It's How I Get My Krispy Kremes The Non-Fat Way--Sharebuilder.com
by erinrounds - Written: Apr 04 '02
|
Product Rating:
|
|
| Customer Service: |
 |
|
| Web Site Experience: |
|
|
| Web Site Load Time: |
 |
|
|
Pros: Easy to use, nice way to for the novice to get started buying stock.
Cons: Price at sale time varies according to market, can lose money.
The Bottom Line: I highly recommend Sharebuilder if you're looking for a way to get started with stock buying. Serious and big money investors will probably not be satisfied.
|
|
|
| erinrounds's Full Review: Sharebuilder |
Yes, that's right I have figured out how to buy Krispy Kreme donuts and bypass the fat entirely. Of course they aren't nearly as satisfying to the palate this way, but down the road I hope they will "fill me up".
Still wondering what I mean?
Follow me to the website Sharebuilder where even a Mom like me with NO previous stock buying experience can do her wheeling and dealing like the Wall Street gang.....almost.
I first stumbled across the Sharebuilder site on a whim, I think trying to accumulate points for a webearning program. My husband and I had been discussing getting into stocks, and he had mentioned this site previously, on the recommendation of consumer guru Clark Howard. We just hadn't checked into it yet. I spent a good amount of time browsing the site and seeing if it would work for us. I decided it did, and would, although this clearly wouldn't be the way to go for some investors. If you're a true novice like myself, read on. Seasoned veterans need go no further. =)
The Premise Of Sharebuilder-
Simply put, the company pools the money of all of it's investors and purchases stock then distributes it to you in the increment you purchased. It's a great way to build up stock without a minimum purchase or having the entire amount needed to buy a certain stock.
How To Buy From Sharebuilder-
In order to purchase from Sharebuilder you'll need to select and open an account type. There are 3 kinds, single, joint, and custodial for children. We opened a joint for my husband and myself. You'll need to give all pertinent mailing information, and identification necessary for tax purposes. You'll select a password and user name to access this account in the future. All account changes will need to be done online!
Now that set-up is complete, and it shouldn't take you too long once you're ready to go, then just a few more decisions need to be made.
Funding Options and Frequency
Before you can buy stock you'll need to fund this account. Sharebuilder offers several options to accomplish this. You may send in a check, arrange to wire funds, make a payroll deduction or an automatic bank transfer. We opted to make a monthly transfer. Then you'll need to decide how often to make your purchases. This can be done weekly, monthly (on any Tuesday), or on a one time basis. We selected a once monthly option on the second Tuesday to ensure our checking deduction has been made.
Statements-
Everything is done by e-mail and online. We receive notification as a checking account deduction is made, and yet another once the trade has been made. We can check nearly up to the minute information on our stocks online at any time.
Fees-
Since nothing is free, lets cover the Sharebuilder fees. A flat $4.00 fee is charged per transaction, or $3.00 for a custodial account. They also offer an all you can build $12.00 monthly fee which can be helpful if you are buying more than 3 stocks each month. The other fee to take note of is the real time trading fee of $15.95. This means if you want to sell off all your stock, it will set you back $15.95 per stock.
The Caveats-
Are there drawbacks to investing with Sharebuilder?
There are what I consider caveats, and not necessarily drawbacks to investing here.
1. There is no control over the market price at the time your purchase is made. If you like to buy and sell as the market fluctuates, this is not for you.
2. The fees may outweigh any gains on a small scale investor unless you are in it for the long haul.
Example: Invest only $20.00 a month, pay a $4.00 fee, net investment $16.00. Now it will take you some time to recoup just the $4.00 investment let alone make a profit. If you are going to leave your money for a long time, preferably many years, and your prone to not saving any money, this may still be a good idea for you. Just something to consider.
3. Real time trading is expensive and should not be undertaken on a whim.
4. If you like and need to talk to a real live stockbroker, this will not be your cup of tea.
5. The library of resources is not as comprehensive as it could be. I find it quite adequate for me and my own needs, but I am far from an expert.
-----
It Works For Me!-
This is not going to be the best fit for every investor, not by a long shot, but for my husband and I it's a great way to get our feet wet and save for retirement at the same time. Plus, I get Krispy Kremes every month, can't go wrong there. If you are a novice, check them out and you may find a good fit. Even if you don't, you'll learn something new about stocks and the stock market for free.
Happy Investing! =) Erin
Recommended:
Yes
|
|
|
- Add to My Yahoo!: 
- Add to Google Homepage: 
