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What broker do you recommend me for long term investments?
- Thread starter Mpas
- Start date
I have one question:you choose to have two accounts (one for trading and the other one for LT investing)only for a matter of 'comfort'?Or is there another particular reason?If you are going to buy and sell often you should investigate the costs of trading (i.e. commissions). If you are only going to buy and hold, then your amount of trading will be very low and commissions does not have an impact on your total results. In this case do you need to investigate whether the broker or bank will charge you any kind of administrative fee. This is for each bank different (and they often use different terms for this), so a general answer is difficult to give.
For a long term investments do you want to have a broker or bank which you trust. You don't want them to suddenly disappear or go bankrupt.
In my case: I hold two accounts at IB. One for trading, the other one for long term investing.
they all sell order flow. if you want to pay commission go ahead. that platform sucks for trading but long term its fine.
If you combine active trading and (passive) long term investing into one account you have to keep tabs yourself about which trade is for what purpose, and which open position is for what purpose. If you keep separate accounts you can more easily separate the two objectives (trading versus investing). You receive two separate monthly overviews from IB, with a separate profit&loss and separate overview of all trades placed (incl. related transaction fees). So yes, I do it for comfort as it is more clearly visible what is happening with each of them.I have one question:you choose to have two accounts (one for trading and the other one for LT investing)only for a matter of 'comfort'?Or is there another particular reason?
And the cost of having two differents accounts on IB is the same as having only one right?(I mean,they dont charge you just for having an account,but they charge you by the trades/fees/commisions).Its not like if i open two differents accounts i would be paying more than if i just open only one account right?If you combine active trading and (passive) long term investing into one account you have to keep tabs yourself about which trade is for what purpose, and which open position is for what purpose. If you keep separate accounts you can more easily separate the two objectives (trading versus investing). You receive two separate monthly overviews from IB, with a separate profit&loss and separate overview of all trades placed (incl. related transaction fees). So yes, I do it for comfort as it is more clearly visible what is happening with each of them.
Exactly. They charge per user account (login&password), not by trading account (Uxxx account number). If you have multiple trading accounts you will be able to select the trading account to which the fees (e.g. market data subscriptions) are to be charged to.And the cost of having two differents accounts on IB is the same as having only one right?(I mean,they dont charge you just for having an account,but they charge you by the trades/fees/commisions).Its not like if i open two differents accounts i would be paying more than if i just open only one account right?
So buying stocks and keep them for 20 years with Interactive Broker(or any other online broker) for example isnt going to kill me with the overnight fees?Is there a way to buy stocks without an online broker?Like with a bank?Or i can do well managing my investments only with online brokers?I'm asking this because im new to the long term investments world so i dont know what the average investor do.
PD:By the way,what did you mean when you said 'make sure to buy enough...' ?
Im not a english native speaker so excuse any grammatical errors.
most 'long term investors' fail not because their broker charge them $10/month.... they fail because when the market is going up they all think they can be there for the 'long haul', but the moment the market drops, they can't sleep, can't take the pain, have to sell at the bottom so the pain can go away.
ask yourself, how much draw down can you handle without losing sleep? if it's $10k, then that means you can only buy $20k of stocks, even if you have $500k in hand.... you have to put the other $480k in bank CD... that's what I meant.
Perfect.Thank you for the response!Exactly. They charge per user account (login&password), not by trading account (Uxxx account number). If you have multiple trading accounts you will be able to select the trading account to which the fees (e.g. market data subscriptions) are to be charged to.