Buying stocks

[Kaitlyn]

I have never bought stocks before but would like to start buying stocks - not a LOT.

What are affordable options for lower-$$ investors?

[engo]

I think etrade has low commission charge.

[sexpuppet6000]

etrade is 20 to buy and 20 to sell

that does not sound cheap to me

[ghostryder]

DRIP's that allow OCP's (optional cash purchase)

Cost: 1 stamp, 1 envelope, 1 cheque.

[Capt.]

ghostryder, how can I find out if I can buy a company's stock through DIPs? Sounds like that could be perfect for me.

[sexpuppet6000]

DRIP's that allow OCP's (optional cash purchase)

Cost: 1 stamp, 1 envelope, 1 cheque.

sounds like an awful hassle

[thelefteyeguy]

Here's a comment for you.

If you can't even do a very simple search on which brokerage to buy stocks from...you probably not going to do any research on the stocks you're going to buy right?

Best Luck to you.

[ghostryder]

ghostryder, how can I find out if I can buy a company's stock through DIPs? Sounds like that could be perfect for me.

Check the company's website, there should be info in the Investor Relations / Shareholder services section.

for example : http://www2.bmo.com/content/0,1151,divId-3_langId-1_navCode-3146,00.html

Not including Income Trusts there are ~20 companies that can be done this way.

Find a copy of Canadian Money Saver magazine, they always have a chart in there.

Read Robert Gibb's articles here: http://dripinvesting.org/articles/articles.htm so you know what you are getting into.

Another good place for info: http://dripinvesting.org/Boards/Boards.asp


sounds like an awful hassle

Everything has an upside and a downside. The upside to DRIPs is avoiding brokerage fees and minimum account size restrictions.

But be forewarned, DRIPing suits long term buy and hold type investors for whom the limitations of DRIP's are not significant.

[J_u_n_i_o_r_3]

not worth it if you are looking to trade stocks consistently

[Capt.]

Thanks for the very helpful post ghostryder. I'm still weighing all my options before doing anything with stocks, definitely not jumping in.

lefteye here's a question for you, you never ask for others' opinions, personal experiences, general thoughts, etc. about things? If not, I'm surprised you bother coming on a forum at all.

Sorry to hijack your thread a bit OP but I'm in the exact same boat as you.

[thelefteyeguy]

Thanks for the very helpful post ghostryder. I'm still weighing all my options before doing anything with stocks, definitely not jumping in.

lefteye here's a question for you, you never ask for others' opinions, personal experiences, general thoughts, etc. about things? If not, I'm surprised you bother coming on a forum at all.

Sorry to hijack your thread a bit OP but I'm in the exact same boat as you.

I do but not until I do some preliminary research.

The reality of the stock market is harsh and not for someone that is lazy.

You can easily do a search on this site for lots and lots of recommendations on brokerage / commissions fees. You don't need to even go very far to look for answers.

In fact there is a thread specifically for questions to a questrade rep with over 22K views already.


If you've done your homework, I'd be glad to provide ppl on this forum with lots of info, and opinions.

[Capt.]

Yes I read through the Questrade & E*trade threads, plus a bunch of others that I found on here. None of the stuff I came across mentioned DRIPs, DIPs, or OCPs. Correct me if I'm wrong, but those are still brokers and therefore not direct purchases from the companies so not sure why they are relevant in this specific discussion.

[ghostryder]

None of the stuff I came across mentioned DRIPs, DIPs, or OCPs. Correct me if I'm wrong, but those are still brokers and therefore not direct purchases from the companies so not sure why they are relevant in this specific discussion.


No. True (or "pure") DRIPs are for people who are registered shareholders and you make your purchase via the company's transfer agent. The transfer agent is not a broker.