Hey there, I just graduated from college, I am working my first job
(consulting). Actually, I am working so much that I'm not spending any
money, and I should be investing it. I'm interested a bit in money
markets and mutual funds. But I'd like to do some stock trading, too.
My buddies tell me that Fidelity is good, but I just looked and
E-trade was quite a bit cheaper per-trade (about $6 cheaper), and
there were a bunch of others (e.g. Investrade) that were even cheaper
than that. I don't want to get ripped off just to get a big name, but
I want a place that's trustworthy (and I don't want to miss hidden
costs). So I'm looking for recommendations for online brokerages that
are cheap, trustworthy, and work well for trading stocks - what do you
think?

(MGT Strat Consultant for 8 years):  ETrade is about right to start. 
Assuming you travel you definitely want the online element and its
pretty good about getting money in and out.  Money Markets are
everywhere, check any one of the more reputable sites for best yields
of the time.  Mutual funds just watch the expense ratios.  Your best
results will come from 1) Sheer luck and 2) Knowing the industry
better than the street so pay attention during those high level
strategy presentations.  You can't use specific company information,
but you can trade on industry analysis which you'll be doing a bunch
of if you're in consulting.

eTrade is good for stocks. (price wise)
Fidelity tends to be better for mutual funds (price wise)
So do whichever you want.  If you have under $40k to invest and want
ot be diversified, go to fidelity and pick some funds.

There are pros and cons and they relate to fees and taxes.  With
stocks you choose when u pay capital gains.  Also, you only pay fees
upon purchase and sale, not for holding.  With funds, you pay capital
gains as the fund buys and sells shares.  There is also an asset based
fee.  i.e. 1.55% of your money per year.  So, pick and choose.

Dear Iroche44-ga,

I am a little bit confused by what are you asking. So I will try to
analyze your question and answer it to the best of my ability.

?I am working so much that I'm not spending any
money, and I should be investing it.?

You shouldn?t, you shouldn?t, and you should. Don?t work too much,
enjoy life as it is now and spend some money on your life. What you
save should be invested; otherwise inflation will take the money you
work so hard for.

?I'm interested a bit in money
markets and mutual funds.?

Does it mean that you already invested in money markets and mutual
funds? In any case those are two different things (from your
viewpoint). The money market is a place to keep money that is readily
accessible and practically guaranties that you will get your money
back (plus some interest). A mutual fund is like a stock of a company.
It fluctuates in price and you may get more or less than you put in
(sometimes half or less). So if you had invested in mutual funds you
have already invested in stocks.

?I'd like to do some stock trading? ?So I'm looking for
recommendations for online brokerages that are cheap, trustworthy, and
work well for trading stocks - what do you think??


Here is my biggest concern. Do you know how to ?trade? in stocks? I am
afraid that you do not have working knowledge of stock trading
(otherwise you would not ask your question). What you need from a
brokerage firm and who can provide it is a part of know-how in stock
trading. If you learn enough to begin stock trading you should know
which brokerage to use (you will find that there are not many
choices).

Take a look at TradeStation Securities http://www.tradestation.com/default_2.shtm

That can be a good starting point in trading. You will find that it is
not only ?cheap? ($0.01 commission per share) but it provides very
good software packages for analyzing and trading stocks and
commodities. Go to their website and research it thoroughly.

The bottom line is to, please, learn as much as you need before actual
trading. And good luck!


P.S. If you are satisfied with my answer, then do me a favor. Send
your payment to Google (even if you don?t have to) and ask them to
donate ?my cut? to my favorite charity. That would be fair to all
parties.