I have Bank of America and they have an investment department. Do most people buy stocks through their bank?

Question

I have Bank of America and they have an investment department. Do most people buy stocks through their bank?

Answer 1

Yes they do. Just go to their website and click on Investments.

Answer 2

All of my investment accounts are held in bank brokerage accounts.  I get full service brokerage features at discount brokerage prices.  But you should shop around.  Discounts are offered by account balance.  Smaller investors may not get such a good deal.  Look at the account minimums and comission rates you qualify for before choosing a broker.

Also, make sure your investment style is compatible.  If you're a buy and hold investor, some brokers charge a maintenance fee (when you don't make trades for months at a time).

If you have $25k or more with BofA you're eligible for 30 free stock trades a month.  That's a good deal.

https://www.baisidirect.com/Static/SelfD...

Answer 3

I use USAA, I left 53rd bank because they charged too much.  USAA is in line with other brokerage accounts.  I like having everything together.  I would check their rates per trade and if they only "hold" loaded funds.  Do some digging before you open with your bank.

Answer 4

Probably not. I would use Scottrade who is an online broker.  You have freedom this way.

Answer 5

I doubt it.  Most buy through a broker, or online through a discount broker, or via an investment vehicle like a mutual fund, IRA, or pension or retirement account.

Unless the bank has a seat on the stock exchange, they will run the buy/sell orders through a brokerage house.  They will charge you for the privilege of calling the brokerage, who will also charge you for buying or selling.  You can go directly to a broker if you want, or start an account online.  

If you want to know more, go to the finance section on the yahoo front page to start learning.

Answer 6

Why bother? When opening an account on-line at Scottrade or E*trade is soooo easy... and you don't have to call anyone to get something done...everything is on your keyboard.

Half the time your banker/broker is talking to you, he's thinking about something else..."..is it lunchtime, yet?" " Did I put enough money in that parking meter?" " I wonder why I missed that last promotion."