Page 1 of 2 12 LastLast
Results 1 to 30 of 39

Thread: Stupid questions : How does Scottrade work?

  1. #1

    Stupid questions : How does Scottrade work?

    I'm very tempted to do stocks now that we're at 11 year low.

    Here are my Q's

    1. How do you fund your account? (Wire transfer? Credit card?)

    2. Do you fill a tax form upfront and file next year? Or is it withheld?

    3. How do you cash out?

    4. Is it only $7 regardless of buy, sell, how much you trade? No other fees?

    5. Is there any law or rule against trading the same stock back and forth?

    6. Theoretically, if I put in $100, I can put $93 to buy whatever I like, then if it rises 20%, I can sell it for about $111.50, minus $7, $104.50. How soon can I have this money to spend on groceries?

    7. Anything else I should know?

    YES, I know stocks are not the best investment, I'm only investing what I'm planning to lose.



  2. Remove this section of ads by registering.
  3. #2
    Quote Originally Posted by Josh_LA View Post
    I'm very tempted to do stocks now that we're at 11 year low.

    Here are my Q's

    1. How do you fund your account? (Wire transfer? Credit card?)

    2. Do you fill a tax form upfront and file next year? Or is it withheld?

    3. How do you cash out?

    4. Is it only $7 regardless of buy, sell, how much you trade? No other fees?

    5. Is there any law or rule against trading the same stock back and forth?

    6. Theoretically, if I put in $100, I can put $93 to buy whatever I like, then if it rises 20%, I can sell it for about $111.50, minus $7, $104.50. How soon can I have this money to spend on groceries?

    7. Anything else I should know?

    YES, I know stocks are not the best investment, I'm only investing what I'm planning to lose.
    A lot of questions.

    1. Wire transfer, or go to a office and drop off cash or money order. I think you can mail in money orders, too.
    2. No. Depending on what type of account, you'll get a tax form at the end of the year.
    3. Depending on the account. If you have a 401, they would be penalized, so, you have to set up an individual account.
    4.Pretty much. Nothing to worry about.
    5. There is a day trader rule. Just don't make over 3 trades a day for several days in a row, or maintain the cash balance needed for day trading
    6. Yes, depending on the type of account, and being general...less than two days
    7. When you sign up, you will be greeted by an online chat window to guide you through any questions you have.
    Last edited by TruthisTreason; 03-03-2009 at 12:14 PM.
    Hear Congressman Paul's weekly legislative update toll free 888-322-1414

  4. #3
    Quote Originally Posted by TruthisTreason View Post
    A lot of questions.

    1. Wire transfer, or go to a office and drop off cash or money order. I think you can mail in money orders, too.
    2. No. Depending on what type of account, you'll get a tax form at the end of the year.
    3. Depending on the account. If you have a 401, they would be penalized, so, you have to set up an individual account.
    4.Pretty much. Nothing to worry about.
    5. There is a day trader rule. Just don't make over 3 trades a day for several days in a row, or maintain the cash balance needed for day trading
    6. Yes, depending on the type of account, and being general...less than two days
    7. When you sign up, you will be greeted by an online chat window to guide you through any questions you have.

    TruthisTreason covered most things, but just to clear some things up.

    3. You can get a wire transfer or a check.

    4. $7 per trade unless the stock is under $1, then its $7+.5% of capital invested.

    5. Day trading rule, limit of 4 (so 3) day trades in a rolling 5 business day period. A day trade is buying and selling the stock the same day. You can sell it and buy it back the same day without a problem, or buy it at 4pm the day before and sell at 9:30am the next day without a problem.

    7. Ive used Scottrade for years and I've never had a problem. They even gave me my money back when someone hacked my account and bought a pennystock and lost my money. I think its $500 minimum to start an account, but no min or fees after that.

  5. #4
    Quote Originally Posted by Josh_LA View Post
    I'm very tempted to do stocks now that we're at 11 year low.

    Here are my Q's

    1. How do you fund your account? (Wire transfer? Credit card?)

    2. Do you fill a tax form upfront and file next year? Or is it withheld?

    3. How do you cash out?

    4. Is it only $7 regardless of buy, sell, how much you trade? No other fees?

    5. Is there any law or rule against trading the same stock back and forth?

    6. Theoretically, if I put in $100, I can put $93 to buy whatever I like, then if it rises 20%, I can sell it for about $111.50, minus $7, $104.50. How soon can I have this money to spend on groceries?

    7. Anything else I should know?

    YES, I know stocks are not the best investment, I'm only investing what I'm planning to lose.
    Funny coincidence.... I just got back from my local scottrade branch about 20 minutes ago.
    I just opened an account. It's my first brokerage account, so we can learn together.
    See: http://www.ronpaulforums.com/showthread.php?t=182162

    I'll answer your questions to the best of my ability in a minute

  6. #5
    Here are my A's

    1. You can fund your account several ways. The easiest way is by linking it directly to a checking/savings account you have at a bank. If you have access to online banking through your bank, you can set this up instantly. If you don't then they make two microdeposits to your bank account that you will use to verify it is your account. This takes 2-3 days.

    Additionally, you can send them a check, money order, or do a wire transfer.

    2. I don't know how this works yet

    3. Same way you cashed in. If you have your scottrade account linked to your bank account, you can transfer the funds directly to it. This either will occur instantly, or take 2-3 days. I'm not sure yet.

    4. Yes

    5. I don't think so, but I'm not sure

    6. See #3. Also, the minimum opening balance is $500, so u cant just put in $100

    7. You must go to the local branch office to open your account. You can fill out the application online, but they will then call/email you to tell you that you have to come into the office so they can photocopy your state ID before your account is active.

    Also decide if you want options or margin access on your account before you set it up. Since you are new at this, you most likely dont want either.
    Last edited by brandon; 03-03-2009 at 01:06 PM.

  7. #6
    I also have a question to add:

    If I put in a limit buy/sell order that is never executed, do I still have to pay the commission/fees?

  8. #7
    Brandon was spot on with his answers.

    Regarding tax stuff. I just made my first purchases last week. After your purchases go through, on one of your subsequent logins they will bring you to a page they tell you to print to keep for your tax records. I printed and saved the page (I retain electronic and hard copies of everything).

    Sucks for me though. I invested in APL on Friday. Monday they released Q4 results and they weren't too good. I bought in at $5.46 now trading at $3.61

    Oh well, I'm in it for the long haul. I'm pretty sure APL will come back once oil and natural gas start going back up in price and my other stocks aren't doing too badly.

  9. #8
    Quote Originally Posted by brandonyates View Post
    I also have a question to add:

    If I put in a limit buy/sell order that is never executed, do I still have to pay the commission/fees?
    I pretty positive the answer is no.
    Hear Congressman Paul's weekly legislative update toll free 888-322-1414



  10. Remove this section of ads by registering.
  11. #9
    generally limit trades will cost you more than the $7 "market" trade amount. check the fees on limit trades.

  12. #10
    Quote Originally Posted by brandonyates View Post
    6. See #3. Also, the minimum opening balance is $500, so u cant just put in $100
    So I have to put in $500, but I can let it sit and only play with $100?

  13. #11
    Quote Originally Posted by Josh_LA View Post
    So I have to put in $500, but I can let it sit and only play with $100?
    yep.

    It's not really a good idea to make orders for only $100 though. the fee to buy it and sell it will consume 14% of your initial investment, (as you pointed out above.)

    Personally, I would stick to orders worth at least $300

  14. #12
    Quote Originally Posted by surf View Post
    generally limit trades will cost you more than the $7 "market" trade amount. check the fees on limit trades.
    Not at Scottrade, no matter the type, it's still $7, (unless the stock is under $1)

  15. #13
    Quote Originally Posted by brandonyates View Post
    yep.

    It's not really a good idea to make orders for only $100 though. the fee to buy it and sell it will consume 14% of your initial investment, (as you pointed out above.)

    Personally, I would stick to orders worth at least $300
    thanks, just thinking worst case scenarios. What I'm allowed to lose.

  16. #14
    Quote Originally Posted by TheState View Post
    Not at Scottrade, no matter the type, it's still $7, (unless the stock is under $1)
    So you mean if company XUI is $.50 a share

    Even if I buy 200 shares for $100, it's still considered "under a dollar" so I have to pay $7 + x%?

  17. #15
    Quote Originally Posted by Josh_LA View Post
    So you mean if company XUI is $.50 a share

    Even if I buy 200 shares for $100, it's still considered "under a dollar" so I have to pay $7 + x%?
    Correct, it will be $7 + .5% of $100, so $0.50, so $7.50 total. If my math is correct hah

    This is only for stocks under $1

  18. #16
    Quote Originally Posted by TheState View Post
    Correct, it will be $7 + .5% of $100, so $0.50, so $7.50 total. If my math is correct hah

    This is only for stocks under $1
    I see, so if I'm stupid, I can still buy $1 worth and pay $7+ fees.



  19. Remove this section of ads by registering.
  20. #17
    Quote Originally Posted by Josh_LA View Post
    I see, so if I'm stupid, I can still buy $1 worth and pay $7+ fees.

    Correct.

  21. #18
    Quote Originally Posted by TruthisTreason View Post
    5. There is a day trader rule. Just don't make over 3 trades a day for several days in a row, or maintain the cash balance needed for day trading
    So 3 transactions a day period?

    Or are there accounts for frequent traders?

  22. #19
    Use the referral system to get 3 free trades.

    Let me know and I will give you the link of mine so we both get 3 free trades.

  23. #20
    Quote Originally Posted by TheAmistad View Post
    Use the referral system to get 3 free trades.

    Let me know and I will give you the link of mine so we both get 3 free trades.
    I think I will do that, but I'm open, shall I make this an auction?

  24. #21
    Quote Originally Posted by Josh_LA View Post
    So 3 transactions a day period?

    Or are there accounts for frequent traders?
    You can have unlimited day trades if you have over $25,000 in your account. Otherwise you are limited to 3 daytrades in a rolling 5 business day period. These are ONLY when you buy and sell the same stock the same day. NOT if you sell and re-buy, or just make 10 buys of separate stocks, etc..

    You have unlimited transactions, just 3 daytrades.

  25. #22
    I've been thinking about something like this for a long time, but never really remembered to actually look anything up on it, though. However, I have just one tiny little question, would it be OK for a poor person who really needs every dime he has (as well as having a family of four) to try something like this? And what trade companies exist online that are decent and, I guess, the lowest in charges?

  26. #23
    Quote Originally Posted by EgwaTlvdatsi View Post
    I've been thinking about something like this for a long time, but never really remembered to actually look anything up on it, though. However, I have just one tiny little question, would it be OK for a poor person who really needs every dime he has (as well as having a family of four) to try something like this? And what trade companies exist online that are decent and, I guess, the lowest in charges?
    I'm afraid I can only answer the second part of that question hah. Scottrade is about the cheapest out there if you want instant trades. With some companies, you can get cheaper, like $3 a trade, but those won't be instant trades. The trade will go through at the end of day or something similar. They will also have limited trade types.

  27. #24
    I doubt this is the bottom for stocks.



  28. Remove this section of ads by registering.
  29. #25
    Is there any way to invest in foreign stocks through scottrade?

  30. #26
    Quote Originally Posted by danberkeley View Post
    I doubt this is the bottom for stocks.
    just getting ready & feet wet

    More questions :

    1. Can you trade a $30 stock for 2 $15 stocks? Or do you have to sell A, then take your money to buy B?

    2. Is $7 a transaction fee? Or, basically if :

    I want $300 in stock A
    And $200 in stock B
    another $100 in stock C

    Is there a way I can put them all in a shopping cart to pay $7 total at once? Or must they all count as one transaction, thus, $21 for 3 trades?

    3. If Google is $350 a share, can I only buy one share at a time, and not a portion of it if I have less than $350?

  31. #27
    Quote Originally Posted by Josh_LA View Post
    just getting ready & feet wet

    More questions :

    1. Can you trade a $30 stock for 2 $15 stocks? Or do you have to sell A, then take your money to buy B?

    2. Is $7 a transaction fee? Or, basically if :

    I want $300 in stock A
    And $200 in stock B
    another $100 in stock C

    Is there a way I can put them all in a shopping cart to pay $7 total at once? Or must they all count as one transaction, thus, $21 for 3 trades?

    3. If Google is $350 a share, can I only buy one share at a time, and not a portion of it if I have less than $350?
    1. Must sell stock then buy new stock. Can't trade stock for stock.
    2. No shopping cart. You have to pay 7 for each different stock. $21 for 3 trades
    3. Can't buy a portion, you have to buy the whole thing.

  32. #28
    I use ameritrade. It may seem high a 9.99 a trade but there are really 0 fees with the account so no supprises, no limits on trades that I know about. Funding is quick and you can tie in ACH direct to your bank. The iphone app alone is worth the 2$ a trade to me.

    Start an account with $2000 and you get unlimited trades for 30 days. I only ended up using about 20 trades during the time. Should have been up 30% if I trusted the trades and the people I was listening too. I'm up 10% even with the fees.. but just getting involved I've learned tons.

    Also, the phone service at Ameritrade has always been helpful.. but I have had any issues that have been too involved yet.

  33. #29
    Quote Originally Posted by Ethek View Post
    I use ameritrade. It may seem high a 9.99 a trade but there are really 0 fees with the account so no supprises, no limits on trades that I know about. Funding is quick and you can tie in ACH direct to your bank. The iphone app alone is worth the 2$ a trade to me.

    Start an account with $2000 and you get unlimited trades for 30 days. I only ended up using about 20 trades during the time. Should have been up 30% if I trusted the trades and the people I was listening too. I'm up 10% even with the fees.. but just getting involved I've learned tons.

    Also, the phone service at Ameritrade has always been helpful.. but I have had any issues that have been too involved yet.
    what is their minimum to start?

  34. #30
    From the ameritrade site.

    Account minimums

    * There is no minimum funding required to open an account
    * Accounts funded with less than $1,000 are not eligible for any promotions
    * Electronic funding minimum is $500
    * Margin or option privileges on account require a minimum of $2,000

    No maintenance fees

Page 1 of 2 12 LastLast


Similar Threads

  1. Replies: 34
    Last Post: 09-01-2016, 01:00 PM
  2. 8 Stupid Questions Obama Is Willing To Answer
    By rdhall in forum Ron Paul Forum
    Replies: 0
    Last Post: 08-17-2012, 03:57 PM
  3. Ending on Stupid Questions
    By Richandler in forum CNN/YouTube Debate
    Replies: 1
    Last Post: 11-28-2007, 09:10 PM
  4. Replies: 5
    Last Post: 08-27-2007, 05:55 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •