Stock Markets Exposed
Trading Stock online?
If the online company I am with charges say $9 for a trade, does that mean if I buy a $10 stock it will actually cost me $19? Or is the fee when I sell? Or am I totally wrong?
Public Comments
- That $9 is per trade. so if you buy 100 shares at $10 per share, they will still only charge $9 , so you would pay $1009.00 The brokerage company makes money whether you win or lose!
- When you purchase a $10.00 stock - you will be buying at least 100 shares for $1,000.00 plus the commission of $9.00.
- The $9 fee is an extra cost you pay whenever you trade, which means buying or selling. If you buy a $10 stock, it will actually cost you $19. If you sell a $10 stock, you will get $10 and pay $9 to the online company.
- The $9 fee applies to both buying and selling. Depending on you broker, you may buy or sell up to 1000 shares of stock. So if you buy 1000 shares of a stock at $10, then you would need to have $10,009 to cover the expense (plus a few cents for the SEC). ---
- It will cost you $19.00 and another $9.00 when you sell it. this means your stock has to go as high as $30.00 if you want to make $2.00 That can take years. On the other hand if you buy TWO SHARES in the same company at $10.00 then you will pay $29.00 and $9 when you sell them and your stock only has to rise to $20.00 if you want to make $2.00 That can take months.
