Ask a Fool: The Best Way to Buy Individual Stocks with Higher Fees
In this video as part of the Motley Fool's "Ask a Fool" series, Fool analyst Jason Moser takes a question from a reader, who writes:
I would like to start buying individual companies and I am not sure what the wisest next step is. I am a newish investor with an account at an online broker that I use for ETF trading. This has been a great way to build up a portfolio so far. My broker charges $10 per trade, so it doesn't seem worth the money if I can only buy a few stocks at a time. I normally buy about $150-$200 of stock a month ... would it be best to find a second broker with lower trades and just use my current one for the cheap ETF trading, or just keep a single account and buy my stocks in bulk, less frequently?
Jason looks at why it is important to keep fees to a maximum of 2% of your overall investment, and how to shop around to find the right broker.
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.
The article Ask a Fool: The Best Way to Buy Individual Stocks with Higher Fees originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.