Quote:
Originally Posted by Maroel
Ok so I was ready to buy my first stock after reading some information and the first problem I find, the ridiculous high fees you have to pay for every trade.
Seems like the rake problem is not only a poker problem...
There is an app called robinhood where you can buy stocks without paying fees but it is not available in my country.
Anyone have any tought about this? Any way to make my investments safely and without paying those ridiculous fees?
I'm not too familiar with robinhood.
The amount of money spent in the trade is trivial in comparison to the amount that it grows by. The organization that you are using gets money through trades otherwise they have no money to keep their business afloat.
Here is a story problem:
There is Alice and Bob who both have $3000 each.
Alice uses her $3000 to purchase XYZ stock with a fee of $7. She now has $2993 of value. Now, fast forward a year and that stock increased by 10%. Alice now has 2,993 * 1.10 = $3,292.30
Bob decides he doesn't like the $7 fee and puts his money in the bank instead where it collects 0.0000000000001% interest.
Alice has $3,292.30
Bob has $3,000
Alice has $292.30 more than Bob which will compound yearly.
tl;dr
Be Alice not Bob.