Tuesday, January 18, 2011

Sharebuilder Review

In the tricky waters of personal investing, it can be hard to know which broker to choose for your personal investments. For those new to investing and just wanting to test the waters of the stock market, Sharebuilder is a good brokerage for the beginning investor, with programs suited for someone just getting started and not ready to jump into the stock market head first as money do and also good for those with limited capital not wanting to spend a lot of money on commissions.

Sharebuilder’s automatic investment program allows investors to invest every Tuesday for $4 a trade, which is considerably lower than well-known brokerages such as E-Trade and Scotttrade. With the Sharebuilder automatic investment program, investors deposit their capital, set up their trades and Sharebuilder does the rest; every Tuesday Sharebuilder will initiate the trades set-up by the customer. As long as there is enough money in the account for the specified trades, Sharebuilder will initiate the trades every Tuesday for the investor; of course, the trades can be stopped or altered at any time by the investor on the Sharebuilder website.

Sharebuilder’s automatic investing program provides some advantages for their customers besides a low $4 dollar commission per trade. One of the benefits is that by automatically investing a set dollar amount, an investor does dollar cost averaging, which means that an investor buys more shares of a security when the price low and less when the price is high. Thus having a better return should the share price rise and less loss if the stock price goes down. Another benefit of automatic investing is that it helps investors have a more disciplined approach to investing.

In addition to an easy to navigate site and automatic investment plan, Sharebuilder has other features and programs that make Sharebuilder an attractive option when shopping for a broker.

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