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ShareBuilder Review

About Sharebuilder:

Sharebuilder was established in 1996. It was earlier NetStock Direct. ING Direct acquired NetStock Direct in the year 2007. Their unique selling proposition is the Automatic Investment Service for buying Stock, ING mutual funds (Class O) and Exchange Traded Funds for traders who are starting new.

Offerings at Sharebuilder:

Sharebuilder is excellent, if you are a long-term investor and would like to set up and increase a profile with programmed investments like:

  • ESA (Education Savings Account) or
  • IRA (Individual Retirement Account)
  • With every week, month-to-month, or annual investments on a regular basis. It is not best for you if you are a day investor.
  • Four dollar automated investments.
  • Nine dollars and ninety five cents real time trades and an additional one dollar and twenty five cents per options contract.
  • There are 2 different account types: Basic and Advantage
  • There is no additional fee on some ING mutual funds.

Program Benefits:-

The advantage of being associated with “Advantage” account type vis a vis “Basic” Account types

  • The Subscription Fee for Advantage is twelve dollars a month whereas Basic account type there is no subscription fee.
  • Regarding Automatic Investments – An advantage account will have twelve automatic investments per month and later one dollar additional for every additional investment. A Basic account will have four dollar per automated investment.
  • For real time trades: – There is a fee of seven dollars and ninety five cents for every online trade if you have an Advantage account. There is a nine dollar and ninety five cents for every online trade that you do if you have a Basic Account and there is an additional one dollar and twenty five cents per contract.
  • For Option Trading- The Advantage account will be allowed options trading for seven dollars and ninety five cents per online trade and an additional seventy five cents per contract. For a Basic Account there is a nine dollar ninety five cents per online trade and an additional one dollar and twenty five cents per contract for Options Trading.
  • For Margin Rate Discount – For an Advantage account there is a point five percent discount off Basic program rates but if you have a Basic account there is no discount
  • Additional features for an Advantage account: Access to educative and informative stock reports with additional real time quotes when researching and trading. With a Basic account you will have access to only real time quotes when placing a trade.

Advantages of being associated with Sharebuilder:-

  • There is no account minimum balance that you have to keep in your account
  • There is no maintenance fee or inactivity fee
  • Automatic scheduling for hands off automated investments
  • Automated trading is only four dollars per trade. On the spot trading is at nine dollars and ninety five cents per online trade
  • Free trial offer is available
  • Easily understood pricing structure

Challenges with Sharebuilder:-

  • Trading tools are limited as compared to other online brokerages
  • The investment products at Sharebuilder are limited and unlike few brokerages there is not a wide array of products to choose from.
  • They do not offer broker assisted trades
  • They do not offer international trading

Synopsis:

If you are looking for automated investments then Sharebuilder is the right choice for you. But in case you are hands on seasoned trader who wants to do on the spot trading then Sharebuilder might not work for you. Sharebuilder is exceptional for automated investments.

How to sign up an account:

To open an account with Sharebuilder is a simple 5 step process and would not take more than 10 minutes:

  • Choose an account type and fill in your information
  • Set up the account details
  • Open your account
  • Select pricing
  • Start investing

Investment offered at Sharebuilder:

  • Stocks
  • Mutual funds
  • Options and
  • Exchange–traded funds
  • Recurring scheduled investment purchases

Tools and Reports

  • ShareBuilder offers research tools like company reports for third-party sources
  • Criteria based stock search tools,
  • Watch lists,
  • Strategy reports
  • Market Movers report,
  • Options calculators,
  • EFT finders

Customer service at ShareBuilder:

  • It has a research on stocks which is informative
  • You can contact them by email and telephone
  • Their care team on phone works from eight in the morning to nine in the evening on weekdays ( Eastern Standard Time)

Linking accounts with Sharebuilder

A great advantage of having an account with ING ShareBuilder is the ability to link your own ING Direct savings and checking accounts together with your own ShareBuilder account. This guarantees that you can easily and quickly transfer funds from your ING Direct account whenever you want to trade, even if you don’t have cash in your ShareBuilder account.

An individual can link additional bank accounts as well, however this “Express Funding” support charges six dollars and ninety five cents if your own linked account is not really kept at ING Direct.

At times it’s much better not to have funds accessible due to the fact you’re prevented from producing uninformative quick purchasing decisions.

Active traders or individuals who need to aim for a certain time on a certain day do not need to get worried regarding having funds in their ShareBuilder account if they are a client of ING Direct.

Automatic Investments – USP of ShareBuilder

  • Automatic Investments are when a trader selects which investments he or she desires to purchase, and then the actual trade won’t be carried out right up until a established period (It can be some day of the week – Monday, Wednesday, etc.).
  • Certainly, there is really a huge disadvantage in that you must wait to purchase your own securities for at most week after, to be able to take advantage from the “reduced” pricing (still much more pricey than few other brokerages).
  • Essential Note: You cannot sell securities making use of automated investments. In this way, ShareBuilder tends to make it more expensive to get out of a share, than to purchase.

Bottom line

ShareBuilder is a great way to invest in trades if you believe in systematic investment. For the hands on traders there are a way more options available. If you opt for ShareBuilder then the recommended way is to go for “Advanced account” since it’s much more economical and more beneficial than a Basic account.

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