201 Investing: how to find the best low-cost methods for buying stocks and mutual funds - Investing Part 2 Of A Series - Statistical Data Included

Black Enterprise, Dec, 2001 by Matthew S. Scott, Christine Albano

Although Love opened his account with EquiServe, Nelson says you can open an account with Temper Enrollment Service (800-295-2550). Temper charges $30 per company to set up an account, but if you subscribe to The Moneypaper, you'll pay $15.50 per company (a subscription costs $90 annually, but first-time subscribers receive a promotional price). Then, you can purchase up to 100 shares at a time for the cost of the shares plus a $5 fee. Some companies also charge additional fees to participate in their direct stock purchasing programs. "The reason we like DRIPs investing is because anytime you have a few dollars, you can send it over to the company and it gets invested in your account with the companies you've chosen, whether it's a whole share or a quarter of a share," says Nelson.

So whether you're investing by yourself or you are starting an investment club, using many of these low-cost investing choices may work for you. Just remember to research religiously, invest in what you know, and maintain a commitment to investing small sums over the long haul.

"Money will work harder for you than you ever can for yourself," says Love. "Once you start a systematic savings plan, you just need to be consistent and then you'll see just how much you can have. You've just got to have patience."

LOW-COST INVESTING RESOURCES TO HELP YOU GET STARTED

ONLINE BROKERS

www.buyandhold.com--no investment minimum, $6.99 per month with two free trades; $2.99 per transaction thereafter.

www.sharebuilder.com--no investment minimum, $4 per trade.

www.mydiscountbroker.com--no investment minimum, $12 per trade, and no-fee IRA accounts.

www.scottrade.com--$500 minimum investment, $7 per trade for market order and $12 for limit order. No fee if you hold shares 90 days, $17 if you trade before 90 days. No inactivity fee.

www.tdwaterhouse.com--$1,000 minimum investment, stock trades for up to $15, and 170 branches nationally.

www.ameritrade.com--$2,000 minimum investment, $8 per trade for Internet equity market order, $13 for Internet stop or limit order.

DIRECT STOCK PURCHASING PROGRAMS

www.netstockdirect.com--provides a database of 1,600 companies that offer direct stock purchasing plans (DSPs), Dividend Reinvestment Plans (DRIPs), and access to a Mutual Fund Center.

www.moneypaper.com--newsletter and brochure lists companies with direct investment programs.

www.equiserve.com--largest securities transfer agent in the world, listing 1,400 companies with direct investing programs,

www.directinvesting.com--lists information on enrolling in direct investment plans.

BOOKS

The Walt Street Journal's Guide to Understanding Money and Investing by Kenneth M. Morris, Virginia B. Morris, and Nan M. Siegal Simon & Schuster, $15.95

The Motley Fool's Investing Without a Silver Spoon by Jeff Fischer Motley Fool, $15

Black Enterprise Guide to Investing by James A. Anderson John Wiley & Sons, $19.95

INVESTOR WEBSITES

Blackenterprise.com--Black Enterprise Magazine

Fool.com--The Motley Fool

Nasd.com--National Association of Securities Dealers Inc.