I want to get in on some investing. I finally have enough money coming through to invest...perhaps a couple of hundred per month. I'm primarily interested in mutual funds to begin, although aside from the pricing and selection of the funds (loaded, no-load, etc.) I see no difference between the companies offerings.

Does anyone have a preference for online trading companies?

Oh, and may I add. I don't have like 3 grand to open an account with Fidelity. I can swing $500-1000.

I use TDAmeritrade, but I'm about to switch to TDAmeritrade's "I-Zone" (www.izone.com). It's $5 per trade. The difference between it and a regular TDAmeritrade account is that you must have a $5,000 minimum balance, have 2 years trading experience, everything must be electronic (no manual check deposits), and there is no human support available except through email.

If you do not qualify for an iZone account, I recommend a regular TDAmeritrade account. $9.95 trades, and if my memory serves correctly, they do not require a minimum balance anymore. (Double check that though.)

How do they know you have 2 years trading experience?

www.scottrade.com

$7 a trade, works well. $500 minimum

www.sharebuilder.com
$4 trades, based on dollar cost averaging,

You have to provide references (i.e., account history).

You have to provide references (i.e., account history).
actually, you can just lie, unless they make you send in like copies of an account statement.

in response to the original question, i've had accounts at pretty much every brokerage firm - from deep deep discount to ultra-premium full service, and i can say that fidelity is the best hands down overall - IF you can qualify for something other than the basic bronze commission level.

actually, you can just lie, unless they make you send in like copies of an account statement.

in response to the original question, i've had accounts at pretty much every brokerage firm - from deep deep discount to ultra-premium full service, and i can say that fidelity is the best hands down overall - IF you can qualify for something other than the basic bronze commission level.
They verify your trading status by contacting your prior brokers that you provide as reference.

They verify your trading status by contacting your prior brokers that you provide as reference.
On another note, Bank of America is offering up to 30 commission-free trades per month if you have a minimum $25,000 account balance.

On another note, Bank of America is offering up to 30 commission-free trades per month if you have a minimum $25,000 account balance.

the type of person who makes 30 trades a month isn't going to be satisfied with bofa's platform. i actually closed my bais account before they announced this deal, but only because i got pissed off at bank of america.

I want to get in on some investing. I finally have enough money coming through to invest...perhaps a couple of hundred per month. I'm primarily interested in mutual funds to begin, although aside from the pricing and selection of the funds (loaded, no-load, etc.) I see no difference between the companies offerings.

Does anyone have a preference for online trading companies?

Oh, and may I add. I don't have like 3 grand to open an account with Fidelity. I can swing $500-1000.

Do yourself a favor and spend your time learning investing principles instead of day trading. Take your $200 a month and use it to buy shares of a target retirement fund at Vanguard or T. Rowe Price inside a Roth IRA account. Don't get caught into the Wall Street loser's game of frequent trading and load mutual funds. Consider a quick read called the CoffeeHouse Investor.

The sooner you learn that investing is not "something you get in on" the better you will do.

Do yourself a favor and spend your time learning investing principles instead of day trading. Take your $200 a month and use it to buy shares of a target retirement fund at Vanguard or T. Rowe Price inside a Roth IRA account. Don't get caught into the Wall Street loser's game of frequent trading and load mutual funds. Consider a quick read called the CoffeeHouse Investor.

The sooner you learn that investing is not "something you get in on" the better you will do.

i'd say skip the target retirement fund and go to a market index. no need for bonds this early in the game. vanguard total stock market or fidelity spartan total market sound about right. if you're only going to make 1 lump-sum purchase, go with the etf: VTI

I would seriously recommend perusing themotleyfool.com and reading some of their books. It is very easy, light reading for newbies ( and even experienced ) in investing. Do a search on amazon.com and you can find some of their books selling used for under $10.

I also recommend looking into index funds instead of mutual funds if you want to do minimal work and research ( otherwise you can do the research and pick your own stocks ). Better annual returns, much lower fees.

Sorry, etf: I agree with Desperado especially for the early investor. Index funds are easy starters, and best rate of return for long term. In addition, bond funds are a great asset to have, especially coming off a low. While the proportion of diversification of funds including bonds should be low at an early investment age, they are still integral to one's portfolio.
Thanks

i'd say skip the target retirement fund and go to a market index. no need for bonds this early in the game. vanguard total stock market or fidelity spartan total market sound about right. if you're only going to make 1 lump-sum purchase, go with the etf: VTI

Sorry, etf: I agree with Desperado especially for the early investor. Index funds are easy starters, and best rate of return for long term. In addition, bond funds are a great asset to have, especially coming off a low. While the proportion of diversification of funds including bonds should be low at an early investment age, they are still integral to one's portfolio.
Thanks

Wait, I thought that I was saying that for the beginning investor, index funds were the way to go - so what's the disagreement about, other than the importance to allocate to bonds? Basically what I was saying was that a total market or S&P 500 index fund would fit the bill for now, and maybe add in bonds/etc later.

Wait, I thought that I was saying that for the beginning investor, index funds were the way to go - so what's the disagreement about, other than the importance to allocate to bonds? Basically what I was saying was that a total market or S&P 500 index fund would fit the bill for now, and maybe add in bonds/etc later.

No real disagreements here. A target retirement fund is more broadly diversified than a simple Total Stock Market or S&P 500 fund and hence a truly hands off investment. You don't even have to worry about changing your asset allocation as you age. The funds for dates like 2045 are nearly all stocks anyway so it isn't like I'm recommending a bond fund here.

I have Vanguard Target Retirement 2045 inside a Roth IRA, and I couldn't be happier. Their newest fund is 2050. It really is ultra simple. You invest at least $1000 to start. Pay a $10/year fee, and wait for the dividends to come out on Dec. 29th. My mix is 90/10 (stocks/bonds). It had dipped to 88/12 following their guidelines for changing the ratio as you get closer to the target date, but they sent out a letter saying that more risk was okay at this point, so they put it back up to 90/10. When you have more money to invest, you just move it from your bank account to your vanguard account. Sounds like you are a good candidate for dollar cost averaging, where you just invest a set amount per week, month, etc. and thus buy few stocks when the price is up, and more when the price is down. No transaction fees either. Once your balance goes above $5000, you no longer have to pay the $10/year. I made 18% last year in this fund, but then again, most investors made money last year.

I would highly recommend www.tradeking.com. Trades are $4.95, and $1000 to open, I think. I got $100 free for opening an account. I am not sure if they are still offering anything like that though. It's a good site.

I would also suggest buying ETFs.

i use scottrade and i am very pleased with their service 7 dollar trades with no hassle is worth it