How to save commissions on Stcoks/ETFs trading

There are many stock brokerages and the charge of fees vary. To save money when trading stocks/ETFs, you may want to a reliable brokerage with low fees.

Instructions

Difficulty: Easy

Things You’ll Need:

• Internet access
• Money
• Checking or saving account

1. 1st, online brokerage is better. They offer discount commissions. Some even offer free trading. If you do not trust online companies and would like to go to a real brokerage, BoA and Scottade are good choices. They have plenty of branches from coast to coast.
2. There are many good and reliable online brokerages, including Sogotrade, TradeKing, Zecco, First Trade, Sharebuilder and Scottrade. Probably some more new companies, since this field is new and many companies start to focus on "discount trading".
   
   These brokerages charge lower commissions, varies from $0 to $9.95. As for some online brokerages, when you meet their criteria, have a minimum fund/security, for example, you may have unlimited free trading in a short time frame (usually 30 days or more).
3. Opening an account is simple. Choose one or two you like and use the link provided in "RESOURCE" section to apply. If you don't know which online brokerage is better for you, google it for the review. Or check out Barron's or other money journals for ranking and review.
4. Have your SSN, driver license, address, phone number and bank account information ready. Follow the instruction described in each online brokerage's website. Application is simple and usually finished in 20 min.
5. Some of the brokerages listed in step 2 now are even offering : free trading in first 30 days (or longer) after you open/fund account or bonus money (usually $50/person) when you refer a friend to open account and trade. The more referral you have, the more bonus money you get. (See the inserted image on left)
   This can help you save or make more money in stock market.
6. Once the account is opened and funded, you can begin to buy/sell stocks/ETFs with low commissions. Save money for yourself/family.

Tips & Warnings

• Open at least two different online discount brokerages so that you choose between them when you trade a lot or little amount. Also to reduce the risk.
• If you decide to open account with Sharebuilder, I would suggest you to have a Costco membership which can help to get $90 when opening an account.
• Investment is risk and may not suitable for everyone. I am only providing the information for those who are already invested or will invest and want to save money on their commissions.
• Online brokerages normally don't send paper based monthly statement. You need to check your portfolio often and remember to download or print a copy of your statement for your record.