How to Get Free Stock Trades!
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We took a look around and managed to find a way to get 10 free stock trades per month with a minimun $2500 balance at Zecco Stock Trading. It's not a big secret or anything. It's just the deal they have going! Instead of charging trading fees, Zecco makes their money from the interest on margin accounts (margin accounts trade with borrowed money). Trade King also has cheap trades for $4.95 and free dividend reinvestment (great for long-term investors), but they can't beat the offer mentioned above. A long term strategy with well established companies and dividend reinvestment is probably one of the safest ways that you can make money in the stock market. This is especially true when you apply dollar cost averaging. A Word of AdviceIf you happen to be a professional trader then both of these companies can cut down on your trading cost significantly. If you're an average joe, we would strongly suggest subscribing to a trading service for a few hundred bucks a year. There are plenty of reputable companies around like Zacks, The Motley Fool, etc. Magazine companies like Smart Money also put together model portfolios and there are many free resources such as MSN Money. We're not big Microsoft fans, but their investment center is one of the best free resources on the web. Trading on your own without a tested entry and exit strategy is simply grounds for disaster. Your emotions will be the key factor in your demise and you will rue the day you chose stock trading over that easy 5% certificate of deposit. Just find a balanced portfolio that you like and stick to a simple investment plan. What's Dollar Cost Averaging?Simply put, dollar cost averaging is just an scheduled investment plan where you invest a certain amount of money at a certain interval (Example: $100/month). Because stocks are at lower prices more than they are at higher prices, when you invest on a monthly basis you are buying at a average lower price.
In this simplified situation, you invest $100/month for 6 months. After the 6 month period you have 16.16 shares of stock purchased at an average price of $38.33/share. Your $600 investment is now worth $619.41. On an annual basis this is a 6.6% interest rate; higher than a CD, savings, or checking account. It may not seem like much but there is more to this than meets the eye. Assuming that you pick a good company that pays an average 3% dividend (a stock form of interest). Your annual interest rate would essentially be 9.6%! Keep in mind that this is an investment approach for the long haul and your dividends can be reinvested to buy more stock. Considering that you can get 10 free trades/month with Zecco it would be feasable to do your own research, pick your own stocks, and avoid all trading fees (: |
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Trade King is highly rated by third parties such as Smart Money Magazine, offers great technical analysis, free dividend reinvestment, a high yield sweep account, very inexpensive trading. You could not ask for much more from a broker with all trades costing only $4.95. Trade King is a nice option for people and the free dividend reinvestment program is a big plus for long-term investors. This one of the best discount brokers for the money. We would recommend checking them out and comparing them to Zecco. This will ensure you of the best brokerage for your needs. |
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Zecco offers 10 free stock trades per month with a minimun balance of $2,500 and some excellent community features. After that trades are just $4.50 and low-cost options contracts are available. Zecco makes most of their money off of margin accounts, which also have reasonable interest rates. This allows room for your free trades. You can also be assured that competent people are running the company considering that they hired the former COO of BrownCo (one of the first online brokerages bought by Etrade). Their website is easy to navigate and it would be well worth your time to check them out! |
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