Low volume trading broker

quote:

---

I am looking to invest $500-$1000 in some stocks with a long term investment mindset. I could do more but I'd like to start with a small amount. I'd only plan on making a few trades a month if that. So which online broker would you recommend in my situation? Or am I being stupid?

---

First, I don't know of a broker that will open an account for you with less than $2,000. $2,000 is usually the minimum but you might find a broker with lower account minimums.


Second, go to a full service broker and learn from them. Trading through TD Ameritrade, Etrade, etc. will get you slaughtered. The extra money you pay on trades is worth the advice and the time you'll save IMO.

Third, Wall Street is a game of musical chairs. If you play this game long enough you will get left standing especially if your a beginner learning how to manage your own fear and greed. Thus the reason for my second point above.

I believe Etrade, Scottrade, TD and the likes have a minimum of $500 or less. If you are investing that little money I would be sure to take a hard look at the fees. I use scottrade and it's been fine for me.