ShareBuilder Review – Stock Broker for Automatic Investing

ShareBuilder has been around for a while and for most people who just want to accumulate wealth, this stock broker offers a solid and unique alternative that works.  Let me explain in this review why I think ShareBuilder might be for you.

The ShareBuilder System

sharebuilderWe all know that automatic investing is a great way to build wealth because it takes our emotions out of investing.  However, many readers have always asked me how they can automatically invest in the stock market when there isn’t a clear way to regularly put money into investments apart from our 401k plan.  Usually, I point them to ShareBuilder.

The system works like this.  Once you open an account at the online investing site, you pick your investments (whether it’s mutual funds or stocks) and setup a schedule to invest.  You can invest a certain amount every week, month or even the first Tuesday of every month.  The idea is that once you set it up, you can forget about it while your money grows.

ShareBuilder Pricing

There is a three tiered pricing that you can pick from:

  • Basic – Each Investment will be $4, so if you want to buy once a month, it’s $4 per month.
  • Standard – This is their most popular plan and entities you to make 6 investments per month for a price of $12.
  • Advantage – For $20 a month, you can schedule 20 investments and each additional investment is just $1.

In addition, you can invest in the ING family of mutual funds for $0 as long as each investment is $100 or more regardless of the pricing plan you are currently on.

Click here to Open an Account Now

Regular Trades

You can actually trade regular stocks real time instead of scheduling it but I wouldn’t recommend this even though it’s only $9.95 per trade.  If you want to do that, I’d just go with something like TradeKing or Etrade.

Is ShareBuilder Right for Me?

ShareBuilder is so far the only stock broker I know of that offers an affordable way to automatically invest in stocks.  Add to the fact that there are no account maintenance, inactivity fees and no account minimums, the broker offers customers a more relaxed way to build wealth over time.  For those that believe stocks are the way to go but don’t want to deal with trying to time the market, ShareBuilder is worth a look.

{ 2 comments… read them below or add one }

Stock Reports May 24, 2010 at 8:58 pm

many readers have always asked me how they can automatically invest in the stock market when there isn’t a clear way to regularly put money into investments apart from our 401k plan. Usually, I point them to ShareBuilder.

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lalit kumar April 5, 2011 at 5:02 am

learn trading with charts

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