Quote:
Originally Posted by Agamemnon
I'd worry a lot about it... if it costs $25 to buy and $25 to sell (regardless of how much as far as I can tell), that's $50 right there... if you're only buying $500 in stock you've automatically lost 10%.
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Well you are going to worry about it almost the same amount if you find a joint that will do $20 or less commissions.....$20 is still 8%. Not sure what your point is. Yes it costs something to invest. If you want to have effective transaction costs, then buy no load mutual funds. But look out for the managers fee that comes off every year.
Anyway...it is implied in my prior post that hopefully you are looking at a decent size investment to start off with or you are looking for some outsized returns to occur. and holding it beyond a year makes that dent a little less relative to annualised returns.