I probably take this to the extreme.
I buy things in very small increments, $10-$100, or 1 share at a time, but pay no commissions by using the right brokers and/or DRIP programs.
Every once in a while I'll make a bigger purchase and pay the typical broker commission of $8 or so. I only do this when I really want something. In this case I try to keep my fees to < 1%, usually < 0.5%.
Really interesting argument. Thanks for this.
I buy things in very small increments, $10-$100, or 1 share at a time, but pay no commissions by using the right brokers and/or DRIP programs.
Every once in a while I'll make a bigger purchase and pay the typical broker commission of $8 or so. I only do this when I really want something. In this case I try to keep my fees to < 1%, usually < 0.5%.
(04-03-2014, 10:10 AM)EricL Wrote: I generally invest in increments of $500 with a transaction cost of $8.95. This allows me to make a purchase every other month based on contributions from me/my employer into the 401K.
The majority of the stocks I own fluctuate more than 1% on a daily basis, I'm really not concerned about paying a 1.8% commission to buy when I want to and it seems really silly to me to wait another two months to make a buy with a $1000 lot just so I can save 0.95% in transaction costs.
Really interesting argument. Thanks for this.