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How to Trade Stocks Cheaply

Thursday, October 16, 2008
Related Tags: fees | stocks | trading | buy | companies
 

Instructions

  • Step 1:
    Go online and search for stockbrokers and other institutions offering financial services. Pay attention to their commissions, margin interest rates, withdrawal and deposit fees, check fees and inactivity fees. Select a discount stockbroker with lower fees and good trading platform. When you buy or sell stocks, the stockbroker will deduct these fees from your account balance (see Resources below).
  • Step 2:
    Buy stocks direct from the issuing companies. Many companies in United States offer direct stock purchasing plans for modest fees. These fees are usually lower than you would pay using a stockbroker.
  • Step 3:
    Buy and hold stocks for a long time. Buying for the long term cuts down on your monthly trading costs since you are not constantly buying and selling stocks. This may also allow you to maximize your profit potential.
  • Step 4:
    Buy stocks through mutual funds to lower your trading fees. Mutual funds don’t charge per trading fees, and dollar-cost-averaging may help you increase your portfolio over a period of time.

Resources


How to Trade Stocks Cheaply Provided by eHow.com
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