Hi everyone!I'm going to buy some stocks(long term investment) of Amazon,Apple,Take-Two Interactive and also invest on the SP500.I'm planning to keep them for a minimum of 8-10 years.So i was wondering what it would be the best option for me.Is recommended to do long term investments with brokers like IB for example?(i used IB for the example because i think im going to open an account with them when i start daytrading since with them i can use DasTrader and for me is the most comfortable platform that i have used.So first question: would you recommend me having an account for day and swing trading with a broker,and another one with another broker for long term investments(i mean for the differents fees and all of that)?Or is unnecessary?I'm asking this because i personally dont know the method that "normal' long term investors apply when investing.I mean,aren't the overnights fees going to take a lot of percentage of my earnings(since im planning to keep the stocks for a very long period of time? Thanks in advance!
broker doesn't matter. make sure you only buy enough that a 50% draw down will still allow you to sleep well.
I use IB for both, especially as they pay the best interest on unused cash in the account. But they may charge $2-$10 per month if you don’t reach their minimum and don’t generate that much in commissions: https://www.google.com/search?q=interactive+brokers+monthly+fees You can also create a sub-account that you can fund and manage separately, though with the same login. This could help you to stay away from your trading capital. Though I don’t know if that sub-account would have its own fees and minimum requirements.
Depends where you're from, if from US, there are actually some free commission brokers that offer a free stock on sign up which is a better deal than others. PM me if interested
So buying stocks and keep them for 20 years with Interactive Broker(or any other online broker) for example isnt going to kill me with the overnight fees?Is there a way to buy stocks without an online broker?Like with a bank?Or i can do well managing my investments only with online brokers?I'm asking this because im new to the long term investments world so i dont know what the average investor do. PD:By the way,what did you mean when you said 'make sure to buy enough...' ? Im not a english native speaker so excuse any grammatical errors.
Well, sure, you can just buy something long-term through any major bank. Doesn't have to be a "broker" per se. Take a look at www.vanguard.com? Just one of many, but they have very competitive fees for their funds. Speak with one of their reps on the phone, and explain to them your financial plans. And ask them about the difference between "passive" and "active" funds. That should set you on the path to long-term investing.
Another option would be buying insurance(puts, deep deep puts). Oversimplified opinion but a consideration to be had.
If you are going to buy and sell often you should investigate the costs of trading (i.e. commissions). If you are only going to buy and hold, then your amount of trading will be very low and commissions does not have an impact on your total results. In this case do you need to investigate whether the broker or bank will charge you any kind of administrative fee. This is for each bank different (and they often use different terms for this), so a general answer is difficult to give. For a long term investments do you want to have a broker or bank which you trust. You don't want them to suddenly disappear or go bankrupt. In my case: I hold two accounts at IB. One for trading, the other one for long term investing.
IB doesn't charge minimum fees if NLV is more than 100k. No need to pay data fee for LT investing. Get delayed quotes. P&L will be still accurate. So basically no fees except commissions for the initial purchase.