Broker Fees.... Help!

[jossho89]

Hey guys, Im new to these forums and have been doing abit of research on trading shares!. Ive recently received my stimulus package and am looking at investing it into shares to learn and get the feel of trading.
Ive been looking around for a cheap broker but have been put of as ive found out they normally have a monthly fee which would make investing $1000 abit pointless! if anyone knows anyway of getting around a monthly fee with cheap brokerage any help would be greatly appreciated.
Thanks

 

[wonderrman]

Interactive Brokers $6 per trade but you have to start with a minimum $10K. CommSec is $20 with no monthly fee - most online brokerage don't have monthly fees unless you want add ons.

$1K is probably to little to start off trading with though, I think to make it worth while $10K minimum is probably required. Maybe try and save some more and LEARN alot before you put your foot in the ocean. Nothing wrong with paper trading for a few months while you get the hang of it.

wonder

 

[jackson8]

Hey guys, Im new to these forums and have been doing abit of research on trading shares!. Ive recently received my stimulus package and am looking at investing it into shares to learn and get the feel of trading.
Ive been looking around for a cheap broker but have been put of as ive found out they normally have a monthly fee which would make investing $1000 abit pointless! if anyone knows anyway of getting around a monthly fee with cheap brokerage any help would be greatly appreciated.
Thanks

for commsec you will need to open a cash managment account to receive the $19 rate

also if you are only starting with 1k at least thats all you can lose !

 

[jossho89]

Thanks for the replys guys! ive tryed some paper trading and also playing the asx sharemarket game but find i become abit lazy with it as its not real money! the $1000 dollar is really just to get my foot in the door and arnt out to earn and income or anything just to mainly get the feel, and arnt worryed if i loose it.
I have a bank account with ANZ but i was under the impression that e-trade had a monthly fee! is this the case or is it the same as what wonderrman is saying about just not including addons ect? and would the 550 free brokerage be included?
thanks again

 

[Mr J]

You will almost certainly lose that $1000.

but find i become abit lazy with it as its not real money!

I can understand for the desire to work for reward, but I doubt you'll work well if you need money to be on the line. In my experience, the laziness will simply carry over. Also, if you need money to be on the line it suggets that you may have the need for "action", which is not good for a trader, at least not in the longterm. I think you should just force yourself to work properly paper trading.

really just to get my foot in the door and arnt out to earn and income or anything just to mainly get the feel, and arnt worryed if i loose it.

You won't really get much out of $1000 - I think you'd be surprised how quickly you'd lose that much. With just $1000, the fees anywhere will be excessive. The trades will be so insignificant that it will almost be like paper trading.

While this is going to seem as poor advice, I think you'll probably learn more by going to the casino and putting it on a single hand of blackjack.

also if you are only starting with 1k at least thats all you can lose !

I think losing what seem like large amounts can be very helpful. If you haven't lost it, then you don't know what it is to lose it. As humans, we're often blind to potential mistakes and ignore the mistakes of others. We usually have to make the mistakes ourselves to learn from them. If things go well or it doesn't matter to us, then we're not forced to think about our actions and the consequences.

I just think there's a lot we need to learn to be successful traders that most of us will only get through losses. I'd say that these losses aren't only helpful for trading, but also life in general. Well, only if we learn from it.

 

[tech/a]

Pick something you want to trade.
Go to a full service broker and have them place your trade.
$1000 will set you back around $20 Id say.

If you dont know one private message me and I'll give you ones number to call (One I used to use before trading IB.)

When you want to sell it just call and they will sell it.
You'll need to open an account.
Pretty simple.

 

[shiftyphil]

CommSec has an offer that will give you some free trades. Will make a difference when you're starting small.

http://www.commsec.info/money/exclusive-offer.aspx

 

[kam75]

Have you looked at Etrade? Been trading with them for over 7 years. Not the cheapest but as Ziggy Zigler says, good things are seldom cheap...and cheap things are seldom gooood. I agree that with only 1K to invest, you wanna pay as little as possible. I agree with some of the other members that you should put together a bigger amount. With 8-10K you could diversify into 3-4 stocks, with 5-6K you could do 3 stocks, even with 4K you could find 2 good stocks to invest in. But with 1K, you could do 1 and hope it'll work out in your favour.
regards

 

[Mr J]

Stocks are a rip-off in Australia, I don't see any reasonable suggestions for him unless he's making trades over a longer timeframe.

 

[Nero64]

You will almost certainly lose that $1000

Not everyone loses all their money. Don't scare him.

If you place this money in Woolworths or AGL energy I still think it will be around in 10 years. These companies won't go under. Your return won't be great but it might be slightly better than the bank interest rates.

Alternatively you could trade forex using micro contracts. I.E 10c per point. You might not be profitable for 2-3 months but you can learn how to trade charts and learn the importance of stops losses etc. Nothing like learning from real emotion and experience. It will take you 1000 losing trades in a row with a 10 point pip stop loss to lose all your capital. Now that is priceless.

I say put your money in the markets...It's all good fun. Even when you have to sell your family home and force your daughter to become a call girl, so that you can pay off your brokerage and gambling debts...Ooops too much information about myself

 

[Mr J]

Not everyone loses all their money. Don't scare him.

Most do, particularly when the amount is just "throw away" cash. He's already said he's happy to lose it. It's better he is scared to lose it anyway.

Nothing like learning from real emotion and experience

In my opinion this only comes from having real money on the table. If he doesn't care about $1000, then he won't learn those lessons.

It will take you 1000 losing trades in a row with a 10 point pip stop loss to lose all your capital. Now that is priceless.

It would certainly help being clinical about his trading, that is developing consistency, skill etc, but he did say he needs real money as a motivation, and I'm not sure this is what he means by "real money" .

force your daughter to become a call girl

Does she live in Sydney?

 

[DB008]

Bell Direct, $15 per side, not to bad.

 

[sardines]

geee....so many different ways to pee the fiscal stimulus package up the wall

anyway, I'd bypass all this and consider sticking the money into a First Home Savers Account - you're likely to want to buy a home down the track right?

Benefits I see with this trade are 0 fees, 15% tax, 17% Govt co-contribution and capital protection.

DYOR

 

[Wysiwyg]

Most do, particularly when the amount is just "throw away" cash. He's already said he's happy to lose it. It's better he is scared to lose it anyway.
In my opinion this only comes from having real money on the table. If he doesn't care about $1000, then he won't learn those lessons.

It is good to help people with good advice but some are just ignorant, arrogant and have the gung ho attitude. Sometimes it is best to just hand them the matches.

 

[beamstas]

Most do, particularly when the amount is just "throw away" cash. He's already said he's happy to lose it. It's better he is scared to lose it anyway.
In my opinion this only comes from having real money on the table. If he doesn't care about $1000, then he won't learn those lessons.

Gee, someone forgot to take their happy pills this morning.
Cheer up gramps, its not all doom and gloom. Did you fall off your go-kart on the way to the computer?

If $1000 is all he has to trade shares - im sure he cares about it. Get off his back and stop trying to scare him away. If he has any questions on reccomended starting capital and money management im sure he will come to you as obviously you know everything... not


It looks like the OP was born in '89, same year as me. I too started with $1000 at Comsec. It is possible.



jossho89;

My advice - take a look at Comsec or Bell Direct. Ideally Comsec as they will give you free brokerage if you open an account now ($600 worth).

The lessons you learn with money on the table will provide real experience. Which will be vital when you decide you want to put more money into the market

Brad

 

[jossho89]

Wow thats a fair bit of negative feedback! lol i think i was abit misinterpreted about the use of this $1000

Most do, particularly when the amount is just "throw away" cash. He's already said he's happy to lose it. It's better he is scared to lose it anyway.



In my opinion this only comes from having real money on the table. If he doesn't care about $1000, then he won't learn those lessons.



It would certainly help being clinical about his trading, that is developing consistency, skill etc, but he did say he needs real money as a motivation, and I'm not sure this is what he means by "real money" .



Does she live in Sydney?

The money isnt "throw away" money im sure if it was id find alot better way to waste it! its more for educational purpose as i plan to invest later on when im more educated and actually have a significant amount to invest. All im saying is that id prefer to put 1000 dollars in now and learn from those mistakes rather than invest 20000 and have to learn those mistakes then. so my plan is to invest this 1000 dollars and leave it for say 1 month and if i can profit (not including brokerage) then id be happy!
My initial question was if i open an account with say commsec or e-trade is there a possible way not to pay monthly fees and just pay for each trade?

 

[jackson8]

hi jossho89

sounds like you are more interested in trading as opposed to investing which would require a longer holding period, then investing more as time goes by

would pay to put a plan together on what it is you would like to acheive including the time frames that you are looking at

put $1000 into a share and leaving for 5-10 years is an investment . doesnt require a lot of attention.

but trading with shorter time frames requires a little more investment of your time.

this kind of discussion opens up a can of worms

 

[beamstas]

My initial question was if i open an account with say commsec or e-trade is there a possible way not to pay monthly fees and just pay for each trade?

YES

1: Open a Comsec Account
2: Get $600 brokerage for free
3: Comsec has no monthly fees so don't pay those because there isn't any
4: Pay $20 per trade
5: Don't worry about paying $20 per trade because you have $600 free brokerage
6: ???
7: PROFIT

 

[jackson8]

YES

1: Open a Comsec Account
2: Get $600 brokerage for free
3: Comsec has no monthly fees so don't pay those because there isn't any
4: Pay $20 per trade
5: Don't worry about paying $20 per trade because you have $600 free brokerage
6: ???
7: PROFIT

added to this you must open a cash management account and also free trades only last until 30th september 2009

 

[jossho89]

hi jossho89

sounds like you are more interested in trading as opposed to investing which would require a longer holding period, then investing more as time goes by

would pay to put a plan together on what it is you would like to acheive including the time frames that you are looking at

put $1000 into a share and leaving for 5-10 years is an investment . doesnt require a lot of attention.

but trading with shorter time frames requires a little more investment of your time.

this kind of discussion opens up a can of worms

Ahh yes sorry i may have sounded like i was planning to invest it but itd be mainly for trading!
commsec sounds like a good idea! does it require me to open a bank account with them as mine are with anz? correct if im wrong but is e-trade linked to anz? if so would it be easyer to go with e-trade and link to my ANZ?
cheers guys i appreciate your import!