Money & Investing - Banks.com

One of the more exciting things to happen around the Banks.com neighborhood is the recent acquisition of MyStockFund.com. This is actually a really cool way to get started with investing.

For many beginners, it can be daunting to open an investment account. And there are many online investing brokers that can help you ease into the process. MyStockFund, though, has some features that I really like — features that make stock investing a little easier:

• Fractional investing. This is when you buy portions of a share, rather than a whole share. So, if a share costs $80, and you only have $40 to invest, you would get half a share. If you had $100 to invest, you would get 1.25 shares. This method is very helpful in conjunction with dollar cost averaging or a “buy and hold” strategy.
• Low commissions. It is possible to make trades for as little as 99 cents. There are also investing plans with special pricing, and a promotion going on right now to allow you to waive the subscription fee on one of the accounts.
• No minimum balance. Some online investing services require you to hold a minimum balance. When getting started, this can be difficult. Most beginning investors don’t have $2,000 to $5,000 just laying around to get started with.
• Investment amounts start as low as $10. Many times, an investment account will require at least a $50 minimum per investment. MyStockFund makes it easy to get started with a $10 minimum.
• Dividend reinvestment. Once of the most investment strategies is to reinvest dividends. You can get free dividend reinvestment on MyStockFund. It is also possible to set up your investment account so that dividends are automatically reinvested.
• IRAs. Not every online investing Web site offers retirement account options. You can open an IRA and start saving for retirement — or beef up your retirement savings — with help from MyStockFund.

Bottom line: While it may not be the best option for all investors, MyStockFund is a great service for beginning investors. And, really, day traders can still benefit by setting up an account and taking advantage of the low commissions.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional.

Tags: stock investing blog, stock investing news, online investing, fractional investing,
retirement accounts, investment account, investing plan