Earn money by trading online – June 27, 2011

(Money Magazine) – Recent price wars and brokerage innovations benefit not only day traders, but also buy-and-hold investors.

Faster

Go to FolioInvesting.com. It offers dozens of premixed portfolios with up to 100 stocks each, such as Moderate (holdings include Comcast blue chips (CMCSAFortune 500) and Humana (HUMFortune 500)) and dividend yield (Abbott Labs (ABTFortune 500), 3M (MMM, Fortune 500)). Disclaimer: Transactions are only processed twice a day.

Time it takes: Maybe five minutes.

How much does it cost: The flat-rate plan costs $290 per year for unlimited stock trades.

Cheaper

Choose a broker with very low prices. Some online brokerages now allow you to buy stocks almost as cheaply as possible via an old-fashioned dividend reinvestment plan (go to dripinvestor.com for more information) and in a much more flexible way. Blain Reinkensmeyer, head of StockBrokers.com, which ranks brokerages, calls Sharebuilder.com “a good deal for long-term investors who want to make regular automatic investments” in individual stocks. (Automatic investments are executed twice a week.)

Time it takes: About 10 mins.

How much does it cost: The Sharebuilder’s Advantage plan gives you 12 automatic investments for $12 per month; these additional investments are $1 each; other trades are $7.95.

Better

Time it takes: How much time do you have?

How much does it cost: $7.95 per online transaction. To the top of the page

First published: June 27, 2011: 10:36 a.m. ET

Comments are closed.