Need Discount Broker Recommendation

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Abe
Posts: 1517
Joined: Fri Sep 18, 2009 5:24 pm
Location: Earth in the Milky Way Galaxy

Need Discount Broker Recommendation

Postby Abe » Wed Apr 19, 2017 11:16 am

I have an friend who knows nothing about investing. He wants to invest in a company involved in the marijuana/cannabis industry. I have already advised him about the risk involved, but he only wants to invest $200 so he can't lose much. It would be like going to the casino and losing 200 bucks. He asked me how to go about buying the shares. Can anyone recommend a discount brokerage where he can open an account for a transaction like this without too much difficulty and expense?

Please don't post anything about converting him to Bogleheadism. It wouldn't do any good.
Slow and steady wins the race.

mhalley
Posts: 4209
Joined: Tue Nov 20, 2007 6:02 am

Re: Need Discount Broker Recommendation

Postby mhalley » Wed Apr 19, 2017 12:21 pm

For such a small amount, even the small commissions these days are significant. Robinhood might work, but it does have limitations so you might need to check to ensure the stock is available for trading.
https://www.nerdwallet.com/blog/investi ... od-review/

Many brokerages have a minimum balance, schwab and trade king do not I believe.

If he might later want to invest the "right" way, schwab is down to 5 bucks a stock trade.

Check out 'this comparison review.


https://www.nerdwallet.com/blog/investi ... k-trading/

wolf359
Posts: 860
Joined: Sun Mar 15, 2015 8:47 am

Re: Need Discount Broker Recommendation

Postby wolf359 » Wed Apr 19, 2017 12:24 pm

How about Motif investing, for instant diversification?

https://www.motifinvesting.com/motifs/m ... a-pv4ibO94

This creates your own ETF-like trading vehicle where a single purchase can buy multiple stocks.

Technically not really diversification because they're all focused on one industry, but still, it's better than one single stock.

KeithZz
Posts: 18
Joined: Sun Feb 19, 2017 1:00 pm

Re: Need Discount Broker Recommendation

Postby KeithZz » Wed Apr 19, 2017 1:06 pm

Search Robinhood, it is a free trading platform for fun.

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Abe
Posts: 1517
Joined: Fri Sep 18, 2009 5:24 pm
Location: Earth in the Milky Way Galaxy

Re: Need Discount Broker Recommendation

Postby Abe » Thu Apr 20, 2017 9:17 am

Okay, thanks everyone for posting. I'll check out Motif and Robinhood.
Slow and steady wins the race.


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