Sharebuilder Reviews And Information
Sharebuilder Commissions
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Market:
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$4-$15.95
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Limit:
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$11.95-$15.95
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Options:
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$11.95-$14.95 + $1.00 per contract
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Rate this Broker
ShareBuilder
is a unique brokerage that's focused on the concept of dollar-cost averaging, i.e. investing repeatedly in the same asset over time. Because they are focused on the buy-and-hold strategy, their commissions are much lower for stock purchases than for sales.
Sharebuilder Services
Sharebuilder's core product is its automatic share purchase service. Investors choose one or more stocks to invest in regularly on a monthly basis. The money is then automatically withdrawn and invested in the chosen stocks on a dollar-cost basis, rather than a per-share basis. Sharebuilder accomplishes this by allowing fractional share ownership, and uncommon feature. These automated purchases are charged a base rate $4 per trade, and there is no minimum account size or monthly investment. Stock sales and real-time purchases are more expensive, at $15.95 per trade.
More frequent traders can opt for one of their subscription accounts, whereby you can receive lower commissions in exchange for paying a monthly fee. The "Standard" subscription plan costs $12/month, and includes 6 free automatic trades, and lowers other commissions to $14.95. The "Advantage" program costs $20/month, and includes 20 free automatic trades and lowers other commissions to $11.95. Investors using this program who make 20 or more automated purchases per month can make their purchases for $1 each.
The firm also offers a branded Visa card with 1% cash rewards that are deposited into your Sharebuilder account.
Sharebuilder Reviews in the Media
Sharebuilder has been praised for its low costs, lack of hidden fees, and service to novices and small investors.
Downsides to consider
Sharebuilder is a specialized company, and many investors will find its service offerings too limited and restricted. It does not trade all U.S. stocks, preferring to focus of solid, stable companies. It is most certainly not the place for active traders to set up shop, nor does it claim to be. Its focus is on buy-and-hold, and they are very up-front about this. If you're not interested in their very specific focus, you'll be better off elsewhere.
Bottom Line
ShareBuilder.com does what it does, and it does it well enough. The best way to consider using them is in a sort of "build your own mutual fund" fashion, where you pick a basket of 20 or so stocks, take a chunk out of your paycheck every month and buy equal dollar amounts of each, and hold forever. This can be a highly successful strategy, to be sure, and if this is what you'd like to do, Sharebuilder may be just right for you.
Most cost-conscious investors will want more flexibility, however. For them,
Zecco.com or
TradeKing.com would most likely be better.
User Rating
Latest User Review for Sharebuilder
Notable Features
Automated purchases, fractional shares.
Investments Available
Stock trading, options trading.
Alternate Spellings
Share Builder,
Sharebuilders
Based on 11 votes.
I use etrade for 4 years and have found that my orders are executed quickly, the site operates free of kinks, and the services provided are excellent. I am very happy with the financial data provided and the analyst views of stocks. I do however feel the information regarding EFTs and mutual funds could be somewhat more detailed. However, as my interested in the stock market has deepened and I have expanded the research I do off of the site, I am beginning to look for a bargain broker. For someone with limited investment experience and limited interest in the stock market this may be the best broker. For serious investors, however, this may not be your site.