I would like to buy a few shares of US Airways online. How would I do this?

Question

I have never bought stock online before. The stock is at a good price. What online company should I go through? What are the pitfalls and advantages of doing this? Are companies such as E-Trade and Sharebuilders good to do business with? Thanks!

Answer 1

Don't waste your money on stocks that trade under $5 a share, they VERY rarely go back up.  When they do, it's usually as a result of a merger or reorganization, in which case your shares could become worthless anyway.

If you have the $300 or so you'd need to buy 100 shares of LCC, you'd be better off buying 10 shares of a $30 stock, or putting it in a mutual fund.

Answer 2

Most online brokers will require a small deposit from your checking account...say $500. After the check clears you will be able to make trades. I personally use Scottrade and trades only cost $7, but the others you mention are good as well. You could also check w/your bank to see if they offer any type of broker options.