Choosing A Broker: ShareBuilder
July 30, 2009 by Tisa Silver
Filed under Finance
Today, I will continue my coverage of the discount brokers by introducing ShareBuilder from ING Direct.
As always, remember: the level of services you need will help you decide whether to go with a full-service broker or a discount broker.
Photo by Andrew Feinberg, courtesy of flickr
How To Trade: ShareBuilder offers online and telephone trades. Investors can process trades through a customer service associate for $29.95 each, but the associates offer no investment advice. The company’s PortfolioBuilder tool can be used to help you choose appropriate investments.
ShareBuilder offers cash and margin accounts and allows investors to trade stocks, mutual funds, options and exchange-traded funds (ETF).
ShareBuilder offers an Automatic Investment Plan (AIP) and real-time trades.
Commissions: ShareBuilder offers three pricing programs: Basic, Standard and Advantage. I’ll summarize the commissions and fees associated with each.
Basic - Trades made via the automatic investment plan cost $4 each. Real-time trades cost $9.95 each and there is no subscription fee.
Standard – This plan has a monthy subscription fee of $12. Real-time trades still cost $9.95, but a discount is offered on automatic investments. Each month, the first six (6) AIP trades are commission-free, additional trades are $2 each.
Advantage – The Advantage plan carries a subscription fee of $20 per month. Real-time trades cost $9.95, but twenty (20) automatic investments are included in the plan. Additional automatic investments cost $1 each.
Account Minimum: There is no account minimum required to open an account. A minimum of $2,000 is required to open a margin account.
For more information on investing with ShareBuilder, visit the company’s Investing page. For ShareBuilder reviews, visit Barron’s, J.D. Power & Associates and the SmartMoney Annual Broker Survey.
Tomorrow, I will profile Charles Schwab.
Disclaimer: Brokerage commissions are subject to change, explore them yourself by visiting the broker’s web site or calling customer service for up-to-date information BEFORE you place any trades. The prices provided within this post were compiled on 7/27/09.
