do you have to pay an online broker a commission for buying and selling the same stock?
If I have only $4,000 to invest, should I invest it in only one stock through one transaction to minimize this expense?
which online broker would you recommend in this situation?
- ZORCHLv 61 decade agoFavorite Answer
First thing, you pay by the transaction. About $10.
Second, if you only have $4000, think about dividing it into two, or better, three stocks. That will protect you from a single disaster.
Now, the math. If you go with three positions at $10 fee per purchase and eventually $10 fee per sales, you pay a total of $60 for the whole thing, right? And that is only a little more than 1% of the $4000. So, forget it. I clearly remember the "olde days" when it would cost hundreds in fees for a full service broker, but those days are long gone and you can just forget the commissions. Heck, 1%? Also, don't consider the amount of shares to be important. The on-line brokers don't care if you buy 100 shares, 10 shares, or 43 shares. It will still be a ten spot per transaction. And there are plenty of decent $20 - $30 stocks out there. So, pick the stocks you like, get the charts and take some care about the timing of the purchases and buy what fits into your $4000.
And, last, I don't mind at all if you make a fortune.Source(s): 30+ years trading
- 1 decade ago
yes, to buy you pay around 10 bucks and to sell and 10 bucks depending on your broker
- 4 years ago
You want something for nothing.
- Anonymous1 decade ago
No. (If your broker is Zecco)