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Q: Online Brokerages ( No Answer,   1 Comment )
Question  
Subject: Online Brokerages
Category: Business and Money > Finance
Asked by: minna-ga
List Price: $15.00
Posted: 28 Sep 2004 18:15 PDT
Expires: 14 Oct 2004 13:18 PDT
Question ID: 407700
I am looking for an online brockerage that has 1. a minimum cash
requirement of $1000 US dolloar or less (not including the ability to
buy on margin)and 2. internationl indices that I can invest in
directly -particularly the German DAX index and the S&P 500 and 3. the
site must be in English.
Answer  
There is no answer at this time.

Comments  
Subject: Re: Online Brokerages
From: northstone-ga on 28 Sep 2004 19:45 PDT
 
There may be a number of online or discount brokerages who would pass
your qualifications, but I looked at the J.D. Power ratings and found
Scottrade had achieved the highest rating.

      http://www.jdpower.com/cc/finance/winners.asp?StudyID=893&CatID=5

Upon reviewing their site, they have a minimum of $500 to open an account

      http://www.scottrade.com/frame_commissions.asp

I pulled this excerpt from the site referenced above:

Internet Account Pricing: 
     A $500 minimum equity balance is required to have your account
activated  for Internet trading.
     At least 75% of all trades need to be placed online to qualify
for online commissions.
     All money and stocks deposited for equity must be credited before
trades can be accepted.

At $1,000 I do not believe you will be able to buy on margin, as most
firms likely have a $2,000 minimum equity requirement, but from your
question it sounds like this is not a concern of yours.

You will be able to invest in a variety of index-based securities by
utilizing Exchange Traded Funds, or ETF's. These trade like stocks
typically on the American stock Exchange but are designed to mimic the
underlying index. The following site can explain more:

http://www.sec.gov/answers/etf.htm 

There are a number of ETF's for the SP 500, but the "Spider" is
probably the best known and it's symbol is "SPY". I did not find the
DAX but I did find the MSCI German Index and it's symbol is "EWG".

Remember that these indicies are converted to US dollar values and you
may have difficulty opening an account with an American Brokerage firm
if you are not a US citizen, or at least living in the US.

Hope this helps!

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