on Wall Street both discount and traditional that I think it will go through especially with these FinTech startups like Robinhood in the market.

We'll see how this goes.  Schwab and TD Ameritrade market for the same type of customer (they're discount but are also full-service, with brokers in offices customers can talk to).  Robinhood is basically trading stocks from their app.  No mutual funds, not much, if any, support, etc.  Robinhood claims they have 6 million customers.  I bet a large amount of those customers are accounts with tiny balances.  Accounts no other brokerage would want.  Just millenials opening accounts on the app, then depositing nothing or $10 into the account, to look cool.   Then there's firms like TradeStation and Interactive Brokers, that mainly cater to traders, although they'll open up accounts for any average Joe Schmoe.  

 

A complete integration of the two platforms is a ways off.  Even if they're approved in the mid to late 2020's, there's another 18 to 36 months until all is said and done.  I saw on another board someone concerned about the future of Thinkorswim.  He has at least two years to think about it.  If the merger goes through, it's Schwab taking over TD Ameritrade.  They'll decide if they can incorporate that into their trading platform, or previous TD Ameritrade customers will have to use Schwab's current offerings.  Of course, nobody is holding a gun to TD Ameritrade's customers saying they must use Schwab.  They can always go elsewhere.  I'm guessing it's all but certain if TD Ameritrade customers want to go elsewhere instead of Schwab, they'll waive any transfer-out fee.

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