How to Buy & Sell Stocks Free of Charge
Investing in the stock market can be an excellent way to build your wealth and create a nest egg you can use for retirement, college costs or other long-term goals. But unfortunately, the commissions and other costs of investing can really eat into your returns over time. Fortunately, however, there are some strategies investors can use to buy and sell their favorite stocks for free.
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Instructions
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Contact the human resources department at the company you work for and ask if the firm has an employee stock purchase plan, or ESPP, in place. These plans provide a number of important benefits, including the ability to buy stock in your company at no charge. In addition, many employee stock purchase plans allow employees to purchase company stock at a discount of between 5% and 15%.
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Consider investing in a no-load index mutual funds to lower your costs and reduce the volatility of your portfolio. With a no-load mutual fund you can purchase and redeem shares at no charge, and the expenses on these mutual funds can be as low as 0.19%.
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Make a list of the companies in which you want to invest, then log on to the company's website and find the investor relations link. Ask the firm if they participate in a dividend reinvestment, or DRIP, plan. These plans allow investors to buy and sell shares of stock directly with the company, without the cost of a broker.
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Read financial newspapers like the Wall Street Journal, Barrons and Investors Business Daily to get information about other stocks available through DRIP plans. The dripcentral.com website is also a good source of information regarding dividend reinvestment stocks.
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