Charles Schwab has begun offering commission-free trading on U.S. stocks, exchange-traded funds and options on October 7, 2019 the company announced last week. Historically, each trade cost investors $4.95. Commission fees have been charged by a brokerage when you buy or sell a stock, ETF or other investment product. Many companies are following the change and this is all thanks to Robinhood!!! The industry needed this change.
October 10, 2019 Ally followed and announced they would offer $0 trades! Many will and have already begun matching this trend.
Free doesn’t mean it is necessary – just because you can trade stocks quickly and without commission cost does not mean you should buy/sell without any thought, especially without researching your decisions first and foremost.
Robinhood has been a great option for beginners, such as millennials because it is mobile and oh so simple. Good UI (User Interface) Good to start out if you are unfamiliar with stocks and how the market works.
Perhaps you are scared to get into the stock market, try a simulator first: www.investopedia.com/simulator/
Other suggestions? Comment below your recommendations!
My FREE stock was Apple, valued at $177.30 back in January of 2018. That gave me a cushion that if I lost my own money then it would off-set the loss. Apple, and other stocks may offer “Dividends”. This is money paid to investors of that stock that is money given to share holders as a return on your investment. ROI. Paid quarterly.
Apple recently hit a 52 week high of 230.43 in October 2019.
I cannot promise or guarantee you what stock you would get when you sign up. It may not be Apple, so do not be disappointed, and anyways it is FREE!
How I trade my stocks is I treat them as if they were products that I would purchase or not purchase. So TEVA, for example, I’ve worked in Pharmaceuticals and I have a higher level of knowledge than the average person on pharmaceuticals. I also have medication that are TEVA brand. I trust this company and I have used their products. I am familiar and comfortable buying into this company. You may not be. That’s fine.
BUT… they are part of the Opioid crisis that is an ongoing problem in the states. This has caused their stock value to remain low. August 2015 they were trading around 70 dollars per share. However, the current 52-week low was $6.07 per share around the month of October 2019. Many panic and sell stock but I believe they'll bounce back but TIME is the key - it is a game of waiting and it could be a long wait too.
In my opinion buying a stock at 6-7 dollars is an easy purchase when they have been valued previously at $70 a share. Many people are afraid and it is a risk I am willing to take by buying their stock. But if I hold the stock long-term then I believe they’ll recover. You can lose money invested if you choose to get out and sell at a loss.
At some point I will probably move my money out of Robinhood and move over to Charles Schwab. Perhaps, I will keep some money in Robinhood and use Charles Schwab as another platform. Charles Schwab has made a smart business move and thanks to Robinhood (competition) we the consumers WIN. More competition means more choice.
However, if you use Robinhood and want to move over to Charles Schwab you’ll pay a fee of $75. You can off set this cost by having a referral code – for example if you have 1k you would get a welcome bonus of $100. That makes you a profit of 25 dollars and negates the $75 transfer fee. In my opinion it is then worth the switch if you have 1k and above.
Charles Schwab has a great platform and many tools. Check out their demo – they offer a 2 minute demo to a 10 minute demo.
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My first free stock was Apple!
ABOUT ME:
I am in my thirties and have a passion for finance and technology. I live in the sunshine state, Florida. I’m not a native but have lived here for over a decade. I grew up in Michigan and was born in North Carolina. I chose to go to college and purse a degree at the University of Miami. Go CANES. I enjoy helping people with managing finances and love everything and anything tech related. By profession I also help people as a recruiter! I enjoy teaching and hope to help you.
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