5 Things To Check To Avoid Getting Ripped-Off By A Stockbroker
These will save you $100,000s in the long run
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These will save you $100,000s in the long run
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1. Fees
Check all fees you will pay and check all documents you will have to sign
If you are using a 401(k) provider via your employer, check with your employer for any extra fees or commissions
Those fees add up quickly and eat away your retirement funds
Check all fees you will pay and check all documents you will have to sign
If you are using a 401(k) provider via your employer, check with your employer for any extra fees or commissions
Those fees add up quickly and eat away your retirement funds
For a $25,000 initial investment with $800 monthly contributions for 40 years at a 7% annual return
• A 1% fee can wipe out almost $500,000 from your portfolio
• A 2% fee can wipe out almost $1,000,000 from your portfolio
• A 1% fee can wipe out almost $500,000 from your portfolio
• A 2% fee can wipe out almost $1,000,000 from your portfolio
2. Minimum Investment
Check if the broker has any minimum amounts you need to deposit in order for you to invest
You need to look for low minimums as a beginner investor
Check if the broker has any minimum amounts you need to deposit in order for you to invest
You need to look for low minimums as a beginner investor
3. Fractional Shares
Check with your broker if they offer fractional shares
Shares are usually bought in units, but some brokers offer the option of buying fractions of a share
This is beneficial when you do not have much investment capital as a beginner investor
Check with your broker if they offer fractional shares
Shares are usually bought in units, but some brokers offer the option of buying fractions of a share
This is beneficial when you do not have much investment capital as a beginner investor
For example, if you want to invest in Tesla or Amazon, you will need hundreds or thousands of dollars to buy one share
But with fractional shares, instead of paying $1,000 dollars for one share of a company, you can invest $50 dollars and buy 0.05 shares.
But with fractional shares, instead of paying $1,000 dollars for one share of a company, you can invest $50 dollars and buy 0.05 shares.
4. Fund Limitations
Ask if there are any limitations on withdrawing your investments at any point
Some brokers have limits on how much you can withdraw per day
They also have hidden fees for withdrawals
Ask if there are any limitations on withdrawing your investments at any point
Some brokers have limits on how much you can withdraw per day
They also have hidden fees for withdrawals
Are you using any brokers via your employer’s retirement plans?
Ask about any limitations in transferring or accessing your funds in case you change your employer or move to another country
Ask about any limitations in transferring or accessing your funds in case you change your employer or move to another country
5. Employer Options
Ask your employer if they match contributions to your retirement accounts or health savings accounts
Some companies in the financial services sector tend to offer accounts of their own to their employees with better options than regular brokers
Ask your employer if they match contributions to your retirement accounts or health savings accounts
Some companies in the financial services sector tend to offer accounts of their own to their employees with better options than regular brokers
To Summarize:
1. Fees
2. Minimum Investment
3. Fractional Shares
4. Fund Limitations
5. Employer Options
1. Fees
2. Minimum Investment
3. Fractional Shares
4. Fund Limitations
5. Employer Options
And never forget that the devil is hidden in the details
Make sure you check everything before you sign up, to avoid ending up like @RobinhoodApp customers
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Make sure you check everything before you sign up, to avoid ending up like @RobinhoodApp customers
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