Need Discount Broker Recommendation

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Abe
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Need Discount Broker Recommendation

Post by 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
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Joined: Tue Nov 20, 2007 6:02 am

Re: Need Discount Broker Recommendation

Post by 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
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Joined: Sun Mar 15, 2015 8:47 am

Re: Need Discount Broker Recommendation

Post by 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
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Re: Need Discount Broker Recommendation

Post by KeithZz » Wed Apr 19, 2017 1:06 pm

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

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Abe
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Re: Need Discount Broker Recommendation

Post by 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.

watchman41
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Re: Need Discount Broker Recommendation

Post by watchman41 » Sun May 07, 2017 6:37 pm

I use Robinhood and TD Ameritrade. The one thing about Robinhood I'm still scratching my head over is how historical prices shown are so much lower than when I look up the same historical price somewhere else. I'm guessing it's because they are adding in (or more to the point... subtracting) the dividends paid out.

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Bogle_Feet
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Re: Need Discount Broker Recommendation

Post by Bogle_Feet » Sun May 07, 2017 6:44 pm

E Trade. Just buying a security will cost $10. You pay $10 regardless of the size of the purchase, whether $200 or $200,000 worth of shares. So $10 is 5% of $200. Selling is another 5%.

TIAX
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Re: Need Discount Broker Recommendation

Post by TIAX » Sun May 07, 2017 10:30 pm

Abe wrote: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.
Are you sure this is a publicly traded company?

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CABob
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Location: Southern California

Re: Need Discount Broker Recommendation

Post by CABob » Sun May 07, 2017 10:56 pm

Does your friend actually have a company in mind? If he does have you checked to see if it is a publicly traded company? From what I have seen and heard (which isn't much) most of the companies are small and privately held.
And since there is disagreement on legality between the feds and states I wouldn't go near these companies at this time.
Bob

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