| Guide to Online Investing |
Getting Started |
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Getting started is a lot easier than people think. Most online brokers require a minimal amount of cash to open an account. Ameritrade, Scottrade, and others usually take 500 dollars as a minimum. Although online brokerages have reduced commisions significantly, they can still be significant to a small portfolio. Ameritrade offers a flat rate of 10.99 for limit and market orders. Scottrade charges $7 for market orders and $12 for limit orders. Freetrade is an online brokerage that offers the first 20 trades per month without commissions, but they do require a $5,000 minimum. When comparing online brokerages to traditional brokerages, the main difference with online brokerages is the lack of a personal broker, a person to guide the investor. The account owner takes sole responsibility. |