What is a good online company that trades stock in my name.?

Question

I am beginner and have no experience at all. All I have is some money to invest 20000, and through a little research I found out about some web sites that offer such a thing as "Investors FastTrack", "EZ Stock Options ", etc. but I dont know if they are reliable.

Please answer.

Answer 1

In order  to make sure that a broker is reliable, you should check to see if they are member FINRA and member SIPC.  If you want something that is cheap, go for an online discount brokerage firm.  However, you should make sure that you pick one that is easy to use.  There are several deep discount brokers out there that are really cheap but they may be very difficult to use.  For example, Interactive Brokers is infamous for its complicated website and Zecco is known for it's poor customer service.  I currently use Firstrade http://www.firstrade.com/.  They cater to beginners and are relatively cheap.  As for what to trade, I would recommend that you try investing in ETFs since they are less risky and beginner-friendly.

Answer 2

As a beginner you should stay away from options or any programs that show you flashy charts and graphs.  You need a good understanding of the market and how it works.  

Pick some stocks that you know and research them.  Are they making money?  Do they have a strong future?  What do they sell or do?  How do they compare to other companies in their industry or sector?  What is their P/E compared to their competitors?   Starbucks who convinced America that $5 for a cup of coffee wasn't too expensive and seemed that it would never stop expanding is now closing stores all over the country. Why?   Ask questions, look for answers.

Invest in what you know.  If you like to shop, what stores at the mall are always packed?  What companies own those stores?  Are they making money?  

Then buy some stocks on paper.  No money.  Put down what you would have purchased it at, and what your exit price is.  Track your progress, are you making money? Why?  Are you losing money? Why?

You will find people telling you to buy stocks that sell for pennies.  Stay away, 99% of those stocks that sell for pennies go out of business.  It is a rare occassion that you hit it big.  Look at stocks trading $5 and above.

Yeah, it's hard.. but anything else is just throwing darts.

Answer 3

I suggest going with a full service brokerage and having a broker invest 15,000.  Then open an etrade account (or Scottrade) and manage 5,000 yourself.  It will entice you to learn more about investing and you'll learn fairly quickly how the market works, what P/E ratios are, market orders, etc.  A full service brokerage like Wachovia or Edward Jones would be good for 75% of your money because they can professionally manage it.

Answer 4

sharebuilder.com they are fdic insured and there are no minimum balances