There are often stock trading costs. So, you’re brand new to the market and you want start trading but how much does it actually cost to trade? Let’s break it down. So, the first category is the one time payments. So, one time, meaning it is only just a onetime cost and then, after that, you’re good to go and that comes in a couple different forms and it’s kind of up to you.
Cost Related With Trade
The first is going be a phone. Now, obviously, the good news here is most people had phones anyways, just, well, to call people, to text people, you get the point, but, if you do plan on trading from your phone, then that is going to be a cost that is going to be something that you need to trade with. Another portion, a computer. Now, is that required? Well, it depends, and it depends on what sort of strategy and such you’re going do.
The third and the thing that a whole lot of people overlook is education. Again, all three are technically optional because maybe you don’t want trade on your phone or maybe you are just going trade on your phone so you wouldn’t need a computer, tablet, a lot of people, whatever, call you a scammer, I’m not going to pay for education, that’s fine, that’s fine, odds are, you’re going to be in the 90% failure rate but we’re not going to cross that bridge anymore.
So, again, these are just what’s basically allowing you to trade. You need those or else you just can’t trade at all. The next category is going be recurring, so we’ll just call it re, meaning over and over and over again, these costs are going to happen. Now there’ different categories done within here so I want to break this down. It is what it is, there’s no choice at all. And the first one of these musts is going to be the internet. Or, again, phone.
Managing the Costs
Good news here, though, kind of like the phone is, odds are, you already have the internet, you already have a data plan for your phone, so, that cost is already being absorbed in your budget anyways because, well, it’s already there, but, again, if you want to trade, that’s something that you must have, there’s no way around that. Heck, even if you want call in your orders through your broker, don’t do that, that’s super expensive, but, in that point, you still need a phone, so, like I said, literally no way around this. The other point here is going be broker fees and commissions. There’s no way around those.
Maybe basic is okay for you but if you’re looking for more complex things, if you’re looking to get into real short term day trading, then, yeah, those brokers just aren’t going to work for you but one way or another, if you’re ever going get serious about trading, then, yeah, you’re going to have brokers fees and commissions but those are just roll into your actual trade itself, they’ll change the cost structure and cost, fix your cost bases, but don’t worry about that stuff, just know that that is a cost that’s associated with it but don’t let that intimidate you, it’s nothing to worry about. Of course you want to get the lowest cost possible, you want to do your research, find brokerages with good solid fees, I’ll put a link down below to an article I wrote about different brokerage you can use but that’s another must that there’s no way around.
And then over here, we’ll call this choice. Meaning it’s up to you if you want to take on these costs that’ll happen over and over again, usually per month but there’s all sorts of different packages maybe every quarter, every year, but these are just choices up to you, first one being, charts, technical charts. How much you spend per month, how little you spend per month, it just depends on your strategy, what you’re trying to accomplish, what sort of tools you need, and what sort of outcome you’re looking to create in terms of your approach and strategy to the market.