So I am thinking of turning some of my return into investments . I figure I can get away with about $500 or so to start with . I know it isn't much , but I have to start some where . I don't think a planner will touch an amount that small , so I need to do it my self . Which online trader should I use ? Which ones should I avoid ?
Any tips ?

I can give you one tip- with $500 there are a lot of online trading services that will charge you unless you are activly trading (1 trade every quarter or something). A lot of them (like e-trade (who I'm with) require (IIRC) you to have at least $5000 for that fee to be waived. MAKE SURE you read through the agreement of each.

You might just be better off buying stock through a broker and getting the certificate. When I got my first stock (when I was VERY young), I bought 10 shares of wrigleys at $20 (post split- really 5 shares at 40)- only $200. What is nice about that company is that they have a dividend reinvestment plan (DRiP)- and every quarter I get my statement and there is a little form I can fill out and send in a check to buy more stock directly - skipping the broker. I would suggest going that route with the money you are going to invest (don't necissarily have to get wrigleys (WWY) there are other companies that have DRiP plans)

ETA- There are also many stocks with Direct Purchase Plans (DPP) where you can purchase stock without already having been an investor like DRiP. Here is a link of a whole bunch of DPP/DRiP companies www.wall-street.com/directlist.html

Many of theese companies will tell you how you can directly invest in their company under the 'investor relations' portion of the website. For instance here is Procter & Gambles investor relations site www.pg.com/investors/sectionmain.jhtml and just click 'How to Invest in P&G' and it makes it quite easy to do so.

www.scottrade.com/

Quoted: www.scottrade.com/

Do they give you a certificate of what you own ?

Stocks these days are held in "street name."  It is almost compeltely obsolete to get actual stock certificates, nor is it necessary.  Your investments are safe, don't worry.

Quoted: Quoted: www.scottrade.com/ Do they give you a certificate of what you own ?

They are legit, send statements, dont worry about that.  Also the only online broker with a minimum account balance of $500 I know of.

Quoted: Quoted: www.scottrade.com/ Do they give you a certificate of what you own ?

Who does that anymore?

Great attitude with your thoughts on saving some cash.  However, with $500 go with a mutual fund.  If you really feel you must own stock of one company, I would put the whole wad into Altria (MO) and let it ride.

Quoted: Great attitude with your thoughts on saving some cash.  However, with $500 go with a mutual fund.  If you really feel you must own stock of one company, I would put the whole wad into Altria (MO) and let it ride.

On  no the mutual fund is for the IRA . I am diversifying a little .

Quoted: Great attitude with your thoughts on saving some cash.  However, with $500 go with a mutual fund.  If you really feel you must own stock of one company, I would put the whole wad into Altria (MO) and let it ride.

You could do a lot worse than Scottrade + Altria.

I have been 100% satisfied with Scottrade.  And tobacco stocks.  Thier min is $500 and they don't charge quarterly fees or maintaince or anything like that*



* they didn't when I started my account and have never charged me but there is always the chance they changed something.

Go MO!

Quoted: Quoted: Great attitude with your thoughts on saving some cash.  However, with $500 go with a mutual fund.  If you really feel you must own stock of one company, I would put the whole wad into Altria (MO) and let it ride. On  no the mutual fund is for the IRA . I am diversifying a little .

Quoted: www.scottrade.com/

+1

I have accounts with Scottrade and Firstrade  - I actually prefer Firstrade - They have electronic deposits/withdrawls (Scottrade just got hacked a few months ago, and stopped elec transfers); and they allow for automatic re-investments. No minimum and no maitenance fees, $6.95 a trade and a lot of free/no fee mutual funds. Their website is not as user friendly as Scottrade, but I like 'em...Just my $.02...